New ground proposition is to provide bespoke design, build and finance services on a project basis. Local Authorities in partnership with Approved Housing Bodies that will manage the properties until such time as the debt is paid off and the units are transferred back to the local authority.
Zero-cost sites provided by Local Authorities make the finances work.
Using the existing social housing leasing mechanisms, local authorities will pay up to 95% of the market rent for social housing, making it possible to provide a low-risk, government dividend. The required return on investment is estimated to be in the range of 5% to 6%.
The new ground model is highly scalable for different sites across Ireland.