Slides used by Graham Brookfield from Homes England, during a visit to Homebaked CLT, Anfield by members of the Big Local Better Homes and Building Homes Learning Cluster
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What will I be talking about today?
Homes England
A new organisation, who we are and what we do.
Community Housing Fund
What we can offer
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Who we are
We’re the government’s housing accelerator. We have the appetite,
influence, expertise and resources to drive positive market change.
By releasing more land to developers who want to make a difference,
we’re making possible the new homes England needs, helping to
improve neighbourhoods and grow communities. So we welcome
partners who share our ambition to challenge traditional norms and
build better homes faster. Join us in breaking new ground to make
this happen.
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Our Strategic Plan
Launched in January 2018 to play a
major role in fixing the housing
market.
At Budget 2018, we published our
five-year Strategic Plan explaining the
steps we’ll take, in partnership with
the sector, to do this.
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Our Strategic Plan
One of our key 2018-20 priorities:
“Deliver our share of the £163 million
national Community Housing Fund, to
increase the number of homes
delivered by the community-led
housing sector”
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Our mission is to intervene in the market to
ensure more homes are built in areas of
greatest need, to improve affordability.
We will make this sustainable by creating a
more resilient and diverse housing market.
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Our objectives
We’ll improve construction
productivity.
We’ll ensure a range of investment
products are available to support
housebuilding and infrastructure,
including more affordable housing and
homes for rent, where the market is not
acting.
We’ll unlock public and
private land where the
market will not, to get
more homes built where
they are needed.
We’ll create a more resilient and
competitive market by supporting
smaller builders and new entrants,
and promoting better design and
higher quality homes.
We’ll offer expert support for
priority locations, helping to
create and deliver more
ambitious plans to get more
homes built.
We’ll effectively deliver home
ownership products, providing
an industry standard service to
consumers.
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We will:
• Aim investments at smaller builders – helping them to
scale up so they can access funding, grow and expand
• Work with local authorities and housing associations to
help them make their vision a reality
• Help housing associations through strategic partnership
deals – in return for being more ambitious with their
delivery
• Work closely with housebuilders to promote better
design and higher quality homes through Build for Life
• Work collaboratively with local areas to help them grow
by identifying and overcoming barriers to growth
Our commitment
We cannot deliver the homes England needs alone.That’s why it’s our job to work
with partners across the sector.
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“We plan to be bold, creative and think
big.We hope the whole of the housing
sector – big and small, up and down the
country – will join us for the next five
years and beyond.”
Sir Edward Lister
Chairman, Homes England
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Community Housing Fund
Open for business!
• 2016/17 phase 1 allocations to 148 English LAs (60m)
• November 2017 Minister announced new 2 year
programme aimed at community groups
• £163,000,000 to be distributed by Homes England
• Homes England up and running
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The Objectives of the fund
increase housing supply in England by increasing the number of
additional homes delivered by the community-led housing
sector;
provide housing that is affordable at local income levels and
remains so in perpetuity; and
deliver a lasting legacy for the community-led housing sector in
the form of an effective and financially self- sustaining body of
expertise within the house building industry in England.
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Community Housing Fund
Project related revenue Infrastructure
Who can bid? Groups that are, or intend to become a
body corporate
LocalAuthorities
What will funding
cover?
Capacity building, project specific
professional fees and costs, incl
feasibility and design work, planning
application, business and project
planning
Associated infrastructure
to open up sites for
development, incl access
roads/roundabout,
remediation, flood
attenuation, utilities
Limits on
payments?
No strict limit, but not 100%.To comply
with StateAid de-minimus rules total
funding in 3 years to 2020 must not
exceed 200,000 euros
No strict limit, but not
100%
Time limits Payment milestones by April 20 Payment milestones by
April 20
Need to be RP? No No
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Community Housing Fund
Phase 2 launched September 2018
• Addendum to Phase 1 prospectus
• Funding to support capital costs, including;
• Construction of new homes (incl remediation of land)
• Conversion/refurbishment of existing properties
• New forms of affordable housing, including those not
currently funded
• Registration required for low cost rent, not for home
ownership tenures
• Combine with Affordable Homes Programme
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What to do next
1
Ask questions
At the end of this presention or
during lunch.
Read the prospectus
Guidance can be found here
2
Shape project (s)
Identify what you need to do to get
on site and build your homes.
3
Articulate bid
Identify what we can do to help you.
