Woking Borough Council has chosen a Kier consortium to deliver 224 affordable homes and 149 homes for private sale.
In an £80 million deal with Thames Valley Housing, the Evolution consortium – comprising Kier and TVH – will build affordable homes worth £40.5m under a private finance initiative as part of the contract. A total of 373 homes will be built.
Thames Valley Housing will manage the affordable homes for 25 years, with the council making an annual contribution alongside government funding and investment from Evolution.
The dwellings are primarily two, three and four-bedroom houses and will be built to Level 4 of the Code for Sustainable Homes.
TVH chief executive Geeta Nanda said providing affordable housing was of paramount importance given the current economic conditions.
“Our ability to deliver on projects of this kind has played a large factor in winning this significant contract,” she said.
“In the present economic climate, demand for housing far outstrips supply and the lack of bank finance has severely restricted housebuilders’ ability to bring forward new properties.
“This has contributed to a housing crisis of national proportions and now, more than ever, housing groups have a greater responsibility of finding ways to work with both the private and public sector to increase the supply.”
Managing director of Kier Property Nigel Turner said the mixed-tenure development “will play an important part in addressing the area’s housing shortage”.