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Kingston Council has announced that it is working to build new homes in the borough by managing them through a new wholly owned subsidiary trading company.
Plans to set up the new council run trading company to manage 79 new homes in Hampden Road in Kingston, were given the green light at a Finance and Partnerships Committee last week.
The council will partner with Legal and General (L&G) Plc to develop the site and construct the new homes.
As reported just yesterday, L&G has invested £100m of long term debt financing in its affordable housing business – opening the door for UK pension money to back the provision of such homes.
A further £175m of development finance is being provided by a consortium of external investors to support the delivery of its current pipeline of 3,500 homes.
Once complete in Autumn 2021, the Kingston site will provide a mix of one, two, three and four bed units among other amenities.
Cllr Liz Green, Leader of Kingston Council, said: “There are many benefits to the council and local residents from this proposal.
“As a landlord, the council can ensure that the tenants of both affordable homes and now market rent ones, are treated fairly and given a better service than they might find elsewhere in the private market.
“Over the 40-year lease period, the council will receive an income that will be used to help protect services for all residents, especially our most vulnerable.
“After 40 years, the homes will revert to the council’s freehold ownership, adding much needed homes to our housing stock.
“I think this is a great decision for Kingston as it will not only help meet our housing targets set out in the London Plan but also allow us to build the vital homes and facilities our community needs.”
