Housebuilder Bellway has signed a three-year deal with Heylo Housing, a private affordable housing provider backed by local authority pension fund investment, to deliver more than 1000 affordable shared ownership homes for Section 106 obligations. The deal is based on Heylo’s Home Reach shared ownership model, which allows developers to build and sell new shared ownership homes and simultaneously sell the landlord’s position to Heylo.
Heylo is a joint venture between the Lancashire County Pension Fund, an investment manager and a team of affordable housing specialists. It has acquired more than 500 homes in 25 local authorities since it launched in September 2014, including a portfolio of homes developed by Bellway’s affordable housing subsidiary, Bellway Housing Trust. It expects this to be the first in a series of contracts with national and regional housebuilders.
Heylo chief executive Nicholas McAlpine-Lee said, “Home Reach provides Bellway with full control over construction, specification, delivery and sales of shared ownership affordable housing properties with the contractual certainty of satisfaction of Section 106 obligations by an approved alternative affordable housing provider unaffected by the recent changes to the housing association sector model.”