Surrey and East Sussex councils are launching a search for a developer to build more than 2,000 homes in the biggest move yet of a county authority into housing development.

This inititiave was reported in Inside housing – an extract of which is below:

“The initiative, which is being spearheaded by Surrey County Council and advised by Knight Frank, would initially last for 15 years and would encompass 36 sites across their local authority areas.

County councils have traditionally stayed out of housing, which is a matter for district and city councils, but a handful of pioneers began entering the private development space over the past year.

They are seeking fresh income streams in response to government cuts, and also see themselves as strategically placed to bring together the sites and infrastructure necessary for housing.

Surrey and East Sussex are also exploring the possibility of incorporating land owned by other public sector bodies in the programme, using funding from the government’s One Public Estate programme.

That process, which could encompass city councils, could deliver closer to 10,000 homes, bringing the total end value of the scheme to £1bn.

It is understood that Surrey and East Sussex will appoint development consortia, likely to include housing associations, that will carry out work in three strands: land promotion and sale; institutional build-to-rent; and development of tenanted stock for both councils to own and manage themselves.”