A £2m deal has been signed to provide affordable homes as part of a controversial housing scheme in the Holme Valley.
Fifteen rent-to-buy properties will be provided in Upperthong under a partnership deal between Kirklees Council, Kirklees Neighbourhood Housing (KNH) and UK fund management company QSH, which specialises in connecting UK-based investors with social housing developers.
The 15 homes form the first phase of a development of 27 houses to be built on land off Upperthong Lane by Brockholes-based Conroy Brook.
Kirklees councillors have approved the scheme despite opposition from residents who fear it will mean more traffic congestion and put extra pressure on local services.
The 15 buy-to-rent properties will be made up of eight two-bedroom homes and seven three-bedroom cottages.
A second phase providing 12 four-bedroom detached homes available for private sale will be released to the market next year.
The first 15 homes will be managed on behalf of QSH by KNH. Under the scheme, tenants will pay affordable rents and will be able to buy the property between the first and fifth year of living there – with half of the tenant’s rental payments going towards the deposit they need to secure a mortgage to buy their home up to a maximum of 10%. Those who choose not to purchase during this time can continue renting their homes for a further 15 years.
Steve Partridge, finance and investment director at QSH, said: “This innovative funding model will bring new sources of equity investment into the affordable housing sector at a time when the need has never been greater.
“Our rent-to-buy model complements the government’s Starter Homes initiative, helping people to save for their home whilst living in it, but also provides viable, sustainable options for people who will still require homes for long-term rent.
“We hope that this new practice of bringing affordable housing developments forward will be carried across many more similar projects and help address the chronic shortage of affordable housing.”
Preference will be given to people who currently live, work or have family they support in the area while the first residents are expected to move into their new homes in autumn next year.
KNH chief executive Liz Cook said: “The Upperthong development will provide much needed affordable homes for local people, where, due to a real shortage in reasonably priced rented homes, many people have previously been forced to move further afield.
“It will enable people who dream of buying a home, but perhaps need support to build a deposit and credit history, to make those next steps to owning their own homes in an area in which they choose to live.”
Clr Cathy Scott, Cabinet member for Housing at Kirklees Council, said: “The Upper Holme Valley is a difficult market to access and even more so for households eligible for affordable housing.
“These 15 new houses are the first affordable homes to be built in the village and will help local working people to access the housing ladder by renting below local market rental levels, and eventually buying their home if they wish, using money set aside from their rent to fund a deposit.”
Richard Conroy, chief executive of Conroy Brook, said the partners were working to bring more affordable housing to local communities and help more buyers onto the property ladder.
“The site is significant in that it shows our ongoing commitment to delivering developments that have a higher volume of affordable housing to benefit local buyers,” he said.
