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The future role and shape of the Homes and Communities Agency
Akin Durowoju
3 February 2011
Spending Review
As expected, the sharpest fall in capital comes in 2011/12
Implications – housing benefit reductions will be significant
The large fall in DCLG capital is largely explained by changes to affordable housing
50
75
100
125
2010/11 2011/12 2012/13 2013/14 2014/15
Total DEL NHS Other
30
40
50
60
2010/11 2011/12 2012/13 2013/14 2014/15
Total DEL in real terms – 2010/11=100
Total Capital DELs (£bn)
1
2
3
4
5
6
7
2010/11 2011/12 2012/13 2013/14 2014/15
DCLG capital DEL (£bn)
The Vision The HCA is changing to reflect the Government’s new direction
The Agency will be a smaller and more strategic enabling, investment and regulation agency
– working with local authorities and their communities at their request
– ensuring Registered Providers are economically well run and financially viable
– with a stronger role for local leadership
InvestmentEnablingsupport
Maximisingassets for
local benefit
Supportinglocal deliveryand services
throughregulation
The new HCA structure
Areas will be reduced from eight (excluding London) to five
The South East has been split and merged into the East and South West areas
Kent Surrey and Sussex now sit within the East of England managed by Terry Fuller
Investment –Three areas of activity
Affordable housing Existing stock Land & regeneration Total investment of
£4.5bn over the spending review
Completion of existing commitments under the NAHP
A new affordable housing programme, up to 150,000 homes, many at the new affordable rent
Continuing provision for mortgage rescue, Places of Change and Gypsy and Traveller sites and for bringing empty homes back into use
A £2.1bn programme of investment needed to deal with repairs
Reaching a point where self-financing becomes viable
Enabling local authorities to connect this investment to other opportunities, especially around energy efficiency
A key test of our investment and enabling role combined
Using public land assets to deliver value and benefits for local communities
A central role in realising benefits from the land assets left by the RDAs
Access to £1.3bn fund for completion of existing regeneration commitments that are high priorities for local areas
Investment – A new approach to affordable housing
Spending review proposes “affordable rent” offer:
– Rents set to 80% of market rent
– Tenancy agreements reviewed after fixed period
– RPs may convert vacant existing social rent to new form of tenure
– Rent and tenancy terms for existing tenants will not be affected
Aim to deliver up to 150,000 new affordable homes over the period
DCLG to develop model over the coming months
Latitude Walk, Ashford:Partnership with Ashford BC
Local Investment Planning –Moving Forward
Guiding the HCA’slocal offer
Informing resourceallocation
Maximising impact
Local investment planning will play a central role in guiding the delivery of specific investment programmes
It will also provide the basis for establishing what other support local areas request from the Agency
Local investment planning can help support a localist approach to allocating resources
The detailed intelligence provided by local investment plans ensures that new investment is applied to meet local need
Local authorities find the planning process valuable in helping them to maximise the impact of all available investment
It does so by providing the basis for co-ordination across public and private investment, and in identifying the areas of greatest impact
Enabling Support –The overall approach Understanding the needs of local areas to offer enabling support not
available elsewhere
Services with high costs
Specialist expertise
Value for money
Strategic support
Providing national services that local partners can call on, where it’s not efficient for them to establish their own
Support and capacity building through technical services for local authorities To include masterplanning, economic appraisal, brownfield land, sustainability and
design, joint ventures and levering private investment
Using national scale and expertise in procurement to enable local authorities to get more for less, and encourage new delivery partners
Putting investment in a wider context, working with other public/private organisations and responding to new policy directions
Enabling support –Examples
Specialist expertise supporting local authorities– the HCA’s Advisory Team for Large Applications (ATLAS) is an
independent reviewer of large planning applications, helping to unblock issues which may cause delays while increasing knowledge and expertise within local authorities
Creating access to new delivery partners– the HCA’s Delivery Partner Panel gives local authorities access
to a wide range of development service providers, reducing procurement times and costs
Supporting new policy– helping local authorities take advantage of new policies like the
New Homes Bonus, putting specialist tools (such as viability assessments) at their disposal
Regulation –to support local delivery The review of social housing regulation recommends transfer of
a new regulatory framework to the HCA by April 2012
At lower cost the HCA will provide affordable housing regulation that:– is robust, transparent and independent– commands lender confidence, protects taxpayers and tenants– supports affordable housing supply
The regulatory functions within the HCA will:– be separate from investment and enabling, via an independent committee– maintain a proactive role in economic regulation but reduce overall scale
by adopting a back stop role in consumer regulation– be delivered under a principle of minimum interference – combine economic regulation with investment to achieve greater VFM in
affordable housing delivery
HCA Building Standards HCA will no longer be taking forward
proposed design and sustainability standards. Instead a local standards framework will be developed to give local authorities more choice in the standards they use
The government wants to move away from national standards to allow local areas more control over the quality and design of housing in their communities
DCLG are hoping to introduce a new local standards framework in April 2012 as part of the new national planning policy framework
HCA existing standards will remain in place until the new framework is implemented
Next Steps
Continue to deliver HCA programmes in the current spending review period
Implement our internal change delivery plan
Prepare and publish a Corporate Plan for the 2011-2015 spending review period, setting out the detail of our new approach
Keep in touch visit homesandcommunities.co.uk
Akin DurowojuHead of [email protected]
01233 651702
Anita PearceInvestment and Regeneration [email protected] 651732
