Barratt Homes made history by becoming the first private house builder to secure funding from the Housing Corporation to build subsidised affordable homes in England. The Housing Corporation made an initial award of £4.37 million to Barratt Homes to build 153 affordable homes in the North West and Midlands. The funding for the new homes has been made available under the Corporation's national investment programmes.
Housing Corporation Chairman, Peter Dixon said: "This is an historic day for the Corporation.
"From a standing start a little over a year ago, we have successfully created a new market in the supply of affordable housing.
"We will be able to build on the impressive record of housing associations in providing good quality housing, while drawing on new sources of expertise and innovation in the commercial sector.
"We see this as the start of a long term relationship with the company which I hope will see us build many homes together. And this is just the start. In total nine private developers are set to receive funding from the Housing Corporation. We hope to make further announcements shortly."
Persimmon, the UK's largest house builder, agreed the final terms of a contract to secure funding from the Housing Corporation to build subsidised affordable homes in England. This represents the first time a combined grant has been awarded to a private house builder, utilising funds from the Housing Corporation's New Partners in Affordable Housing Programme (NPiAH) and National Affordable Housing Programme (NAHP).
The Housing Corporation made an initial award to Persimmon of £16.53 million to build 930 affordable homes. Of this, £7.43 million will come from NPiAH and £9.10 million from the NAHP 06-08 programme. The homes will be built largely in the South of England, and completed over the next few years.
The Housing Corporation launched a review of investment in affordable homes. The New Approaches to Investment Review Group will consider the lessons learnt from the 2006/08 investment round and set the agenda for future investment in affordable homes.
The review will consider arrangements for managing the Corporation's investment programmes. Key issues for the Group will include:
The Group will take account of the recommendations of the recent review by Sir Les Elton of the burdens on housing providers, as well as experience gained working with a range of new private sector development partners.
The first meeting of the Group included senior representatives from the Home Builders Federation, the National Housing Federation, the Building Research Establishment, the Council of Mortgage Lenders, the Department of Communities and local government. The review will report in the autumn.
Metropolitan Housing Trust secured an additional £35 million from Abbey to support its development programme. This brought the Trust's total borrowing with Abbey to £135 million.
Bradford & Bingley increased its lending to Chevin Housing Association by £10 million to a total of £37.3 million.
Other Bradford and Bingley lending included:
Both associations will use the funding to support development programmes.
Parkside Housing Group increased its facility with Nationwide from £70 million to £90 million.
Arena Housing Association increased its borrowing with Nationwide by £30 million to £88.8 million, to support its ongoing development programme. The deal also provides for the option of further borrowing of £20 million within the next 2 years.
