future of london january breakfast seminar

8/8/2019 Future of London January Breakfast Seminar

1/25

Future of London

Breakfast Seminar Series

New World: What the Governments reforms mean

for councils, housing associations and developers11 January 2011


2/25

Affordable Homes

programme 2011-15

Jamie Ratcliff

11th January 2011


3/25

Spending Review

4.5bn new affordable housing 2011-15

To deliver up to 150,000 new affordable homes

New Affordable Rent Also affordable home ownership where

appropriate

Other specialist products (e.g. Mortgage

Rescue)

Further detail published in December


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Further detail

Rents

Allocations

Tenure


5/25

The role of Local Authorities

Articulate a clear vision and ambition for their area which

the HCA will support.

Used to shape delivery of affordable homes

Need continuous

and meaningful ongoing

dialogue with providers

Nominations to new homes


6/25

Something for something

Increased flexibility in

exchange for increased

delivery

Conversion of re-lets only in

return for commitment to invest

in new supply

Attention to cost not just grant

Open book approach and

viability appraisal

More

4

Less


7/25

Freedoms and flexibilities

Requested by the sector

Now must take responsibility

Delivery

Engagement

Efficiency


8/25

Fork in the road

Providers to work with the HCA and the regulator to

identify programmes over the next four years.

Decision point in near future forproviders and partners.

Need significant commitment to

using increased capacity for new

supply


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The importance of partnerships

Linking up with smaller and community-basedorganisations

Utilising HCA partners

Unlocking capacity

Utilising potential of

conversions


10/25

Affordable Rent in London

London section of Affordable rent framework documentwill set out Mayoral priorities

Working closely with DCLG and GLA to devise when andhow to divide resources between London and the rest of

England

Single negotiations with providers including London andrest of England details to be worked through

HCA London Board will take a view on proposals

including consideration of overall funding and receiptsposition

Affordable rent budget will pass to GLA when LocalismBill becomes law April 2012


11/25

Final messages

Something for something

Ongoing communication as

detail worked through

Detailed guidance onapproach to new programme

in coming weeks.


12/25

Future of LondonBreakfast Seminar SeriesNew World: What the Governments reforms mean

for councils, housing associations and developers11 January 2011


13/25

HOUSING ASSOCIATIONS IN ACHANGING WORLD

Tom TitheringtonGroup Chief Executive


14/25

Understanding the Rationale

Initial puzzlement

Needed to think differently

Market based

Housing safety net when needed at

reasonable cost Explain more


15/25

To make it work - we

need to understand

The interplay of:

place

family size and circumstance

property size

Market rents

Benefit caps

Demand/elegibility


16/25

Benefit Illustrations:

East Herts

-

100.00

200.00

300.00

400.00

500.00

600.00

1 2a 2b 3 4

Current social rents

-

100.00

200.00

300.00

400.00

500.00

600.00

700.00

1 2a 2b 3 4

Housing benefit (rents at80 per cent LHA)

Child Tax Credit

Jobseekers Allowance -income based

Council Tax Benefit

Child Benefit

Household Benefit Cap

Rent at 80% market rents

Scenarios Home size/composition

1 1 bed, 2 adults

2a 2 bed, 1 adult, 2 children

2b 2 bed, 2 adults, 1 child

3 3 beds, 2 adults, 2 children



17/25

Benefit Illustrations:

Westminster

-

100.00

200.00

300.00

400.00

500.00

600.00

1 2a 2b 3 4

Current social rents

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1 2a 2b 3 4

Housing benefit (rentsat 80 per cent LHA)

Child Tax Credit

Jobseekers Allowance

- income basedCouncil Tax Benefit

Child Benefit

Household BenefitCap

80% market rents

Scenarios Home size/composition

1 1 bed, 2 adults

2a 2 bed, 1 adult, 2 children

2b 2 bed, 2 adults, 1 child




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Security of Tenure?

This is a market based system

Like property companies opportunistic in termsof churn

More so because we are discounting our rents Will need to be able to get hold of properties.

and

Probationary tenancies

Circumstance and need


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Key Questions

Is this a watershed moment will things returnto what they were?

Is this in any form deliverable?


20/25

Market Based System

What does identity profits for new provision

mean?

Forget the old HA model think property company

Rents only one part of this- portfolio devt.

High cost short-term debt driven down by sales

Both outright sales and asset churn Can only manage risk on a portfolio basis


21/25

Local Authorities

Clearly key

Lot of conversation working through

Problem of ring fencing

How could a balance score card work?

LAs influence through participation land andstock?


22/25

What are we doing?

Scenarios and modelling

Area/rents/family size/property/benefit caps

Looking at void patterns

Trying to project increase in capacity Assessing our ability to increase sales

Keeping the Board up to speed


23/25

Could this system work?

Need to recognise that this is a form of

liberalisation not a programme.

Govt do what its rationale dictates or get back to

something else.

Targets are always irrelevant (cant even have

not target targets)

Market based, market dependent, market risks Ring Fencing within HAs accounts

Will get going slowly.


24/25

What will we produce?

No idea!

OK Not quite truebut it looks a lot less

But we will have to suck it and see

Targets ..!!

4 year programme! ?


25/25

The next breakfast seminar is on 22 February:

New Systems: What devolved delivery and the

bonfire of the quangos will mean for housing and

regeneration in London

www.futureoflondon.org.uk

future of london january breakfast seminar

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