Housing business breakfast at LGA conference

Housing is a key area for both of our owners, HM Treasury and the LGA, and we are currently providing support to a number of local authorities, to DCLG and the HCA.

Most of the councils that we currently support are becoming more actively involved in housing delivery and many are considering setting up housing delivery vehicles of one form or another. Local Partnerships is currently developing a support package that will take local authorities through the process as well as including guidance and common templates. The purpose is to share information so that each council need not commission this work separately.

Local Partnerships hosted a breakfast event at the LGA conference looking at how to maximise the chances of local authorities setting up successful housing delivery vehicles

Simon Bandy, Programme Director for Growth and Sustainability, was joined by David Carmichael (Strategic Director at Keepmoat) and Richard Clark (former Chief executive of Local Space) and was chaired by our Corporate Director, Andrew Coleman.

The seminar looked at the opportunities and challenges as seen from both public, private and housing association’s points of view.

Challenge

There is a major challenge for the country to deliver the housing that is required. Local authorities have a major role to play in providing local leadership to deliver directly and to enable others to deliver. This role is even more important following the vote to leave the European Union. However the role increasingly requires local authorities to be self-aware, of the skills to which they have access, skills and resource gaps and how they can manage risk with their private sector partners.

Current Position

There are many examples of local authorities becoming directly involved in housing delivery:

• Direct development
• Contractual Joint Ventures
• Wholly-owned companies
• Asset-backed vehicles

Local authorities’ objectives are varied, and fall into a number of categories:

• Making better use of land and assets
• Generating income / receipts
• Meeting social and affordable housing objectives
• Regeneration and economic objectives

Conclusions of the discussion – what maximises the chance of success?

• Clear strategy, understanding of market and housing need
• Clear objectives and strong leadership
• Full understanding of risk and reward – commercial expertise
• Access to commercial skills (within the context of the limited capacity of development sector)
• Clear strategy for use of land and funds
• Access to development and delivery skills
• Choosing the vehicle most appropriate for council’s current position and objectives