Ex-Sage and Home Group executive, Brian Ham has teamed up with two experienced developers Colin Peacock and John Parkinson to launch a new affordable housing developer and funder, Swallowfield Homes.
Swallowfield will work with established Registered Providers and local authorities to help boost their development capacity with ethical investment from pension funds seeking long-term and sustainable ESG based returns.
Under Swallowfield’s model, investors will buy development sites, Swallowfield will develop the homes, and the completed homes will then be leased on to an established Registered Provider or local authority. The RP will manage the homes for the duration of the lease. The homes transfer to the Registered Provider at the end of the lease period or there is an option for the Registered Provider to purchase them.
The new organisation will only work with established Registered Providers who meet the highest regulatory and viability standards and can demonstrate an excellent credit rating. This is to ensure that the highest customer service standards can be met, and that risk can be managed appropriately.
Co-founder Brian Ham says: “We believe that ethical lease-based schemes are part of the solution to the UK’s housing crisis. Our model offers a solution for established Registered Providers and local authorities who want to build affordable homes and investors who want long-term, stable income streams. We’ve seen demand for this type of funding increase exponentially as pension funds put ESG at the heart of their investment strategy and RPs look to innovate.”
The trio expect to complete their first deals later this year.
