HUNDREDS of affordable homes are to be built in the North East and Cumbria after construction giant Esh Group was handed a £10.4m grant by the Government.
The County Durham company was one of just two private developers in the country to secure a contract from the Homes and Communities Agency (HCA) as part of the Government’s new drive to tackle the housing crisis.
Some 541 affordable homes will be built as a result of the deal, including 377 in Northumberland, the Tees Valley and Durham, plus 164 in Cumbria. A new unit for North East homeless charity, The Cyrenians, near Durham, which will house 44 vulnerable people is also included in the contract.
The Government is hoping its £4.5bn four-year Affordable Homes Programme will help millions of people who are struggling to get on the property ladder. Last week, official figures revealed that work started on just 17 affordable houses in the six months from April through to September, prompting an outcry from campaigners and opposition politicians.
Last night Esh chief executive Brian Manning said the deal was a welcome boost to the business with conditions still “very tough” for housebuilders. He said the deal would secure jobs at Esh rather than create any new posts.
“There is a shortage of work so this is very welcome and more of these types of schemes which can bring in leverage and finance are needed,” he said.
Manning admitted there was “always going to be a shortage of new homes” but said simply criticising the efforts of ministers to remedy the problem was not going to help.
“Instead of criticising the Government, we need to work with them,” he said. “What I like about this scheme is that it is a very good partnership between the public, private and – with the Cyrenians – the voluntary sectors.
“If we can work together like this and produce a strong business case to government, then there is support out there.”
The majority of the new homes will be made available as affordable rent with some for affordable home ownership, supported housing and in some circumstances, social rent. Work will start on the first sites as early as next month and is planned to be completed by the end of 2014.
The bid was led by Esh’s subsidiary business Dunelm Acorn Homes alongside a group of social landlords including Two Castles Housing Association, Livin (Sedgefield Borough Homes), Vela (Housing Hartlepool), Endeavour Housing and DAMHA (Durham Aged Miners Housing Association).
David Halfacre, chairman of Esh Property Services, who led the bid said: “We are absolutely delighted to have won this contract, particularly as we have flown the flag for the North by being the first private developer led contract to be ratified.”
Anne Mulroy, head of area at the HCA, confirmed Esh was one of just two private developers to have so far secured funding through the programme. In most cases the funding goes directly to social landlords who then employ contractors to develop sites.
“By working with Esh Group and its specialist subsidiary company Dunelm Acorn Homes, we are able to supply homes in four local areas through a range of partners which gives greater flexibility in meeting the needs of local residents,” she said.
“Supporting a successful local developer will ensure that the homes are delivered quickly for local residents and in a way that guarantees best value to the taxpayer.”
