Housing Led Regeneration Investment in Tyne and Wear Glyn Drury Director Tyne and Wear Housing Partnership 2008 December 2

Housing Led Regeneration Investment in Tyne and Wear

Glyn Drury

Director Tyne and Wear Housing Partnership

2008 December 2

This presentation is an introduction to:

• TWHP• Investment picture

– Priorities– HCA

• NeW Delivery Models– Local Housing Companies – Gateshead JVP

Housing Led Regeneration Investment in Tyne and Wear 2

What is TWHP?• Consortium of five strategic housing authorities along

with Bridging NewcastleGateshead HMR Pathfinder working at city region level

• Working with NEA, HCA, RDA, ANEC, City Region and other sub regions in north east.

• Sub regional housing strategy• Strategic Housing Market Assessment• Allocation of £7m SHIP annually• Advice on other sub regional and regional housing

investment• Sub regional choice based lettings• Gypsies and Travellers Needs Assessment• Board – Lead Members• Heads of Service Group• Policy Group


Housing Investment- the Big Picture

• Source: BERR Select Committee Table 1 para 9 “Construction Matters”


Construction output GB 2006

Public Private Total

% £bn % £bn % £bn

New housing 3.0 3.4 17.2 19.6 20.2 23.0

Repair & maintenance

7.8 8.9 13.9 15.8 21.7 24.7

Housing sub total

10.8 12.3 41.1 35.4 51.9 47.7

Construction total

31.0 27.3 69.0 86.3 100 113.6

Housing Led Regeneration - NE Govt Funding £m

source: Regional Funding Advice


08/09 09/10 10/11 11/12 18/19

Regional Housing Pot

88 95 100 N/A N/A

Former EP 35 52 48 N/A N/A

Market Renewal

47 44 39 N/A N/A

Housing & Regeneration

170 191 187 191 219

Total Regional Funding

545 560 544 565 649

Housing Led Regeneration - NE Govt Funding

• Excludes ERDF funding to region• Excludes any Growth Fund and Community

Infrastructure Fund (no regional allocations)• Excludes a number of other direct funding

programmes egPFIHomeless GrantHousing and Planning Delivery GrantHousing Revenue Major Repairs

Allowance


Housing Led Regeneration - Post 2011?

• Pre Budget Report• At best a freeze at worst cuts in government

spending• Rationing by lenders


Est. Govt Investment Tyne & Wear 2008/09 £m


LA SHIP# 7.821

Market Renewal* 34.000

HC – social housing grant (to Sept)#* 22.760

English Partnerships* 5.000

DoH – Extra Care 7.800

New Deal for Communities 15.781

Direct DFG 3.012

Council Decent Home#s* 13.107

Housing & Planning Delivery Grant 0.965

Total 110.296

* At least 70% of govt housing and regeneration spending will be made through the Homes and Communities Agency from 09/10

# incl in Regional Housing Pot

Place Making Priorities


• BNG Priority Areas (11 Communities)– Lower Walker, Elswick, Scotswood, Benwell/High Cross,

Saltwell/Bensham, Deckham

• Cleadon Park, South Shields• Hendon, Hetton Downs, Castletown, Sunderland• Wear corridor/Sunderland centre (Priority 1 - 5

new communities ARC)– Vaux, Farringdon Row, Holmeside, Sunniside, Stadium

village/Sheepfolds

• Tyne Gateway– Walker, Wallsend, to North Shields north bank– Hebburn, South Shields south bank

• Growth Points


Homes and Communities Agency- New Opportunities

• 1 December• Investment functions of Housing Corporation,

English Partnerships and teams from CLG• Pat Ritchie Regional Director (ex One

NorthEast, Sunderland and Newcastle)


Homes and Communities Agency- New Remit, New Way

• New organisation, new flexibility• New culture – national objectives, local

ambitions• New partnerships with local government,

private sector, RSLs, and regionally• New business process (single conversation)• New business products• New relationship with Government – the voice

of delivery• Investment agreements


Homes and Communities Agency


Homes and Communities Agency- Benefits


• An approach focused on the needs of communities and people

• An approach based on programmes of activity rather than funding projects

• An integrated approach –using funding flexibly, in a way that meets the needs of that area

