Preferred Homes plans massive portfolio expansion

Later living developer Preferred Homes has set out plans to grow its portfolio five-fold over the next seven years.

The developer has already secured £100m backing from Nuveen to develop its first eight extra care housing developments in Leeds, Telford, Nottingham, Bicester and Shrewsbury, with two further schemes to come in the south of England, but has now set its sights on growing to 50 schemes.

Preferred Homes provides 100% affordable rent extra care housing for older people through nomination agreements with care commissioning authorities within local councils. The developer has also secured supporting funding from Homes England via its new Affordable Homes Programme.

Stephen Sorrell, social partnership director, said: “We have ambitions to become a market leader in the sector delivering 50 schemes over the next four to seven years. We’re also in a strong position for growth. We have significant long-term capital from institutional funding with presently no reliance on debt financing.

“As the new chancellor seeks inexpensive and deliverable ways of tackling society’s big problems, for-profit registered providers have a significant role to play in accelerating delivery of homes needed to meet demographic trends. From the established big players to start-ups and disruptors such as PHL, attracting investors into the affordable housing and later living markets is crucial.”

He added: “Like the British public, we can see there is a huge undersupply of this type of housing with many not-for-profit registered providers scaling back development programmes. That means older, vulnerable people are stuck in unsuitable often family sized housing or find themselves moving into care homes prematurely. This is overwhelmingly costly for cash-strapped local authorities – so we need more fit-for-purpose housing to make it possible for people to move at the right time and be supported to live independently for longer.”

Sorrell said the business wanted to look at ways of working in partnership with the wider sector and local government to bring forward new development at pace

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