Housebuilder Inland Homes has become one of the first listed companies to be registered as a for profit provider of social housing by the industry regulator.
The registration via its wholly owned subsidiary Rosewood Housing gives Inland Homes the ability to diversify its South of England focused portfolio by developing and managing Section 106 homes, comprising a blend of shared ownership and social housing units for rent.
Chief executive Stephen Wicks said the brownfield specialist would look to generate “visible and attractive income from shared ownership staircasing”, a practice in which residents buy further shares in their properties having moved in.
Once it has achieved “critical mass” in the sector, it will look to partner with an institutional investor to help deliver further portfolio growth. In its latest trading update for the year to 30 June, Inland Homes reported revenue for the year was £150m, up from £90m for the previous 12 months.
Wicks added: “This is a significant milestone for Inland Homes, which will accelerate our drive into the provision of much needed affordable housing in the South and South East of England, continuing the expansion and diversification of our revenue streams. Through our current partnership housing activities, the team now has a wealth of experience and knowledge of the UK social housing sector and this approach will complement our develop-to-sell strategy, leveraging the capabilities of our rapidly growing in-house construction division.”
Last week, the government outlined several social housing reforms in its Green Paper, including proposed changes to council spending of Right to Buy receipts, shared ownership and the regulatory system.
Montagu Evans advised Inland Homes on the two-year transition process.