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Affordable Housing Seminar

Affordable Housing Seminar

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Affordable Housing Seminar

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  1. Affordable Housing Seminar Wednesday 19th June 2013

  2. Conference Chair Cllr John Boyce, Oadby & Wigston Borough Council

  3. Affordable Housing Seminar East Midlands Councils Graham Dobbs Head of Area HCA 19 June 2013

  4. Contents Current delivery context Delivery and 2013 Budget Announcements Focus on AHP and AHGP HCA role in Investment, Land, Market Interventions and Regulation Conclusions

  5. Current delivery context Continued limits on public funding Focus on growth Localism Risk – diversification and complex environment HCA activity focused on five key areas: Affordable housing Market interventions Public land Economic Assets Programme Regulation

  6. 2012/13 Delivery A strong year of delivery HCA has met or exceeded all core targets: 114 ha of previously developed land back into productive use 323,000 sqm of new employment floor space created £944m of private sector investment attracted Exceeded housing delivery targets: 26,635 completions and 41,142 starts Support of partners was key New programmes & initiatives are foundation for strong delivery in 13/14

  7. Budget 2013 Significant new investment channelled through the HCA Help to Buy Build to Rent Affordable Homes Guarantees Programme Builds on success of existing programmes Increased Resource but focus on Returnable Investment less on Gap or Grant Speed of delivery is vital to maximise the impact of this investment on the economy.

  8. 2013 Budget announcement - HCA

  9. Growth in value of capital programmes… Programmes have doubled in value during the SR

  10. Successful Places with Homes and Jobs 18 funded programmes plus 5 unfunded programmes 5 funded programmes plus 1 unfunded programme c/fwd 6 funded programmes Growth in number of Capital Programmes – CSR2010- Budget 2013

  11. Supporting local growth:Housing, LEPs and Cities Our investment and expertise support local aspirations and deliver economic growth. Importance of housing and construction in helping drive economic growth is well recognised HCA activity supports growth at a local level Working with Local Enterprise Partnerships and Core Cities that identify housing, land and regeneration as growth priorities, and to develop joint investment models Supporting the delivery of Enterprise Zones Supporting local partners bidding for the Regional Growth Fund

  12. Our delivery role:Affordable Homes 2011-15 £4.8bn for up to 170,000 new homes Up to £300m care and Support Specialised Housing Fund Bringing up to 10,600 empty homes back into productive use £2.1bn programme of investment in Decent Homes TPF, Homelessness Change, Mortgage Rescue Meeting locally identified needs Influencing RP Business Plans – generating capacity We are helping to deliver the Government’s ambitions to build up to 170,000 new affordable homes, improve existing homes, and assist first time buyers

  13. Affordable Homes Programme 2011-15 The role of Local Authorities Articulate a clear vision and ambition for their area. Assets delivery of affordable homes Need continuous and meaningful ongoing dialogue with providers Nominations to new homes Agreement to conversions and new supply as ‘affordable’ rent or Affordable Home ownership Maximise cross subsidy solutions e.g. land, S106, New Homes Bonus, HRA etc. Maximise funding opportunities – government initiatives – flexibility/innovative

  14. Affordable Homes Programme 2011-15 What next… • Continued Contract and Programme Management of Affordable Homes Programme • Quarterly review – delivery certainty, clarity on forecasts, final push for 100% scheme profiles • Significant emphasis on Starts by September 2013 • Prepare for new programmes • Help to Buy – contracting with developers - Underway • Empty Homes 2 – Announcement 20th June • Care and Support Specialised Housing – Announcement imminent • Build to Rent – shortlist announced and due diligence started • Local Infrastructure Fund – Assessment phase, announcement imminent • Affordable Homes Guarantees – Due diligence phase

  15. Affordable Homes Guarantees Programme- The Basics Combined funding up to £450m (£225m Autumn Statement, £225m 2013 Budget) – including London To deliver up to 30,000 new affordable homes – both Affordable Rent and Shared Ownership Completion by March 2017 but preferred delivery by 2015 Grant alongside guarantees and asset management flexibilities Expectation that guarantees will drive good VFM for available grant

  16. Affordable Homes Guarantees Programme- Prospectus and requirements Bids required for named, firm sites Scheme grant rate (not average payment rate) Registered Providers – classified to the private sector Schemes must start on site by March 2015 End date for completion March 2017 BUT significant proportion March 2015 s.106 must be delivered at nil grant Products - Affordable Rent & Affordable Home Ownership Design and Quality 2007 standards

  17. Affordable Homes Guarantees Programme – Timeframe • Deadline for submission of bids – 21 May 2013 • Assessment of bids – May-June • National aggregation & liaison with debt guarantee delivery partner – 26 June – 5 July • HCA Board & Ministerial sign off – Early July 2013 • Announcement of allocations – Mid July 2013 • Appetite – Those whose AHP allocations were scaled back?

