A private developer has signed its first deal to buy affordable homes as part of its drive to invest up to £1bn in social housing by 2008.
Asset Trust, which owns house price index company Hometrack, exchanged contracts with Fairview New Homes to buy 110 affordable homes for £11m to be built on the former Ovaltine factory site in King’s Langley, Hertfordshire.
The housing will be built without any public subsidy. The Royal Bank of Scotland is providing funding for the project alongside Asset Trust.
Of the new homes, 71 will be affordable homes for rent and will be offered to individuals and families on the local council housing list. The remaining 39 will be offered on a shared-ownership basis to local key workers. Fairview is building a further 255 private-housing units on the Ovaltine site.
Giles Mackay, chief executive of Asset Trust, said: “This is the first of what we expect to be a steady stream of investments in new affordable housing.”
Asset Trust are bidding on a further 2,700 affordable homes.
References: EGi News 26/07/04
