MIDLANDS INFRASTRUCTURE AND REGENERATION CONFERENCE 28 APRIL 2015 Chan Kataria, Group Chief Executive

Context for Affordable Housing Development Capital subsidies Housing needs Development capacity Economy Austerity Deflation Housing market Capital Markets Money markets Interest rates Bond issue Welfare Reform Bedroom Tax Universal Credit Benefit Caps Devolution Localism Act Local Enterprise Partnerships Local Authority powers

Housing Crisis High and rising demand Shortage of new homes Rising house prices Affordability problems Increase in private renting Rising housing costs Rising Housing Benefit bill

Regional Dimension In the East Midlands: Over next 20 years, 385,000 new households Shortfall of > 220,000 homes by 2031 Average house price costs £166k, more than 7 times average annual salary In the West Midlands: Over next 20 years, 361,000 new households Shortfall of >200,800 homes by 2031 Average house price costs £178k, more than 7 times average annual salary

Solutions  National housing strategy & spatial priority  Capital investment a key priority  ‘Affordable rents’ review  Local Authority support  Consolidate and devolve funding streams  Stretch HA capacity  s106 housing constraints  Rural development constraints need removing  Health, social care & housing integration  Right to Buy for HA tenants  Custom built housing  Community Land Trusts  Implementation of Lyons and Elphicke Reviews

Questions