Thriving communities, affordable homes

Helen Towner – Relationship Manager Home and Communities Agency

Thriving communities, affordable homes Changes and the CFG  What are the main types of low cost home ownership after the CSR?  How is low cost home ownership delivered? The new role of the HomeBuy Agent and RPs  Branding – first steps and HomeBuy scheme terminology  Support available to providers and stakeholders  Single agent Discussion

Thriving communities, affordable homes Framework  Framework published Monday - read it!  £4.5bn (£2.3bn existing commitments)  Explains how to bid  Comprehensive information on providers next steps

Thriving communities, affordable homes Affordable home ownership  Can be included in offers where this is a local priority and offers value for money. –Numbers and locations will depend on offers  All under banner brand HomeBuy (First Steps in London)  Shared ownership –Expected to be main aho product –Unchanged from NBHB  Equity loans –20% max loan –Other terms for customers and lenders unchanged –No HCA charge

Thriving communities, affordable homes Going forward Increased number of lenders on board with shared ownership Delivering more for less… 2012/12 the committed programme…

Thriving communities, affordable homes Current Programme  We still have HomeBuy Direct! Via the Kick Start Programme!  Committed shared ownership Programme  Lots of Changes  Local HomeBuy Agents – contract changes and roles  What's New? And are you keeping up with the changes?

Thriving communities, affordable homes How is LCHO currently delivered? 2 stage process LHBA accesses all Applications Fills out a general LHBA calculator Informs the applicant of choice and eligibility Issues indicative mortgage amount Sends on leads to RP’s sales teams Collects data for stakeholders/HCA Individual Registered providers receive confirmation of eligibility Applies 2nd affordability check/involves IFA Maximises share Takes reservation Manages sales process Feeds make data to LHBA on completion

Thriving communities, affordable homes Local HomeBuy Agents 5 new contract changes! Key performance standards have been reduced to improve the service to customers, stakeholder and the HCA A more detailed Marketing plan, targeting priority groups A Nil Grant service level agreement with a consistent pricing structure to enhance the offer to customers Superior re-sale service to RP’s and customers Enhanced role in accessing affordability

Thriving communities, affordable homes Accessing Affordability  3 New Calculators - LHBA – general - Shared ownership - Equity loan  All on the Capital funding Guide now!  Detailed guidance available  Your Local HomeBuy Agent can help

Thriving communities, affordable homes Branding and Terminology  New Terms  Move away from scheme names associated with the HomeBuy Brand  Shared Ownership  Equity Loan  Rent to Own

Thriving communities, affordable homes Glossary of terms  Circulated to LHBAs  Will be circulated to Local HomeBuy Agents they will send to registered providers  Also circulated through Home Ownership Groups  Looks at brand Guidelines in and out of London

Thriving communities, affordable homes HCA operating areas  An umbrella brand for LCHO in England, excluding London  All LHBAs retain their individual identities  Any marketing for grant funded LCHO should include this logo  Not just the LHBA responsibility  Should be on all websites  Brand guidelines available

Thriving communities, affordable homes London  Umbrella brand for the Greater London area  Same generic scheme names, e.g. shared ownership  Same rules Apply – all RP’s should use this logo on marketing  Why? –Key policy commitment –London Housing Strategy –‘Raising aspirations, promoting opportunity’ –Support for intermediate market –Increase access –Marketing & awareness raising

Thriving communities, affordable homes Changes to Priority  No Key worker status moving forward  More details will be availed via the CFG in the near future on how to deal with existing KW leases  No longer a public sector recruitment and retention issue  Priorities are now –Existing social tenants –MOD Personnel – Local Priorities

Thriving communities, affordable homes Moving Forward – Support  The Capital Funding Guide – your first port of call  homes homes  Lots of updates taking place prior to the new financial year  You can sign up to receive changes via

Thriving communities, affordable homes  Shared Ownership  New Build HomeBuy has gone as a term  Part buy part rent  Rent caped at 2.75% first tranche sales  Shared ownership lease  Usually delivered by registered providers – ownership is shared  Applicants purchase between 25%-75%  Applicants income determines share

Thriving communities, affordable homes  Equity Loan  Purchaser owns 100% of the title  2 nd charge is held by the house builder and HCA  2 schemes  HomeBuy Direct  split – applicant maximise share to 85%

Thriving communities, affordable homes  Budget announcement  240million for equity loan scheme FirstBuy  80/20 split  2 nd charge split 50/50 by the house builder and HCA  Registered provider’s can apply  Prospectus coming out within the next week or two  First round will hopefully be out by July  5000 units 2011/12  5000 units 2012/13  Delivered through Homebuy agents

Thriving communities, affordable homes 2012 – Onwards  What does delivery look like?  Single Agent discussion paper launched yesterday  Available on the HCA’s website  

Thriving communities, affordable homes Discussion paper on single agent  Discussion will go on until the 6 th May  Procurement exercise Spring/Summer  Look to appoint in Autumn to give time for full handover and business planning

Thriving communities, affordable homes Purpose of discussion paper  Gather views and feedback from HomeBuy Agents, local authorities, providers and other partners.  Soft-market testing of potential bidders (open OJEU compliant process)  Grateful for suggestions of possible forums (HOGs etc.) to Helen  Does not cover London

Thriving communities, affordable homes  Questions?