Why is Gentoo Group building more homes?

    Through our Affordable Homes Programme, we plan to deliver 1,200 additional new build homes in Sunderland by 2026. This will help to tackle the shortage of affordable housing in the city and help to meet the Council’s target of 13,410 new homes by 2033.

    Gentoo also currently has a list with thousands of people who are registered for a new rented home in Sunderland and, by the time the homes on this site are completed, that number is expected to have increased further.

    We also know that the number of households living in homes owned by housing associations has decreased over time and that more residents are in private rented accommodation.  

    We recognise that it’s not just important to have enough homes in the City but also variety in the types of homes to meet the needs of residents. Gentoo’s existing housing stock is predominantly made up of one and two-bedroomed homes and therefore the new homes delivered through the Affordable Homes Programme will focus on increasing the number of much-needed three and four-bedroom properties and bungalows.

    Why does Sunderland need more homes?

    Providing a range and choice of housing to meet the needs of current and future residents has been identified as a strategy priority by Sunderland City Council.

    Importantly, while population projections for Sunderland are not envisaging significant growth over the next few years, there are still new households forming who need homes and there is also an aspiration to attract new households to the City.

    In response to this, Sunderland City Council has identified a need for 13,410 new homes in the City by 2033 which equates to 745 new homes needed each year.

    Work undertaken on behalf of the Council has also specifically identified a significant shortfall of 2,187 affordable homes per year which can’t be met by the overall housing target alone. This figure is made up of a backlog of households waiting for an affordable home, new households which are forming and existing households whose circumstances change.  

    Are the houses for sale or rent?

    We expect around 70% of the homes on the site to be available for affordable rent. We expect the remainder to be available for affordable home ownership options to help residents get onto the property ladder. These properties will be Shared Ownership or Rent to Buy.

    How much will the houses for sale cost and will they really be affordable?

    The housing market is always changing and, as the new homes will not be available until Autumn 2023, we are not able to predict at this stage what the cost of renting or owning one of the homes will be[IJ1] . However, we are required by Central Government to ensure the homes meet its definition of ‘affordable housing’. More information on the cost of the properties will be available closer to the homes being completed.

    The rented homes must be let at 20% less than ‘market rent’. This means it would be 20% cheaper to rent the home from Gentoo than it would be to rent it from a private landlord. For a Gentoo tenant, this would mean that a significantly lower percentage of their household income would be spent on housing costs than if they were a tenant of a private landlord. We are confident that our new homes will be affordable to a significant number of tenants on our waiting list, including those with household incomes below the Sunderland average. Gentoo tenants also get access to other services (Money Matters Team etc.) which would not be available from a private landlord.

    Old Mill and Aberdare only for next paragraphs à We will also be providing a small number of homes with affordable home ownership options to help residents get onto the property ladder. These properties will be available to buy on a Shared Ownership or Rent to Buy basis.

    Shared Ownership is designed to act as a stepping stone into home ownership where residents buy a percentage of their home and pay rent on the remainder. As an example, a household with a combined annual income of £17,500 would be able to buy a 40% share in a Shared Ownership property worth £165,000 with a deposit of £3,300. The remainder of the 40% share would be funded by a mortgage and rent would be paid on the remaining 60% of the property. Additional percentage shares of the property can be purchased as and when households can afford to.

    To purchase a home of the same value outright, even with the support of a Help to Buy Equity Loan, would require a household income of £27,500 and a significantly higher deposit of £8,250. Average household incomes in Sunderland are lower than this which is why Shared Ownership is a more affordable way to purchase your own home.

    With Rent to Buy, households rent their home for 20% less than the ‘market rent’ and then can buy a share, or all, of their home after five years.  

     [IJ1]Delete for Gartland

     

    Why are you spending money building new homes and not investing in existing properties?

    Gentoo is committed to investing in both building new homes and investing in existing properties.

    We are currently delivering an affordable homes plan that involves investing £165m in building 1,200 new affordable homes in Sunderland by 2026. This works out at £33million of investment each year.

    Last year, Gentoo invested £66m in repairing and maintaining our existing homes and over 160,000 repairs visits to tenants’ homes were carried out over the same length of time. Over a five-year period, we will invest £330m in existing properties. This work includes replacements for windows, kitchens, bathrooms, roofs and more.

    We have seen diggers on the site. Have you started building the houses already?

    Gentoo’s proposals for new affordable housing on the site are at an early stage and construction will not commence unless planning permission is granted. The recent activity on the site is part of routine site investigation work, where ground conditions are being checked. The findings of this work will inform any future planning application.

    Have you considered parking in your proposals?

    We will make sure that every home has its own parking space and some visitor spaces will also be provided.

    Will the homes have gardens?

    Every home on the development will have its own garden.

    How much open green space will be lost?

    There will be some open space lost because of the housing development. However, we are committed to improving other areas of open space either within the site or nearby if the local community feel that it would be beneficial.

    On the Old Mill Road site, areas of high-quality open space will be created within the development. There are also other areas of open space within the local area that can continue to be used by existing and new residents.  

    Can you not build on brownfield sites instead?

    Our Affordable Homes Programme includes a variety of different sites. Five of the sites in our programme are identified on Sunderland Council’s Brownfield Land Register and therefore our programme is making a notable contribution towards redeveloping brownfield land in Sunderland. A significant proportion of the other brownfield sites on the register are already being developed by other organisations and are therefore not available to Gentoo Group.

    While this site is not on Sunderland’s Brownfield Land Register, we are confident that a high-quality development proposal will have a positive impact on the local area.

    Will building on greenfield land cause flooding elsewhere?

    The site will be carefully designed to make sure that surface water run-off is limited and the risk of flooding elsewhere is not increased. A drainage and flood risk assessment report detailing our proposals will be submitted with any future planning application.

    Will I be affected by noise and dust during construction?

    The construction phase of our development projects is carefully planned to ensure the safety and wellbeing of the surrounding community and minimise disruption and inconvenience.

    • A Resident Liaison officer will be appointed on the project to provide a direct link between residents and the construction site.
    • Construction hours Monday to Saturday will be limited and not permitted on Sundays.
    • Construction traffic will be carefully planned and managed with other statutory authorities and temporary traffic control measures will be utilised if required for safety reasons.
    • Road sweepers will be used to minimise debris and mud in the surrounding area.

    How long will construction take?

    We expect the development to take around two years from construction starting to all homes being occupied by tenants. The activities occurring on the site during this time will vary from ground work to bricklaying to plastering and painting.

    I have another question that you haven’t answered here.

    Please complete our online survey and let us know if you have any comments or questions about the proposed development.

    Will I be affected by noise and dust during construction?

    The construction phase of our development projects is carefully planned to ensure the safety and wellbeing of the surrounding community and minimise disruption and inconvenience.

    • A Resident Liaison officer will be appointed on the project to provide a direct link between residents and the construction site.
    • Construction hours Monday to Saturday will be limited and not permitted on Sundays.
    • Construction traffic will be carefully planned and managed with other statutory authorities and temporary traffic control measures will be utilised if required for safety reasons.
    • Road sweepers will be used to minimise debris and mud in the surrounding area.