UK housing association ‘Your Housing Group’ has announced a historic joint venture deal (worth £2.5bn) with a Chinese state-owned construction company to deliver 25,000 modular homes by 2022.
The joint venture with WeLink group will see thousands of homes built across the UK through an initial investment, whilst accessing China National Building Material’s (cnbm) technology, financial support and leverage for additional investment in the UK.
The joint venture is extremely timely as the UK Government is actively encouraging new innovative entrants to the housing market to help deliver its housing objective of one million homes by 2020. The joint venture will also be a platform to engage with other Local Authorities and Housing Associations as partners to help solve their housing market needs.
A key element of the partnership also see’s support for local businesses by developing supply and delivery chains that source materials and labour locally to proposed developments.
As part of the deal, the JV will also build up to six factories at strategic locations across the UK, which will produce up to 25,000 homes per year, making it the UK’s leading modular housing developer.
Brian Cronin, CEO of Your Housing Group, commented: “YHG is committed to providing innovative solutions to address the availability crisis which affects the housing sector in the UK today. Therefore, as one of the UK’s largest Housing Associations, with over 20 years’ experience of housing management and operations, we are delighted to be part of this ground-breaking joint venture.
“This is an opportunity for YHG to get back to building more social and affordable homes across a wider geography of the UK, it also ensures new types of employment, new building skills, and the nurturing of additional apprenticeship opportunities are available, which can only be good news for local people and businesses where we develop our housing and supply chains.”
Mark Tattersall, Chair of Your Housing Group, added “Our focus as a business has always been about building and maintaining communities through the development of good housing, creation of jobs and servicing the needs of all of our customers. Today’s announcement brings further investment, opportunities and new homes to our region that will generate a welcomed positive impact in our communities when it is needed most.”