Build for sale expansion

An expanded build for sale programme will enable L&Q to continue developing affordable homes despite lower levels of grant funding.

In three years’ time we aim to build around 800 homes for outright sale each year to support our continued annual programme of 1,400 affordable homes.

L&Q has long been committed to building sustainable communities by developing homes on mixed tenure schemes. Traditionally we bought parts of large developments from private developers needing to include some affordable homes to fulfil section 106 planning requirements. More recently we have been buying and developing our own large sites, including build for sale as well as affordable homes.

Steve Yianni, Group Director for L&Q’s North Thames Region, explains: “The initial driver for doing build for sale was to control the quality and design of the whole scheme.”

Now, with lower levels of grant funding from the Housing Corporation, there is a financial imperative for build for sale to cross subsidise new affordable homes. With some private developers now receiving grant funding to build affordable housing, there is also more competition than ever before.

Steve believes it’s important for housing associations to adapt to these new realities and learn new skills, but that the affordable and private housing sectors remain very separate. “There always will be real distinctions. Our core business is developing affordable housing and providing quality management and maintenance services. Private developers will not want to become involved in long-term management.”

L&Q has a £250million land banking facility supported by a robust risk strategy. We have developed a partnership agreement with Taylor Wimpey where we share the risks and rewards; our share of the profits is used directly to benefit the development and the wider area. We are also looking at carrying out the management services for owner-occupiers on some of the major sites.

Print page

Email to a friend