FOCAL RESEARCH | Funding Priorities & Opportunities


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Private Housebuilders involvement in Government funded housing
In July 2007, 23 housebuilders were named as new potential investment partners under the housing Corporations three-year National Affordable Housing Programme (NAHP) 2008-11. In addition to this, the seven housebuilders involved in the previous NAHP (2006-08) automatically pre-qualified as potential investment partners for the 2008-11 programme.

On 26^th February 2008, the Housing Corporation announced the first phase of allocations under the 2008-11 programme. Of the 105 organisations to receive funding 12 are Private Sector Partners. These 12 housebuilders have been awarded £45.4m of grant.

The increased number of private housebuilders which pre-qualified as Investment Partners for the 2008-11 NAHP was seen as an indication that housebuilders would represent a larger proportion of the programme than in previous years. However, the first phase of allocations shows that the percentage of grant given to private housebuilders has only increased by 1% (from 2% to 3%) compared to the 2006-08 programme.

Access to New Development Opportunities Available
The Housing Corporation has recently announced a second pre-qualification round which will allow organisations that have not yet secured partnering status to apply to become investment partners, and bid for funding from the remaining NAHP.

Next Allocation Phases
The next phase of allocations are due to be announced in October 2008, with further allocations made either quarterly or six monthly from October 2008 – October 2010, (or until all funds are fully committed.)

The organisations bidding for the next phases of NAHP funding will include all existing Investment Partners, plus any new partners from the second pre-qualification round.

Code for Sustainable Homes
The Code for Sustainable Homes has been developed to enable a step change in sustainable building practice for new homes. It is a standard for key elements of design and construction, which affect the sustainability of a new home. It will become the single national standard for sustainable homes, used by home designers and builders as a guide to development, and by home-buyers to assist in their choice of home.

In September 2007, the Government was in the process of discussing proposals that will see all new homes, from April 2008, having a rating under the Code for Sustainable Homes. The scheme is currently voluntary, however English Partnerships and the Housing Corporation require a three star rating for its new homes. One of the proposals would make every builder declare the home built either has or has not been rated. If not rated then it would be awarded zero stars. Another proposal would require all homes above certain code levels to comply with Lifetime Homes specification. This has the potential to have a considerable effect on some house types, in particular the smaller units.

Increase in new homes
Statistics show the number of new households in England is growing at a rate of 223,000 a year yet only 185,000 are being built. In the recent Housing Green Paper, the Government set a new housing target for 2016 of 240,000 additional homes a year (an increase from the 200,000 target in the Kate Barker review).

Increasing use of timber frame

From the groups of builders with completions of over 500 per year we have found a higher than expected use of timber frame:-

36% used timber frame for more than a third of their completions.
80% have used timber frame construction in some way.