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Housing Led Regeneration Investment in Tyne and Wear Glyn Drury Director Tyne and Wear Housing Partnership 2008 December 2. This presentation is an introduction to:. TWHP Investment picture Priorities HCA NeW Delivery Models Local Housing Companies Gateshead JVP.
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Housing Led Regeneration Investment in Tyne and Wear Glyn Drury Director Tyne and Wear Housing Partnership 2008 December 2
This presentation is an introduction to: • TWHP • Investment picture • Priorities • HCA • NeW Delivery Models • Local Housing Companies • Gateshead JVP Housing Led Regeneration Investment in Tyne and Wear 2
What is TWHP? • Consortium of five strategic housing authorities along with Bridging NewcastleGateshead HMR Pathfinder working at city region level • Working with NEA, HCA, RDA, ANEC, City Region and other sub regions in north east. • Sub regional housing strategy • Strategic Housing Market Assessment • Allocation of £7m SHIP annually • Advice on other sub regional and regional housing investment • Sub regional choice based lettings • Gypsies and Travellers Needs Assessment • Board – Lead Members • Heads of Service Group • Policy Group Housing Led Regeneration Investment in Tyne and Wear 3
Housing Investment- the Big Picture • Source: BERR Select Committee Table 1 para 9 “Construction Matters” Housing Led Regeneration Investment in Tyne and Wear 4
Housing Led Regeneration - NE Govt Funding £msource: Regional Funding Advice Housing Led Regeneration Investment in Tyne and Wear 5
Housing Led Regeneration - NE Govt Funding • Excludes ERDF funding to region • Excludes any Growth Fund and Community Infrastructure Fund (no regional allocations) • Excludes a number of other direct funding programmes eg PFI Homeless Grant Housing and Planning Delivery Grant Housing Revenue Major Repairs Allowance Housing Led Regeneration Investment in Tyne and Wear 6
Housing Led Regeneration - Post 2011? • Pre Budget Report • At best a freeze at worst cuts in government spending • Rationing by lenders Housing Led Regeneration Investment in Tyne and Wear 7
Est. Govt Investment Tyne & Wear 2008/09 £m * At least 70% of govt housing and regeneration spending will be made through the Homes and Communities Agency from 09/10 # incl in Regional Housing Pot Housing Led Regeneration Investment in Tyne and Wear 8
Place Making Priorities • BNG Priority Areas (11 Communities) • Lower Walker, Elswick, Scotswood, Benwell/High Cross, Saltwell/Bensham, Deckham • Cleadon Park, South Shields • Hendon, Hetton Downs, Castletown, Sunderland • Wear corridor/Sunderland centre (Priority 1 - 5 new communities ARC) • Vaux, Farringdon Row, Holmeside, Sunniside, Stadium village/Sheepfolds • Tyne Gateway • Walker, Wallsend, to North Shields north bank • Hebburn, South Shields south bank • Growth Points Housing Led Regeneration Investment in Tyne and Wear 9
Homes and Communities Agency- New Opportunities • 1 December • Investment functions of Housing Corporation, English Partnerships and teams from CLG • Pat Ritchie Regional Director (ex One NorthEast, Sunderland and Newcastle) Housing Led Regeneration Investment in Tyne and Wear 11
Homes and Communities Agency- New Remit, New Way • New organisation, new flexibility • New culture – national objectives, local ambitions • New partnerships with local government, private sector, RSLs, and regionally • New business process (single conversation) • New business products • New relationship with Government – the voice of delivery • Investment agreements Housing Led Regeneration Investment in Tyne and Wear 12
Homes and Communities Agency Housing Led Regeneration Investment in Tyne and Wear 13
Homes and Communities Agency- Benefits • An approach focused on the needs of communities and people • An approach based on programmes of activity rather than funding projects • An integrated approach –using funding flexibly, in a way that meets the needs of that area • A responsive, adaptable approach able to innovate to come up with new solutions for changing circumstances Housing Led Regeneration Investment in Tyne and Wear 14
New Delivery Vehicles - Potential • Local Housing Companies, Gateshead Joint Venture Partnership • 4 companies geographically based • Over 70 sites • Over 10,000 new homes Housing Led Regeneration Investment in Tyne and Wear 15
Local Housing Companies - Background • 2007 Housing Green Paper • One of a series of initiatives • 14 national pilots including Newcastle and Sunderland in the north east • “master developer for new communities” • Focus on delivery Housing Led Regeneration Investment in Tyne and Wear 16
