1. Higher Value Assets Presentation by Rebecca Shrubsole NHC conference, Leeds, 24 May 2016

2. 2 Introduction Conservative manifesto 2015 included this commitment: “We will extend the Right to Buy to tenants in Housing Associations to enable more people to buy a home of their own. It is unfair that they should miss out on a right enjoyed by tenants in local authority homes. We will fund the replacement of properties sold under the extended Right to Buy by requiring local authorities to manage their housing assets more efficiently, with the most expensive properties sold off and replaced as they fall vacant.”

3. 3 Housing and Planning Bill The Housing and Planning Bill was introduced in to the House of Commons on 13 October 2015 This payment must represent the market value of the authority’s interest in any high value housing that is likely to become vacant. Allowed costs and deductions to be made from payments In addition authorities could make “Agreements” with the Secretary of State to retain a portion of receipts to fund the delivery of additional homes. Gives a duty where “A local authority that keeps a Housing Revenue Account must consider selling its interest in any high value housing that has become vacant”. The Secretary of State may make a determination requiring a local housing authority in England to make a payment in respect of a financial year.

4. 4 Changes to the legislation 12 January 2016, House of Commons Report Stage - Where a London local authority makes an agreement with the Secretary of State it will ensure that it delivers at least two new affordable homes for every one expected to be sold. 13 April 2016, House of Lords Report Stage -Where a local authority outside London makes an agreement with the Secretary of State it will ensure that it delivers at least one new affordable home for every one expected to be sold. -“High value assets” become “higher value assets”. -Regulations defining “higher value assets” will be made by affirmative resolution. -Houses in National Parks and Areas of Outstanding Natural Beauty will be excluded from being taken into account.

5. 5 Housing and Planning Act 2016 Next Steps Regulations to define Higher Value Assets Regulations to set out exclusions Setting out the process for making agreements between local authorities and the Secretary of State Putting in place process for local authority payments to Government – expected to be quarterly Putting in place process for capturing data on the provision of additional affordable homes The Housing and Planning Act received Royal Assent on 12 May.

6. 6 Engagement There has been extensive engagement with local authorities over the last year. All 165 stock owning local authorities have been invited to at least one of the following events: 180 contacts from 123 local authorities have engaged through at least one of these events. Ministerial meeting with local authority Leaders and / or Members Round table discussion between officials of local authorities and DCLG Local authority Chief Executive discussion A technical working group (comprising representatives from local authorities, an ALMO, the LGA and CIPFA) has been set up to provide technical advice to help inform the development of the higher value vacant housing policy. Other stakeholders we have engaged with include: LGA; CIH; GLA; London Councils; Northern Housing Consortium; Association of Retained Council Housing (ARCH); National Federation of Arms Length Management Organisations; Tenants and Residents of England; Shelter. We engaged with some local authorities in securing endorsement from the Central Local Information Partnership to collect local authority data about housing stock, vacancies and housing characteristics.