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Transcript of Thriving communities, affordable homes Affordable housing provision in the recession : the HCA’s...
Thriving communities, affordable homes
Affordable housing provision in the recession : the HCA’s role
Presented by Stephen Oakes
Director HCA London Region
Date 9th March 2009
Thriving communities, affordable homes
Our vision
To create opportunity:
For people to live in homes they can afford in places they want to live
For local authorities and communities to deliver the ambition they have for their own areas
A national agency that works locally
Thriving communities, affordable homes
What we do
Barking Riverside
Adelaide Wharf, Hackney
Christian Fields, Gravesend
Affordable
Sustainability
Growth
Millennium Primary School, Greenwich Peninsula
Affordability
Renewal
Thriving communities, affordable homes
How we do it
Investment
Land
Research and best practice
Expertise
Thriving communities, affordable homes
The new world
Organisation with increased flexibility
Challenges – both short term and long term
Culture – national objectives and local ambitions
Partnerships with local authorities, the private sector, RSLs and regionally
Approaches:
New business process (the single conversation)
New business products (the HCA toolkit)
Relationship with Government – the voice of delivery
Thriving communities, affordable homes
Our tasks
Support the delivery of new homes Secure the delivery of affordable homes Accelerate regeneration of under-performing towns and
cities Improve the quality of existing stock and transform
deprived neighbourhoods Ensure delivery is economically, socially and
environmentally sustainable with good design
Homes and Communities
Thriving communities, affordable homes
HMR Funding,£1.0 billion
PFI (credits), £1.9 billion
Decent Homes, £2.6 billion
Growth Funding, £1.1 billion
National Affordable Housing Programme,
£8.4 billion
Hostels, £0.1 billion
Gypsies and Travellers £0.1 billion
Total Funding£17.3 billion (2008-11)
HCA Funding – Significant Investment
National Affordable Housing Programme £8.4bn
Decent Homes £2.6bn
Gypsies and Travellers £0.1bn
Growth funding £1.1bnThames Gateway £0.4bn
Property and Regeneration £1.7bn
(London circa £5 bn)
Thriving communities, affordable homes
Continuing the Journey
Set-up
Start-up
Transformation
1 December 2008
1 April 2009
1 April 2010
Thriving communities, affordable homes
The Nine Regions
Thriving communities, affordable homes
HCA London
HCA Main Board (Chairman Robert Napier)
London HCA Board (Chaired by the Mayor of London)
The Board makes it’s own investment decisions
Largest of the nine regions in budget terms
Expenditure 2009-11 circa £3bn Funding includes
– National Affordable Housing Programme
– Property & Regeneration– Decent Homes– Thames Gateway (London)– FTBI
Representatives from– London Councils– The LDA– London Thames Gateway
Development Corporation – The HCA’s Chair & Chief
Executive
Thriving communities, affordable homes
Partnership working
Joint Vehicles and LABVs Surplus Public Sector Land Local Housing Companies Low Cost Home Ownership Rolling Infrastructure Funds Developer Panels (Reducing procurement costs) Best Practice Guidance and Support
Thriving communities, affordable homes
Principles for Investment & Intervention
Invest directly to assist the building of affordable housing for those who cannot find reasonable opportunities in the market
Support the delivery of new housing within a broader context of sustainable regeneration and ‘place-shaping’
Work in partnership with others Require investment leverage from others Seek to optimise the strategic impacts from out
investment Are keen to take a longer term view of our
investment
Thriving communities, affordable homes
The Market Downturn
Global liquidity crisis means reduced access to credit for: Employers Consumers Housebuilders and RSLs
In the wider economy - reduced economic activity, reduced confidence, increased unemployment - recession
Leading to reduced demand for housing Supply slower to respond Further falls and expectations of falls in
house prices
Thriving communities, affordable homes
Responding to the Market Downturn: key downturn issues
High density housing – cash inefficient
2006/2007 Land values (viability) Affordable Housing reliant on
S106 planning gain Collapse of confidence & liquidity
in the banks Cross subsidy from Private for
Sale Housing Mixed use schemes hit hardest Capital Receipts impacting on
Agency & LA programmes RSL’s not immune to the downturn
Thriving communities, affordable homes
Responding to the Market Downturn: Good News
Olympic Games 2012 Crossrail Jubilee Line & DLR
Upgrades Strong private rented
sector Major Contractors are
cash rich
Thriving communities, affordable homes
Responding to the Market Downturn: Tools the HCA have
The National Affordable Housing Programme– Flexibility and new models
The Property & Regeneration Programme – Gap funding, site acquisition and infrastructure support
Priority Projects– Kick-start programme
Estate Renewal– Changing the rule of ‘additionality’
Place Shaping & Place Making
Thriving communities, affordable homes
Responding to the Market Downturn: Recent Initiatives Grant flexibilities
– Introduction of flexibility in the level of grant that is able to be awarded
Package approached to NAHP bids– New invitation to submit portfolios of schemes
Substituting intermediate rent and rent-to-buy for LCHO and market housing
– Helping to make unviable schemes viable Homebuy Direct
– Purchase of developers’ surplus stock and conversion to shared equity affordable housing
National Clearing House – Assist developers who can offer bulk volume programmes of
stock Working closely with local Boroughs to bring forward their
land
Thriving communities, affordable homes
Responding to the Market Downturn: what the Agency is also exploring
Tailored programmes for individual housing associations
Potential for LAs to come forward with their own development packages
Funding of infrastructure works on a return basis New approaches to the private rented sector Flexible tenure models Better use of public sector land Longer term joint ventures
Thriving communities, affordable homes
Towards a Single Conversation
Strategy Capacity Investment Delivery
Programmes Standards and mechanisms Investment tools
Both capital and revenue investment
Area-wide and specific interventions
Toolkit being developed
Thriving communities, affordable homes
Design Standards
Building on a strong inheritance Good design and sustainable
development High core standards and
monitoring Address the ongoing management
of projects Promote market improvements
and exemplar initiatives Build capacity and in partnership
with national, regional and local agencies
Thriving communities, affordable homes
A New Agency
With new approaches and new methods of working
Increasingly will offer greater flexibility
The single conversation will be the most important business process
The key goal is to make a difference on the ground
Responding to the downturn
Preparing for the new world
Thriving communities, affordable homes
homesandcommunities.co.uk