The proposed affordable housing scheme has taken a step forward after Pontypridd based RCT Homes secured funding from an unnamed pension fund. Plans for the scheme were first announced in April and RCT Homes hopes to recruit landlords from across Wales to a for-profit subsidiary in exchange for development land, according to an Inside Housing report. Under the plans, landlords would receive an equity stake in the company.
Bellerophon plans to enter into joint ventures with local authorities and housing associations to build the homes over the next seven years, carrying out the construction itself.
Under the plans, 75% of the rental income from the homes will be used to service the investment. The remaining 25% would go to the joint venture local authority or housing association for management costs.
The new affordable homes are planned to be built to level 4 of the code for sustainable homes and would be let at intermediate rents based on local housing allowance rates. It is hoped this would allow the schemes to generate enough income to give the pension fund a return of around 4%, whilst falling below the benefit caps.
"We look forward to concluding the formalities over the coming few weeks and then moving swiftly to the matter at hand - delivering quality housing in sufficient numbers to start to impact on the current Welsh housing shortage," said Chris Barnett, development director at Bellerophon, according to the Inside Housing report.
