26 February 2013
Acuity Legal client signs agreement for delivery of 11,000 Affordable Homes in £1 billion scheme
Research commissioned by the Welsh Government estimates that over 14,000 new homes are needed every year in Wales for the next 15 years. This is greatly more than currently can be supplied. This need has grown due to a growth in population, but also due to the increasing number of one-person households and a reduction in social housing stock due to existing initiatives such as right to buy. New stock is simply not being created fast enough, as developers, both private and public, have slowed down in the current economic climate because funding is not available on commercially deliverable terms.
Bellerophon Projects has devised a novel approach to the provision of affordable housing through a bespoke funding structure and model developed with Acuity Legal. At the beginning of February 2013 a subsidiary of RCT Homes (the largest provider of affordable housing in Wales) entered into a framework and collaboration agreement with Bellerophon to promote the model across Wales and parts of Southern England.
The model makes innovative use of pension fund capital to fund the construction of social housing without the requirement for grant subsidy. £1 billion of private sector finance has been committed to the model which has attracted a great deal of interest across the United Kingdom including at ministerial level....continue