Throughout 2010, Springfield Property Fund, Rettie & Co, Dunedin Canmore Group and build contractor Springfield Properties worked in partnership on the delivery of Moray Apartments; the first affordable housing financed using the innovative Rettie Resonance® funding model.
Fifteen new mid-market rental homes will soon be occupied and the first property was handed over by Scottish Housing Minister Alex Neil on 09 March 2011.
Resonance® has already been recognised as an award winning funding model, winning a Homes for Scotland Quality Award in May 2011. Resonance® at Moray Apartments has also been shortlisted at the Scottish Home Awards, Saltire Society and UK Housing Awards. Details can be found on our Awards page.
The pilot project for the Resonance® funding model provides much needed affordable accommodation and by kick-starting a mothballed construction site, it has created jobs and supported the local economy. It is an excellent example of a public / private sector partnership innovating in a cost effective and practical manner.
Matthew Benson of Rettie & Co worked closely with the Scottish Government, Dunedin Canmore Group, and City of Edinburgh Council to identify this pilot site to demonstrate the viability of the Resonance® model.
Commenting on the structure, Mr Benson observed: “it is an important step forward, demonstrating close private/public sector co-operation to advance the delivery of affordable housing. The structure is flexible and relatively straightforward to implement. Above all, it can deliver a permanent stock of affordable housing with the potential to secure stock at social rents at between 35% and 50% below current grant costs. City of Edinburgh Council and the Scottish Government teams have been very proactive and constructive in progressing the ideas behind the structure. A number of other sites are now in the pipeline and we look forward to being able to improve the structure further as the market evolves.”
Summary of benefits
- Permanent social dividend of 2 units for zero grant
- That's 13% of the site with no s.75 obligation
- Stamp duty = £48k saving
- Limited procurement - fast to do deals
- No V.A.T. on management contract
- No S.P.V. running or set up costs
- No conflict removing tenants in year 5
- Contracts are simple and cost effective
- No debt accruing on B/S of developer as in other structures
- Saves £50k+ of grant if the 2 units retained are used for social rent
- Mixed tenure communities created
- Capital released quickly to developer for re-investment all over again
For further information please contact Nick Watson on firstname.lastname@example.org or 0131 624 9042.