Future of London January Breakfast Seminar
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Transcript of Future of London January Breakfast Seminar
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8/8/2019 Future of London January Breakfast Seminar
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Future of London
Breakfast Seminar Series
New World: What the Governments reforms mean
for councils, housing associations and developers11 January 2011
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Affordable Homes
programme 2011-15
Jamie Ratcliff
11th January 2011
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Spending Review
4.5bn new affordable housing 2011-15
To deliver up to 150,000 new affordable homes
New Affordable Rent Also affordable home ownership where
appropriate
Other specialist products (e.g. Mortgage
Rescue)
Further detail published in December
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Further detail
Rents
Allocations
Tenure
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The role of Local Authorities
Articulate a clear vision and ambition for their area which
the HCA will support.
Used to shape delivery of affordable homes
Need continuous
and meaningful ongoing
dialogue with providers
Nominations to new homes
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Something for something
Increased flexibility in
exchange for increased
delivery
Conversion of re-lets only in
return for commitment to invest
in new supply
Attention to cost not just grant
Open book approach and
viability appraisal
More
4
Less
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Freedoms and flexibilities
Requested by the sector
Now must take responsibility
Delivery
Engagement
Efficiency
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Fork in the road
Providers to work with the HCA and the regulator to
identify programmes over the next four years.
Decision point in near future forproviders and partners.
Need significant commitment to
using increased capacity for new
supply
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The importance of partnerships
Linking up with smaller and community-basedorganisations
Utilising HCA partners
Unlocking capacity
Utilising potential of
conversions
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Affordable Rent in London
London section of Affordable rent framework documentwill set out Mayoral priorities
Working closely with DCLG and GLA to devise when andhow to divide resources between London and the rest of
England
Single negotiations with providers including London andrest of England details to be worked through
HCA London Board will take a view on proposals
including consideration of overall funding and receiptsposition
Affordable rent budget will pass to GLA when LocalismBill becomes law April 2012
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Final messages
Something for something
Ongoing communication as
detail worked through
Detailed guidance onapproach to new programme
in coming weeks.
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Future of LondonBreakfast Seminar SeriesNew World: What the Governments reforms mean
for councils, housing associations and developers11 January 2011
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HOUSING ASSOCIATIONS IN ACHANGING WORLD
Tom TitheringtonGroup Chief Executive
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Understanding the Rationale
Initial puzzlement
Needed to think differently
Market based
Housing safety net when needed at
reasonable cost Explain more
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To make it work - we
need to understand
The interplay of:
place
family size and circumstance
property size
Market rents
Benefit caps
Demand/elegibility
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Benefit Illustrations:
East Herts
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100.00
200.00
300.00
400.00
500.00
600.00
1 2a 2b 3 4
Current social rents
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100.00
200.00
300.00
400.00
500.00
600.00
700.00
1 2a 2b 3 4
Housing benefit (rents at80 per cent LHA)
Child Tax Credit
Jobseekers Allowance -income based
Council Tax Benefit
Child Benefit
Household Benefit Cap
Rent at 80% market rents
Scenarios Home size/composition
1 1 bed, 2 adults
2a 2 bed, 1 adult, 2 children
2b 2 bed, 2 adults, 1 child
3 3 beds, 2 adults, 2 children
4 4 beds, 2 adults, 4 children
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Benefit Illustrations:
Westminster
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100.00
200.00
300.00
400.00
500.00
600.00
1 2a 2b 3 4
Current social rents
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1 2a 2b 3 4
Housing benefit (rentsat 80 per cent LHA)
Child Tax Credit
Jobseekers Allowance
- income basedCouncil Tax Benefit
Child Benefit
Household BenefitCap
80% market rents
Scenarios Home size/composition
1 1 bed, 2 adults
2a 2 bed, 1 adult, 2 children
2b 2 bed, 2 adults, 1 child
3 3 beds, 2 adults, 2 children
4 4 beds, 2 adults, 4 children
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Security of Tenure?
This is a market based system
Like property companies opportunistic in termsof churn
More so because we are discounting our rents Will need to be able to get hold of properties.
and
Probationary tenancies
Circumstance and need
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Key Questions
Is this a watershed moment will things returnto what they were?
Is this in any form deliverable?
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Market Based System
What does identity profits for new provision
mean?
Forget the old HA model think property company
Rents only one part of this- portfolio devt.
High cost short-term debt driven down by sales
Both outright sales and asset churn Can only manage risk on a portfolio basis
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Local Authorities
Clearly key
Lot of conversation working through
Problem of ring fencing
How could a balance score card work?
LAs influence through participation land andstock?
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What are we doing?
Scenarios and modelling
Area/rents/family size/property/benefit caps
Looking at void patterns
Trying to project increase in capacity Assessing our ability to increase sales
Keeping the Board up to speed
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Could this system work?
Need to recognise that this is a form of
liberalisation not a programme.
Govt do what its rationale dictates or get back to
something else.
Targets are always irrelevant (cant even have
not target targets)
Market based, market dependent, market risks Ring Fencing within HAs accounts
Will get going slowly.
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What will we produce?
No idea!
OK Not quite truebut it looks a lot less
But we will have to suck it and see
Targets ..!!
4 year programme! ?
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The next breakfast seminar is on 22 February:
New Systems: What devolved delivery and the
bonfire of the quangos will mean for housing and
regeneration in London
www.futureoflondon.org.uk