Sir Alan Beith launches unique housing venture on Holy Island

4.30.00pm BST (GMT +0100) Mon 27th Apr 2009

Local MP and former Liberal Democrat deputy leader Sir Alan Beith has officially launched the groundbreaking £650,000 building of four new affordable homes for local people on historic Holy Island.

The three-bedroom houses will be built in the grounds of Castle View, one of the largest houses on the island three miles off the Northumberland coast, also known as Lindisfarne, on land designated as a "rural exceptional site."

Funding for the homes has been provided by the North-East team of housing and regeneration body the Homes and Communities Agency (HCA), based in Gateshead, the Tudor Trust and the Holy Island of Lindisfarne Community Development Trust, through Triodos Bank.

The HCA is contributing £212,000, the Tudor Trust £200,000 and the community development trust £238,000.

This is the first time the HCA, launched last December, has supplied finance to a community land trust for affordable housing. The dwellings will remain owned by the trust, meaning they will be available for rent by members of the island's 160-strong community, in perpetuity.

The homes are intended to help overcome the tendency for local people to leave the island, as the average house price is 17 times the typical income, a disparity fuelled by more than half of the 160 dwellings being owned by outsiders as holiday homes.

A dozen local families are already on the waiting list for the new homes, which are being built by Blyth-based construction company, S V Rutter and expected to be completed in spring 2010.

Sir Alan, whose Berwick-upon-Tweed constituency includes Holy Island, said:

"I'm delighted to launch this innovative development, which will make a real difference to the local community. Local people need homes they can afford if they are to stand any chance of remaining in their communities.

"I welcome the unique co-operation between the HCA and the trust, which is making the project possible, and wish all concerned the very best, as they bring the site towards completion.

"This will hopefully be the first of many such ventures between the HCA and organisations of this type across the country and I look forward very much to seeing the final results of the co-operation here."

The HCA is creating opportunities for people to secure affordable homes in places where they want to live and for local authorities and communities to deliver the ambitions they have for their areas. It provides funds for affordable housing, brings land back into productive use and improves people's quality of life, by raising standards for the physical and social environment.

Among the organisation's key current priorities are maintaining momentum in the North-East's housing and regeneration projects during the recession and ensuring the sector in the region retains the skills and capacity it will need for the forthcoming economic upturn.

Pat Ritchie, HCA North-East regional director, said:

"One of our key responsibilities in the North-East is investing in rural areas like Holy Island to address the problems of housing affordability and community sustainability.

"Rural areas like this are some of the least affordable places in which to live. People working there tend to earn significantly less than those employed in urban surroundings, yet homes in rural communities cost more, partly because of their popularity with people relocating from towns and cities.

"We're working hard to help rural communities overcome these issues and are very pleased to have developed this unique co-operative venture with our partners over the Holy Island site. The scheme illustrates just how flexible we can be in helping communities of all types across the region to develop solutions for their needs."

Dick Patterson, chair of the community development trust, said:

"The new homes will mean four families who may otherwise have had to leave will be able to stay on the island. This can only enhance the sense of community here, which is vitally important for the quality of life, and I'd like to thank the HCA, the Tudor Trust and Four Housing Group for their help in bringing the project to its start on site."

The Holy Island of Lindisfarne has been a noted religious site and place of pilgrimage for many since Irish monk St Aidan founded a monastery there in about 635AD. Today, it attracts more than 650,000 visitors a year, lured by features such as its castle and priory ruins. The island is linked to the mainland by a paved causeway, which is covered by the tide twice a day.