The Kent Ask The Kent Ask of Governmentof GovernmentBrian HortonBrian HortonStrategic Housing AdvisorStrategic Housing Advisor

Kent Housing Group‘The Voice of Housing in Kent’

Kent Housing GroupKent Housing Group

Briefing Paper:Briefing Paper:

‘Unlocking Barriers to Future Housing Delivery in Kent and Medway’

Kent Housing Group‘The Voice of Housing in Kent’

Opportunities and Threats?

THE ECONOMY! Affordable Rent

New Homes Bonus

WELFARE REFORM

Public Land Credit Rating

Joint Ventures CIL

S.106 Institutional Investment

Prudential Borrowing HRA Reform

CSR – March 2015CSR – March 2015 LENDERS Loan Guarantees

UNLOCKING BARRIERS

Kent Housing Group‘The Voice of Housing in Kent’

Kent Housing Group‘The Voice of Housing in Kent’

WHY?

Have worked with HCA to maximise investment and delivery through the:

Affordable Rent Framework.

3,969 new homes in Kent, a significant proportion

of the South East allocation and double Essex.

Largest allocation nationally.

IMPACT?

Capital funding for new housing delivery also helps to support the wider economy.

The £62m of government AHP funding in Kent will

generate a total housing investment of £617m, which in turn will generate additional activity in the supply chain of

£1,604m. Using the methodology in the Montague Report this means that government funding of only £62m has the capacity to

generate 7,400 jobs and £2.2 billion of economic activity in Kent.

Kent Housing Group‘The Voice of Housing in Kent’

One Way…

But not the KHG way!

Kent Housing Group‘The Voice of Housing in Kent’

(i) We would like certainty for housing providers around

the provision of funding for affordable housing after

2015, which should include a fair, affordable, transparent and easily administered rent regime. Whilst

we do not believe that the Affordable Homes Programme is a long-term sustainable funding model, we feel that we could make this work for one more round in Kent if operated on the same terms.

Kent Housing Group‘The Voice of Housing in Kent’

Our Asks of Government are:

(ii) The New Homes Bonus scheme has acted as a good incentive to encourage new housebuilding within the county. We would like to see the Government commit

to extending this scheme beyond the intended 6 year period, to continue to incentivise new local housing delivery and enable authorities to plan for future delivery.

Kent Housing Group‘The Voice of Housing in Kent’

Our Asks of Government are:

(iii) Access to long-term private sector institutional funding is key to enable the delivery of new homes without Government subsidy. The ability to offer public sector land is a vital component to attracting such investment and Government should consider how it holds

and manages public land with a view to releasing more public land for housing delivery.

Kent Housing Group‘The Voice of Housing in Kent’

Our Asks of Government are:

(iv) Private sector institutional investors are

attracted by guaranteed inflation-linked returns. Housing Associations are not able to provide this type of guarantee on any great scale. The Government

should consider providing a rent regime guarantee to enable housing providers to lever in

large-scale private sector funding.

Kent Housing Group‘The Voice of Housing in Kent’

Our Asks of Government are:

(v) Government should consider raising the HRA debt caps for LAs who are committed to investing the additional resource in new housing supply.

Kent Housing Group‘The Voice of Housing in Kent’

Our Asks of Government are:

(vi) Affordable housing delivery could be greatly supported by

enabling the Housing Association sector to access the cheaper borrowing costs currently available to

Local Authorities via the Public Works Loan Board. Access to such low cost prudential borrowing could enable housing delivery on currently unviable sites or increase the number of homes that can be delivered on a housing scheme, boosting overall new supply.

Kent Housing Group‘The Voice of Housing in Kent’

Our Asks of Government are:

(vii) Government should look at reviewing its existing

rent standard and encouraging a more localised

approach to 'pay to stay', to enable innovative,

flexible approaches to tenure, such as a

reviewable tenancy, to be used by HAs and LAs as appropriate.

Kent Housing Group‘The Voice of Housing in Kent’

Our Asks of Government are:

Kent Housing Group‘The Voice of Housing in Kent’

Thanks:

Tracey Kerly Ashford BCRebecca Smith KHGNeill Tickle AmicusHorizonNaisha Polaine HCAFrank Czarnowski West Kent Steve Nunn MoatMaggie McCann OrbitRussell Drury MedwayPeter Stringer GoldingMark Miles-Lea AmicusHorizonBob Porter Shepwayand Jo Purvis KCC