Midlands Quarterly Partner Meeting

Homes and Communities Agency Milton Keynes

24 April 2012

Agenda

Looking back… Midlands Performance – a successful year’s delivery Looking forward… The Housing Strategy – an update Delivering growth through land In the Spotlight:

– Wixams, Bedford – Oakgrove, Milton Keynes

Notices and reminders

Looking back

What a year!!

April - Feb March!

Having said that…

Above: Brick-laying ceremony at Knight’s Court, Wellingborough

Opening of second Milton Keynes Extracare Charitible Trust Village at Shenley Wood

HCA and MKC appoint Barratts as developers at the B4.4 site in MK

Opening of first homes at Helmdon, Northants

Demolition progresses well at Tresham College Corby – well until the Bat!

New homes built through investment from HCA into the Bedford Western bypass

Performance 2011-12

Kerry Hebron, Head of Strategy, Programmes and Performance

Performance – key highlights

£322m was invested in the Midlands last year Nearly 4,200 housing starts were recorded, including

over 2,000 starts for the AHP Over 8,800 new homes were completed*, including 508

rural homes Over £170m private sector investment was leveraged

through HCA investment/ enabling

* Includes Mortgage Rescue and FirstBuy

Expenditure & Receipts

Programme 2011/12 Outturn Expenditure (£m)

2011/12 Outturn Receipts (£m)

NAHP 105.45

Property & Regeneration 51.60 42.1

Decent Homes Backlog 51.57

AHP 37.44

Economic Assets 24.64 18.54

Mortgage Rescue 19.72

FirstBuy (shared equity) 11.81

Kickstart 10.38

Other 8.96

TOTAL 321.57 60.64

Housing starts

Programme Unit Type No.

NAHP

Rent 172

223LCHO 51

AHPRent 1,752

2,072LCHO 320

Property & Regeneration

Affordable 286

1,874Open Market 1,588

Empty Homes 12

TOTAL 4,181

Housing completionsProgramme Unit Type No.

NAHPRent 3,461

4,480LCHO 1,019

(of which) Rural 508 -

AHPRent 436

568LCHO 132

Property & Regeneration

Affordable 721,019

Open Market 947

Empty Homes 5

Mortgage Rescue 298

FirstBuy 663

LA New Build 214

Kickstart 1,568

TOTAL 8,815

Other outputs

Measure No.

Employment floorspace generated (sq m) 70,659

Brownfield Land reclaimed (Ha) 27

Private Sector Investment (£m) 171.98

Jobs Potential 1,649

Land Brought Back into Beneficial Use 104

HCA programmes update

Economic Assets

– Stewardship Packages have been grouped by LEP geography, and disposal strategies currently being agreed

– Plan to dispose of all sites across 10 year strategy with:

• Non–strategic sites or those with previously agreed strategy being disposed earlier; and

• Using those receipts to de-risk remaining sites for disposal as soon as possible

Affordable Homes Programme Still a couple of LA’s not in contract yet Developer Deed of Adherence is required to confirm units developed by an

un-registered body Agreements in draft for Empty Homes (12-15 programme), and finalised for

Homelessness Change and Travellers Pitch Funding Travellers Pitch Funding – CME open so please speak to your local contact

with details of any new schemes Right to Buy – Secretary of State agreement with LAs for comment and likely

to be sessions on how agreements will work Strong delivery required from partners on FirstBuy to ensure that we meet

21012-13 targets – delivery is key to retaining allocation

- According to HBF - market conditions appear very strong with enquiry rates doubling and over 1,000 new firm reservations achieved Nationally in February alone

IMS will re-open on 20 April 2012

- Automatic calculation of a blended grant rate if changes agreed to no of units of funding

Looking forward

Challenges Opportunities Priorities Government thinking

Progression of the Housing Strategy

Charles Amies, Head of Midlands South East

‘INCREASING SUPPLY’ Mortgage indemnity Growing Places Fund Get Britain Building

(Stalled sites) Public Land Land auctions Locally planned large-scale

development Custom Build (Self-build) Community-led NPPF

Reinvigorated Right to Buy Stock transfer

Private Rented Sector Empty Homes

‘SOCIAL AND AFFORDABLE HOUSING REFORM’

OTHER

Housing Strategy – Overview of Key measures

Launched 21 Nov 11

Housing Strategy Progress (1) NewBuy (Mortgage Indemnity) – went live 12 March

– New build only homes <£500k; available to any buyers (as main place of residence)

– Being led by HBF & CML

Get Britain Building (GBB) – national funding pot increased to £570m– Midlands has shortlisted programme of £122m (3,652 units), now

subject to due diligence. Spans all sub-areas

Growing Places Fund – extra £270m allocated in the Budget– Gtr B’ham & Solihull LEP and Worcestershire LEP have announced

projects; includes some housing element/ links to HCA land holdings:• Icknield Port, Bham• Aston Regional Investment Site, Bham• Lyndhurst estate, Erdington, Bham• North Arran Way, North Solihull• Former British Sugar Factory, Kidderminster

Housing Strategy Progress (2) ‘Reinvigorating’ Right to Buy – from 2 April, the cap on discounts

raised from £25,000 to £75,000– Pledge of a 1-for-1 replacement with affordable rent home

