Affordable housebuilder Lovell is seeking local authority and registered social landlord partners for its relaunched low-cost homeownership programme.
Under the scheme, councils transfer land at zero or very reduced cost to Lovell, but retain nomination rights to the finished properties.

The relaunch of Lovell Choice came in the wake of the announcement in the Communities Plan that the Housing Corporation would lead a taskforce to examine the various models of low-cost homeownership. It will be headed by corporation chair Baroness Brenda Dean, who is to retire from the corporation in September.

Removing land costs means Lovell can sell the homes to key workers or existing council tenants at an average 30% discount to open market value. When purchasers decide to sell, the new buyer must also be a council nominee.

The scheme suits section 106 sites where a council and RSL want a mixed-tenure development. It also suits councils with right-to-buy leaseholders in regeneration estates, who may not be able to afford the full market value of improved properties.

Previously known as the Resale Covenant, the scheme has already delivered 800 homes in England and Wales over the past 15 years. Lovell now hopes to step up its output, but has not set specific targets.

The largest example is the 240-home St Mary's Village in Hackney, east London. In rural Oxfordshire, the scheme is delivering up to 20 homes at different locations for Cherwell district council.

Source

Housing Today