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Aster Group to invest £585m in new homes
Aster Group will invest £585m in its building programme over the next two years, with plans to deliver just under 2,300 new homes by March 2026.
The 37,000-home landlord said its funding commitment includes a planned £295m investment in the year ending March 2025, its largest-ever annual build programme.
The total includes around 300 homes a year funded by Aster’s strategic partnership with Homes England, and a net zero carbon scheme in Sussex that will see 120 homes built in a joint venture with house builder Thakeham.
Aster’s plans also include several community land trust projects, with a number scheduled to start this year.
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Amanda Williams, chief investment officer at Aster, said: “The housing crisis is worsening and it’s vital that we respond to that by investing more than ever in our delivery programme.
“There’s no doubt that the housebuilding sector has had to contend with a challenging economic landscape, and we’ve not been prepared to sacrifice quality over volume.
“Despite these difficulties, the need for affordable housing remains critical so it’s essential that we strive to be ambitious with our build programme.”
Aster reported a “challenging year” in its trading update in May for the 12 months to 31 March 2024.
Home completions were down compared with the previous period, falling to 997 from 1,312. Of these, 517 were for affordable rent, 405 for shared ownership and 75 were sold on the open market.
At the time, the housing association said it had a “strong forward pipeline in place”, with a contracted pipeline of 3,174 homes. However, it noted that “capacity has plateaued due to the pressures from our operating environment including inflation, interest rates and investment into existing stock”.
Aster aims to add 10,000 homes to its portfolio by 2030.
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