More than 1,800 homes in Byker, Newcastle-upon-Tyne, have been transferred from Council to community ownership, following the completion of an innovative funding deal with Yorkshire Building Society that will deliver much needed funding and investment into the Grade II* listed estate.

The initial five year project will see the Yorkshire lend £12m to Byker Community Trust (BCT). The funding, together with support from Newcastle City Council and rental income, will provide money to help upgrade the existing properties, including environmental improvements and renewal of the district heating system.

Commenting on the investment, Chris Pilling, Chief Executive of Yorkshire Building Society, said: "We are delighted to get involved in this project, one that is going to give so much back to the Byker community. We are confident that this funding will help BCT to improve standards and amenities of the homes within the estate, as well as providing environmental improvements. As a mutual organisation, we believe passionately in giving back to our communities. Our funding facility for BCT will empower residents to secure their future and involve local people in the ownership and management of the area in which they live."

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The funding for the Byker project is the Society's first post-Decent Homes Standard stock transfer and the deal increases its total commitment to the social housing sector to more than £250 million in facilities ranging from £5m to £50m in size.

Mark Scrimshaw, Chair of BCT, said: "This is a great day for the Byker community. Changes of ownership are usually marked by disagreement and division, but that has never been the case here. The Homes and Communities Agency, Newcastle City Council and Your Homes Newcastle have been committed throughout to getting the best for the people on the estate."

Jill Haley, Chief Officer of BCT, explained the financial background to the transfer: "The Board took a lot of time to consider the financial options that were available to them. The other, longer term options would have reduced the Trust’s ability to invest and create things like apprenticeships and jobs for local people, which the area really needs right now. The arrangement with Yorkshire Building Society gives us financial certainty for the next five years, which means that we can get on and deliver the things that tenants want for the estate. They share our vision for Byker and are excited by the positive impact that the transfer will have on the local community."

(CD)