Successful places with homes and jobs
A NATIONAL AGENCYWORKING LOCALLY
Affordable Housing Seminar
East Midlands CouncilsGraham Dobbs Head of Area HCA19 June 2013
Contents Current delivery context
Delivery and 2013 Budget Announcements
Focus on AHP and AHGP
HCA role in Investment, Land, Market Interventions and Regulation
Conclusions
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
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
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.
2013 Budget announcement - HCA
Programme Budget extra
Impact
Build to Rent £800m Additional due diligence & bidding round 400% increase & extra year to 2015/16
Help to Buy £3.75b New homes purchase programme to 2015/16
Affordable Homes Guarantee
£225m 100% increase to existing programme – extended bidding round & timeline to 2016/17
Local Infrastructure Fund - tbc Move from single initiative for 8 large sites to open bidding round to incl sites >1500 & EZ.
Total £4.775b
Growth in value of capital programmes…Programmes have doubled
in value during the SR
Growth in number of Capital Programmes – CSR2010- Budget 2013
Successful Places with Homes and Jobs
Supporting local growth:Housing, LEPs and Cities
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
Our investment and expertise support local aspirations and deliver economic growth.
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
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
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
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
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
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?
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
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
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 100,000m2 employment 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
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
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.
Keeping in touch homesandcommunities.co.uk
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