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New Build: Opportunities |
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 Government
initiatives aimed at increasing the number of affordable
homes across the country continue to provide
opportunities
for companies operating in the new build sector, despite
the present downturn.
The long-term objective was to deliver three million
homes by 2020, which is now unlikely to be achieved.
However, as part of these overall targets the
National Affordable Housing Programme was to supply
180,000 affordable homes by 2010/11 and the HCA has
launched many new initiatives to get this back on
track. The Government’s drive to create innovative
eco-towns and Local Housing Companies also represents a change in
methodology on how such volume can eventually be delivered.
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Changes to the National Affordable Housing Programme
(NAHP)
2008-2011
The Key Facts
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The Homes and Communities
Agency's (formerly the Housing Corporation)
NAHP provides a huge funding stream worth just over
£9 billion
of grant, which will run over a three-year period from
2008-2011.
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For the first time, not
all the funding has been fully allocated at the
start of the programme.
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Housing Associations, housebuilders, ALMOs
and Local Authorities are now all included in the programme, however only organisations that have
'pre-qualified' are able to bid for funding.
Local Authorities are currently bidding via Special
Purpose Vehicles (SPVs), created to manage future
housing stock outside the HRA.
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As of September 2008,
Continuous Market Engagement (CME) funding has been
allocated frequently, allowing pre-qualifying organisations to
come forward with bids at any time, rather than
waiting for quarterly bidding rounds.
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Increased flexibility
in the way funding is made available to affordable
housing providers will release money earlier on in
schemes, increasing provider's cash flow,
encouraging new starts and stimulating wider market
activity.
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Further Funding Pledged for the NAHP
Despite budget cuts following the change of Government,
the NAHP will gain an additional £70 million in funding
during 2010/11. Funding committed to the programme
to date will deliver approximately 195,000 new homes.
A clear picture of future changes to NAHP funding will
be established after the next Comprehensive Spending
Review on the 22nd October 2010, when a new four-year
budget will be set.
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Local Authority
Newbuild Programme
In the April 2009 Budget,
the Local Authority Newbuild Programme was announced,
allowing Local Authorities to bid for funding in order
to build new homes with no constraint on minimum or
maximum scheme size. Originally, £100
million was to be made available for the development of
up to 900 new homes. In June 2009, the Government
announced that an additional £240 million would be added
to the programme, bringing the total funding for the
initiative to £340 million for the 2009/10-2010/11
period. The programme budget has remained
unaffected by budget cuts announced since the May 2010
general election.
Successful Round 2 bidders were announced in
January 2010, with a total project cost of £246 million
funding the development of 1,930 new homes. Bids were only
accepted from Local Authorities, although ALMOs can be
used to undertake development work. All projects
funded by the Local Authority Newbuild Programme must be
completed by the 31st March 2011.
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Kick-Start Housing
Delivery Programme Provides Further Newbuild
Opportunities for Registered Social Landlords
The Kick-Start Housing
Delivery Programme provides a total of
£875 million for the
development of new homes for social rented,
intermediate rented and private sale schemes. The programme is primarily focused on restarting stalled
development sites with a minimum of 50 homes.
In March 2010, a further
two tranches of approved schemes were announced under
Round 2 of the Kick-Start programme. Approximately
£111 million investment will deliver 7,223 homes across
these 111 schemes.
Development Framework
Streamlines Development on Publicly-Owned Land
The Development Framework
contract (Delivery Partner Panel) is a framework of
developers and contractors appointed by the Homes and
Communities Agency (HCA), giving the member
organisations the opportunity
to carry out construction related works on public sector
land, relating to the HCA’s housing and regeneration
initiatives. A total of 28 house builders,
contractors and development consortia have been
appointed under the Delivery Partner Panel, which is
split into three geographical panels covering the North,
Midlands and South regions.
The framework is for use by the HCA, but will
also be made available to various public and private
bodies involved in housing and regeneration within
England. Delivery Partner Panel contractors will
cover the full range of development activity over core
areas including mainstream residential housebuilding,
mixed use development and estate regeneration and
specialist areas such as elderly and high dependancy
accomodation and historic buildings and conversions.
The first contract under the framework was awarded by
the HCA in August 2010.
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