HCA Executive Director of Programmes Fiona MacGregor's presentation at the Inside Government hosted Future Housing 2014 event.

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
Current Programme and delivery to date
2015-18 Programme – Ensuring a smooth transition
–Initial bid round outcome and recap
–Continuous Market Engagement
•Meeting local priorities
•Quality - Housing Technical Standards Review
•Advanced Housing Manufacture – speeding up delivery
Summary

3. Delivering the Affordable Homes Programme 2011-15
£4.8bn - 170,000 affordable homes
Significant change in funding model
HCA delivery target for current year 29,000 affordable housing completions (plus 1,600 from Guarantees and EH2 programmes)
National Statistics April – Sep published 20 November 2014
–9,811 affordable starts on site
–10,631 affordable completions
Lot to do in final 6 months of year/current programme
Provider forecasts are strong – focus on delivery
Significant proportion of housing supply

4. Affordable Housing Programme 2015 -18
£2.9bn investment for affordable housing over period 2015-18 (Spending Round – June 2013)
Deliver 165,000 homes (range of sources)
Funding outside London - £1.7bn
FURTHER £1.9bn nationally – Autumn Statement – December 2014
Deliver 110,000 homes
Total funding now £4.8bn – 275,000 affordable homes (range of sources)
Average 55,000 homes per year – significant proportion of overall housing supply

5. Affordable Homes Programme 2015-18: initial allocations
Different approach – initial bid round and CME
Initial allocations announced 22 July 2014
£886m allocated - 43,800 homes
–37,700 funded, 6,100 – nil grant
160 investment partnerships – RPs, LAs and housebuilders
Over 75% on firm schemes
Affordable Rent and shared ownership
Supported, elderly and rural housing
Hostel accommodation; Travellers’ pitches; empty homes.

6. Smooth transition between programmes
Guarantees and other programmes have acted as “bridge” between current programme and new AHP
£200m Rent to Buy loan fund – prospectus published and bidding under CME
Loan funding – low interest – increases from year 8
Affordable Rent – minimum of 7 years
Loan repayable at end of 15 years
Tenant first refusal to purchase

7. Smooth transition between programmes
2015-18 AHP: CME open from October
Supports providers and local areas to work up schemes in line with local priorities and business plans
Priorities as Prospectus - encourage:
–Advanced housing manufacture
–Rural housing
Continue to support housing for older people, supported housing, shared ownership.
VFM, deliverability and fit with local needs
2015-18 contracts – get into contract quickly (good progress) to start to deliver
Bring forward schemes with 2015-18 allocations for starts that can deliver in 2014/15
Alongside focus on delivery of current programmes

8. Housing Standards Review: HCA Design and Quality standards
2007 Design and Quality standards remain for the 2011-15 AHP
2015-18 AHP no longer HCA specific standards as a condition of funding.
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).
Responsibility for the application of optional standards in the Building Regulations will pass to Local Authorities (and compliance through Building Control)
Responsibility for the Nationally Described Space Standard will pass to Local Authorities.
HCA will consider space through IMS data returns.

9. Encouraging Advanced Housing Manufacture and speeding up delivery
Advanced Housing Manufacture
–Strong political interest
–Cross tenure but AHP a place to demonstrate potential: especially for speed of delivery (at right price)
–Skills shortages (and materials?)
–Different scales
–Different products
Providers decide
Share knowledge/experience (eg Accord)
Smarter procurement – achieve scale through aggregation

10. Summary
Affordable Housing included in National Infrastructure Plan in Autumn Statement announcements
Extension of AHP – 5 year programme
Acute interest in housing and increasing supply
–Lyons Review
–Budget
–Manifestos and election
–Spending Review
Funding and delivery models
–Grant funding and cross subsidy – what works where?
–Devolution and alignment models
Contribution of Affordable Housing to 200,000 (plus?) target
Focus on now:
–Continued delivery: Smooth transition between programmes; in contract
–Continued bidding: 2015-18 AHP (CME); £200m Rent to Buy