Transcript Document

Housing Led Regeneration Investment
in Tyne and Wear
Glyn Drury
Director Tyne and Wear Housing Partnership
2008 December 2
This presentation is an introduction to:
• TWHP
• Investment picture
– Priorities
– HCA
• NeW Delivery Models
– Local Housing Companies
– Gateshead JVP
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What is TWHP?
• Consortium of five strategic housing authorities along with
Bridging NewcastleGateshead HMR Pathfinder working at city
region level
• Working with NEA, HCA, RDA, ANEC, City Region and other
sub regions in north east.
• Sub regional housing strategy
• Strategic Housing Market Assessment
• Allocation of £7m SHIP annually
• Advice on other sub regional and regional housing investment
• Sub regional choice based lettings
• Gypsies and Travellers Needs Assessment
• Board – Lead Members
• Heads of Service Group
• Policy Group
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Housing Investment- the Big Picture
•
Source: BERR Select Committee Table 1 para 9 “Construction Matters”
Construction output
GB 2006
Public
%
Private
£bn
Total
%
£bn
%
£bn
New housing
3.0
3.4
17.2
19.6
20.2
23.0
Repair &
maintenance
7.8
8.9
13.9
15.8
21.7
24.7
Housing sub total
10.8
12.3
41.1
35.4
51.9
47.7
Construction total
31.0
27.3
69.0
86.3
100
113.6
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Housing Led Regeneration - NE Govt Funding £m
source: Regional Funding Advice
08/09
09/10
10/11
11/12
18/19
Regional
Housing Pot
88
95
100
N/A
N/A
Former EP
35
52
48
N/A
N/A
Market
Renewal
47
44
39
N/A
N/A
Housing &
Regeneration
170
191
187
191
219
Total Regional
Funding
545
560
544
565
649
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Housing Led Regeneration - NE Govt Funding
• Excludes ERDF funding to region
• Excludes any Growth Fund and Community
Infrastructure Fund (no regional allocations)
• Excludes a number of other direct funding
programmes eg
PFI
Homeless Grant
Housing and Planning Delivery Grant
Housing Revenue Major Repairs Allowance
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Housing Led Regeneration - Post 2011?
• Pre Budget Report
• At best a freeze at worst cuts in government
spending
• Rationing by lenders
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Est. Govt Investment Tyne & Wear 2008/09 £m
LA SHIP#
7.821
Market Renewal*
34.000
HC – social housing grant (to Sept)#*
22.760
English Partnerships*
5.000
DoH – Extra Care
7.800
New Deal for Communities
Direct DFG
Council Decent Home#s*
Housing & Planning Delivery Grant
Total
15.781
3.012
13.107
0.965
* At least 70% of
govt housing and
regeneration
spending will be
made through the
Homes and
Communities
Agency from 09/10
# incl in Regional
Housing Pot
110.296
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Place Making Priorities
• BNG Priority Areas (11 Communities)
– Lower Walker, Elswick, Scotswood, Benwell/High Cross,
Saltwell/Bensham, Deckham
• Cleadon Park, South Shields
• Hendon, Hetton Downs, Castletown, Sunderland
• Wear corridor/Sunderland centre (Priority 1 - 5 new
communities ARC)
– Vaux, Farringdon Row, Holmeside, Sunniside, Stadium
village/Sheepfolds
• Tyne Gateway
– Walker, Wallsend, to North Shields north bank
– Hebburn, South Shields south bank
• Growth Points
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Housing Led Regeneration Investment in Tyne and Wear
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Homes and Communities Agency
- New Opportunities
• 1 December
• Investment functions of Housing Corporation, English
Partnerships and teams from CLG
• Pat Ritchie Regional Director (ex One NorthEast,
Sunderland and Newcastle)
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Homes and Communities Agency
- New Remit, New Way
• New organisation, new flexibility
• New culture – national objectives, local ambitions
• New partnerships with local government, private
sector, RSLs, and regionally
• New business process (single conversation)
• New business products
• New relationship with Government – the voice of
delivery
• Investment agreements
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Homes and Communities Agency
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Homes and Communities Agency
- Benefits
• An approach focused on the needs of
communities and people
• An approach based on programmes of activity
rather than funding projects
• An integrated approach –using funding
flexibly, in a way that meets the needs of that
area
• A responsive, adaptable approach able to
innovate to come up with new solutions for
changing circumstances
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New Delivery Vehicles
- Potential
• Local Housing Companies, Gateshead Joint Venture
Partnership
• 4 companies geographically based
• Over 70 sites
• Over 10,000 new homes
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Local Housing Companies
- Background
• 2007 Housing Green Paper
• One of a series of initiatives
• 14 national pilots including Newcastle and
