The Welsh Government has provided funding for two residential schemes which could inject £225m into the economy.
The new residential developments are proposed for the 39 acre former steelworks site at Whiteheads, Newport – which will also support delivery of a new primary school – and a 16 acre site at Eirin Park, Tonyrefail.
Yesterday economy Minister Edwina Hart said the Welsh Government has agreed a £7m loan to the Whiteheads Development Company and a £1m loan to the Parc Eirin Development Company to expedite the delivery of these schemes.
Both are subsidiaries of Tai Tirion, a not-for-profit organisation established following an initial alliance between Welsh Government and Principality Building Society to deliver high quality affordable homes across Wales.
The independent charity will recycle all proceeds from the developments into other similar projects around Wales.
The Minister said: ”Subject to planning permission these two new projects are anticipated to create around 2,300 jobs and deliver an economic benefit in the region of £225m to the local economies. These are significant figures that will support job creation in the construction industry as well as businesses within the supply chain.
“They will also help transform brownfield sites into thriving communities and provide affordable homes in places where people want to live which are within the financial reach of young families and lower income families.
“I am also delighted Welsh Government is working with the private sector and social enterprises to create this innovative model that can be replicated and rolled out to other areas across Wales.”
Housing and Regeneration Minister Carl Sargeant added: “These housing developments will bring forward a significant increase in the supply of housing and are further examples of how the Welsh Government is helping to provide affordable homes for the people of Wales.
“Increasing the number of affordable homes in Wales is my number one priority and I’m pleased that a significant proportion of these new homes will be offered at lower than market rents.”
The Whiteheads and Parc Eirin developments are the latest additions to the Tai Tirion portfolio, which also contains The Mill, a £100m affordable housing development on the site of an old paper Mill in the centre of Cardiff.
David Ward, CEO of Tai Tirion, said: “Tai Tirion was established to address the shortage of high quality affordable housing across Wales and we are delighted to add two new sites to our existing development in the heart of Cardiff.
“Each development will deliver much-needed affordable housing, local employment opportunities and a boost to the construction industry in the communities in which they are located. We are committed to developing real urban communities on sites across the country – transforming disused and neglected land into thriving neighbourhoods.”
The Whiteheads Development will provide up to 400 homes and is expected to deliver a £140m economic boost and create 1,500 jobs in the process The Parc Eirin development will provide up to 260 homes and expected to deliver a £85m boost and create up to 800 jobs.