Government rewards Public/Private Partnership bid from Esh Group in contracts worth over £61m to build 541 affordable homes
Thursday 1st December 2011
“It is really encouraging to see central Government investing in this way; placing confidence in and responsibility with regional organisations to get on and tackle issues and challenges within their own areas and come up with solutions for their communities.”
Brian Manning, CEO, Esh Group
Esh Group has been awarded a grant of £10.4m by the Homes & Communities Agency (HCA) under the Government’s Affordable Homes Programme 2011-15 (AHP) which aims to increase the supply of new affordable homes in England.
The grant awarded is in support of contracts valued at over £61m to build 541 affordable homes in the North East and Cumbria.
The contract, the first of its type to be signed nationally, is one of only two private developer contracts to be ratified to date and represents almost 6% of the total funding allocated to the North.
Of the total number of units, 164 will be built in Cumbria and 377 units in the Northumberland, Tees Valley and Durham and includes 44 units for The Cyrenians vulnerable persons’ facility near to Durham announced earlier in the week.
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 in January 2012 and is planned to be completed by December 2014.
Esh Group, via its specialist subsidiary Dunelm Acorn Homes, has led the bid in partnership and on behalf of a number of regional Registered Providers thus enabling the AHP funds to be accessed.
Esh Group’s partners include Two Castles Housing Association, Livin (Sedgefield Borough Homes), Vela (Housing Hartlepool), Endeavour Housing and DAMHA (Durham Aged Miners Housing Association).
Commenting on the deal Anne Mulroy, Head of Area at the HCA said:
“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. 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 tax payer.”
DaviHalfacre, 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.
“We are very much looking forward to progressing this project with our partners and together really making a difference for communities in the North of England.”
Private developers were able to bid for funding under the Affordable Homes Programme and have, according to the HCA, formed a small – but important – part of the programme. Anne Mulroy continued:
“This process has demonstrated the good work and benefits of linking public and private sector organisations to increase the supply of new homes. Our investment will ensure that almost 500 additional homes, including 157 in rural communities, are built across the North in the next three years.”
Brian Manning, Chief Executive of Esh Group, said:
“It is really encouraging to see central Government investing in this way; placing confidence in and responsibility with regional organisations to get on and tackle issues and challenges within their own areas and come up with solutions for their communities.”
