Thriving communities, affordable homes Affordable housing provision in the recession : the HCA’s...

Thriving communities, affordable homes

Affordable housing provision in the recession : the HCA’s role

Presented by Stephen Oakes

Director HCA London Region

Date 9th March 2009


Our vision

To create opportunity:

For people to live in homes they can afford in places they want to live

For local authorities and communities to deliver the ambition they have for their own areas

A national agency that works locally


What we do

Barking Riverside

Adelaide Wharf, Hackney

Christian Fields, Gravesend

Affordable

Sustainability

Growth

Millennium Primary School, Greenwich Peninsula

Affordability

Renewal


How we do it

Investment

Land

Research and best practice

Expertise


The new world

Organisation with increased flexibility

Challenges – both short term and long term

Culture – national objectives and local ambitions

Partnerships with local authorities, the private sector, RSLs and regionally

Approaches:

New business process (the single conversation)

New business products (the HCA toolkit)

Relationship with Government – the voice of delivery


Our tasks

Support the delivery of new homes Secure the delivery of affordable homes Accelerate regeneration of under-performing towns and

cities Improve the quality of existing stock and transform

deprived neighbourhoods Ensure delivery is economically, socially and

environmentally sustainable with good design

Homes and Communities


HMR Funding,£1.0 billion

PFI (credits), £1.9 billion

Decent Homes, £2.6 billion

Growth Funding, £1.1 billion

National Affordable Housing Programme,

£8.4 billion

Hostels, £0.1 billion

Gypsies and Travellers £0.1 billion

Total Funding£17.3 billion (2008-11)

HCA Funding – Significant Investment

National Affordable Housing Programme £8.4bn

Decent Homes £2.6bn

Gypsies and Travellers £0.1bn

Growth funding £1.1bnThames Gateway £0.4bn

Property and Regeneration £1.7bn

(London circa £5 bn)


Continuing the Journey

Set-up

Start-up

Transformation

1 December 2008

1 April 2009

1 April 2010


The Nine Regions


HCA London

HCA Main Board (Chairman Robert Napier)

London HCA Board (Chaired by the Mayor of London)

The Board makes it’s own investment decisions

Largest of the nine regions in budget terms

Expenditure 2009-11 circa £3bn Funding includes

– National Affordable Housing Programme

– Property & Regeneration– Decent Homes– Thames Gateway (London)– FTBI

Representatives from– London Councils– The LDA– London Thames Gateway

Development Corporation – The HCA’s Chair & Chief

Executive


Partnership working

Joint Vehicles and LABVs Surplus Public Sector Land Local Housing Companies Low Cost Home Ownership Rolling Infrastructure Funds Developer Panels (Reducing procurement costs) Best Practice Guidance and Support


Principles for Investment & Intervention

Invest directly to assist the building of affordable housing for those who cannot find reasonable opportunities in the market

Support the delivery of new housing within a broader context of sustainable regeneration and ‘place-shaping’

Work in partnership with others Require investment leverage from others Seek to optimise the strategic impacts from out

investment Are keen to take a longer term view of our

investment


The Market Downturn

Global liquidity crisis means reduced access to credit for: Employers Consumers Housebuilders and RSLs

In the wider economy - reduced economic activity, reduced confidence, increased unemployment - recession

Leading to reduced demand for housing Supply slower to respond Further falls and expectations of falls in

house prices


Responding to the Market Downturn: key downturn issues

High density housing – cash inefficient

2006/2007 Land values (viability) Affordable Housing reliant on

S106 planning gain Collapse of confidence & liquidity

in the banks Cross subsidy from Private for

Sale Housing Mixed use schemes hit hardest Capital Receipts impacting on

Agency & LA programmes RSL’s not immune to the downturn


Responding to the Market Downturn: Good News

Olympic Games 2012 Crossrail Jubilee Line & DLR

Upgrades Strong private rented

sector Major Contractors are

cash rich


Responding to the Market Downturn: Tools the HCA have

The National Affordable Housing Programme– Flexibility and new models

The Property & Regeneration Programme – Gap funding, site acquisition and infrastructure support

Priority Projects– Kick-start programme

Estate Renewal– Changing the rule of ‘additionality’

Place Shaping & Place Making


Responding to the Market Downturn: Recent Initiatives Grant flexibilities

– Introduction of flexibility in the level of grant that is able to be awarded

Package approached to NAHP bids– New invitation to submit portfolios of schemes

Substituting intermediate rent and rent-to-buy for LCHO and market housing

– Helping to make unviable schemes viable Homebuy Direct

– Purchase of developers’ surplus stock and conversion to shared equity affordable housing

National Clearing House – Assist developers who can offer bulk volume programmes of

stock Working closely with local Boroughs to bring forward their

land


Responding to the Market Downturn: what the Agency is also exploring

Tailored programmes for individual housing associations

Potential for LAs to come forward with their own development packages

Funding of infrastructure works on a return basis New approaches to the private rented sector Flexible tenure models Better use of public sector land Longer term joint ventures


Towards a Single Conversation

Strategy Capacity Investment Delivery

Programmes Standards and mechanisms Investment tools

Both capital and revenue investment

Area-wide and specific interventions

Toolkit being developed


Design Standards

Building on a strong inheritance Good design and sustainable

development High core standards and

monitoring Address the ongoing management

of projects Promote market improvements

and exemplar initiatives Build capacity and in partnership

with national, regional and local agencies


A New Agency

With new approaches and new methods of working

Increasingly will offer greater flexibility

The single conversation will be the most important business process

The key goal is to make a difference on the ground

Responding to the downturn

Preparing for the new world


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Thriving communities, affordable homes Affordable housing provision in the recession : the HCA’s...

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