Liverpool council launch ‘ethical’ housing company
Liverpool City Council has launched their ‘ethical’ housing company, Foundations, which will deliver £1bn worth of development over the next decade.
The company also announced they will be setting up a Rent to Buy scheme to support their goal of adding 10,000 homes to the city by 2029.
The scheme enables people to pay a reduced rent on Foundations properties so they can save enough money for a deposit to buy the home.
The company is the brainchild of Liverpool Mayor Joe Anderson, who wants to use Foundations to improve the city’s housing, ‘revolutionise’ the Rent to Buy sector, drive up council tax receipts for the council and stimulate local growth in the construction sector.
Foundations and the council are working on the detail of how the Rent to Buy scheme would operate and who would be eligible to participate. They expect to officially launch the scheme next year.
Liverpool City Council is the sole shareholder of Foundations. It will also be building homes for specific groups including foster carers, large families, the elderly that may wish to down-size and people with a disability.
Mayor Anderson said: ‘We recognise that getting the cash together for a deposit can be a major challenge for many first time buyers so the new Rent to Buy scheme will play an invaluable part in addressing this problem.
‘I have also asked the Foundations team to explore other financial incentives and by the time homes are available to buy in 2019 there will be an opportunity for some of those, assessed on a per scheme basis, to be available Rent to Buy or through an alternative incentive.
‘Giving people hope and a stake in this city’s future is at the heart of Foundations which is why it is by far the most exciting project I’ve been involved.’
Mark Kitts, chief executive of Foundations, added: ‘Foundations is identifying a range of sites in various ownerships across the city, within neighbourhoods, the city centre and waterfront as potential sites for redevelopment.
‘Foundations will be committed to delivering training and skills opportunities for young people in the city. We’ll be working with contractors who will be encouraged to use local supply chains and locally-sourced labour. In addition, we’ll work with providers such as higher education colleges to deliver on-the-job training, including apprenticeships for young people who want to forge a career in the construction industry.’
In October, Lovell Homes submitted plans on behalf Foundations for over 100 new homes in the Yew Tree area of Liverpool.