An historic deal has been struck between a local authority and a pension fund to get more new homes build – some for sale and the others for private rent.
The deal between Manchester City Council and the Greater Manchester Pension Fund, with the Homes and Communities Agency a co-signatory, is unlikely to be the last.
Local authorities, social housing landlords and institutional investors such as pension and insurance funds are all being urged to turn their hands to private house building, including ‘build-to-let’ schemes.
Under the Manchester agreement, there would be 240 homes. Those for sale would, it is hoped, be available for around 20% less than market rates. A property manager would be appointed to manage the rented properties.
The scheme would general revenue from both rents and sales for reinvestment.
Jim Battle, deputy leader of Manchester Council, said: “Manchester’s growing population and forecasted economic growth will mean we will continue to need more homes in the near future.
“The economic climate has severely slowed home building in recent years and levels of development are not keeping up with the city’s demand.
“This new innovative model tackles these issues, pushing forward development opportunities while ensuring that a supply of new attractive homes is available to residents at affordable prices.”