Under the terms of the agreement, the Council will transfer land to Kier, which will fund and develop the new homes. The homes will be leased to a registered provider and will become available as a mix of private sale, private rent and affordable housing.
Long-term investment for the scheme will be provided by a pensions fund seeking to invest in affordable housing projects that provide a stable return.
Kier said in a statement that the development will also attract "significant investment" in the local area with the creation of new employment opportunities and apprentice places. It said that it is committed to ensuring that project funding is recycled within the local community.
"This is just the kind of deal that needs to be cracked to get Britain building," said Council leader Paul Carter. "Through an innovative land transfer, 152 new homes will now be built for local people, and local jobs and apprenticeships will be created."
“By harnessing its assets effectively, the council will also benefit from a long-term income stream which can be reinvested in local services. With many developments currently stalled across the country, this is a groundbreaking scheme for Kent which gets local people working and local housing moving. I have no doubt the approach will be replicated around the country," Carter said.
“The Kier team has brokered a highly innovative development that is being watched closely by other local authorities and registered providers," said Kier managing director Nigel Turner. "We see this offer as creating a modest scale solution to meeting housing need and we are keen to roll this out with other public and private sector clients.”
Kier said it is involved in discussions with other local authorities, county councils and private land owners to use the institutional investor-backed model to build new homes. It said it is currently reviewing options to build 260 homes on land it owns in Ashford, using the same funding model.
