1. Roger Wilshaw Modern Institutions

2. Today About the Places for People Group For each of England and Scotland: The operating environment National and local delivery structures Regulation Strengths and weaknesses

3. About Us We have been managing and developing homes since 1965 Throughout that time we have grown through acquiring new businesses and building new homes. Places for People now provides services to over half a million people. We own and manage more than 152,000 properties, run 116 leisure centres, and have assets in excess of £3 billion. In 2014/15, we built more than 1,000 homes and started development on another 1,000 homes. We aim to deliver 15,000 new homes in the coming years. We aim to deliver high quality places that support strong communities. As a not-for-dividend organisation with a strong social purpose, we use our breadth to deliver social outcomes, taking commercial decisions and reinvesting any financial surplus back into the business. While most housing associations in England are diversifying few are as diverse as us.

4. About Us The Places for People Group Strategic Support Corporate Services Affordable (Regulated) Living + Management Companies Placemaking & Regeneration Placebuilders Development & Construction LeisureRetirement Growth /Incubation

5. Delivery Structures in England Housing and planning funding and policy is devolved to the nations of the UK. In England: The Department for Communities and Local Government manages the system and sets the policy framework The Homes and Communities Agency (HCA) is the funding and regulation body for Government Local government controls planning applications and hence rates of supply Most new supply built by large developers and housing associations Dramatic reduction in small builders since the global recession

6. The Operating Environment in England Home ownership crisis – 65% – lowest in 25 years Affordability crisis – English renters pay 47% of net income on rent 1m extra homes required – housebuilding rates 30% below peak But Planning policy in flux but still favours views of existing residents Capital subsidy has drastically reduced and switched to loans and guarantees focused on affordable home ownership Local authorities required to sell high value homes 1% rent cut amounts to a 12% revenue reduction by year four Welfare reform programme has impacted tenants and housing association finances Right to Buy now extended to housing associations

7. Local delivery in England Local government has been at the forefront of austerity – budgets reduced by a third Increasing drive towards integration – began with joint commissioning – now seeing national services and funding streams devolved – health; housing capital Particular focus on cities including devolution of central funding and greater planning freedom “Localism” appears to be an elastic term but the government is resolute on not imposing new settlements Local authorities required to provide sufficient housing and supported to build new settlements – Garden towns and cities – but both policies are flawed

8. Regulation in England The Homes and Communities Agency (HCA) is the regulation body for housing associations in England Focus in recent years has been almost entirely on organisational viability in order to protect social housing assets Decision by UK statisticians to classify housing associations as public bodies adds £60bn to national debt In response Government is deregulating and allowing housing associations to merge, change structures and dispose of stock without permission. Changes also reduce the regulators powers to intervene – limited to law breaking

9. Delivery Structures in Scotland The Scottish Government directly manages the system and sets the policy framework and allocates funding Cabinet Secretary for Communities, Social Security and Equalities Minister for Local Government and Housing Registered Social Landlords are not for profit bodies using Government capital subsidy to build affordable rented housing. Local authorities also receive grant to build new homes and have similar functions and responsibilities to those in England

10. The Operating Environment in Scotland Affordability – house prices 6% below the pre-crisis peak (19% above in UK) Social trends – a quarter of Scots under 35 still live at home Supply – completions up by c10% on last year Because: Capital subsidy has increased both in total allocation and grant rates there is investment in social rent and other affordable tenures. ‘More Homes for Scotland’ Initiative. Scottish Government sees housing as a priority and provides support for large scale initiatives focussed on non-regulated bodies delivering MMR (boundaries with PRS are beginning to blur). Controversial English policies not replicated: planning policy more stable; Right to Buy abolished; welfare reforms mitigated; rents continue to increase; no requirement on councils to sell stock

11. Local delivery in Scotland There is a single tier of local Government in Scotland producing Strategic and Local Development Plans The English Government has moved away from regional structures but Scotland retains regional strategic planning As in England, increasing drive towards integration with a focus on health and social care and a particular focus on cities including devolution of central funding Scottish Government assumed tax raising powers after the Independence Referendum. Early change has replaced stamp duty with “more progressive” Land and Buildings Transaction Tax Community land ownership – 432 people own half of Scotland's private land – the law now enables communities to have first refusal on sales. 500,000 acres now owned in this way – delivering homes and growth

12. Regulation in Scotland The Scottish Housing Regulator is the regulation body for Government. The focus is on protecting tenants interests. Messages are around risk management, affordability and VfM. Scottish housing associations are private bodies. But a similar review to that which moved housing associations into the public sector in England has now begun in Scotland Possible extension of FOI laws to Scottish Housing Associations Current consultation on the review of the Scottish Social Housing Charter – due for revision in 2017 – provides the framework for housing associations

13. Strengths and Weaknesses EnglandScotland Strengths Clear Government priority to deliver new homes Government actively seeking new ideas Heavy Government financial intervention (also a weakness) Strengths Affordable Housing is at the heart of SG policy Sustained funding General consensus and collaboration Historic capital funding regime has had counter cyclical impact Weaknesses Enormous legacy problem – 1 million homes needed New capital funding regime appears to be pro-cyclical Reduced subsidy and pressures on housing associations is dampening new builds No bold ideas on land value uplift Unwillingness to countenance bold policy change Weaknesses Lack of large players with capital backing Sector balance sheet not being fully utilised Land prices kept high by subsidy levels across the market. Lack of construction innovation and skills Inertia around planning debates