New National Planning Policy Framework (NPPF) – came into effect 27 March– Presumption in favour of sustainable development

– Primacy of Local Plans / Neighbourhood plans

– Recognition of ‘intrinsic value’ of countryside

– Stipulation of identifying 5 yr housing supply + 20% for LAs with ‘track record of under-delivery’

Community led housing – HCA currently taking bids

Empty Homes 2012/15 – Midlands programme = £15.5m / 1,289 units

Unlocking growth through land

HCA Development and Disposal Strategy

Published 3 April 2012 Sets out objectives for how HCA will deal with its land holdings Some issues:

– Market context– Planning– LA & LEP involvement in use of HCA land– De-risking– Use of receipts– Value for money

Disposal Pipeline of sites to be brought to market over next three years– Both residential and commercial opportunities, including EAP

assets

Midlands Disposal Pipeline

http://www.homesandcommunities.co.uk/ourwork/land-and-development-opportunities

HCA land ownership at March

Operating Area Area (ha) %

East and South East 2,080 28%

London 230 3%

Midlands 2,600 35%

North East, Yorkshire and The Humber

630 9%

North West 1,430 19%

South and South West 460 6%

Total 7,430 100%

Delivery Partner Panel

Current DPP runs from 2012 to 2013– HCA: 12,000 homes being procured on 38 sites– HCA partners: 100 partners signed up; 12,000 homes

being procured on 73 sites

Reprocurement of panel has commenced (DPP2)– Will run for four years (2013-2017)– OJEU notice published end March 2012– PQQ submissions to be returned 8 May 2012

Contribution to the Housing Strategy

Disposal Pipeline Accelerating release of public sector land Transfer of Milton Keynes assets Private rented sector Custom Build Land auctions

In the spotlight:

Wixams, Bedford

Jim Pollard, Bedford Borough Council

Wixams – A New Settlement for Bedfordshire

Wixams - A New Settlement for Bedfordshire

• 3 miles south of Bedford• 384 hectares• Bought by War Office in

1940 for bomb filling• Transferred to CEGB 1969 • JV Gallagher Estates and

NPower 1998

Growth Area

• Part of growth area

• c8,000 units with planning permission in Bedford

Challenges and Opportunities

• Good connections improved by upgrade of A421 completed 2010

• Centred on brownfield land – extensive remediation

• Re-alignment of A6 linked to greenfield land delivered early

• New station to be created on Midland Main Line

Local Authority Joint Working

• Three LAs reduced to two by unitary reorganisation

• Now Bedford BC and Central Bedfordshire DC

• Joint Planning Committee

• Shared nominations to affordable housing

The Proposed Development

• 4,500 homes• Four villages within

the settlement• Settlement centre

plus local centre in each village

• Employment area to the north

Infrastructure Requirements

• Realignment of A6• New Railway Station• Public transport• Schools• Medical Centres• Open space• Sports facilities

Timeline

• Planning Application 1999

• Planning Permission 2007

• Realignment of A6 completed.

• Village One construction in progress – lower school completed

• Village Two remediation works in progress

Affordable Housing

• 25% Affordable Housing– 15% Social Rent – 10% Intermediate Tenure– Weighted to provide more

Intermediate Tenures in Village One

– Clusters of 15; tenure blind– Completed Unit Price in S106– Cascade from Target

Percentage to Minimum Percentage

• BPHA provider on Village One building out on allocated parcels

• Grant for affordable housing was the only public subsidy

Progress

• Seven builders bought parcels in Village One from Gallagher

• Credit crunch delayed pace of market construction

• 282 market and 164 affordable homes in Village One delivered October 2011

Challenges

• Delivery with weak demand

• Major infrastructure investment still required

• Lack of grant• Affordable Rents• One builder used

Kickstart and is bidding for Get Britain Building

Gallagher : bpha Delivery Model

RSL early involvement in S106 negotiations and Design Codes

Gallagher put in ‘on site’ infrastructure Identify Affordable Housing parcels Work on design of sites – size and shape can

accommodate numbers

Affordable Housing Locations

Gallagher : bphaDelivery Model

Phasing of site drawdowns One overarching agreement for Village 1 Sites drawn down when ‘shovel ready’ Programme for delivery

Key Benefits

Early S106 involvement – minimise need for changes later

Design and Specification Certainty of delivery One RSL – one point of contact, continuity of

management service

Single Affordable Housing Provider

Community development:

The Challenges

Developer delivery – the credit crunch Continuity of design – tenure blind ‘Unforseens’ Did they fit? Creating a new community - sustainability Future Governance Continuing delivery – Village 2 onwards

The Results

The Results

The Results

The Results

The Results

The Results

The Results

The Results

More Results……

More Results…..

More Results……

More Results……

Questions?

In the spotlight:

Oakgrove, Milton Keynes

Ben Ruston, HCA

Ian Rhodes, Crest Nicholson

Notices and reminders

Next meeting – 12 September (venue TBC as we still hope to move venues around the patch for this meeting)

Rural Affordable Housing Day – 18 September, EMHA Coalville. Email holly.raybould@hca.gsi.gov.uk

Don’t forget to keep up to date on HCA in the Midlands at www.homesandcommunities.co.uk/Midlands or follow us on twitter hca_uk

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