Grosvenor launches ‘for-profit’ registered provider

Property giant Grosvenor is setting up an affordable housing business to provide at least 750 affordable homes over the next decade.

The development and investment firm owned by the Duke of Westminster, one of the UK’s richest men, said it was setting up a ‘for profit’ registered provider named Grosvenor Hart Homes, with its application to the regulator having been submitted.

The £492m turnover firm said it will make “significant” investments over the next 10 years to provide “more than” 750 homes plus a range of tailored support packages for tenants, including mental health support and assistance into employment.

Grosvenor announced the setting up of Grosvenor Hart Homes as it unveiled the first homes delivered by the organisation – the refurbishment of 29 city centre properties in Chester in partnership with the local council.

The organisation will look to focus initially in Chester and the North west and central London, the areas where Grosvenor – the freeholder of the Mayfair estate – has the bulk of its existing landholdings.

Grosvenor said the Duke of Westminster, Hugh Grosvenor, has set up the social enterprise in a bid to “improve outcomes for vulnerable children, young people and their families”. The business has appointed former GLA director and Cornerstone Partnership chief executive Helen Keenan to run Grosvenor Hart. Its board, to be chaired by former Grosvenor Executive Director Peter Vernon, will include Dr Javed Khan OBE, former CEO of Barnardos; Terrie Alafat, former CEO of the Chartered Institute of Housing; Julie Doyle the CEO of Longhurst Group; and impact investing adviser Hayley Collen.

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The launch announcement said scaling the business to 750 homes was “Subject to being able to demonstrate the success of our model in our early activities,”, and that it was aiming to demonstrate “profit sufficiency - not profit maximisation”.

The Duke of Westminster said: “We passionately believe that the provision of high-quality, safe, secure, and affordable homes must be paired with outcome-driven support services. Our unique model stresses the need to tailor and meticulously plan, prioritise, and co-ordinate services through a trusted and knowledgeable family support professional, working alongside families to help them achieve their goals.”

Helen Keenan said: “By focusing on the key foundations of a safe and secure home people can settle into for the long term, mental health and wellbeing, and employment and routes into employment support, we believe we can empower people to overcome early life trauma and disadvantage and go on to thrive. “

Grosvenor said there were already 700 affordable homes on the Mayfair and Belgravia estates, and that the name of new initiative was inspired by the “Hart Street” location where many of these affordable homes are located.

The announcement comes two months after the Prince of Wales, prince William, said he planned to build social housing on his Duchy of Cornwall estate.