Steven Douglas Acting Chief Executive The Housing Corporation

1
Steven DouglasActing Chief Executive The
Housing Corporation
Investment Summit 2007 A System to Ensure
Delivery
2
Housing For The Future A Knotty IssueDefining
the Challenge

• Infrastructure
• Quality the Williams Agenda
• Acceleration of delivery
• Capacity and people
• Detailed housing delivery plan
• Working with LAs/Regional Bodies

3
Housing For The Future A Knotty Issue - what
the Homes and Communities Agency will do

• A Non Departmental Public Body, with a Board
  accountable to the Secretary of State, with
• Multi-disciplinary teams located in every
  English Region
• A significant Investment Programme, including
• the investment functions of the Housing
  Corporation
• all of the functions of English Partnerships
• some of the delivery functions of Communities and
  Local Government

4
Housing For The Future A Knotty Issue- what
the Office for Tenants and Landlords will do

• Registration of all types of providers
• Standards to be developed for core housing
  delivery functions
• Some key regulatory powers retained
• New powers to intervene and improve performance
• Direct inspection as one of a basket of tools to
  assess performance
• Support the supply of new social housing by
  unlocking development
• Maximise the capacity of regulated bodies to meet
  their objectives

5
Housing For The Future A Knotty Issue- what
the Homes Communities Agency will do

• Commitment to complete all existing programmes
• Housing Delivery Plan/Affordable Housing Delivery
  Plan inextricable and mutually dependent
• Strategic sites and housing programmes working
  to develop affordable housing schemes in all of
  them
• Estate Renewal
• Local Authority special purpose vehicles
• Surplus Public Sector Land
• Helping support delivery
• Helping support sustainable communities

6
Housing For The Future A Knotty Issue - how
the Government will help

• Housing Planning Delivery Grant
• Replaces PDG from 2008
• 510m over 3 years
• Potentially 1,000 per unit
• What Government will expect from LAs in return
• 5 year rolling plan for deliverable sites,
  renewed annually
• Identify land for housing at least 15 years ahead
  in suitable locations
• Tackling empty homes

7
Programme 2008-11 It begins now

• 2008-11 NAHP 8.4bn
• Aim to double level of affordable homes in six
  years
• Rising to 70,000 affordable homes a year by 2011
• 45,000 of those will be rented housing an
  increase of 50
• At least 25,000 new shared ownership and shared
  equity homes
• At least 6 efficiency gain annually
• More homes, larger homes
• Homes for diverse communities
• Homes for vulnerable communities

8
Programme 2008-11 National Bids Map
9
Programme 2008-11 A New Approach to Investment

• Streamlined prequalification process
• Regular market engagement
• Changes to low cost home ownership products
  (Shared Equity Competition)
• Setting expectations and regional efficiency
  targets 6 per year in the East of England
• Partnership plus

10
Programme 2008-11 Future Approaches

• New Tools
• Continuous procurement efficiencies
• Stretching capacity of partners and levering
  additional private finance
• Bringing land forward with long term approach to
  strategic sites and better risk sharing
• New approach to land and planning

11
Programme 2008-11 Regular Market Engagement

• Not all resources to be allocated in Year 1
• Regular in-year bidding
• Well developed deliverable bids
• Better alignment with planning process
• More timely engagement with S106 negotiations
• More regular engagement with LPAs and delivery
  partners

12
Programme 2008-11 Partnership Plus - Pilot

• Direct link between quality of service and access
  to investment funding
• More responsive procurement process
• Excellence
• Programme delivery track record
• Procurement processes
• Service delivery (2 star)
• Welcome
• Single entities
• Consortia
• Joint ventures
• Average organisations need not apply
• But will soon be direction of travel for all

13
Programme 2008-11 New Partners

• 40 unregistered AHPs
• 8 Existing Housing Corporation Private Sector
  Partners
• 24 Newly-qualified Housing Corporation Private
  Sector Partners
• 6 Newly-qualified ALMO partners
• 2 Newly-qualified LA-led SPV partners
• Another PQQ in the New Year

14
New Relationships/Different RelationshipsDesign
and Quality - Calcutt Review

• More mature public private partnerships
• Public commitment to infrastructure
• Regulatory framework to incentivise high
  standards
• Sustained leadership from Government for zero
  carbon objectives
• Renewed priority for community management

15
New Relationships/Different RelationshipsDesign
and Quality NAHP 2008-11

• Outcome based flexible core standards
• Internal Environment HQIs
• Sustainability CSH level 3
• External Environment Design for Life
• Rewarding Higher Quality
• Grant Index
• Quality Weighting
• Reduced use of waivers
• Especially relevant to S106 schemes
• Raising the bar on quality
• Williams Commission

16
Outcome Sustainable Communities

• Hills Report
• Mixed communities key for existing future
  social housing good housing, areas, schools,
  services
• Social and geographic mobility
• Social enterprise
• Devolving power to residents
• Varied menu of social housing products to serve
  these aims
• Targets for size and tenure
• Strategic sites
• Regeneration for existing stock - in 2050, 70 of
  stock will be stock that exists now

17
Outcome Sustainable Communities

• Respect
• Tackling homelessness
• Tackling overcrowding
• Vulnerable People
• Older population
• BME communities
• Rural housing

18
Partnerships Indicators for the Future?
Sovereign Capital
Partners forPleck
Homes For You
Partners for Logic Homes Allenbuild Ltd, Durkan
Ltd, Genesis Housing Group, Hill Partnerships,
McCann Homes Ltd, Presentation, SHP
Homes For You choice based lettings service,
involving Ashiana Housing Association, Bolton at
Home, Contour Housing, Irwell Valley Housing
Association, Manchester Methodist Housing
Association, NBH (Places for People Group), St
Vincent's Housing Association, William Sutton
Housing Association
Partners for Millbay, Plymouth English
Partnerships, English Cities Fund (ECf), Plymouth
City Council, LDA Urban Design (strategic plan),
Midas Homes (development partner), Devon
Cornwall Housing Group
Cambridgeshire Partnerships Ltd (CPL)
Bedfordshire Pilgrims Housing Association
Limited, Aldwyck Housing Association  Limited,
King Street Housing Society Limited, The Papworth
Trust, Hundred Houses Society Limited
Sovereign Capital led the buy-out of Alkare, the
specialist provider of residential care for
adults with mental health needs.
Partnerships

• Partners for Pleck, Walsall Bovis Homes,
  Walsall Housing Group, Walsall Council

Partners for Millbay, Plymouth
Cambridgeshire Partnerships Ltd (CPL)
Partners for Logic Homes
19
Partnership for Pleck, Walsall

• Part of the Housing Corporation's New Partnership
  in Affordable Housing (NPIAH)
• Bovis was one of the first housebuilders to
  receive SHG in 2006/08
• A training and employment programme for local
  people as part of the Pleck Regeneration
• Local stakeholders involved
• Phased demolition commenced early 2007
• All 69 rented homes to be handed over early 2009

20
Academy Central, Barking

• Bought with planning brief but no formal planning
  consents
• Phased payments
• Limited Liability Partnership between George
  Wimpey and LQ Group on private element
• also unconditional partners for affordable
  element
• First completion anticipated early 2008
• Project due to be completed 2012

21
What We Need to Achieve in the Next Three Years

• The pace of change is accelerating
• Meeting our affordable housing need is out of the
  too difficult box
• We must
• increase output by 50
• Meet tough efficiency targets
• Weather uncertain market conditions
• Create new providers and partnerships
• Mainstream regular market engagement
• We need to start to get it right in 2008-11

22

• Thank you