PRAISE where its due and Manchester City Council's approach to funding new affordable housing by using its pension pot as collateral has been endorsed by the RIBA as a good way to get things moving.
These recommendations echo Manchester’s housing investment model that has already agreed £25m funding with the Greater Manchester Pension Fund and the HCA to pilot five sites across the city
The city announced the new finance model last month and hopes to have a contractor in place by the end of the year. Not clear whether it will be one contractor for all five sites, or different ones for each - ditto for the property manager.
And while the city talks about high standard and specification it makes no mention of architects or architectural competitions.
Here's the release.
A housing investment model born in Manchester using pension fund money has now been endorsed in a national report by the Future Homes Commission.
Manchester City Council announced plans to boost home building in the city, in partnership with the Greater Manchester Pension Fund (GMPF) and the Homes and Communities Agency (HCA), last month, which has now been adopted by the Royal Institute of Architects’ (RIBA) commission as a model of quality home building over the next 20 years.
The Future Homes Commission was tasked by RIBA to conduct an inquiry and deliver a report about the quality of newly built homes, which concluded a requirement of a threefold increase in the number of new homes using local authority pension funds with a focus on good design – and local government should be taking a lead role.
These recommendations echo Manchester’s housing investment model that has already agreed £25m funding with the Greater Manchester Pension Fund and the HCA to pilot five sites across the city, creating 240 new homes built for sale or rent to a high standard and specification – providing a real choice of decent homes for people across the city.
Development land will be provided by the council, including one site offered by the HCA, while the Greater Manchester Pension Fund will finance the building of the homes.
Together the partnership will aim to choose a contractor by the end of this year and a property manager to manage the rented properties once completed. The council will also support the buyer by taking an optional equity share in the property, making the new homes more affordable and mortgage costs lower.
If successful, the housing investment fund scheme could set a precedent for much bigger projects with other major investors – securing a bright and sustainable future for the Manchester housing market.
Housing Investment Model sites:
Former Oakwood, Darley Avenue, Chorlton Park – 86 units
Former Ossingotn Court, Hawkswick Drive, Brooklands – 30 units Former Woodwise Nursery, off Woodwise Lane, Brooklands – 17 units
Off Clowes Street, West Gorton, Ardwick – 35 units
Gorton Monastery, off Gorton Lane, Gorton North – 76 units
The Greater Manchester Pension Fund have been advised by GVA. In their capacity as fund manager GVA are responsible for the identification and delivery of commercial development opportunities throughout the North West of England with a financial allocation in excess of £300m.
