Delivered on behalf of Newcastle City Council, a consortium led by Kajima Partnerships Ltd and made up of Waypoint Investment Management and Tolent Living, financed designed and constructed the £20m project.
The new innovative, housing delivery model was launched in 2017 to target the city’s growing housing shortage. The Annuity Lease Back Model 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 over a forty year period, with the council owning all the properties at the end of the concession.
The completed properties will be managed by Your Homes Newcastle who already manage almost 30,000 homes on behalf of Newcastle City Council and will be let to tenants at an affordable rent.
The project, which received £3.5m of funding from Homes England, includes 58 Tyneside flats and 16 bungalows as well as 22 sheltered apartments and 52 assisted living apartments for older residents who need care and support. The bungalows and Tyneside flats adhere to the 3 Star Housing Quality Mark and the apartment units achieve BREEAM ‘very good’ status. The scheme also comprises electric vehicle charging points, cycle storage and additional tree planting contributing to important sustainability factors.
Construction began in September 2018 with the first tenants moving into their new homes in November 2019 at Newbiggin Lane, Westerhope. During construction the consortium delivered an estimated £1.7m of social value via various initiatives including school visits and workshops, research projects, work experience and apprenticeship opportunities.
The success of the project has led to a further £27m contract to deliver a second phase, comprising an additional 199 homes, by 2022.