A deal has just been signed which will provide an additional 1,000 new affordable houses in Aberdeen, which will help address the shortage of housing in the city.
The partnership, along with housing developer Places for People, follows a commitment in the council’s Strategic Infrastructure Plan (SIP) to build 2,030 homes by 2017 – a key goal of the SIP was to create a step change in the supply of housing as a priority and in particular increase the supply of affordable housing to meet the city’s housing needs.
These new homes will help to address a shortage of housing in Aberdeen, which has become a barrier to the continued economic growth of the region.
The objective of the deal is to develop an initial 1,000 affordable homes and 1,000 private development homes, with the potential for a further 1,000 properties.
This project will support and is additional to ACC’s own building programme in support of Registered Social Landlords and low cost home ownership which has already delivered 1,081 affordable properties in the last four years.
The £300million partnership deal will see the formation of a limited liability company which is a Scottish first, and will help to deliver a “step change” in the supply of affordable housing in Aberdeen.
The partnership company will build, own and manage housing for rent targeted at a range of needs, which include key workers on modest incomes. It will purchase council-owned sites and develop these for both affordable housing and private development for sale. ACC will receive a land value for each site, and in addition, through its 50% ownership of the partnership company receive a 50% share of the development profits. Places for People will provide development and housing management experience to minimise costs and increase the speed of build.
Eight sites around the city are initially committed for the project, including at Summerhill, three at Tillydrone, Craighill, East Woodcroft, Kincorth and Bucksburn Farm (Greenferns), and the developments will consist of a housing mix of social rent, mid-market rent, shared equity/low cost home ownership and private sale depending on site location and regeneration objectives.
We look forward to cutting the first turf and building on these sites as soon as possible, so residents can be welcomed into their new affordable homes.