1. Successful places with homes and jobs A NATIONAL AGENCY WORKING LOCALLY Professional Liverpool Briefing HCA Update Carol Sutton and Helen O’Doherty 27th January 2016

2. Overview  Introduction and HCA role  Latest Government ambitions for housing  Recoverable Investment

3. HCA – background and role

4. HCA statutory objectives  Improve supply & quality of housing in England  Support the creation, regeneration or development of communities  Contribute to sustainable development and good design

5. Market interventions We are locally driven. We work with councils, LEPs, Core Cities and other local partners, effectively targeting our investment and support at their identified priorities. Aligned public funding and delivery of local priorities Affordable housing Finance for private housing LandRegulation

6. Breakdown of all North West Housing completions 2014/15 HCA supported at least 78% all new North West housing * Actual total was 3,547. Figure used in chart assumes all HCA- funded market housing also used Help-to-Buy to eliminate potential for double counting

7. Operating Area Role

8. Latest Government ambitions for housing

9. New Government objectives Planning and Housing  Ambition for 1m new homes by 2020  More releases of public land for housing  Promoting home ownership – DCLG budgets to be ‘refocused’  Accelerating devolution  Further efficiency savings - 30% agreed across DCLG

10. Investing in Housing Spending Round  400k affordable starts by 2021: –200k Starter Homes (£2.3bn/60k) –135k shared ownership (£4bn) –50k from existing commitments –10k rent to purchase (£200m) –8k specialist (£400m)  Finance for private housing: –Short term fund (£1bn) –Custom and Self-Build –Extension of Help to Buy (+£7.5bn) (All extended to 2021)

11. Bringing forward land  Land for 160k homes to be released across government by 2020 –HCA contribution: capacity for 36k homes  Longer term infrastructure funding (£2.3bn)  Direct commissioning by HCA: initial 4 sites announced around London (13k homes)  Further land transfers from other Government Depts  One Public Estate extended  Devolution: Land commissions for GM and Liverpool City Region

12. HCA – recoverable Investment

13. What is Recoverable Investment? Investment funding via distinct programmes to address difficulties in accessing development finance faced by some house builders, particularly SME developers, and to help bring forward stalled, viable sites

14. Where we are now  7 live programmes/funds:  Builders Finance Fund – development finance aimed primarily at SMEs  Custom Build Serviced Plots – provides small-scale site infrastructure for custom builders to then build homes  Build to Rent – development finance for Private Rented aimed at attracting institutional investment  Estate Regeneration – finance for a range of estate regeneration costs aimed at Registered Providers  Local Growth Fund – short-term infrastructure finance for sites with a minimum 250 homes  Large Sites Infrastructure Fund – long-term infrastructure finance for sites with a minimum 1,500 homes  Housing Zones – long-term infrastructure finance and non-financial support for sites in Housing Zones with a minimum 750 homes  Conclusion – The market is confused and there are gaps

15. Learning from current Programmes  The market has moved on from 2012 we’re not propping up the market anymore we’re supporting and building it  Large housebuilders don’t need us as much for development finance – focus on infrastructure.  Many SME and Custom Builders do – there is demand in the market  Large housebuilders know the HCA and know how we work  SME and Custom Builders don’t understand us or don’t know us  What we’ve learnt  More flexible product  There are a range of support needs which can include help getting to the starting line  We aim to be more customer facing including:  Clearer processes  Streamlined applications  Promote, engage and support the market  Fewer hurdles, more conversations  Reasons to say YES

16. Housing Development Fund  £3bn of investment funding available  £1bn development finance  £2bn infrastructure finance  Short Term  Intention is to be flexible and innovative – market driven offer which responds to market demand  Long Term  Intention is to be flexible and innovative – less expectation that this will be market driven and more pipeline driven from HCA/local authorities/housebuilders

17. Pipeline Development Working with Partners and local businesses to understand key priorities and sites and raise awareness of RI programmes within SME community Continuous market engagement BFF available now Aligning products to SME market Consider solutions needed Capacity building with SMEs Talk to us - if RI products not appropriate understand what is required to unlock.

18. Any questions?

19. Useful Contacts Carol.sutton@hca.gsi.gov.ukCarol.sutton@hca.gsi.gov.ukTel 01925 644639 Helen.O’Doherty@hca.gsi.gov.ukHelen.O’Doherty@hca.gsi.gov.uk Tel 01925 644663 https://www.gov.uk/government/publications/builders-finance-fund- prospectus