Roger Wilshaw - PowerPoint Presentation

Slide1

Roger Wilshaw

Modern InstitutionsSlide2

Today

About the Places for People Group

For each of England and Scotland:

The operating environment

National and local delivery structures

Regulation

Strengths and weaknessesSlide3

About Us

We

have been

managing and developing

homes since

1965

Throughout that time we have grown through acquiring new businesses and building new homes. Places

for

People now

provides services to over half a million

people. We own

and manage more than 152,000 properties, run 116 leisure centres, and have assets in excess of £3 billion.

In 2014/15, we built more than

1,000 homes

and started development on

another 1,000

homes. We aim to deliver

15,000

new homes in the coming years.

We

aim to deliver high quality places that support strong communities.

As

a not-for-dividend organisation with a strong social purpose, we use

our breadth to deliver

social outcomes, taking commercial decisions and reinvesting any financial surplus back into the business

.

While most housing associations in England are diversifying few are as diverse as us.Slide4

About UsSlide5

Delivery Structures in England

Housing and planning funding and policy is devolved to the nations of the UK. In England:

The

Department for Communities and Local Government

manages the system and sets the policy framework

The

Homes and Communities Agency (HCA)

is the funding and regulation body for Government

Local

government

controls planning applications and hence rates of supply

Most new supply built by

large developers

and

housing associations

Dramatic reduction in small builders

since the global recessionSlide6

The Operating Environment in England

Home ownership crisis –

65%

–

lowest in 25 years

Affordability crisis

– English renters pay 47% of net income on rent

1m extra homes required –

housebuilding rates 30% below peak

But

Planning policy in flux

but still favours views of existing residents

Capital subsidy has drastically reduced

and switched to loans and guarantees focused on affordable home ownership

Local authorities required to

sell high value homes

1% rent cut

amounts to a 12% revenue reduction by year four

Welfare reform

programme has impacted tenants and housing association finances

Right to Buy

now extended to housing associationsSlide7

Local delivery in England

Local government has been at the forefront of austerity

– budgets reduced by a third

Increasing drive towards integration

– began with joint commissioning – now seeing national services and funding streams devolved – health; housing capital

Particular focus on

cities including devolution of central funding and greater planning freedom

“Localism” appears to be an elastic term but

the government is resolute on not imposing new settlements

Local authorities required to provide sufficient housing

and supported to build new settlements – Garden towns and cities – but both policies are flawedSlide8

Regulation in England

The

Homes and Communities Agency (HCA)

is the regulation body for housing associations in England

Focus in recent years has been almost entirely on organisational viability in order to

protect social housing assets

Decision by UK statisticians to

classify housing associations as public bodies

adds £60bn to national debt

In response Government is deregulating

and allowing housing associations to merge, change structures and dispose of stock without permission. Changes also reduce the regulators powers to intervene – limited to law breakingSlide9

Delivery Structures in Scotland

The

Scottish

Government

directly manages the system and sets the policy framework and

allocates funding

Cabinet

Secretary

for Communities, Social Security and

Equalities

Minister

for Local Government and

Housing

Registered

Social Landlords

are not for profit bodies using Government capital subsidy to build affordable rented housing.

Local

authorities

also

receive grant to build new

homes and have similar functions and responsibilities to those in England Slide10

The Operating Environment in Scotland

Affordability

– house prices 6% below the pre-crisis peak (19% above in UK)

Social trends

– a quarter of Scots under 35 still live at home

Supply

– completions up by c10% on last year

Because:

Capital

subsidy

has

increased

both in total allocation and grant rates there is investment in social rent and other affordable tenures. ‘More Homes for Scotland’

Initiative.

Scottish

Government sees housing as a priority and provides support

for large scale initiatives

focussed on

non-regulated bodies

delivering MMR

(boundaries

with PRS are

beginning

to blur

).

Controversial English policies not replicated:

planning policy more stable; Right to Buy abolished; welfare reforms mitigated; rents continue to increase; no requirement on councils to sell stockSlide11

Local delivery in Scotland

There is a single tier of local Government in Scotland producing

Strategic and Local Development Plans

The English Government has moved away from regional structures but Scotland retains

regional strategic planning

As in England,

increasing drive towards integration

with a focus on health and social care and a particular focus on

cities including devolution of central

funding

Scottish Government assumed

tax raising powers

after the Independence Referendum. Early change has replaced stamp duty with “more progressive”

Land and Buildings Transaction Tax

Community land ownership –

432 people own half of Scotland's private land – the law now enables communities to have first refusal on sales. 500,000 acres now owned in this way – delivering homes and growthSlide12

Regulation in Scotland

The

Scottish Housing Regulator

is the regulation body for

Government. The focus

is on protecting tenants interests

.

Messages are around risk management, affordability and

VfM

.

Scottish housing associations are

private bodies

. But a similar review to that which moved housing associations into the public sector in England has now begun in Scotland

Possible extension of FOI laws

to Scottish Housing Associations

Current consultation on the review of the

Scottish Social Housing Charter

– due for revision in 2017 – provides the framework for housing associationsSlide13

Strengths and Weaknesses

England

Scotland

Strengths

Clear Government priority to deliver

new homes

Government actively seeking new ideas

Heavy Government financial intervention (also

a weakness)

Strengths

Affordable Housing is at the heart of SG policy

Sustained funding

General consensus and collaboration

Historic capital funding regime has had counter cyclical impact

Weaknesses

Enormous legacy problem –

1 million homes needed

New capital funding regime appears to be pro-cyclical

Reduced subsidy and pressures on housing associations

is dampening new builds

No bold ideas on land value uplift

Unwillingness to countenance bold policy change

Weaknesses

Lack of large players with capital backing

Sector balance sheet not being fully utilised

Land prices kept high by subsidy levels across the market.

Lack of construction innovation and skills

Inertia around planning debates