The Housing association will build a total of 1,751 homes across the North East and North West and has agreed to designate 1,632 of these as being available for affordable rent, following reportedly difficult negotiations.
The HCA has signed four further deals with housing providers this week in a Government bid to provide more affordable housing and stem the housing crisis.
The HCA released details of a new contract with Yorkshire Housing yesterday that will deliver 800 new affordable homes across the Leeds City Region. The HCA will meet £17m of the development's costs while Yorkshire Housing will provide £64m.
“This is great news for the Leeds City Region,” said Naz Parkar, head of area at the HCA. “It is the first of a series of contracts that will deliver quality affordable homes in our area, as well as excellent value for public money.”
Yorkshire Housing has also secured an extra £11m funding that will help fund its Mortgage Rescue scheme, to help those who cannot pay their mortgage.
Housing and regeneration provider LHA-ASRA agreed to provide 800 homes, with 684 designated for affordable rent, with a contribution of £22m from the HCA. The housing will be spread across London and the Midlands.
The HCA signed a further deal for the provision of homes in London with Gallions. The HCA contribution of nearly £20m will enable the association to build 496 homes, including 362 for affordable rent.
The AHP aims to increase the supply of new affordable homes. The Government will invest £4.5 billion in affordable housing through the programme, with the majority of homes being available for affordable rent and some for affordable home ownership.
The Government has already indicated that the programme will not be a regular one but some associations are reportedly questioning whether the scheme can last its first term.
The programme has put the finances of housing associations under huge pressure because the HCA funds landlords to build homes for rent at up to 80% of market value, with profits reinvested in further development. Many associations are reportedly questioning the viability of the scheme.
