A charitable retirement homes provider has signed a £430m PFI sheltered housing deal – the biggest ever in Britian.

Housing 21, which provides housing for 17,000 older people throughout the UK, has signed the agreement with Oldham council in Greater Manchester to rebuild and refurbish its stock of 1,700 units.

Under the deal, Housing 21 will refurbish 1,500 dwellings and rebuild the remainder as extra care accommodation, offering a halfway house between sheltered housing and nursing home care. The bulk of the sheltered housing consists of bungalows and flats.

The £105m of repair and refurbishment work will be carried out by Bullock Construction under a contract with a special purpose vehicle wholly owned by Housing 21. The remainder of the contract is accounted for by the housing management and support services for the residents, which Housing 21 will provide over a 30 year period.

Pushpa Raguvaran, finance director of Housing 21, said: “With this deal, we have pushed the boundaries in terms of what a housing association can do.”