EAST MIDLANDS COUNCILS Affordable Housing Seminar 19 June 2013

1. EAST MIDLANDS COUNCILSAffordable Housing Seminar19 June 2013 Chan Kataria, Group Chief Executive

2. About EMH Group • EMH Group formed 65 years ago • 17,000 homes, £90m turnover • Working with 35 local authority partners • Leads the Quantum Development Consortium • Develop 200-300 affordable homes a year • Annual capital spend of £30m • Rural specialist through Midland Rural Housing (MRH) • Help to Buy Agent for East Midlands region • Administers the Mortgage Rescue Scheme (MRS) • Established the EMH Academy providing apprenticeships • Care and support business with c£20m turnover • Long established partnership with builders

3. Development Context • Development capital subsidies are reducing • Affordable Rents do not increase development capacity in this region • Borrowing costs are rising and banks are only lending on short term basis and with onerous covenants • Welfare reform will have significant impact on viability and sustainability of schemes • Asset management disposals to pay for development is not sustainable in the long term • Housing market conditions are uncertain, reducing the viability of mixed tenure schemes • Competition for planning gain sites is driving up costs • New regulatory pressures designed to ring-fence social housing activities will restrict development plans

4. Partnership With Local Authorities – What Works? • Support on political, strategic and financial basis • Understanding and acceptance of impact of housing investment on employment, health, care and support • Engagement with government on role of HAs and value of housing investment • Understanding the current operating context and restrictions on HAs • Clear strategic housing objectives and LIPs based on robust evidence of need • Consultation and engagement on development of housing and planning policy and strategy

5. Partnership With Local Authorities – What Works? • Joined up policy on housing, planning and older persons’ strategy • Adequate resources for the “enabling/strategic” function • Strong, timely support for HA bids to HCA • Financial support through New Homes Bonus and RTB receipts to support development of affordable homes • Subsidised land to support housing development • Clear planning policy on s106 sites • Contribution from commuted sums • Engagement of LEPs with the housing agenda

6. Rural Housing • East Midlands Rural Housing Group identified need for 1600 rural homes in the region • Support for Rural Housing Enablers • Engagement from the Parish Council and local community • Clear exceptions policy in Local Development Framework • Identification of exception sites • National/regional rural homes target are missing • High level of pre-planning consultation with local stakeholders and planners will overcome opposition • Establishment of CLTs/community led development to attract funding • NPPF makes it possible for exception sites to contain market rents to subsidise affordable homes

7. Examples • Leicestershire CC capital contribution for extra care scheme bid on Winchester Road to deliver their older persons’ strategy • County Council funding for Rural Housing Enabler in Leicestershire • Leicester City support for mixed tenure, housing and care scheme with land subsidy in Manor Farm scheme • North West Leicestershire DC funding to pay for additional costs relating to higher aesthetic specification at the Leys scheme in Coalville • County, Blaby DC and parish council made joint contributions from NHB to fund rural exception site in Sapcote • Blaby DC offered loans to first time buyers at affordable rates • Establishment of Community Land Trust in Youlgrave

8. Comments and Questions