The development of 2-, 3- and 4-bedroom homes is being built on vacant land off Bolton Road in Bradford and marks STG’s first land inclusive development, whereby housing providers can minimise risk and take advantage of the construction firm funding the project through planning, site purchase and early stages of the development.
The land was bought from the council and the project has been fully supported by Bradford Strategic Housing. Planning was granted in January 2013 and completion of the development is due in spring 2014.
STG business development director Charles Tweed said: “Generally, social housing is normally zero rated for VAT purposes, however occasionally the vendor of the land elects to tax. In order for the registered provider to avoid the VAT liability an arrangement is entered into whereby we buy the land in the first instance and transfer it to the provider when an agreed ‘golden brick’ stage is reached. We believe that this partnership approach to the development of social housing will help providers address the current shortfall in quality, affordable, family homes.”
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