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North East housing association plans coronavirus recovery with £45m affordable housing boost
Sunderland-based housing association Gentoo Group will put £45m into building 268 new affordable homes in the city, which it says will “kick-start” social and economic recovery in the wake of the coronavirus pandemic.
The plans, which will be delivered over the next two years if approved, will support 693 jobs in the city, with an estimated 279 jobs created on site and 441 in the wider economy, Gentoo said.
The association will ensure 268 new homes will be available for affordable rent or shared ownership.
Gentoo’s scheme will be coupled with Sunderland City Council’s ongoing regeneration programme and could bring roughly £5.5m extra spend to the city region, with £1.5m of this retained in Sunderland.
The 30,000-home social landlord recently had its credit outlook downgraded to ‘negative’ by ratings agency Standard & Poor’s (S&P) over concerns about how Brexit would impact the local economy.
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Nigel Wilson, chief executive of Gentoo, said: “Sunderland is a city in transformation and it’s clear the significant amount of development and construction work that is ongoing across Wearside will be the catalyst for social and economic growth post COVID-19.
“We’re pleased to playing our part by submitting plans to build much-needed new modern affordable rented housing that our tenants and the people of Sunderland deserve.”
Gentoo said it expects unemployment rates to increase significantly when the government’s furlough scheme ends in October and warned that the city and region could face “serious” job shortages.
Graeme Miller, leader of Sunderland City Council, said: “As a council we work closely with all developers and are supportive of Gentoo’s plans and its contribution to making Sunderland more dynamic, healthy and vibrant. Plus, when we keep contractors and the supply chain as local as possible, we all help support businesses in the North East.
“By building new homes, and with continued development in our infrastructure, we are all offering more housing choice and continuing our city’s social and economic transformation.”