Bidding portal can be found here
4
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What are we funding – some examples
• Communities of interest – existing groups/organisations
• Regeneration - empty properties
• Town/Parish led projects in rural areas
• Co-housing projects
• For capital funding need to ensure below market in
perpetuity.
• Resource in Local Authorities
• NO BID ISTHE SAME – we like
innovation
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Who can take a project forward?
• Existing community organisation
• Community must be engaged and involved
throughout
• A start up group
• Funding available for incorporation
• Developer – community partnership
• Needs ‘founder members’ from the community
• Anyone, help is out there!
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Timescales
• The clock is ticking – end date of March 2020
• All bids in by end of December 2019
• All money committed by end of March 2020
• Talk to Homes England NOW
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Thanks
Graham Brookfield MRTPI CIHM
Specialist - Housing Delivery (Community Housing Fund),
Homes England (North East,Yorkshire and Humber)
Twitter - @homesgrahamb
@HomesEngland
Email - graham.brookfield@homesengland.gov.uk
Phone - 01133 949 369
07970 974336
Editor's Notes
We had our formal launch in January 2018 – replacing HCA – regulator separate
Homes England has been given real political muscle – housing is a national priority.
We are creating a new type of organisation – one that will transform the housing market so it delivers the homes this country needs.
The numbers are important but we care about quality and place – we need to be more ambitious and do things differently..
Our 5 year Strategic Plan – sets out our ambitious new mission and the steps we are taking to respond to the long-term housing challenges facing this country.
The plan (published 30/10/2018) gives a comprehensive view of how over the next five years we will help more people access better homes in areas where they are needed the most and highlights the significant changes needed to the way industry delivers homes in the future.
Currently England does not have enough homes in the right places, particularly in the least affordable areas, and the average home costs buyers eight times the average income – and over 10 times the average income in the South East.
Our mission is to intervene in the market to ensure more homes are built in the areas of greatest need. We will operate nationally with a focus where affordability pressures are greatest and we will act where there is market failure.
Where the market is not working we will: support priority locations, unlock public and private land, invest in housebuilding and infrastructure (including affordable housing and homes for rent), deliver home homeownership products, support smaller builders and new entrants and improve construction productivity.
Within the next few years, we will have invested over £27 billion across our programmes.
We were created to help deliver 300,000 homes annually by the middle of 2020’s
We are doing this through a more commercial approach to long term housing challenges. Accelerate delivery – Community Led Housing is part of this.
Reaching areas that other delivery mechanisms can’t – small rural, co-housing, community streets, co-ops, land trusts.
The market is delivering at it’s comfort capacity.
we need your input to do those things others can’t or won’t do.
Marginally viable,
small & often,
different mechanisms for delivery.
Community Led Housing is in a unique position
to try new things
to unlock local markets
outside the constraints of normal business plan parameters
Community Led Housing can deliver against all 6
Unlock difficult sites that the market won’t bring forward
Utlise funding to bring forward more affordable housing and site infrastructure
Improve productivity e.g. by supporting MMC – modular, off site constrution etc.
Supports smaller builders and can deliver higher quality and energy efficient
housing
Support specific localities to address local need
Enable more people to own their home
We want to increase housing for the community by the community
I want to see more community projects
That people can afford
And for that knowledge of how to do this is not lost – so it can be replicated until it becomes the new normal.
Ph 1 launched Summer 2018
Project Revenue – professional fees & costs: feasibility, design, business planning & project planning
Infrastructure – access roads, roundabouts, flood attenuation, utilities.
LA capacity – support services & pipeline development.
Where a community has a defined project they should be encouraged to apply directly to us rather than adding an extra layer of approvals.
If a LA has not allocated all of their previous capacity funding we will not be able to approve more. We are going to be checking.
Must be an incorporated body
Not 100% funding –
Community groups up to 90%
Not specified for LA – but won’t fund full 100%
Does not need to be registered to apply for PH 1 funding.
Unlock housing that would not normally come forward by other means.
They can be new build, conversion or refurbs
Must be a form of Affordable tenure
If a rental product then the group must be registered if they intend on being the land lord
the land lord must be registered. But organisation can be the landowner & grant recipient without being the landlord – via SLA or leasehold transfer model.
Cost implications - £2,500 registration and annual fee dependent on number of units.
Registration is an opportunity to use the expertise of the Regulator to ensure the organisation is robust and financially viable in the long term – yes they ask awkward questions but they do that to help the organisation who is registering.
Must be an investment partner to draw down funding directly
State aid – not market housing, but can have an element of cross subsidy from OM sales.