This is the first time a housing association will act as lead developer for a scheme of this size in the north of England, it claims.
If the scheme gets the go-ahead, profits from the sale of its 340 private houses will fund construction of 340 affordable homes and 140 homes for shared ownership. Housing Corporation funding will not be needed.
The move would result in Home joining a band of larger associations that have moved into building homes for sale over recent years. Just a week ago, the government signalled its intention to pay development grant to private developers (HT 14 November, page 9).
Steve Pearson, regional director for Home Housing, said: "This is not about redeveloping low demand. The area is very popular, so we think we can use the receipts from outright sale to fund the development."
Councillors will vote on the plan for the Scowerdens, Weakland and Newstead estates in South-east Sheffield on 26 November. A selection committee including tenants, council officers and corporation representatives have already backed the scheme.
The council decided to demolish the three 1960s-built estates after a consultation in September 2002. Residents polled by the council supported the demolition plan by a margin of two to one.
The estates would be costly to bring up to the decent homes standard by 2010 because they were built using a non-standard timber-frame method.
The scheme will cost the council £8.5m in lost rents and capital outlay between 2003 and 2010. However, it has estimated it can gain £6.8m in repairs and maintenance savings and extra housing subsidy over the same period, making the net outlay just £1.7m.
The Newcastle-based social landlord wants to start detailed site appraisals in January, and will work out final proposals by the end of June.
Source
Housing Today
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