Joint Venture Models - Key Objectives (1) • Increase the supply (net additional) of a range of homes, including affordable homes • Maximise use of Local Authority land asets • Position the Local Authority at a stronger point in the centre of the development process • Sharing risk and reward • Capture a share of any increase in land value over time • Increase pace and predictability of development Housing Led Regeneration Investment in Tyne and Wear 17
Local Housing Companies - Key Objectives (2) • Complement existing regeneration initiatives and achieve added value • Create quality, sustainable schemes which provide wider customer choice and tenure options, particularly the intermediate market • Provide opportunities for a range of investment and development players to become partners of the Local Authority Housing Led Regeneration Investment in Tyne and Wear 18
Joint Venture Models - Key Players • Local Authority – provides the land • English Partnerships (HCA) – provides the technical support and expertise (and some funding) • Contractor(s) • Funder(s) Form Joint Venture Company Housing Led Regeneration Investment in Tyne and Wear 19
Joint Venture Models - what’s different • Move from gap funding to investment • Sharing risk and reward • More LA leadership and control • Less reliance on planning obligations • Long term interest by all partners Housing Led Regeneration Investment in Tyne and Wear 20
Scotswood Urban Regeneration Vehicle • Newcastle’s first LHC • 2,200 new properties planned • Predominantly family housing and associated community infrastructure • Legacy of housing market failure in West End • Transformational Change • Expo • Significant public sector support & funding Housing Led Regeneration Investment in Tyne and Wear 21
Scotswood Urban Regeneration Vehicle - Structure • Joint Venture Company with 50% of shares held by the public sector (Newcastle City Council & English Partnerships/HCA) • Financial support from Bridging NewcastleGateshead and Housing Corporation/HCA • Not just housing – investing in schools, enterprise, public realm, green infrastructure and community facilities. Housing Led Regeneration Investment in Tyne and Wear 22
Scotswood Urban Regeneration Vehicle – Current Position • Selection of development partner at competitive dialogue stage • Key element of Growth Point Programme of Development • Financial closure planned Summer 2009 • Programme to commence late 2009 Housing Led Regeneration Investment in Tyne and Wear 23
Newcastle City Wide LHC – Current Position • Thirty Council owned sites identified in development pipeline • Capacity 2,500 units • Options appraisal underway • Adaptation of financial models & sensitivity analysis • Review of intermediate tenure models • April 2009 – report to Executive Housing Led Regeneration Investment in Tyne and Wear 24
Sunderland LHC – Current Position • 21 Council owned sites have been identified • 1 English Partnership site to be included in the LHC portfolio • Sites have been valued • Capacity for around 2,500 new homes • Financial Appraisals to be carried out on all sites • Steering Group set up to manage the process, inclusive of English Partnerships/HCA Housing Led Regeneration Investment in Tyne and Wear 25
Gateshead Joint Venture Partnership • 19 sites – others added or removed as assessments progress • Potential 3,000 homes • Gross development value estimated at £1bn Housing Led Regeneration Investment in Tyne and Wear 26
Gateshead Joint Venture Partnership- Progress • Limited Liability Partnership • Cabinet approval June 2008 • Project team established • Competitive dialogue started 21 November with invitations of interest • Operational September 2010 • BNG contribution to project costs • HC/HCA commitment to invest • ALMO interest as a development partner Housing Led Regeneration Investment in Tyne and Wear 27
Joint Venture Models – Opportunities New intermediate housing products • Widen choice and meet aspirations • Create mixed and balanced communites - more affordable homes where needed - providing for specialist needs, elders, disability, support • Broader integration of housing supply and demand • Raise quality of housing • Meet growth targets • Ongoing neighbourhood management role Housing Led Regeneration Investment in Tyne and Wear 28
Joint Venture Models – Challenges • Housing market difficulties – from credit crunch to recession. • Commitment to mixed communities • Confidence • Getting the right development partner • Quality of sites • Development management • Risk • Complementing not competing • Significant but not sole initiatives Housing Led Regeneration Investment in Tyne and Wear 29
Thank you for listening Any questions? glyn.drury@northtyneside.gov.uk 0191 643 2180