Thursday, July 6, 2017

News: £29m Rotherham Council housing scheme set for sign off

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A £29m initiative to kickstart housebuilding on a cluster of sites owned by Rotherham Council is set to be signed off next week.

The Council is seeking approval from the Cabinet and Commissioners' decision- making meeting to proceed to build homes across seven sites in Maltby, Canklow, East Herringthorpe and Dinnington.

The meeting, which takes place on July 10, will seek approval to build 217 new homes. It is proposed these properties will have a mixture of tenures to include: 83 new homes for outright sale, 36 shared ownership or rent to buy homes and 98 new council homes, of which five will be homes for adults with specialist needs.

The Council identified Wates Residential through a competitive tendering process last year as the preferred developer to build the new homes. If the proposal is approved, it is envisaged that this highly innovative scheme will start in Autumn this year with completion due in 2020.

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With overall developments costs of £29m, the initiative uses a Development Agency Model (DAM), where the Council acts as developer and Wates are the constructor and delivery agent. This is a new delivery route for the Council and creates the opportunity for it to maximise the value of its assets and deliver a greater number of high quality new homes, as opposed to simply selling the seven individual sites on the open market.

Houses sold will lead to sales revenue provided directly to the local authority (excluding a developer's margin) to cross subsidise the development. The Council will also receive the majority share of any developer's profit on the schemes, through retaining the development value of the land.

Cllr. Dominic Beck, Cabinet Member for Housing at Rotherham Council, said: "We will be delighted to gain approval of this ambitious scheme as it will improve the quality and choice of housing, whilst increasing the number of new homes built in Rotherham.

"We are determined to build more properties to be rented out as Council homes across the borough and this development is a real testament to this aim.

"The development will also increase housing in key areas of the borough, which are underdeveloped at present, providing a much needed boost with the addition of brand new housing, tailored to meet the needs of local people."

Jo Jamieson, managing director at Wates Residential, said: "It is evident that there is an increasing need for a mixture of new housing in Rotherham and the Council's ambitious proposals will go some way to addressing this demand.

"If given the go ahead, Wates Residential will be delighted to work with the council on the development, sharing the risk on planning, construction and market sales, and ultimately building mixed tenure homes that cater to the varied property demands of people across the borough."

The Council is also proposing to buy six two bedroom apartments and three four bedroom houses at the Waverley site from Avant Homes.

Wates Residential website

Images: Wates


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