HCA demonstrates strong delivery despite tough economic climate

11 November 2009

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HCA demonstrates strong delivery despite tough economic climate

In its first year of operation, the Homes and Communities Agency has met its key targets, including delivery of over 53,000 new and affordable homes and the investment of £3.9bn through its Programmes, despite operating within severely depressed financial and housing markets.

The Agency’s Annual Report and Financial Statements for 2008-09, published today, set out the key achievements for the HCA and its predecessor bodies over the 12 month reporting period ending 31st March 2009¹. These include:

  • Completion of 53,843 new and affordable homes for rent or sale (30,820 during the first four months of HCA operation);
  • Starts on site with 44,472 new and affordable homes for rent or sale (30,837 during the first four months of HCA operation);
  • Reclamation of 327 hectares of brownfield land;
  • Creation of 450,487 square metres of employment floorspace; and
  • Attracted £1.035bn of private sector investment

Well over half the HCA’s outputs across all categories were achieved during the first four months of operation, including 58% of affordable housing completions and 69% of affordable housing starts on site.

HCA Chief Executive, Sir Bob Kerslake said: “Overall this has been a year of considerable achievement and despite tough operating conditions, this Report shows that the HCA has delivered in all of its key areas during its first months of operation.

“This year and next will be equally challenging but we will continue to deliver against our targets, identify new funding streams and new ways of working, and maximise the impact of every pound of public money we invest.”

The Agency’s net expenditure for the year was £4.3bn, reflecting the level of investment made in order to maintain programme momentum and the supply of new homes. Highlights across its national Programmes included:

  • £2.6bn social housing grant through the NAHP;
  • Over £330m Growth funding including £23 million via the new Community Infrastructure Fund; and
  • Over £650m on renewal, via HMR and the Property & Regeneration Programme inherited from English Partnerships.

As a result of economic conditions beyond the HCA’s control, the Agency saw the value of its development assets fall by £1.1bn resulting in an impairment charge of £542m, while proceeds from land sales also fell from £333m to £51m.

However, despite the economic downturn the Agency also took significant steps to mitigate against its effects in order to support its developer and RSL partners. These included:

The national clearing house – investing £350m to bring 9,600 unsold developer homes into use as affordable housing;

  • HomeBuy Direct – allocating £400m, projected to help 10,000 people into home ownership in a sustainable way;
  • Offered tailored packages of support, including flexible grant rates, to help Investment Partners maintain their development activities; and
  • Mortgage Rescue – committing £285m to help those struggling with mortgage repayments and who may be at risk of repossessions.

The Annual Report and Financial Statements - PDF (5.5MB) can be downloaded from the HCA website.

The HCA’s Open Meeting later this month will look back at the first 12 months of operation as well as focus on the next 18 months, as outlined in the Agency’s Corporate Plan.

Ends

For further information: Robert Davies on 020 7881 1624 / robert.davies@hca.gsx.gov.uk or Helen Stoddart on 020 7881 1615 / helen.stoddart@hca.gsx.gov.uk in the HCA press office.

Notes to editors

¹The narrative of the Annual Report covers the first four months of the Agency’s operation (1 December 2008 to 31 March 2009) only. The Financial Statements cover the full 12 month period 1 April 2008 to 31 March 2009 and reflect the activity of the new Agency and its predecessor bodies.

The Financial Statements have been prepared according to “merger accounting” rules. This means that they have been prepared on the basis that the Agency has existed for the two full financial years ending 31st March 2009. A topline analysis of current year results for each of the predecessor bodies is included in the report.

The Agency’s financial statements are effectively a snapshot in time and have been prepared on a ‘going concern’ basis. They have been independently audited by the National Audit Office, which has issued an unqualified audit opinion.

The Homes and Communities Agency is the single, national housing and regeneration agency for England. 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.

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