Approximately 32,000 Council homes Approximately 8,800 leaseholders/freeholders Decent Homes came to an end last year, replaced with our own scheme 3rd highest amount of social housing built in London since 2011, with 2,850 homes, also fifth nationally Regeneration estates uneconomical to refurbish, but mean-time repairs essential during long-term regeneration The Hackney-wide context

Regeneration programme background 2004 – 2010 Estimated £690m Decent Homes and associated housing repair bill £359.57m resources Thousands of properties on estates seen as uneconomic to invest in Historically, individual site- specific solutions: joint venture or land disposal

Many schemes, taken alone, financially unviable due to upfront ex-RTB re-purchase costs Dashed expectations for households on regenerations estates, worsened by financial crisis Then in 2009 Government enables councils to build homes again So, schemes progressed with portfolio approach, building 2,760 mixed tenure homes on 18 sites Tenants have Right to Return, leaseholders package including shared equity/ownership offer Proposals past and present

We don’t do Affordable Rent (80% of market rents) Council homes for social rent and shared ownership only So NO Affordable Rent-‘strings-attached’ government funding for new homes Private sale homes fund new Council homes for social renting and shared ownership No ‘ghetto estates’ of private-only/Council-only 50% planning requirement across programme (30% Council social rent, 20% Council shared ownership) Additional sites being identified The estate regeneration programme

Borough-wide programme hits government-imposed borrowing cap Three ways to circumvent this: 1) Overage - better-than-expected private sales, but uncertain/unpredictable 2) Right to Buy sales – just £2million expected borough- wide due to claims by Treasury etc 3) s106 commuted sums - a ‘bonus’ only, due to uncertain size and frequency, can’t plan for it Other areas of expenditure may also require use of these resources Government limit on how much we can borrow to build new homes

Stand alone scheme or in programme: build costs, public realm, community facilities, interest payments on borrowing: Nightingale to break even over 40-year period £ k to build a property Shared ownership pays for its build costs, management and maintenance, does not yield extra funding Social rent only covers management and maintenance, does not pay back build cost debt and requires significant cross subsidy Nightingale funding part one

Could build more social rented with taller buildings? Could build more social rented with less green space, reduced community facilities? But not our approach – need to work with residents More than two hectares of Council land vacant Mainly private and shared ownership to build, exploring social rent as promised, and added to borough-wide programme Nightingale funding part two

Finish masterplan, submit planning application by end of year Develop second regeneration estates local lettings policy Expected at planning committee Spring 2016 – pre-app process now underway Developer procurement Spring 2016 – many more bids after planning permission secured Site preparation and construction Summer 2016 Completion in 2020 Timeline

The programme elsewhere: Colville residents support two private-only towers to pay for new Council homes for social rent/shared ownership

Annual Loss in rent 4,555,640 9,202,393 13,943,447 18,782,084 19,345,546 19,925,913 20,523,690 Cumulative Rent loss 4,555,640 13,758,033 27,701,480 46,483,564 65,829,110 85,755, ,278,713 Rent loss from 1% reduction Whilst the rent reduction is for 4 years, the base position in 2019 would be less, therefore there is an ongoing impact with a cumulative £100m loss after 7 years and £725m over 30 years Current saving Plan 3,185,000 2,985,000 2,785,000 Additional Savings required 1,400,000 1,700,000 2,000,000 5,000, ,000 Total Savings 4,585,000 4,685,000 4,785,000 5,000, ,000 Savings require for 1% rent loss

Baseline HRA Business Plan 2012

Baseline HRA Business Plan 2015