• A responsive, adaptable approach able to innovate to come up with new solutions for changing circumstances

New Delivery Vehicles - Potential


• Local Housing Companies, Gateshead Joint Venture Partnership

• 4 companies geographically based• Over 70 sites• Over 10,000 new homes

Local Housing Companies - Background

• 2007 Housing Green Paper• One of a series of initiatives• 14 national pilots including Newcastle and

Sunderland in the north east• “master developer for new communities”• Focus on delivery


Joint Venture Models - Key Objectives (1)

• Increase the supply (net additional) of a range of homes, including affordable homes

• Maximise use of Local Authority land asets• Position the Local Authority at a stronger point

in the centre of the development process• Sharing risk and reward• Capture a share of any increase in land value

over time• Increase pace and predictability of development


Local Housing Companies - Key Objectives (2)

• Complement existing regeneration initiatives and achieve added value

• Create quality, sustainable schemes which provide wider customer choice and tenure options, particularly the intermediate market

• Provide opportunities for a range of investment and development players to become partners of the Local Authority


Joint Venture Models - Key Players


• Local Authority – provides the land• English Partnerships (HCA) – provides the

technical support and expertise (and some funding)

• Contractor(s)• Funder(s)

Form Joint Venture Company

Joint Venture Models - what’s different


• Move from gap funding to investment• Sharing risk and reward• More LA leadership and control• Less reliance on planning obligations• Long term interest by all partners

Scotswood Urban Regeneration Vehicle

• Newcastle’s first LHC• 2,200 new properties planned• Predominantly family housing and associated

community infrastructure• Legacy of housing market failure in West End• Transformational Change• Expo• Significant public sector support & funding


Scotswood Urban Regeneration Vehicle - Structure

• Joint Venture Company with 50% of shares held by the public sector (Newcastle City Council & English Partnerships/HCA)

• Financial support from Bridging NewcastleGateshead and Housing Corporation/HCA

• Not just housing – investing in schools, enterprise, public realm, green infrastructure and community facilities.


Scotswood Urban Regeneration Vehicle – Current Position

• Selection of development partner at competitive dialogue stage

• Key element of Growth Point Programme of Development

• Financial closure planned Summer 2009• Programme to commence late 2009


Newcastle City Wide LHC – Current Position

• Thirty Council owned sites identified in development pipeline

• Capacity 2,500 units• Options appraisal underway• Adaptation of financial models & sensitivity

analysis• Review of intermediate tenure models• April 2009 – report to Executive


Sunderland LHC – Current Position

• 21 Council owned sites have been identified• 1 English Partnership site to be included in

the LHC portfolio• Sites have been valued• Capacity for around 2,500 new homes• Financial Appraisals to be carried out on all

sites• Steering Group set up to manage the

process, inclusive of English Partnerships/HCA


Gateshead Joint Venture Partnership

• 19 sites – others added or removed as assessments progress

• Potential 3,000 homes• Gross development value estimated at £1bn


Gateshead Joint Venture Partnership- Progress

• Limited Liability Partnership• Cabinet approval June 2008• Project team established• Competitive dialogue started 21 November

with invitations of interest• Operational September 2010• BNG contribution to project costs• HC/HCA commitment to invest• ALMO interest as a development partner


Joint Venture Models – Opportunities

New intermediate housing products• Widen choice and meet aspirations• Create mixed and balanced communites

- more affordable homes where needed- providing for specialist needs, elders, disability, support

• Broader integration of housing supply and demand

• Raise quality of housing• Meet growth targets• Ongoing neighbourhood management role


Joint Venture Models – Challenges

• Housing market difficulties – from credit crunch to recession.– Commitment to mixed communities– Confidence– Getting the right development partner

• Quality of sites• Development management• Risk• Complementing not competing

– Significant but not sole initiatives


Thank you for listening

Any questions?

[email protected]

0191 643 2180

Documents

Housing Led Regeneration Investment in Tyne and Wear Glyn Drury Director Tyne and Wear Housing Partnership 2008 December 2