glhearn.com

Deborah McLaughlin,Head of Housing Delivery and Strategy

23 March 2017

Driving housing supply through release of public sector land

Key ingredients to housing supply

• Funding• Skills/capacity to deliver• Land

Collaboration and partnership working

Unprecedented amount of government funding Many Government initiatives to navigate

• Garden villages• Accelerated construction• Public land programme• Starter homes …many more

Supported by a wide range of funds - £28bn• Home Builders Fund• Housing Infrastructure Fund• Estates regeneration• Enabling and capacity funds

In addition to £billion of private finance; debt, equity and investment funds

Why local authorities need to take a proactive role in delivering housing

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LocalAuthorities

Housing Associa-tions

PrivateEnterprise

Wider pressures and challenges are forcing us to look at assets differently across multiple sectors

Health estate costs to decrease from

£7bn to £5bn with estates re-designed to improve patient outcomes and land released for redevelopment

Local Authorities to regenerate major areas to

drive local economy,meet housing needs and fill the Central Government subsidy gap by

2020

2016 Autumn Statement committed

£2.3bn to a Housing Infrastructure Fund

Asset-rich corporate and utility companies driving higher returns from their real estate assets, and driving capital receipts from

re-development opportunitiesCentral Government

changing the ownership model

of the public estate, releasing land for development

Impact of changing

physical and digital presence in the retail sector is accelerating

developer-retailer relationships

One in three Further Education colleges to disappear following the post-16 area review, resulting in an estimate of

50-80 mergers

by 2020-21

We all have different drivers for looking at our assets:

• Generate capital receipts; generate a long term revenue stream• To stimulate economic growth, regeneration, new housing and jobs• Reduce operating costs across estate • Create tangible outcomes, improved customer services for communities• Efficient operating models & flexible working patterns • Pressure on public bodies from central government / GPU

Our approach to transforming assets

Unlocking value begins with a comprehensive understanding of your assets…

• Cost of use

• Profile of each asset

• Value generated from

disposal

• Value generated

through improvement

aligning their potential to your business objectives and goals…

• Operating model

• Flexibility

• Community

• Financial drivers

• Business

transformation

• Customer drivers

in order to create a strategic asset plan…

• Assets to dispose

of

• Assets optimised

through estate

rationalisation

• Assets optimised

through ongoing

improvement

to ultimately deliver your business objectives and goals

that prioritises disposal and development of assets…

• Development

• Design

• Construction

• Through Life

• Funding

Assets RequirementsStrategic

asset planAsset

optimisation

Outcome 1

Outcome 2

Outcome 3

Role of private sector enabling public assets to boost housing delivery

• Public and private sector working together to sector to develop optimum asset efficiency

• With efficient use of estate, surplus land and assets can be identified • A more commercial approach to land and property• Releasing land to release for residential opportunities • Government support to accelerate housing delivery

Background• 10 year partnership with Barnet

Council• TCV: £154m• Established a Joint Venture: Re

Objectives• Development of business cases to

deliver £39m savings over 10 years• 5 year development and disposal

pipeline of 63 sites• Contribute to creation of 20,000 new

homes by 2025

Services• Highways management • Planning and development• Regeneration• Strategic planning• Regulatory services

Outcomes• Established development pipeline to make strategic recommendations for Barnet’s regeneration • Achieved the most efficient use of Council assets by the creation of a Strategic Asset

Management Plan, • Successfully bid for One Public Estate funding: increasing external funding• Secured planning consent for higher value uses of assets• Barnet Re acting as a developer choosing when to invoice construction partners and when to

realise financial returns through tactical disposal strategies

Architect’s impression for the development of a mixed tenure scheme

Barnet Re: enabling Barnet Council to act as a developer to generate income and stimulate regeneration

Genesis Housing Association: using our breadth of capability, ideas and leadership to be a true strategic partner

Background• 5 year strategic partnership• First Housing Association to take this

partnership approach• £6bn portfolio of over 33,000 properties

across London and S.E. England

Objectives• ‘One-stop shop’ for strategic input and

technical delivery consultancy• Leverage value from the portfolio to fund

delivery of new homes • Support development of 10,000 housing

units over 10 years

Services• Planning and development services• Strategic residential advice• Project management and delivery

advice• Cost consultancy and management• Residual and red book valuations• Finance and funding advice

Outcomes• City Park West, Chelmsford (Phase 1): delivered 219-unit development in Chelmsford, consisting of

65 extra care, 74 private and 80 affordable properties• City Park West, Chelmsford (Phase 2) August 2015 – 2018: currently undertaking delivery of 386

mixed tenure units and 57,000 square feet of commercial floor space • Stoke Quay, Ipswich: delivered 380 mixed tenure development (completed Spring 2015), currently

supporting Genesis on development across 19 sites which will deliver 1,300 new homes

Completed Genesis Housing projects in Stoke Quay, Ipswich and City Park West, Chelmsford

glhearn.com

deborah.mcLaughlin@ghhearn.com

Head of Housing Delivery and Strategy 0161 829 7800