Sunderland in the north east
• “master developer for new communities”
• Focus on delivery
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Joint Venture Models
- Key Objectives (1)
• Increase the supply (net additional) of a range of
homes, including affordable homes
• Maximise use of Local Authority land asets
• Position the Local Authority at a stronger point in
the centre of the development process
• Sharing risk and reward
• Capture a share of any increase in land value
over time
• Increase pace and predictability of development
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Local Housing Companies
- Key Objectives (2)
• Complement existing regeneration initiatives and
achieve added value
• Create quality, sustainable schemes which
provide wider customer choice and tenure
options, particularly the intermediate market
• Provide opportunities for a range of investment
and development players to become partners of
the Local Authority
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Joint Venture Models
- Key Players
• Local Authority – provides the land
• English Partnerships (HCA) – provides the technical
support and expertise (and some funding)
• Contractor(s)
• Funder(s)
Form Joint Venture Company
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Joint Venture Models
- what’s different
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Move from gap funding to investment
Sharing risk and reward
More LA leadership and control
Less reliance on planning obligations
Long term interest by all partners
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Scotswood Urban Regeneration Vehicle
• Newcastle’s first LHC
• 2,200 new properties planned
• Predominantly family housing and associated
community infrastructure
• Legacy of housing market failure in West End
• Transformational Change
• Expo
• Significant public sector support & funding
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Scotswood Urban Regeneration Vehicle Structure
• Joint Venture Company with 50% of shares held by
the public sector (Newcastle City Council & English
Partnerships/HCA)
• Financial support from Bridging NewcastleGateshead
and Housing Corporation/HCA
• Not just housing – investing in schools, enterprise,
public realm, green infrastructure and community
facilities.
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Scotswood Urban Regeneration Vehicle –
Current Position
• Selection of development partner at competitive
dialogue stage
• Key element of Growth Point Programme of
Development
• Financial closure planned Summer 2009
• Programme to commence late 2009
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Newcastle City Wide LHC
– Current Position
• Thirty Council owned sites identified in development
pipeline
• Capacity 2,500 units
• Options appraisal underway
• Adaptation of financial models & sensitivity analysis
• Review of intermediate tenure models
• April 2009 – report to Executive
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Sunderland LHC
– Current Position
• 21 Council owned sites have been identified
• 1 English Partnership site to be included in
the LHC portfolio
• Sites have been valued
• Capacity for around 2,500 new homes
• Financial Appraisals to be carried out on all
sites
• Steering Group set up to manage the
process, inclusive of English
Partnerships/HCA
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Gateshead Joint Venture Partnership
• 19 sites – others added or removed as assessments
progress
• Potential 3,000 homes
• Gross development value estimated at £1bn
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Gateshead Joint Venture Partnership
- Progress
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Limited Liability Partnership
Cabinet approval June 2008
Project team established
Competitive dialogue started 21 November with
invitations of interest
Operational September 2010
BNG contribution to project costs
HC/HCA commitment to invest
ALMO interest as a development partner
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Joint Venture Models
– Opportunities
New intermediate housing products
• Widen choice and meet aspirations
• Create mixed and balanced communites
more affordable homes where needed
providing for specialist needs, elders, disability,
support
• Broader integration of housing supply and demand
• Raise quality of housing
• Meet growth targets
• Ongoing neighbourhood management role
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Joint Venture Models
– Challenges
• Housing market difficulties – from credit crunch to
recession.
– Commitment to mixed communities
– Confidence
– Getting the right development partner
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Quality of sites
Development management
Risk
Complementing not competing
– Significant but not sole initiatives
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Thank you for listening
Any questions?
[email protected]
0191 643 2180