Communities Secretary James Brokenshire has announced a multi-million pound funding injection from Homes England to build new modular homes on top of some of the capital’s buildings
Homes England has struck a three-year, £9m deal with SME developer, Apex Airspace Developments (Apex).
Apex is a pioneer of ’airspace’ development where unused airspace above residential, commercial and public buildings is used as a location for new homes.
The Homes England funding will help Apex deliver five new sites across London, in turn helping tackle the Capital’s housing shortage.
The funding will enable the offsite construction of the homes prior to transportation to each of the five sites. These will then be lifted on top of existing buildings with a crane – resulting in minimal disturbance to existing tenants and residents.
The first of the modular homes will be completed by the summer – and in total 78 rooftop homes will be built under the three-year deal. Homes delivered will be priced within the Help to Buy threshold to help support more people into home ownership.
The project is being funded from the Government’s £4.5bn Home Building Fund.
Gordon More, Chief Investment Officer for Homes England, said: “We are committed to working with a diverse mix of developers to support innovation within the market and the funding agreed with Apex is an excellent example of how collaborative working can increase delivery, pace and quality of much-needed new homes.
“This funding will enable Apex to deliver new homes in areas of high need on existing rooftops. Importantly, and in line with the National Planning Policy Framework, it will do so using modern methods of construction to increase the speed and quality of the homes, with minimal disruption to existing residents. It serves as an exciting model for delivering affordable housing in areas of tight land supply and high density.”
Arshad Bhatti, Chief Executive Officer of Apex, added: “Apex is passionate about the potential for airspace development and the positive contribution it can make to the supply of new homes, not only in London but, in time, elsewhere across the UK too.
“The funding package agreed with Homes England builds upon the earlier Business Growth Fund equity investment. The debt and equity financings combined with Apex’s expertise, will help turn the airspace development vision into reality helping to upscale the delivery of new homes.
“Apex has invested heavily in airspace development and our research shows the potential for up to 180,000 new homes in London alone. We are delighted to be working with Homes England and welcome its positive and supportive approach in helping to deliver innovative solutions to the housing challenge.”