WIREDGOV

£18 million deal approved to buy further new homes for affordable housing

COMMUNITIES AND LOCAL GOVERNMENT News Release (001) issued by COI News Distribution Service. 6 January 2009

An £18 million deal to provide more affordable housing and help support industry is being announced today, as part of the Government's programme of action to tackle current difficulties in the housing market.

The deal has been done through the Government's National Clearing House with Bovis Homes, which enables house builders to sell their unsold stock to Housing Associations for use as affordable housing, either for rent or low cost home ownership. This is the largest deal so far agreed with a major housebuilder through the Clearing House Programme.

The deal provides 379 affordable homes on sites across the country for families who would otherwise be on waiting lists, following the agreement between the Homes and Communities Agency, Bovis Homes, and a number of Housing Associations.

This means that 4,800 homes in total have now been brought into use as affordable housing for a total of £160 million, with more deals in the pipeline.

Housing Minister Margaret Beckett said:
"We are determined to support house builders to weather the current difficult climate, and this deal will help industry while also providing more affordable homes for families on waiting lists.

"This is one part of a range of measures we are taking to help ensure stability and security for those affected by the downturn, and we will continue to look at what more we can do."

Chief Executive of the Homes and Communities Agency Sir Bob Kerslake said:
"By being flexible with our funding we have secured more much-needed quality new homes - for affordable rent or sale to local people priced out of the market - and maximised value for public money. And while I am pleased with this early success for the HCA, there is much more to be done as we seek to stimulate development and help maintain the housebuilding industry's capacity through difficult economic conditions."

Chief Executive of Bovis Homes, David Ritchie, said:

"Bovis Homes has formed a strong relationship with the Homes and Communities Agency and our partner RSLs through combining our mutual interests in housing delivery. The deal reported today has been made possible due to this relationship and demonstrates the positives which can be achieved when different organisations in the housing industry work together effectively.

"We are pleased to have been able to contribute significantly to housing delivery under the Government's programme whilst at the same time providing positive returns for our shareholders.

"Thanks must go to the many staff at Bovis Homes who have worked hard to make this deal happen, plus our thanks to our RSLs partners and our colleagues at HCA."

Notes to Editors
1. The deal involves 379 stock and social homes on sites across the country. For a further breakdown please contact Ruth McDonagh at Bovis Homes on 01242 662 675.

East Midlands 106
East of England 121
South West 98
West Midlands 54

2. The homes are being made available through the following Registered Social Landlords: Midland Heart Limited, Walsall Housing Group, Derwent Housing Association, Orbit Housing Group, Broadland Housing Association, Peddars Way Housing Association and Sovereign Housing Association.

3. The National Clearing House process was launched as part of a set of initiatives to respond to the current market and to bring homes into the affordable housing sector. Funding to purchase the homes comes from the National Affordable Housing Programme with an initial £200 million tranche to buy unsold stock off the open market, providing it is of good quality and offers value for money. The Government announced in July that more money beyond the £200m to buy unsold stock from house builders for affordable homes, could be made available for homes at the right prices, in the right locations.

4. The Homes and Communities Agency is the single, national housing and regeneration agency for England. Our role is to create opportunity for people to live in high quality, sustainable places. We provide funding for affordable housing, bring land back into productive use and improve quality of life by raising standards for the physical and social environment.
The HCA brings together English Partnerships, investment functions of the Housing Corporation, and the Academy for Sustainable Communities, with major delivery programmes of Communities and Local Government.

5. Agreement on an additional 56 homes is set to be put in place shortly.

News Releases: http://www.communities.gov.uk/newsroom