Deal signed for 11,000 affordable homes in Wales and west of England

The homes will be built under a finance model that will enable the homes to be delivered without the need for capital grant Government funding.

Under the model, RCT subsidiary Porthcwlis will give equity stakes to housing associations and local authorities in exchange for development land. RCT's development partner Bellerophon will then enter into joint ventures with those local authorities or housing associations to build the homes.

The £1bn equity backing will come from Legal & General.

“The Welsh Government is acutely aware that demand for affordable housing continues to grow and that we need to deliver even more homes in future, which is why we have set the ambitious target of providing 7,500 additional affordable homes during this term of government," said Welsh housing, regeneration and heritage minister Huw Lewis according to Welsh reports.

“With tightening budgets this will prove quite a challenge, so we are working hard to develop new ways in which we can attract other investment. The Porthcwlis scheme is just one example of the innovative methods we are exploring and I congratulate RCT Homes and Bellerophon on the launch of this exciting and much-needed new housing finance initiative,” he said.