Tackling credit crunch first priority for Homes and Communities Agency
1 December 2008
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On its first day of operation the Homes and Communities Agency (HCA), has outlined its commitment to address current market conditions. England’s new housing and regeneration agency will establish new ways of working in a bid to sustain development activity during the downturn.
The proposed measures include providing flexibility on grant rates and tailored investment plans for housing associations, and continuing the ‘national clearing house’ initiative to enable them to buy unsold private stock for affordable housing. The HCA will also look at setting up joint venture models with developers, promote new low-cost home ownership products and ensure the redevelopment of surplus public sector land.
Commenting on the launch of the new agency, Sir Bob Kerslake, chief executive of the HCA said: “Now more than ever we need an integrated approach to housing and regeneration in this country. Our response to the impact of the credit crunch will be investment led and counter-cyclical in order to maintain a level of activity in housebuilding and prepare the industry for the upturn.
“We are ready to tackle this challenge and will support our public and private sector partners through these difficult times. The HCA will be adaptable, offering practical solutions and engaging with local authorities through a Single Conversation to achieve a shared clarity of purpose on housing and regeneration needs for individual areas.”
The HCA outlined its proposals to industry bodies in a joint letter with Communities and Local Government and the Tenant Services Authority. These include:
- Tailored programmes for individual housing associations, supporting conversion of some existing unsold stock into social housing or rent to buy in return for progressing existing schemes that are currently on hold.
- The potential for local authorities to come forward with their own development packages with the benefit of grant funding support.
- The funding of infrastructure works on a returnable basis, to enable schemes to progress.
- Changing the mix of developments to include a greater proportion of rent to buy properties, with an incentive to purchase over time.
- The scope for land purchase, greater use of equity investment rather than grant and development of joint ventures to facilitate further development.
- The potential to access new sources of investor finance.
The agency will focus on growth, renewal, affordability and sustainability, enabling the HCA to create and regenerate places where people want, and can afford, to live.
ENDS
For further information: HCA press office on 020 7881 1653/1054/1615
Note to editors
The HCA is the single, national housing and regeneration agency for England. We bring together the development and regeneration expertise of English Partnerships, investment functions of the Housing Corporation, and the Academy for Sustainable Communities, with major delivery programmes of Communities and Local Government.
Our role is to create opportunity for people to live in high quality, sustainable places. We provide funding for affordable housing, bring land back into productive use and improve quality of life by raising standards for the physical and social environment.
During the next three financial years the HCA controls a budget of £17.3bn.