Places for People has signed a pioneering partnership with Aberdeen City Council which will create 2,000 new homes in the city with the potential to build a further 1,000 properties.
The landmark £300m Limited Liability Partnership (LLP) model is the first of its kind to be signed in Scotland and will see homes built across Aberdeen without any Government subsidy or grant funding.
Aberdeen City Council and Places for People will each take a 50% share in the new development partnership which will build, own and manage a range of homes across eight sites in the city, and split an equal share of any development profits.
The deal will deliver 1,000 new affordable homes for rent, 1,000 new homes for private sale and the potential to create 1,000 further properties.
Places for People, which already owns or manages 152,000 properties across Great Britain – including 10,000 in Scotland – will use its experience in the development and management of housing to minimise costs and reduce project timescales.
David Cowans, Group Chief Executive at Places for People, said: “This deal is transformational. Creating 1,000 new affordable homes for rent will help to transform Aberdeen and the lives of key workers such as nurses and teachers. This deal is also transformational for how new homes are delivered in Scotland and provides a blueprint to show that new housing can be built without any Government subsidy or cost to the taxpayer.”
Aberdeen City Council Leader Councillor Jenny Laing said: “This project will support and is also in addition to ACC’s own building programme, setting up Registered Social Landlords and low cost home ownership which has already delivered 1,081 affordable properties in the last four years. These thousands of new homes will help to address a shortage of housing in Aberdeen, which has become a barrier to the continued economic growth of the region.”
The developments will consist of a housing mix of social rent, mid-market rent, shared equity/low cost home ownership and private sale depending on site location and regeneration objectives.