One of the North East’s largest providers of affordable housing has been selected by the Government to build new homes in the region.
Home Group has been awarded more than £8.5m of funding which will help to build 350 homes in the North East between 2015 and 2017 – the largest package of any single housing provider in the area.
The funding comes from the Government’s Homes and Communities Agency (HCA) and will see the Tyneside-based housing provider build on 11 separate sites throughout the North East and Yorkshire.
The £8.5m funding will contribute towards the cost of building the new homes with the remaining £26.5m cost being met by Home Group, who are already building 764 homes throughout the region for the HCA before 2015.
The latest round of funding will see Home Group build 642 homes throughout England as part of national deal worth £12.7m, the fourth largest programme of any social housing provider outside of London, forming part of the HCA’s Affordable Homes Guarantee Programme.
The development programme will include at least 60 homes to be constructed in the Northbourne Street area of Newcastle, and 35 homes in the Delves Lane area of Consett.
The funding comes two weeks after the company announced it had more than doubled its funds to invest in new homes and current stock, increasing its investment fund from £25.6m to £64.5m to contribute towards plans to deliver 7,000 new properties in the next five years.
The not-for-profit firm, which has a turnover of £313m, houses more than 120,000 people a year in 53,000 homes across 200 local authority areas in England, Scotland and Wales, as well as some work 30,000 vulnerable people through more than 500 supported housing, justice and health services each year.
Mark Henderson, Home Group chief executive, said: “This funding shows the confidence the Homes and Communities Agency has in Home Group to deliver the new homes which are needed to help tackle the shortage of affordable housing. We’ve been given the go-ahead to build 350 homes in the North East and 642 nationally.
“These are in addition to our existing development programmes which will see us deliver homes for those who need them prior to 2015.
“Home Group has been providing homes for the people of the North East for more than 75 years and we’ll continue to develop homes for those who need them.”
The announcement comes in the same week that Home Group started building 24 new homes in Gateshead on the site of the former Felling Pool in a ï¿½2.5m project that will see a mixture of two and three bedroom affordable homes.