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HCA delivering 275k affordable homes
1. Successful places
with homes and jobs
A NATIONAL AGENCY
WORKING LOCALLY
Funding an Increased Supply of High Quality, Affordable Homes
Inside Government
9 December 2014
Fiona MacGregor, Director of Programmes - HCA
2. Contents
ď§Current Programme and delivery to date
ď§2015-18 Programme â Ensuring a smooth transition
âInitial bid round outcome and recap
âContinuous Market Engagement
â˘Meeting local priorities
â˘Quality - Housing Technical Standards Review
â˘Advanced Housing Manufacture â speeding up delivery
ď§Summary
3. Delivering the Affordable Homes Programme 2011-15
ď§ÂŁ4.8bn - 170,000 affordable homes
ď§Significant change in funding model
ď§HCA delivery target for current year 29,000 affordable housing completions (plus 1,600 from Guarantees and EH2 programmes)
ď§National Statistics April â Sep published 20 November 2014
â9,811 affordable starts on site
â10,631 affordable completions
ď§Lot to do in final 6 months of year/current programme
ď§Provider forecasts are strong â focus on delivery
ď§Significant proportion of housing supply
4. Affordable Housing Programme 2015 -18
ď§ÂŁ2.9bn investment for affordable housing over period 2015-18 (Spending Round â June 2013)
ď§Deliver 165,000 homes (range of sources)
ď§Funding outside London - ÂŁ1.7bn
ď§FURTHER ÂŁ1.9bn nationally â Autumn Statement â December 2014
ď§Deliver 110,000 homes
ď§Total funding now ÂŁ4.8bn â 275,000 affordable homes (range of sources)
ď§Average 55,000 homes per year â significant proportion of overall housing supply
5. Affordable Homes Programme 2015-18: initial allocations
ď§Different approach â initial bid round and CME
ď§Initial allocations announced 22 July 2014
ď§ÂŁ886m allocated - 43,800 homes
â37,700 funded, 6,100 â nil grant
ď§160 investment partnerships â RPs, LAs and housebuilders
ď§Over 75% on firm schemes
ď§Affordable Rent and shared ownership
ď§Supported, elderly and rural housing
ď§Hostel accommodation; Travellersâ pitches; empty homes.
6. Smooth transition between programmes
ď§Guarantees and other programmes have acted as âbridgeâ between current programme and new AHP
ď§ÂŁ200m Rent to Buy loan fund â prospectus published and bidding under CME
ď§Loan funding â low interest â increases from year 8
ď§Affordable Rent â minimum of 7 years
ď§Loan repayable at end of 15 years
ď§Tenant first refusal to purchase
7. Smooth transition between programmes
ď§2015-18 AHP: CME open from October
ď§Supports providers and local areas to work up schemes in line with local priorities and business plans
ď§Priorities as Prospectus - encourage:
âAdvanced housing manufacture
âRural housing
ď§Continue to support housing for older people, supported housing, shared ownership.
ď§VFM, deliverability and fit with local needs
ď§2015-18 contracts â get into contract quickly (good progress) to start to deliver
ď§Bring forward schemes with 2015-18 allocations for starts that can deliver in 2014/15
ď§Alongside focus on delivery of current programmes
8. Housing Standards Review: HCA Design and Quality standards
ď§2007 Design and Quality standards remain for the 2011-15 AHP
ď§2015-18 AHP no longer HCA specific standards as a condition of funding.
ď§Standards will be applied through the Building Regulations (for energy, security and waste) with optional requirements being introduced in the Building Regulations for the first time (accessibility and water efficiency).
ď§Responsibility for the application of optional standards in the Building Regulations will pass to Local Authorities (and compliance through Building Control)
ď§Responsibility for the Nationally Described Space Standard will pass to Local Authorities.
ď§HCA will consider space through IMS data returns.
9. Encouraging Advanced Housing Manufacture and speeding up delivery
ď§Advanced Housing Manufacture
âStrong political interest
âCross tenure but AHP a place to demonstrate potential: especially for speed of delivery (at right price)
âSkills shortages (and materials?)
âDifferent scales
âDifferent products
ď§Providers decide
ď§Share knowledge/experience (eg Accord)
ď§Smarter procurement â achieve scale through aggregation
10. Summary
ď§Affordable Housing included in National Infrastructure Plan in Autumn Statement announcements
ď§Extension of AHP â 5 year programme
ď§Acute interest in housing and increasing supply
âLyons Review
âBudget
âManifestos and election
âSpending Review
ď§Funding and delivery models
âGrant funding and cross subsidy â what works where?
âDevolution and alignment models
ď§Contribution of Affordable Housing to 200,000 (plus?) target
ď§Focus on now:
âContinued delivery: Smooth transition between programmes; in contract
âContinued bidding: 2015-18 AHP (CME); ÂŁ200m Rent to Buy