Developer launches social housing company

Prosperity Group, a specialist residential developer and investor based in Birmingham, has announced plans to launch a new social housing company.

Prosperity Vita, which remains subject to regulatory approval, will enable the direct delivery of social housing within larger residential developments being brought forward by the Prosperity Group.

The company is currently targeting the delivery of around 500 homes for affordable rent within the next five years. This is likely to include developments across the country, including in Birmingham, Nottingham, and Norwich.

According to leading housing and homelessness charity, Shelter, currently 1 million households are waiting for social homes, while social house building in England remains at its lowest rate in decades, with less than 7,000 built last year.

Under current rules, a percentage of any new residential development is handed over to a registered housing provider which undertakes the ongoing management. However, more commonly, if a provider cannot be found a financial payment is made and no new affordable homes are delivered.

Instead, Prosperity Vita will ensure that any proposed social housing within larger Prosperity Group of developments has a guaranteed operator. By aligning the delivery and the management of new affordable homes, social tenants will also enjoy the same quality and benefits of private residents.

Prosperity Group has delivered over 3,000 new homes across 42 developments, with a combined Gross Development Value of £435m. The company’s development pipeline includes Pressworks a proposed 711-home development in Digbeth, Birmingham.

Chief executive at Prosperity Group, Joe Billingham, said: “We’ve been left frustrated by a social housing system which often discourages the delivery of new homes, particularly for affordable rent. We want to stand behind our commitment to the communities in which we operate and ensure enough quality housing, of all tenures, is brought forward. “Subject to regulatory approval, Prosperity Vita will deliver and manage quality social housing across the Prosperity Group portfolio. This will be ‘tenure blind’ so there is no difference between the quality of market and affordable rent in any development. “We want to support the creation of vibrant new communities that offer high-quality, truly affordable homes for local people. We will also work closely with local authorities to meet their identified need and deliver real social value.”