Wragge & Co LLP's residential development and social housing specialists joined forces to advise Sanctuary Housing Group on a landmark deal. Sanctuary has acquired 336 affordable units from Bloor Homes in the first acquisition to go through the Housing Corporation's National Clearing House.

The National Clearing House enables house builders to put forward offers to sell their unsold stock for use as affordable housing. Part of the finance to purchase the units comes from the Government's initial £200 million tranche of funding.

The National Clearing House is releasing £13 million, which will be supplemented by funds from Sanctuary's capital spending programme, to enable the acquisition to take place. Sanctuary will be making the majority of the homes available for rent with a small number available for shared ownership. There are also a further 700 homes in the pipeline.

Wragge & Co residential development partner John Dixon and associate Mark Blair led the team, along with social housing associate Jacqueline Knox. The Wragge & Co team worked with Sanctuary's head of development for the Midlands and the North, Andy White, and director of development services, Rowan Kirk. HBJ Gateley Wareing advised Bloor Homes.

Mark Blair said: "This initiative will ensure that crucial affordable housing is made available and the construction industry is given a boost. Sanctuary is playing an important role in the present economic climate, leading the way for other housing associations to follow. By combining social housing, residential development and planning expertise we achieved the right result for the client."

David Bennett, Sanctuary's Group Chief Executive added: "In this climate of economic change, housing associations need to find creative ways to increase the provision of much-needed affordable housing. The innovative deal has allowed Sanctuary to provide more affordable rented housing and will benefit all the parties involved, including most importantly those in need of new homes. We believe this type of arrangement will provide a balanced solution to the supply and demand for new housing."

Sanctuary Housing Group has been a client of Wragge & Co for more than four years. In that period it has grown to be the country's largest housing association. It manages over 70,000 homes throughout England and Scotland including general rented, sheltered and supported accommodation, student and key worker accommodation.

Wragge & Co's Social Housing team deals with a broad range of issues for affordable housing providers, including local authorities, housing associations, arms length management organisations and private finance initiatives (PFI) contractors. Highlights for the team include advising on a £65 million social housing PFI project for Powerminster in Kent and advising Sanctuary on a key worker housing project for Cambridge University Hospitals National Health Service Foundation Trust.

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For further information about this press release, contact Kathryn Hobbs on +44 (0)121 685 2785 or Rebecca Davies on +44 (0)121 685 3819

This press release may contain information of general interest about current legal issues, but does not give legal advice.