Multi million deal secures affordable homes

2/23/2009

A £29 million package has been announced that will provide 293 new affordable homes in Yeovil. Magna Housing Association and Spectrum Housing Group have recently signed a deal which will start on site later this year with developer Barratt Homes.

This deal comes after £10 million in funding was provided by the Homes and Communities Agency (HCA) as well as an investment of £889,000 from South Somerset District Council. The joint funding has enabled the new homes, which will form part of an 820 home site off Lyde Road.

Colin Molton, South West Director for the HCA said, “It is a priority for the Agency to ensure affordable homes are not delayed and that projects such as this continue as planned. It is pleasing to be in a position to unlock this project so that it could move ahead. We will be looking to unlock other important projects such as this.”

The funds have been committed as part of a model which incorporates an advance payment to help fund site infrastructure works undertaken by the developer. The deal was one of the first to be funded in this way and came just prior to guidance being released by the HCA which encourages funding in this way.

Head of Magna’s development arm, Charter S.W. Ltd, Mark Mabey, adds, “The project was pulled together over a very short timescale, late in 2008. It has enabled Barratt Homes to commence works to the site’s infrastructure, safe in the knowledge that both Magna and Spectrum have committed funds.”

Cllr Ric Pallister, South Somerset District Council’s Portfolio Holder for Housing commented, “This is a significant success for South Somerset achieved through a major initiative which has seen a private developer, housing associations, Government and South Somerset District Council all working together to kick start our housing sector in a true partnership. This scheme will deliver desperately needed affordable housing exactly where it is most needed.

“Additionally it provides a massive economic boost to South Somerset by helping to keep the building industry skills alive and maintain jobs during this recession.

“We’d like to take this opportunity to congratulate Magna and Spectrum for bringing a deal to the table.”

Each of the affordable homes will adhere to the Homes and Communities Agency quality standards and will be built to Code Level 3 of the Code for Sustainable Homes, which requires high environmental and quality standards. The site also includes plans for a primary school, open space parkland, play areas and its own bus route.

It will be the biggest affordable housing project in the South West to date for Dorchester based Magna and Christchurch based Spectrum, which are both members of the Source Development Partnership. It will also be the first time Magna has worked with Barratt Homes.

Managing Director for Barratt Homes Exeter, Tim Larner, adds, “Given the infrastructure costs this development could not have started without advance funding. This arrangement will give a boost to the local economy creating much needed construction work.”

Full planning permission for the site is currently being sought and the proposed layout and look for the entire development was presented to local councillors earlier this month.