  18. Our delivery role:Market interventions Increasing private sector housing starts through equity loans and other market interventions £1bn Build to Rent £570m Get Britain Building £225m unlocking large scale sites S106 mediation £10bn Guarantees – linked to £500m AHP funding for new housing delivery Increasing HCA loan portfolio – c.£1bn £3.5bn Help to Buy to support aspiration

  19. Our delivery role:Land Bringing surplus public land to market to drive housing growth HCA land development and disposal plan – land for 14,000 new homes by 2015 Enhanced role for HCA – additional £290m funding announced in Autumn statement Pioneering ‘Build Now, Pay Later’ approach of deferred payment Supporting central government in its land disposal We are using new ways to increase the supply of public land and speed up development

  20. Our delivery role:Economic Assets Supporting local economic growth through the development of assets A major £700m asset portfolio – land, property and joint venture companies Nationally important sites – Enterprise Zones £120m invested and 100,000m2employment floor space in 12 months since programme established 100 more sites to be disposed in next 12 months We are a key delivery partner in Government’s ambition to make the best use of public assets to benefit communities

  21. Regulation: a challenging environment Sector is becoming more complex and challenging Changing mix of funding sources Welfare system changes Diversification For-profit providers Bond finance Regulator needs to keep pace Regulatory Judgements – vast majority of providers meeting the standards

  22. Conclusions Public finance remains constrained; complex and challenging operating environment Housing, land and construction as key drivers of local economic growth But Budget builds on HCA success of existing programmes – more to come? Risks and opportunities – needs partnership working by LA/RP/Developers/Govt. Dept. to maximise investment opportunities? Future programmes ‘Bidding’? Challenge or Opportunity? We are innovative, flexible and commercial in our approach to delivering public value and responding to challenges.

  23. Keeping in touch // /HCA_UK /homes-&-communities-agency

  24. Delivering Affordable Housing – challenges and opportunities Cllr Keith House, Eastleigh Borough Council

  25. Workshops Workshop 1 – Suite 1 (this room) Delegates with Green dots attend the New Homes Bonus workshop Workshop 2 – Ferneley Room (next door) Delegates with Orange dots attend the Rural Affordable Housing Delivery workshop Delegates attend one workshop in the first session and the other in the second session

  26. Use of New Homes Bonus to support affordable housing in Leicestershire Sharon WigginsIan Jones

  27. How did LCC start out on this process? • DCLG letter confirming New Homes Bonus (NHB) received March 2011 • Leader keen to explore ways of using LCC NHB to deliver bricks and mortar on the ground • Various ideas explored • Preference for supporting delivery of rural affordable housing emerged • First LCC Cabinet report on NHB considered Sept 2011

  28. What practical steps were taken? • Discussion with district housing officers, registered providers and Rural Housing Enabler • Could LCC NHB funding plus district funding help to deliver stalled schemes? • Drew up criteria for ‘shovel ready’ schemes • Systematic appraisal of schemes required to meet State Aid rules

  29. Wider context for the use of NHB in meeting Leicestershire’s Rural Housing Need? • Strong track record of rural affordable housing delivery • Leicestershire Rural Partnership (LRP) has supported delivery of rural affordable housing over last 20 years • Mrs Pendleton CC, former LCC Cabinet portfolio holder for rural affairs and Chair of LRP, long term champion of provision of rural affordable housing

  30. Wider context for the use of NHB in meeting Leicestershire’s Rural Housing Need? • Modernisation review of the Rural Housing enabling role has recently been undertaken. All rural districts are now financially contributing • Mrs Pam Posnett CC recently taken on Chair of LRP, provision of rural affordable housing continues to be a high priority • Building schemes on the ground creates desire for further schemes eg. Croft

