More than a third of flats at a new £25m development will be made available at sub-market rates to help combat the ‘spiralling’ cost of renting property in Sheffield.
Sir Edward Lister, chairman of Homes England, unveiled the first part of the Dun Works Development at Kelham Island.
The development is a partnership between South Yorkshire Housing Association and Cheyne Capital Management’s Social Property Impact Fund and 35 per cent of the225 properties will be available to rent at ‘sub-market level’ to people earning less than £25,000 a year.
Miranda Plowden, business development director at South Yorkshire Housing Association, said: “We can’t wait to welcome our first tenants to Dun Works. We know that the cost of renting privately in Sheffield is spiralling out of control, and we hope that Dun Works can offer an alternative.
“As a housing association our main aim is to provide as many homes as we can in Sheffield City Region.
“Working with Cheyne has helped us to play a part in building the new homes we desperately need in the area.
“We hope this is the start of a long partnership with them.”
Shamez Alibhai, portfolio manager of the Cheyne Social Property Impact Fund, said: “This project is extremely exciting as it demonstrates that private capital working alongside a housing association can deliver high quality, affordable homes without the need for grant or subsidy.
“Our success in Kelham Island demonstrates how effective this kind of partnership can be in addressing the UK’s severe housing shortage.
“We are replicating this model across the UK to meet the need for more inclusive, affordable housing.”
The properties, which will be offered at sub- market value, will be ‘indistinguishable’ from the rest of the development.
Mr Alibhai said: “I think this represents a real change in the way housing is delivered.
“This really is the future of housing delivery and provides a housing solution that’s made for everyone in the community not just thouse who earn the most.”
Speaking at the unveiling on Tuesday, Sir Edward said: “We have got to find other ways of doing things and that’s what Homes England is all about.
“This is a tenure blind development - people won’t actually know who is paying full rent or who is paying a discounted rate and that’s very important. It takes away ant stigma.
“Nobody needs to know that and nobody should know and it also allows for greater flexibility.”