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Housing: Design for Manufacture Competition

Volume 457: debated on Tuesday 6 March 2007

To ask the Secretary of State for Communities and Local Government what she expects the purchase price to be of the homes built under the Design for Manufacture competition at the Renny Lodge site in Newport Pagnell referred to in her predecessor's Department's news release of 3 November 2005. (112258)

The 10 sites in the Design for Manufacture competition have been brought forward with the aim of producing mixed communities with homes occupied under a variety of tenures. Some of the homes built through the competition will be for social rent, some will be for sale on a shared equity or shared ownership basis, including Homebuy and the First Time Buyers Initiative (FTBI), and some will be available for outright sale on the open market.

The competition challenged the homebuilding industry to build high quality, well-designed two bedroom homes, with an internal floor area of 76.5m2, for a construction cost of £60,000. All sites will include homes built within these parameters, with the remainder made up of larger and smaller units built at an equivalent cost-efficiency.

All sites will include a proportion of affordable housing. This includes social rent and different kinds of shared ownership. The price of the units for sale reflects the land value, the local market and the equity share as well as the construction cost.

A Renny Lodge, in Newport Pagnell, a total of 68 homes will be built, 54 of which will be affordable. Of these, 33 will be available under the FTBI. The remaining 21 will be made available to the RSL, 14 of which will be available through the Homebuy scheme, three at a reduced market sale and four for social rent.

For those homes available under the Homebuy shared ownership arrangements a 30 per cent. equity stake in a two bedroom home will be made available for an expected price of between £42,000 and £46,000.

The FTBI homes will typically be available at equity stakes from 50 per cent. starting at around £71,500 for a one bedroom flat.

Two bedroom homes available for sale on the open market have been reserved from £140,000.