WELCOME

1. Better HCA Bids Webinar A webinar on how to make the best possible bids for funding from the HCA and how better information about your existing homes can help underpin this. Martin Hilditch Inside Housing CHAIR Fiona MacGregor HCA Carole Oliver Landmark Phil Stephens Sovereign WELCOME Sponsored by: Organised by: The webinar will begin at 11am

2. Organised by: Sponsored by: Opening remarks from the Chair Martin Hilditch, Acting Editor, Inside Housing

3. Organised by: Sponsored by: Fiona MacGregor Head of Affordable Housing Homes and Communities Agency

4. Better HCA bids Inside Housing webinar: 11 April 2014 Fiona MacGregor: Affordable Housing, HCA

5. 2015-18 Affordable Homes Programme – funding and timetable • £2.9bn funding for affordable housing 2015-18 • Confirmation of rents beyond 2015: 10 years - CPI + 1% • HCA Prospectus published 27 January 2014 • Bids due 30 April 2014 (funding outside London - £1.7bn – no pre-set split of funding across areas) • Assessment & moderation of bids early May to end June • Funding decisions anticipated in July 2014

6. Recent update Updates: • Design & quality – 13 March written Ministerial Statement on Housing Standards Review • Most review proposals will become part of building regulations – energy; water; accessibility • Nationally described space standard (not building regulations) • AHP prospectus addendum published on 27 March 2014

7. Key points • New homes meet local needs (including one and two beds) • Active asset management strategies – make use of flexibilities • Government preference for refurbishment over demolition • Efficient procurement and construction innovation encouraged

8. Allocation approach • Up to 75% allocated via initial bid round, balance via further market engagement • Two routes for delivery: • Mixed (indicative and firm schemes) – based on proven delivery performance • Firm scheme only route • Recognises how development opportunities arise and that some will need longer to work up firm scheme proposals

9. Changes to the new programme (learning from current programme) • Clearer milestones on delivery of indicative schemes – mitigate impact of end date; opportunities to re-allocate slippage. • Earlier confirmation of allocations – make use of longer lead in time for new programme • Remove average payment rate - remove complexity wherever possible and facilitate partnership working

10. What to bid for • Bids can include: • Hostel accommodation • Traveller pitches • Former empty properties brought back into use as affordable housing • RPs, LAs, housebuilders can bid – partnership working strongly encouraged (access capacity) • Supported, elderly and rural housing encouraged

11. Funding model (active asset management and flexibilities) • Sources of cost contribution: • Borrowing against new Affordable Rent, conversions • Disposals (asset management) • Use of Recycled Capital Grant Fund & Disposal Proceeds Fund • Cross subsidy (eg from market sale) • Free or discounted land • Access to guarantees • Grant (no pre-set grant rate) • ‘Something for something’: flexible (and efficient) use of assets – disposals and conversions (social rent to affordable rent or shared ownership)

12. Bid success • Assessment against: • Fit with local need • Value for money (50%) –comparators across bids and current programme • Deliverability (50%) • Meet the regulator’s viability and governance standard • HCA will verify fit with local authorities • Programme building: schemes ranked based on value for money and deliverability; ranked bids reviewed to identify gaps

13. Organised by: Sponsored by: Carole Oliver Group Business Development Manager Landmark

14. Critical business & asset intelligence for housing providers

15. Business intelligence – the challenges

16. The devil in the detail…

17. The good news!

18. EXAMPLE – FAMILY MOSAIC “With over 24,000 properties in our portfolio, it is vital that the information within our property database is accurate on a number of levels. Our immediate need was to ensure all addresses in our database match the format of Royal Mail’s, however since working with Landmark, we have been able to analyse a wider range of metrics, such as bedroom count. This is particularly important as this information needs to be accurate for the benefit of our tenants.” As well as data cleansing, address matching and geo-coding of assets Landmark have also provided Family Mosaic with HMLR clarity – such as the identification of titles, charges, proprietor, lease/head lease including all past FM trading names. We also instantly identified a number of potential sublet / tenancy frauds for investigation.

19. Instant residential market analysis

20. Critical market intelligence captured

21. Informed decision making – best use of assets / tenure • Current OM Sales Value: £489,600 • 1999 Sales Value: £149,680 • Current OM Rental Value: £1,780 • 1999 Target Rent Value: £420 • Target Rent Value Today: £614

22. Optimising the latest, most accurate intelligence to inform investmentstrategy

23. What are your local market dynamics?

24. Multi-organisational intelligence mapped

25. EXAMPLE - Affinity sutton Affinity Sutton has invested in GIS to make best use of it’s business intelligence but required data cleansing & geo-coding to effectively do so which Landmark did in just a few days. “Affinity Sutton is a location-based business and the GIS visualisation of our asset and tenant information is a critical component of our Business Intelligence suite. The ability to visualise our information down to door-level accuracy gives our Asset and Housing staff a picture of their properties and patches that a spreadsheet could not convey. Whether we are mapping repairs performance, long-term voids or other information, the visualised data gives us the ability to better understand clustered issues and begin to develop improvement strategies.”

26. Example of ownership on a simple mapping platform

27. Contact • Carole Oliver • Group Business Development Manager • T: +443300366275M: 07584206324 • E: carole.oliver@landmark.co.uk

28. Organised by: Sponsored by: Phil Stephens Development and Commercial Director Sovereign

29. Better HCA Bids Phil Stephens Development & Commercial Director

30. AHP 2015-18: The good news • Less complicated – especially for Consortium • Project based – stand alone assessment • No blending of rates or cash flowing from nil grant S106 schemes • Clear payment structure • Focus on VFM & deliverability

31. AHP 2015-18: The challenges • Housing Standards Review • The continuing impact of Welfare Reform • Capturing the “value of Asset Management • Affordable rent

32. Other challenges for developing a bid • Little or no LA or public sector land • HAs have not been “land banking” at scale • Delivery of regeneration projects constrained by grant levels • but values now picking up • The basis of our bid will come from own assets

33. Active Asset Management • Developed robust model to understand the NPV of all our assets • Set clear target on worst performing sites • Re-planning of older persons’ “sheltered” into new housing • Challenges for the Demolition v Rebuild preference • Central to our strategy

34. Asset Management in Action • Swapped, acquired or sold 3,229 homes in two years • Disposed of some quirky assets – Air raid shelter! • Modest open market sale programme on good quality sites • Maximised revenues from commercial property • Created “Asset Management” subsidy in Business Plan • Utilised RCGF for further shared ownership only

35. Our questions • What impact will Affordable Rent have on our long-term income and our ability to collect rents? • Can conversions work everywhere? • Do our sites meet the criteria? • What other opportunities are available?

36. Thank you

37. Organised by: Sponsored by: QUESTIONS & ANSWERS

38. Organised by: Sponsored by: Closing remarks from the Chair Martin Hilditch, Acting Editor, Inside Housing

39. Organised by: Sponsored by: THANK YOU The webinar is now closed