Housing Corporation News Release

Corporation supports strategic partnership to boost affordable housing supply

- Affordable housing receives £13 million boost towards 335 homes.

Monday 20 October 2008      ref: 75/08

The Housing Corporation’s National Clearing House has funded Bloor Homes and housing association Sanctuary Group to deliver 335 affordable homes with another potential 700 in the pipeline.

Following discussions with Bloor and Sanctuary during the summer, support was given to a wide range of proposed schemes.

Allocations have since been made to fund 335 homes (mostly for affordable rent) across the country at a total social housing grant cost of £13 million. 

The Housing Corporation is now in discussion with Bloor Homes about the submission of a next stage National Clearing House bid for some 700 homes which, if successful, will stimulate further construction activity which might otherwise not have proceeded.

Housing Corporation Director of Investment Richard Hill said, “The Housing Corporation is very pleased with the successful outcome of this early National Clearing House bid, and the constructive working relationship which has been forged with both Bloor Homes and Sanctuary Group. It is exactly what we were looking for when we launched this process.

“The outcome of the initial bid has met a key objective of the National Clearing House process – that of adding to affordable housing delivery at the right price and offering a positive solution where developers have unsold stock available. The deal includes a significant proportion of family houses.”

“Very importantly, the successful outcome of the initial bid will now allow us to move on and consider bids to build out schemes which may not otherwise have gone ahead – maintaining affordable housing supply and retaining capacity within the construction industry.”

Sanctuary Group Chief Executive David Bennett said, “In this climate of economic change, housing associations need to find creative ways to increase the provision of much-needed affordable housing.

“The innovative deal has allowed Sanctuary to provide more affordable rented housing and will benefit all the parties involved including, most importantly, those in need of new homes. We believe this type of arrangement will provide a balanced solution to the supply and demand for new housing.

“A good working relationship has developed between the three parties and we look forward to working together on further opportunities in the future.” 

Bloor Homes Group Head of Affordable Housing Ken Allen said, “Bloor Homes is delighted with the relationship it has forged with the Housing Corporation and Sanctuary Group in progressing phase one. We have been most impressed with the speed of decision making and the approval process of all parties.

“This excellent working relationship and the ability of all involved to remain flexible in their approach, has been a key factor throughout. Facilitating the delivery of 335 affordable homes across 19 sites, located throughout the country, was certainly aided by the use of the National Clearing System, which gave us a central focal point to co-ordinate our discussions.”

Ends.

For further press information please contact Terry Sefton at the Housing Corporation on 020 7393 2118, Lindsay Evans at Sanctuary Group on 01905 338656 or Ken Allen at Bloor Homes on 01530 270100.

Notes to editors

1) The National Clearing House process was launched by the Corporation as part of a set of initiatives to respond to the current market and to bring homes into the affordable housing sector. Since July, the Corporation has spent over £70 million to bring more than 2,000 homes into affordable housing.

2) The Housing Corporation is responsible for regulating housing associations, which provide some two million homes across England.

3) The Housing Corporation is the Government's national affordable homes agency, responsible for investing in new affordable homes and regulating nearly 2,000 housing associations across England. The Corporation's £8.4 billion investment programme for 2008-11 is its biggest ever. Its previous investment programme of £3.9 billion for 2006-08 funded 92,752 homes - 52,929 of these for affordable rent and 39,823 for affordable sale through the Government's HomeBuy initiatives, helping people to get a foot on the property ladder.

4) The Housing Corporation is working with English Partnerships and Communities and Local Government to establish two new bodies, the Homes and Communities Agency (HCA) and Tenant Services Authority (TSA) which are due to launch this December.

5) Established in 1969, Sanctuary Group is a successful leading-edge housing provider, managing over 70,000 homes throughout England and Scotland including general rented, sheltered and supported accommodation, student and key worker accommodation.

As a not-for-profit organisation, all income goes into maintaining high standards and updating and developing services.

Sanctuary is an Industrial and Provident Society, an exempt charity under the Charities Act 1993 and is regulated by the Housing Corporation.

6) The Bloor Group began building houses over 40 years ago and today is one of the largest privately owned house-building groups in the UK. Building nationally in excess of 2,000 homes each year, the house building operation is managed through eight regional companies.