The ambitious £20m scheme, which is the most valuable contract ever awarded by the council, delivered a range of housing options for older people across five sites in Newcastle using an innovative and unique financial model, Annuity Lease Back Model (ALBM).
The five sites include:
With a changing age profile, Newcastle’s older population is projected to grow significantly, and with ambitious plans to meet the diverse needs of all residents the council is committed to providing high quality, affordable homes that promote independent living and social inclusion.
But this type of housing requires high levels of investment at a time when there is unprecedented pressure on council resources and the council knew they needed to do something different if they were to succeed.
The challenge was to find an approach that would maximise council resources, attract investment and deliver a range of homes to meet the needs and aspirations of local residents.
In October 2017, the council launched ALBM. The model, which is believed to be the first of its kind used by a local authority in England, is based on a partnership that enables the council to build new council housing while minimising financial outlay.
In the model, council owned land is leased to a development partner for new houses to be financed, designed and built to agreed standards. The new properties are then leased back to the council for an agreed period of time and at the end of the lease period the council owns all of the properties.
After a competitive tendering process the contracts for the ALBM schemes were awarded to Waypoint Government Income Fund with Kajima Partnerships Ltd and Tolent. The schemes have also benefited from investment from Homes England’s Shared Ownership and Affordable Homes Programme.
The homes, which are managed by Your Homes Newcastle and let to tenants at an affordable rent, have been built to high design standards and with a range energy efficiency measures will provide accessible and adaptable homes to meet the needs of Newcastle’s resident for many years to come.
Set by the council, the design and space standards for these high-quality homes have been set in accordance with the Home Quality Mark (HQM).
And ALBM has proved so successful that work is already underway on another 199 houses to add to the 148 new council homes that were completed in the last two years to the delight of the tenants who have moved in.
For more information on ALBM 2, click here.
Partners working on this scheme include Waypoint, Kajima Partnerships Ltd, Tolent, P+HS Architects, Homes England and Your Homes Newcastle.