Out-Law News 1 min. read
27 Sep 2012, 4:51 pm
The sites on Hortensia Road and Young Street will be redeveloped for mixed tenure housing. The scheme will be led by purpose built accommodation for private rental but will also have affordable housing and private sale accommodation.
The Council is adopting a new approach to development, under which it retains the freehold ownership of the site and shares a proportion of the long term rental income with Grainger. Grainger will manage the developments under a 125 year agreement and will receive a management fee.
The new approach follows recent Government measures aimed at boosting the private rented sector including a report by Sir Adrian Montague on barriers to institutional investment in the private rented sector published in August. Following recommendations in the report, the Government announced that it will be establishing a taskforce to bring together developers, management bodies and institutional investors to broker deals and deliver more rented homes.
Grainger said that its offer to develop the sites was directly aligned to the aspirations of the recent housing announcement by the Government.
“These exciting projects come at a very interesting time in the sector, when private rented housing is high on the agenda, as demonstrated by the recent Montague Review and Government Housing Announcement," said Grainger chief executive Andrew Cunningham. "We look forward to working alongside the Council to develop and manage affordable and private homes for sale and rent through Grainger’s unique platform. We anticipate that this could become a flagship project which will be of interest to many other local authorities, private land owners and developers in delivering private rented housing."
Grainger will now consult with local residents and community groups on the design for their plans. The developer aims to submit a planning application for the scheme in mid-2013.