  31. Wider context for the use of NHB in meeting Leicestershire’s Rural Housing Need? (contd) • Already good partnership working between district local authorities, Rural Housing Enabler and registered providers working in Leicestershire • There is a will to make things happen in Leicestershire

  32. So what has been achieved so far? • Extra funding from LCC and district partners has enabled earlier delivery of schemes which had stalled 2011/2012 Sapcote scheme 12 affordable homes Blaby DC Complete September 2012 East Midlands Housing Group Somerby scheme 7 affordable homes Melton BC Complete April 2013 Nottingham Community Housing Association

  33. Costs Sapcote scheme12 affordable homes Blaby DC £100,000 LCC £332,000 Total scheme costs £1.607 million Somerby scheme 7 affordable homes Melton BC £88,000 LCC £188,000 Total scheme costs £927,650

  34. Sapcote site plan

  35. Sapcote completed homes

  36. Sapcote opening ceremony

  37. Somerby, view from entrance

  38. Somerby opening ceremony

  39. So what has been achieved so far? (contd) • Start on site before the end of March 2013 for the following schemes (2012/2013): Husbands Bosworth 8affordable homes Tilton 6 affordable homes Breedon 10 affordable homes Bitteswell 2 affordable homes Elmesthorpe 4 affordable homes Carlton 11 affordable homes TOTAL for 2012/2013 41 affordable homes

  40. So what has been achieved so far? (contd) • 60 new affordable homes either completed and occupied or under construction by end of March 2013 through this approach • Leicestershire County Council’s NHB investment of £1million has enabled total investment of £7million in the building of new homes for local people in rural communities

  41. The story continues… LCC NHB programme for 2013/2014 agreed by LCC Cabinet 12 June 2013 Extra Care scheme at Winchester Road, Blaby 50units Refurbishment and remodelling of existing sheltered housing scheme at Brooklands Gardens, Market Harborough 10 additional units Sharnford 8 affordable homes North Kilworth6 affordable homes Asfordby and Melton 10affordable homes 84affordablehomes

  42. A further 84 new affordable homes and 43 refurbished affordable homes to be supported by NHB in 2013/2014 • Leicestershire County Council’s further investment of £1.8 million (£595,000 NHB plus £1.2m from Extra Care Programme) will enable total investment of over £16 million in the building of new Extra Care schemes and rural affordable homes

  43. Looking forward to the future… Build on momentum and positive news Continuing difficult economic climate with competing priorities for NHB funding Development of a stronger pipeline of schemes Lynn Aisbett, Chief Executive of Melton Borough Council, leads the LRP rural affordable housing priority Rural Affordable Housing Commissioning Plan for the County, key outputs include:

  44. Development of Strategic County Plan • Five year rolling plan to survey all parishes • Rural housing ‘asks and opportunities’ include: • Enabling new and innovative methods of delivery beyond traditional rural exception site model, including mixed tenure developments • Ageing population - Leicestershire Together and LCC priority • Partners have valued early information that NHB funding available for the following year • Slippage in HCA Affordable Housing Programme

  45. Thank you Any questions? Sharon Wiggins 305 8234 Ian Jones 272 7516

  46. Cllr Lewis Rose OBE Derbyshire Dales DC

  47. Why build new homes? • Derbyshire Dales house price to income ratio is 14:1, the second worst in the country • New Homes Bonus • Replace homes lost through RTB • Offer alternatives to tenants effected by Welfare Reform

  48. Track record of Delivery • Since LSVT in 2002 we have enabled 1000 affordable homes across the Derbyshire Dales • Market Town, infill and rural exceptions • Recognised through Awards and funding allocations for our approach • LA Land and funding of £2m

  49. DDDC achievements • Shortlisted Beacon Status Affordable Housing 2006 • Housing Heroes Award 2010 Development Team of the Year • Shortlisted UK Housing Awards Housing Development 2011 • Shortlisted MJ Awards Customer Engagement 2011 • Shortlisted UK Housing Awards 2012 Debt Advice • Shortlisted Housing Heroes Award 2012 Development Team of the Year

  50. Making your authority easy to invest in • Housing Associations want to add stock • Developers need to build • A variety of funding opportunities are promoted by the HCA • Land owners and entrepreneurs are responding to development opportunities