Peterborough City Council and housing association Cross Keys Homes have agreed to set up a housing company to build homes in the city.
The joint venture, will build affordable and market rented housing as well as homes for sale.
The council agreed last week to make £20m available for the new company which would be used to fund the building of new homes. Actual investments into the company will be subject to sign-off by the council’s cabinet. The two organisations have not decided how many homes they will build or the exact tenure of the first phase of homes. The council transferred its housing stock to Cross Keys in 2004. The new company will be funded in part through £14.6m of Right to Buy receipts.
Both organisations will take a share of income from future sales and rental income which will either be re-invested to build more homes or used to support services for residents.
The joint venture is planned to be up and running in the autumn and the first projects will be announced before the end of the year.