Accelerating housing supply A NATIONAL AGENCY WORKING LOCALLY. Colin Molton Executive Director, South and South West Homes and Communities Agency
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1 Successful places with homes and jobs A NATIONAL AGENCY WORKING LOCALLY Accelerating housing supply Colin Molton Executive Director, South and South West Homes and Communities Agency CIH Other Housing Conference 13 November 2013
2 Key points to cover The case for increasing housing supply Current activity Looking ahead Three key questions
3 Three key questions What do we need to do to prepare for the successful delivery of the new Affordable Homes Programme?
4 Three key questions What do we need to do to prepare for the successful delivery of the new Affordable Homes Programme? How can partners ensure housing benefits from the HCA s public land role?
5 Three key questions What do we need to do to prepare for the successful delivery of the new Affordable Homes Programme? How can partners ensure housing benefits from the HCA s public land role? What are the barriers that prevent these two things happening?
6 The need for housing: a long-running issue 400,000 Housing Completions, England, ,000 Private Enterprise Housing Associations Local Authorities 300, ,000 To meet household projection 200, , ,000 50, Source: DCLG
7 The case for housing: supporting growth Construction contributes around 8% of GDP: housing accounts for 3% It is estimated that one construction job supports 0.78 elsewhere For every 1m of housing output, 20 workers are needed for a year For every 1m of housing repairs and maintenance, 31 jobs are supported CBI and British Chambers of Commerce say action to build new homes will create jobs and make housing affordable Source: DCLG / BBC
8 Turning the argument into reality Widespread agreement that we need more homes Fundamental building blocks: Land and planning Finance and viability Capacity to deliver Responding to the new environment To deliver, we need action We all have a role to play
9 Current activity overview Focus on growth Budget and Spending Round settlements HCA action to stimulate market: Affordable housing products Help to Buy Private rented provision Unlocking stalled sites Public land
10 Government support for housing: budget bn total investment 3.5bn Help to Buy Additional 800m Build to Rent Doubling of 225m AHP Guarantees Programme Building on success of existing programmes Strong delivery in 2012/13 Speed of delivery will maximise economic impact
11 Using a range of measures Affordable housing: Grant Guarantees Assisted purchase Market interventions: Loan Equity Land Land: Build now pay later Loan Equity Grant Economic assets: Loan Equity Grant Land
12 Building more affordable homes 4.8bn for up to 170,000 new homes Current Affordable Homes Programme ( ) New programme: prospectus published this year Affordable Homes Guarantee Programme Affordable Rent to Buy Up to 300m Care and Support Specialised Housing Fund Bringing up to 10,600 empty homes back into use Community-led housing Custom Build
13 Supporting the housing market Help to Buy Increasing starts: 1bn Build to Rent 570m Get Britain Building 225m for large scale sites S106 mediation 10bn guarantees linked to 500m AHP funding for new housing Increasing HCA loan portfolio c. 1bn
14 Using land to support housing Bringing public land to market to drive housing growth HCA to handle surplus public sector land from 2015 Our land development and disposal plan: sites for 14,000 new homes by 2015 Additional 290m announced in Autumn Statement Commercial expertise and complex development experience
15 Progress on the ground: Sherford
16 Progress on the ground: enabling and investment at Sherford New community of around 5,500 homes, including up to 2,750 affordable homes: Around 83,000 sq m retail and employment space Up to 7,500 jobs Three primary schools and one secondary school Investment from Local Infrastructure Fund of 32m More than 40 outstanding S106 issues resolved with HCA support Total private sector investment: 1bn Economic stimulus in wider economy: 2bn Contracts agreed this month
17 Progress on the ground: Wapping Wharf, Bristol Iconic development at Bristol Harbourside Stalled five years ago due to lack of finance Get Britain Building investment of 12m Unlocks 194 new and affordable homes, retail space, pedestrian and cycle route and public square Work started in October 2013 Get Britain Building delivers more than 15,000 new homes across the country, protecting and creating thousands of jobs.
18 Future funding: Spending Round 2015/16 Good settlement Reflects confidence in sector Housing and infrastructure drivers of economic growth: 2.9bn Affordable Homes Programme 400m Rent to Buy scheme 202m for Local Infrastructure Fund (Enterprise Zones and large sites) 160m Decent Homes Backlog Guideline rent limit of CPI+1% Fees for social housing regulation Speed of delivery will maximise economic impact
19 The new Affordable Homes Programme This has strong support from partners We understand the challenges the sector faces and Government has listened Three year settlement brings certainty, which sector had asked for 1bn a year more investment Supported by 10-year rent regime, adding long-term certainty over a significant income stream Current performance key factor when setting bidding guidance for new programme
20 To conclude Complex, challenging environment Housing, land and construction key drivers of local economic growth New opportunities and different approaches Delivery is key to continued confidence
21 Three key questions 1. What do we need to do to prepare for the successful delivery of the new Affordable Homes Programme?
22 Three key questions 2. How can partners ensure housing benefits from the HCA s public land role?
23 Three key questions 3. What are the barriers that prevent these two things happening?
24 Keeping in touch homesandcommunities.co.uk // /HCA_UK /homes-&-communities-agency
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