Housing Corporation News Release

Partner wanted to deliver affordable housing in three key strategic sites in Cambridge

18 January 2007        

Media contact: Sandra White Tel:0207 393 2094                 

Ref:05/07

A groundbreaking new pilot programme aimed at changing the way affordable housing is delivered in Cambridge is launched today (Thursday 18 January 2007)  in a new document setting out details about the Housing Corporation's Cambridge Challenge pilot.

The Corporation is looking to pre-select a strategic development partner to deliver affordable housing on three strategic sites in Cambridge - Northstowe, Southern Fringe and North West Cambridge.

The economic success of the region has made it one of the most attractive places to live and work in the UK. However, this success comes at a cost -  house prices have  risen making it even harder for first time buyers and young people to get onto the property ladder.

Margaret Allen, Housing Corporation Field Director (Central), said, " We hope this will herald a major step change in the way  we deliver affordable  homes in Cambridge.

"The sites identified are in areas where there is planned significant growth and  an acute shortage of affordable homes.  Working in partnership with Cambridge City and South Cambridge Local Authorities, English Partnerships and the private sector, we hope the Cambridge Challenge pilot will enable earlier engagement of partners to contribute to the development of a sustainable future for the new communities  supported by timely  infrastructure development and other community provisions."

John Lewis, Director, Eastern England and Milton Keynes, English Partnerships said, "It is really encouraging that new approaches to affordable housing delivery are being taken forward. We are working closely with the Housing Corporation to maximise the benefits this initiative should deliver."

The Corporation is looking for innovative proposals and evidence of capacity to deliver high quality, cost effective and sustainable new communities. The selected partner or consortium will not be given a guaranteed level of funding but an assurance that (for a specified term) they will be the sole partner and the sites will not be subject to subsequent competitive processes against other bidders.  In exchange for this assurance, the partner will commit to high level standards, procurement gains, delivery volumes, value for grant and contributing to community infrastructure.  

The successful partner will be chosen in advance of the 2008/2010 bid round and will be given a five-year funding commitment.

The deadline for submissions is 12.00 noon Thursday 15 February 2007.  Copies of the prospectus are available on our website.

Ends.

Note to editors:

·        The Housing Corporation is the Government agency responsible for investing in new affordable homes and regulating over 1,500 housing associations across England.  Its biggest ever investment programme of £3.9 billion for 2006-08 will fund 84,000 homes;  49,000 of these will be for affordable rent, and 35,000 will be for affordable sale through the Government's new HomeBuy initiative, helping people to get a foot on the property ladder.

·        The Housing Corporation will operate the Challenge on behalf of the East of England Housing Board; English Partnerships; Cambridge City and South Cambridgeshire District Councils and the land owners and house builders involved in the three sites.

·        Facts about Cambridge

- Average house prices in Cambridge are now times eight times average incomes;

- Around 9,500 to 11,000 new affordable homes are needed each year;

- Homelessness is up 16% in five years.