Housing Excellence
A private sector partnership has launched a £1bn housebuilding fund intended to deliver 10,000 new homes on public sector land across the UK.
Kier Living, part of the FTSE250 listed Kier Group, has joined forces with investment management firm Cheyne Capital’s Social Property Impact Fund, and the Housing Growth Partnership (itself a joint venture between Lloyds Banking Group and the Homes and Communities Agency) to launch the New Communities Partnership.
Described as a “unique public-private alliance” it is claimed to offer local authorities and housing associations an “innovative delivery model” for building new homes on public sector land. It is said to offer them the choice between sale and/or rental developments and “offers significant scope” for allegedly affordable development.
“We are excited by the establishment of this partnership which will focus £1bn of investment into the development of much-needed housing throughout the country,” said John Anderson, Kier Living’s executive director. “It will bring scale and momentum to Kier’s tried-and-tested mixed-tenure housing delivery model, for public sector clients across the UK who hold land but don’t have the capacity to develop new housing.
“Through this unique public private sector partnership with experienced finance and development partners Kier, Cheyne and the Housing Growth Partnership (HGP), we are collectively offering an end-to-end solution to building much-needed new homes.”
Shamez Alibhai, head of Cheyne’s Social Property Impact Fund, added: “We believe that bringing responsible private capital into the UK housing sector is necessary for tackling the increasing shortfall of genuinely affordable homes across the country. The long-term investment horizon of our socially-conscious institutional investors means that we are able to provide patient capital to work with Kier Living and the HGP in delivering a new socially-inclusive, multi-tenure building model that helps alleviate the current housing crisis.”
The new partnership claims to offer public sector organisations the freedom to call the shots on the “appropriate mix of tenure for their site”, including rental homes and homes for sale, in a model designed to meet the needs of their specific communities, without the need for grant funding.
Furthermore, it says that homes available for rent will include discounted and market-rent solutions to address housing challenges faced by key workers, the disabled and the elderly, while homes to be built for sale will include discounted sale units to help first time buyers get on the housing ladder.
It also said that it will provide public sector clients with potential scope to derive a revenue income from their land, whilst developing in a” socially responsible” way that will offer local apprenticeships, wider employment and sustainable, economic benefits for communities.
The New Communities Partnership is founded on five key principles:
· Growth: to address a key economic and social issue, the acute shortage of housing across the United Kingdom
· Collaboration: to partner with the public sector to build sustainable, inclusive communities where local economies and families can thrive, and which support local job creation
· Affordability: to deliver more affordable, practical homes than conventional developments can provide
· Responsibility: to reinvest a proportion of partnership profits in associated initiatives supporting youth, architecture, innovation and the environment
· Expertise: to capitalise on the market leading construction and financial skills of Kier Group plc, Cheyne Capital and the Housing Growth Partnership
“The Housing Growth Partnership was formed to address the challenge of housing supply and affordability in Britain today,” said Andy Hulme, chief executive of the HGP. “Working alongside Kier Living and Cheyne Capital through the New Communities Partnership should stimulate further growth in residential development projects and enhance access to affordable housing. The alliance will also complement our core purpose to accelerate home building throughout the UK.”
Lloyds Bank Commercial Banking will provide banking services and financing solutions to the partnership.
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