Aster announces highest ever annual investment in new homes

Aster Group has committed to invest nearly £600m in its building programme over the next two years to boost quality, affordable homes provision in the UK.

The £585m commitment includes a planned £295m investment in the year to the end of March 2025, Aster’s largest ever annual build programme.

As a result, the housing association which manages over 37,000 homes across London and the south of England, estimates it has the capacity to deliver just under 2,300 new homes by the end of March 2026.

The programme of works in plan includes around 300 homes a year funded by Aster’s Strategic Partnership with Homes England. Also underway is a landmark net zero carbon scheme in Sussex – a 120-home joint venture with local housebuilder Thakeham, which is expected to be the largest of its kind in the region.

Aster is a leading housing association partner of community land trust (CLT) projects. Up to seven CLT partnership schemes are anticipated to start on site in 2024, including 12 homes for affordable rent in partnership with Longhope CLT in Gloucestershire, and 39 homes for social rent in partnership with Transition Homes CLT in Totnes, South Devon.

Amanda Williams, Chief Investment Officer at Aster Group, 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. This year our programme includes further investment into London, building upon a successful 12 months with 155 much needed affordable homes under construction.  .”

In the face of supply chain challenges felt across the housing sector and rapid inflation, Aster delivered 997 new homes in the year to the end of March 2024, including 922 affordable homes, building on the previous year when it was announced as one of the 10 most-active developers in the social housing sector*.

The housing association, which has an A credit rating from S&P Global, has a long-term target to add 10,000 homes to its portfolio by 2030**.

*Inside Housing – Top 50 Biggest Builders 2023.

**Target is set against a 2022 baseline.