The Kent Ask of Government Brian Horton Strategic Housing Advisor Kent Housing Group ‘The Voice of Housing in Kent’

Kent Housing Group Briefing Paper: Kent Housing Group Briefing Paper: ‘Unlocking Barriers to Future Housing Delivery in Kent and Medway’ Kent Housing Group ‘The Voice of Housing in Kent’

Opportunities and Threats ? THE ECONOMY! Affordable Rent New Homes Bonus WELFARE REFORM Public Land Credit Rating Joint Ventures CIL S.106 Institutional Investment Prudential Borrowing HRA Reform CSR – March 2015 CSR – March 2015 LENDERS Loan Guarantees UNLOCKING BARRIERS Kent Housing Group ‘The Voice of Housing in Kent’

Kent Housing Group ‘The Voice of Housing in Kent’ WHY? Have worked with HCA to maximise investment and delivery through the: Affordable Rent Framework. 3,969 new homes in Kent, a significant proportion of the South East allocation and double Essex. Largest allocation nationally.

IMPACT? Capital funding for new housing delivery also helps to support the wider economy. The £62m of government AHP funding in Kent will generate a total housing investment of £617m, which in turn will generate additional activity in the supply chain of £1,604m. Using the methodology in the Montague Report this means that government funding of only £62m has the capacity to generate 7,400 jobs and £2.2 billion of economic activity in Kent. Kent Housing Group ‘The Voice of Housing in Kent’

One Way… But not the KHG way! Kent Housing Group ‘The Voice of Housing in Kent’

(i) We would like certainty for housing providers around the provision of funding for affordable housing after 2015, which should include a fair, affordable, transparent and easily administered rent regime. Whilst we do not believe that the Affordable Homes Programme is a long-term sustainable funding model, we feel that we could make this work for one more round in Kent if operated on the same terms. Kent Housing Group ‘The Voice of Housing in Kent’ Our Asks of Government are:

(ii) The New Homes Bonus scheme has acted as a good incentive to encourage new housebuilding within the county. We would like to see the Government commit to extend ing this scheme beyond the intended 6 year period, to continue to incentivise new local housing delivery and enable authorities to plan for future delivery. Kent Housing Group ‘The Voice of Housing in Kent’ Our Asks of Government are:

(iii) Access to long-term private sector institutional funding is key to enable the delivery of new homes without Government subsidy. The ability to offer public sector land is a vital component to attracting such investment and Government should consider how it holds and manages public land with a view to releasing more public land for housing delivery. Kent Housing Group ‘The Voice of Housing in Kent’ Our Asks of Government are:

(iv) Private sector institutional investors are attracted by guaranteed inflation-linked returns. Housing Associations are not able to provide this type of guarantee on any great scale. The Government should consider providing a rent regime guarantee to enable housing providers to lever in large-scale private sector funding. Kent Housing Group ‘The Voice of Housing in Kent’ Our Asks of Government are:

(v) Government should consider raising the HRA debt caps for LAs who are committed to investing the additional resource in new housing supply. Kent Housing Group ‘The Voice of Housing in Kent’ Our Asks of Government are:

(vi) Affordable housing delivery could be greatly supported by enabling the Housing Association sector to access the cheaper borrowing costs currently available to Local Authorities via the Public Works Loan Board. Access to such low cost prudential borrowing could enable housing delivery on currently unviable sites or increase the number of homes that can be delivered on a housing scheme, boosting overall new supply. Kent Housing Group ‘The Voice of Housing in Kent’ Our Asks of Government are:

(vii) Government should look at review ing its existing rent standard and encouraging a more localised approach to 'pay to stay', to enable innovative, flexible approaches to tenure, such as a reviewable tenancy, to be used by HAs and LAs as appropriate. Kent Housing Group ‘The Voice of Housing in Kent’ Our Asks of Government are:

Kent Housing Group ‘The Voice of Housing in Kent’ Thanks: Tracey Kerly Ashford BC Rebecca Smith KHG Neill Tickle AmicusHorizon Naisha Polaine HCA Frank Czarnowski West Kent Steve Nunn Moat Maggie McCann Orbit Russell Drury Medway Peter Stringer Golding Mark Miles-Lea AmicusHorizon Bob Porter Shepway and Jo Purvis KCC