Contract for the Design Build and Operation of Extra-Care Housing at Dunsbury Way, Havant

Hampshire County Council is seeking a provider to design, build and operate a circa 70-bed Extra Care Housing facility at Dunsbury Way in Havant, responding to increasing demand for affordable accommodation and support for older people in the borough.

Havant is identified as a priority area for Extra Care Housing, with its older population forecast to increase significantly. The Council states that the borough is one of the few remaining areas of Hampshire without older people’s Extra Care Housing provision and currently has the second-highest number of residents referred to residential care homes across Hampshire.

Independent analysis commissioned by the Council in January 2024 identified a requirement for 154 affordable Extra Care Housing units in Havant over the following 20 years.

Extra Care Housing Development

The successful provider will be responsible for developing the design, obtaining planning permission, constructing the facility and operating the completed scheme.

Once operational, responsibilities will include the rental and maintenance of the building. The units must be offered exclusively at Affordable Rent tenure, as defined in the National Planning Policy Framework, and let within Hampshire’s Extra Care letting arrangements.

The Dunsbury Way site will be provided to the successful provider through a 250-year lease at a peppercorn rent. The land has an estimated value of £1.1 million.

The provider will be required to operate the Extra Care Housing scheme for a minimum of 20 years. Following this period, it will be able to sell the scheme provided it continues to operate as an Extra Care Housing site.

Hampshire County Council will also provide a void guarantee as part of the procurement to support the sustainability and accessibility of the scheme and the provider’s ability to secure additional funding.

Provider Requirements

The provider, or consortium delivering the contract, must include a Registered Housing Provider.

As the accommodation must be delivered exclusively at Affordable Rent tenure, the provider will need to secure Homes England funding alongside its own capital contribution to develop and deliver the scheme.

Conditions of participation also include requirements relating to:

• Corporate Social Responsibility and relevant legal obligations
• Data protection standards and Information Commissioner’s Office registration
• Public and Employer’s Liability insurance, alongside any additional insurance detailed in the tender documents
• A minimum Creditsafe Business Risk score of 30/100
• At least 12 months of trading history
• Registration as a provider of Social Housing with the Regulator of Social Housing

Where a supplier has a Creditsafe Business Risk score between 30 and 50, a Parent Company Guarantee or Performance Bond may be required as appropriate.

Technical Requirements

Suppliers are asked to provide two examples of similar projects delivered during the previous five years.

They must also confirm that they can:

• Meet Hampshire County Council’s Extra Care Housing Design Standards
• Meet the required timescales for construction to commence on site
• Comply with Hampshire County Council’s Operational Policy for the Delivery of Extra Care Housing
• Maintain appropriate arrangements for managing health and safety and controlling significant risks

Contract Information

Buyer: Hampshire County Council

Deadline: 25 September 2026, 2:00pm

Enquiry Deadline: 14 September 2026, 5:00pm

Contract Value: £2,971,233 excluding VAT / £3,565,479.60 including VAT

Delivery Length: 20 years, from 1 February 2028 to 31 January 2048

Tender Link: Access the tender opportunity

Reference: UN23199

Estimated Award Decision Date: 28 October 2026

The maximum contract value comprises the Dunsbury Way land, estimated at £1.1 million on a 250-year lease at a peppercorn rent, together with a maximum value of £1,871,233 over the initial 20 years from the site becoming operational.

Evaluation Criteria

The award criteria are entirely based on the void guarantee arrangements proposed by tenderers:

• Guaranteed Percentage of the Total Lettable Days – 70%
• Duration that the Void Guarantee will apply – 30%

The guaranteed percentage submitted by the successful tenderer will determine the guaranteed percentage of rental income, while the duration offered will determine how long the void guarantee applies.

Contract Risks

The Council has identified planning as a risk to contract performance because the successful provider will be responsible for securing planning permission. Planning approval may not be obtained or amendments to the proposed design may be required.

Local Government Reorganisation has also been identified as a contract risk. Hampshire is progressing through the reorganisation process, which could result in changes affecting the contract during its term, including a change to the legal name or entity of the contracting authority.

The opportunity represents a substantial long-term development and operating requirement for organisations with the housing, development and operational capability to deliver affordable Extra Care Housing, with the scheme intended to help meet growing demand among older residents in Havant and provide an alternative to residential care placements.

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