North East housing association steps in with grant funding to rescue fellow landlord’s development deal

The two sites that were paused comprised 32 homes in Stanhope and 56 homes in Easington. The land, planning permission and builder were all agreed but the plans were paused until funding could be secured.

The remainder of the homes covered by the deal are homes Believe was purchasing on three sites already under construction. This comprises 16 in Consett, seven in Crook and four in Wolsingham. 

Both 34,000-home Karbon and 18,300-home Believe are part of the North East Housing Partnership, a collective of 17 social housing providers that work together to address the housing crisis and drive regional growth in the area.

Karbon has access to £181m in grant through its strategic partnership with Homes England, with which it is expected to deliver 2,324 new affordable homes across the North East and Yorkshire by 2026.

Faye Gordon, executive director of finance and investment at Believe Housing, said: “Diligent work and ambitious thinking, underpinned by a shared commitment to meeting local housing needs, has enabled this partnership, unlocking vital funding at a critical time.

“As a not-for-profit landlord, grant funding is essential to help us deliver new social and affordable homes that enhance communities and improve outcomes for residents.

“Investment in affordable housing isn’t just about building homes; it supports local jobs, strengthens the economy and helps create healthier, more connected communities. Every pound spent delivers lasting value.”

Sarah Robson, executive director of development and asset management at Karbon Homes, said: “There’s a significant need for more affordable housing in Durham, and as housing associations working in partnership, we can boost the number of new homes we can deliver in the region, to help meet the growing demand.

“These schemes from Believe Housing are fantastic examples of building to meet the needs of the local community, with a mix of rent and affordable homeownership options.

“Believe Housing was able to take advantage of the grant funding available to Karbon at a time when wider grant funding was not quickly available. 

“As partners we’ve managed our development pipelines to ensure construction can quickly move forward, and I look forward to seeing these new homes progress over the coming months.”