Swansea Council has agreed to acquire 141 homes from housebuilder Persimmon Homes, in a landmark deal that will see the local authority take ownership of the affordable housing element of a residential scheme under a section 106 agreement for the first time.
The properties form part of Persimmon's wider Llys Pentre development between Gorseinon and Penllergaer, which will deliver up to 750 homes in total. As a condition of planning consent, Persimmon is required to provide a 20% affordable housing element within the scheme.
Details of the Acquisition
The council will pay for the properties as they are built over a phased construction period. The cost will not be based on open market prices, but calculated using Welsh Government acceptable cost guidance 2021 (ACG), with social rented homes transferred at 42% of ACG and intermediate homes transferred at 70%.
Under the terms of the agreement, 71 of the homes will be made available by the council through a low-cost home ownership scheme, enabling first-time buyers to purchase properties below market value. A further 70 homes will be retained as council housing, further strengthening Swansea's affordable housing provision.
Benefits for the Community
The wider development from Persimmon will include a primary school, a park, as well as commercial and open space. This will contribute to the creation of a new community in the area, with the affordable housing element ensuring that a mix of residents can benefit from the development.
Swansea Council's deputy leader and cabinet member for transformation, Andrea Harrington, said: "This is a landmark moment for Swansea Council in terms of the continued development of new and affordable homes across Swansea. Working with a prestigious housing developer such as Persimmon has enabled us to secure a large number of homes which we can offer to residents for purchase at a reduced price. Another important element of this development is the development of council-owned homes which will be available to families and individuals on our housing waiting list."
Council's Commitment to Housing
Andrew Williams, cabinet member for development, added: "The council recognises the importance of working in partnership with housing developers to ensure that we can increase the level of housing in the city and meet the demands of residents. This is a significant increase, not only of the availability of affordable housing in Swansea, but also the increase in the Council's own housing stock."
Stuart Phillips, managing director of Persimmon Homes West Wales, said: "We are delighted to be working in partnership with Swansea Council on this significant agreement, which will provide much-needed affordable housing for local people. This collaboration highlights our shared commitment to delivering high-quality homes and ensuring that the benefits of this development are felt across the community. We look forward to continuing our strong relationship with the council to help meet the growing demand for housing in Swansea and the wider area."
Impact on Housing Market
The acquisition represents a significant boost to Swansea's affordable housing stock, with the council taking on a proactive role in ensuring that new developments include homes that are accessible to a wider range of residents. The use of the section 106 mechanism demonstrates a practical approach to delivering affordable housing as part of large-scale developments.
With the phased construction period, the council will be able to manage the financial implications of the acquisition while ensuring that the homes are delivered in a timely manner. The agreement also sets a precedent for future collaborations between the council and private developers, potentially leading to more such deals in the future.
Residents of Swansea and the surrounding area will benefit from an increased supply of affordable housing, with first-time buyers and those on the housing waiting list being the primary beneficiaries. The development will also bring new community facilities, enhancing the quality of life for existing and future residents.
