District council closes "pioneering" large-scale, self-build housing project

The multi-million pound acquisition and financing by a council of what is thought to be the UK’s first large-scale, self-build housing project closed this month.

Cherwell District Council announced plans in March this year to buy a 187-hectare site in Bicester from the Defence Infrastructure Organisation.

The local authority, advised by law firm Trowers & Hamlins, used its powers under the Localism Act 2011 to form its own trading company to deliver the project.

A wholly-owned special purpose company will act as an umbrella organisation with various subsidiaries, including Graven Hill Village Developments Limited. 

Graven Hill Village Developments will be responsible for delivering 1,900 self-build homes and the related infrastructure across the site. In addition, Cherwell DC is also providing funding for the project using funds from various sources, including on-lending monies borrowed from the Public Works Loan Board.

The homes will vary in size and design according to residents’ needs. They will be available on a range of tenures including outright ownership, shared ownership and renting, with 30% of the homes being classed as affordable. The first homes are due to be built in 2015.

The scheme is expected to create up to 2,000 new jobs and apprenticeships. It will have one million square feet of commercial space, a primary school, a pub/restaurant, and local shops.

James Hawkins, Head of Public Sector Commercial at Trowers & Hamlins who led a multi-disciplinary team on the deal, said: "We are delighted to have advised the council on this pioneering scheme. This project leads the way for innovative councils wanting to use their powers under the Localism Act to deliver much needed affordable housing coupled with the added benefits of economic stimulation, employment opportunities, and community cohesion.

"Government has endorsed this approach through the Vanguard scheme and the new right to build, so other communities will be well placed to benefit from similar schemes in the near future."