Developers line up bids for share of Corporation’s £200m grant pilot

Consultation on the pilot closed on Tuesday and the expressions of interest, from developers, housing associations and arm’s-length management organisations surveyed by Housing Today (“Pot luck”), would represent at least 5000 units of new housing across the country.

Developers Barratt Homes, Crest Nicholson, Taylor Woodrow and Bellway are all believed to be lining up substantial bids. David Wilson Homes said it was set to bid for grant for more than 1000 units with registered social landlord partners, making its bid alone worth up to as much as half of the pot. The minimum threshold for bids set by the Housing Corporation is 400 homes.

A number of high-profile ALMOs and housing associations have also confirmed interest, with Horizon Housing saying its bid is likely to be 2000 units – roughly equal to the whole fund – and Circle 33 will bid for 600 to 700 homes.

This bidding round is a dry run for July, when the corporation’s £1.67bn approved development programme will be opened up to all bidders.

Speaking shortly before the deadline for consultation was due to close, Neil Hadden, deputy chief executive at the Housing Corporation, said: “We have had around 50 expressions of interest.

All we can judge at this stage is that it is encouraging that there is considerable interest in this.”

Groups that have expressed an interest will be asked to complete a pre-qualification questionnaire in February. That process is likely to take a further month. In April the corporation will then invite detailed bids, which are likely to be assessed in July.

David Wilson Partnership Homes’ director, David Saffhill, said: “It is likely we’ll be bidding for in excess of 1000 units in association with other RSL partners.

“If successful, this scheme will inevitably open up opportunities for the private sector to bid for the ADP.”