For the first time, Homes England has invited private residential developers and 'for profit' housing associations to help it deliver its affordable homes programme.
The Government's housing accelerator is seeking strategic partners to build 180,000 new homes between 2021-2026.
This is a market that not-for-profit housing associations previously had to themselves. In the previous round of the programme, 27 housing associations worked with Homes England to deliver 40,000 homes.
However, a number of the larger housing associations have been forced to shift their focus away from development. In the wake of the Grenfell Tower disaster, many are improving fire safety measures on their stock. As a result, they have less capital to dedicate to new build.
Stephen Kinsella, Homes England's chief land and development officer, said: "With the difficulties for some housing associations comes opportunities for others, including private sector partners.
"We need all parties - whether housing associations, mainstream housebuilders, SME housebuilders, build to rent operators - all to be pulling their weight. So, it's an opportunity for others if some housing associations aren't able to deliver what they were originally expecting."
This is game-changing for both private developers and 'for profit' housing associations. Homes England has set aside £11.5bn for the 2021-2026 programme, allowing the organisation to unlock difficult sites and provide grant funding to kick-start development.
Secure Trust Bank has a track record of working with SME housebuilders and housing associations, including registered providers in both the profit and not-for-profit sectors. Development and investment loans of up to £45m are available through our Real Estate Finance team.
We recently arranged three separate development to investment facilities - totalling £16.5m - for Funding Affordable Homes (FAH), to fund the development of 214 homes (including Extra Care housing) at two schemes in the Isle of Wight and one in Rochdale. Our five-year support has allowed FAH to get these developments off the drawing board and retain them for income generation and capital appreciation.
Find out more about about Secure Trust Bank Real Estate Finance for the social housing sector.