Public-private link in scheme to build more than 2,300 homes

The authority has set up what it calls the Sheffield Housing Company with Doncaster-based builder Keepmoat Ltd and the Great Places housing association, which has headquarters in Manchester.

A 15-year contract has been signed between the builder, the association and the council which will see new homes built in some of the more run-down and neglected areas of Sheffield.

Land will be provided by the council while the costs of development will be met by the builder and housing association, with any profits split down the middle.

Sheffield Council’s spokesman for housing, regeneration and planning, Coun Penny Baker, said it was hoped that the arrangement would provide “long-term and effective regeneration for neighbourhoods”.

Speaking at a launch event on the city’s Parson Cross council estate, Coun Baker added: “We are excited to announce today our preferred partners in the Sheffield Housing Company.

“Even in the challenging financial climate we’re all facing at the moment, we are coming up with innovative ways to make sure the regeneration of our city goes from strength to strength. This will be a 50-50 partnership between the council and the private sector in order to provide new high quality homes for sale, shared ownership and rent.

“These homes will be built in areas where regeneration is needed most, and will have the added effect of stimulating the local economies with labour initiatives, training schemes and support for small, medium and community enterprises.

“Local people will be able to contribute to the development of these homes throughout the next 15 years, as part of the design process as well as providing ongoing feedback as the new homes are occupied.”

The company will build houses which will be sold on the open market, both to outright buyers and those who wish to enter a shared-ownership arrangement with Great Places. Others will be available to rent.

The partnerships director with Keepmoat, Eugien Jaruga, said: “It is testament to the commitment of all those involved that, despite the challenges of recent years, we have worked together and with great determination to get this much needed project to the point where delivery can soon begin.

“We very much look forward to working with Sheffield Council in order to deliver high quality affordable housing for the city, with homes for sale, shared ownership and rent – helping to regenerate neighbourhoods and restore confidence.”

Sheffield Council said it had identified about 60 hectares –150 acres – of publicly-owned land across the north and south of the city and designs for houses have already been drawn up.

Planning officers have been assisted by staff from the Government’s Homes and Communities Agency in setting up the housing company. Its area manager, Kate Reid, said: “The confirmation of a private sector partner is excellent news. We are pleased we can now help make best use of local land to meet long-term local housing needs through the housing company.

“The fact that Keepmoat and Great Places will be working together will create the flexibility to provide the homes in a way that people can afford over the next 15 years.”

Great Places Housing Group’s chief executive, Stephen Porter, added: “This project will revitalise neighbourhoods with high-quality, affordable homes.”

According to the council, the final stages of company set up are expected to be finished by the end of June. The company is expected to gain planning permission for the first phase of sites quickly after that, and start building work by the end of the year.