Mon 21 Jul 2008
Private sector follows public’s lead
Simon Wright Homes is launching a housing association division as part of a plan to beat the credit crunch by selling homes within the public sector.The company confirmed its decision to launch this department was tactical, but said the move had been in the pipeline for some time.
“Our decision to launch this division is three-fold,” said Simon Wright, the firm’s chief executive. “We need to help people get onto the housing ladder, we have access to land and the ability to find sites, and finally, we can build sites to the standard required by Registered Social Landlords (RSLs).”
The firm has purchased extra land, after selling a site of 67 units in Maidstone to housing association Town and Country Housing, for which it has won the build contract.
In a reversal of roles, the private sector is now set to imitate the public sector in tapping into Housing Corporation (HC) grants allocated by the government, following moves by housing associations to move into the private sector by building units for open market sale over the last year.
“Lots of companies are trying to sell stock to housing associations, so this is just the next step to achieve cash flow and profit by doing deals with RSLs to build on your own land,” said Roger Humber, strategic policy advisor to the House Builders Association (HBA). “This will also help the HC to spend the £8.4 billion allocated to the body for the 2008-2011 period.”
Posted by Natalia Gameson
in House Builders Association, Housing Corporation, News, Simon Wright, Simon Wright Homes on Mon 21 Jul 2008
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