Property services provider The Apollo Group has launched a new building division that will specialise in developing social housing.

Launched in response to increasing demand for affordable housing, Apollo chief executive Dave Sheridan says the market needs house builders with public sector experience.

“With a sector-wide investment in new affordable homes of over £7billion and with our track record in new build in other sectors this is the ideal time to put our commitment to new build homes on a formal footing,” he explained.

The move follows Apollo’s recent acquisition of Goldhall Electrical Limited, the specialist mechanical and electrical company.

Apollo, with a £350 million turnover, is best known for its refurbishment work for social housing clients, from which it derives 80% of its income primarily through the Decent Homes programme in England, the Scottish Housing Quality Standard and the Welsh Housing Quality Standard. However, it also designs and builds new facilities for the education sector.

Dave Sheridan added: “We are extremely ambitious for this new division as it has to deliver in line with our outstanding reputation in the social housing sector.  We aim to achieve a significant turnover within five years.

“We are launching a new build division in response to the recognised lack of affordable housing.

"By cross-pollinating our new build capabilities from our Public Building and Education Divisions to residential properties, we are also emphasising our commitment to social housing.

“The public sector is attracting many private house builders who, we believe, do not have the skills or experience to fulfil the specialist needs of social housing new build projects.

"Our skills lie in working alongside clients and tenants and we have a track record for delivering new build projects, so this new business move makes great sense.

“The work is out there and we have to work hard to win it.  We are ambitious but confident.”

Apollo has won plaudits for new build projects such as the award-winning Carnival Arts building in Luton and the Michael Tippett School in Lambeth.