£1bn public-private partnership aims to deliver 10,000 public sector homes
A new £1bn public-private partnership aims to help the public sector build 10,000 new homes across the UK.
The New Communities Partnership has been launched by developer Kier Living, the Cheyne Social Property Impact Fund and the Housing Growth Partnership, a joint partnership between the Homes & Communities Agency and Lloyds Banking Group.
It will work with local authorities and housing associations to accelerate the building of homes on their land. The partnership said traditional developments have only delivered an average of 11 per cent affordable housing over the past three years, but it will provide scope for up to 50 per cent affordable development on each site.
Public sector bodies will be able to set the mix of tenure for their site to suit local circumstances. Homes for rent will include discounted and market rent properties, while homes for sale will include discounted units aimed at first-time buyers.
The partnership said organisations will also potentially have scope to generate revenue from their land while developing in a socially responsible way that offers local apprenticeships, employment and economic benefits to communities.
John Anderon, executive director of Kier Living, said: "Through this unique public private sector partnership with experienced finance and development partners Kier, Cheyne and the Housing Growth Partnership, 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."