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G REATER M ANCHESTER D EVOLUTION – A F UTURE FOR S OCIAL H OUSING ? “ W HAT HOUSING PROVIDERS CAN OFFER AND WHAT THEY CAN HOPE TO GET IN RETURN ” Cath Green CEO – First Choice Homes Oldham
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2 A REAS TO C OVER GM Devolution context Housing challenge and opportunities GM Housing Providers approach and work streams MoU Summary
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3 GM D EVOLUTION – CONTEXT Signed by Government and 10 leaders of GM Local Authorities – Nov 2014 Sets out new powers and responsibilities Move to a directly elected Mayor Focus on growth and reform Ambition to secure control of or influence over all £22bn of public sector funding in GM. Close the gap through Growth and Reform Greater Manchester Devolution Agreement
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4 GM D EVOLUTION – CONTEXT Interim Mayor elected – Tony Lloyd (11th member of Combined Authority) A number of commission with a political lead identified *Housing and Planning Commission*Local Enterprise Partnership *Transport (TfGM) *Scrutiny function *GM Health and Wellbeing Board*Public Service Reform *Police and Crime Commission
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Weak new housing supply since 2008, out of step with economic growth Restricted mortgage lending and weak supply means Home Ownership out of reach for many working households (affordability issues) Rapid growth in the Private Rented Sector 23% of GM Households live in the Social Rented Sector Kept investing in new homes through the recession – between a third and a half of GM total every year since 2009 5 GM D EVOLUTION – THE HOUSING CHALLENGE & O PPORTUNITY
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Social housing tenants are key client groups for many of the public service reform interventions Housing providers active and committed partners on health & social care, skills & employment, fuel poverty/carbon reduction, crime and ASB and complex dependency work, etc. Central stakeholders in the communities where their housing assets are held (Anchor Institutions) 6 GM D EVOLUTION – THE HOUSING CHALLENGE & O PPORTUNITY
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7 S UMMER B UDGET Significant changes to Government approach to social and affordable housing: - Reduce social rent by 1% p.a. for 4 years (previous rent formula allowed for 1% +CPI increase per annum) Social renting households with an income above £30k to pay full market rent ‘pay to stay’ Right to Buy extended to housing association tenants Benefit cap reduced to £20k per annum
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8 T IME FOR R ADICAL C HANGE Two key drivers/opportunities for radical change to how we deliver and manage our affordable housing offer in GM: A GM devolution opportunity to drive a sensible affordable housing offer alongside market housing growth. Government policy direction which threatens to undermine the ability of housing providers to help deliver reformed public services for residents.
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9 T HE P ARTNERSHIP – GM H OUSING P ROVIDERS
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10 High quality homes Supported accommodation/older persons schemes and services Support in communities and for individuals Work with complex families Work to enhance life opportunities Work across tenure – health pledges Employment and skills opportunities W HAT W E D O Contribute to wider GM Strategy Act as a voice on proposed policy changes Lead specific projects Independent but complementary to GMCA structures Enhance best practice Maximise benefit of Devolution Contribution to Place shaping Our connection to people StrategicDelivery
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7 Key Public Policy Areas to Revolutionise 11 GM D EVOLUTION – THE HOW ? Enabling responsibilities delivered via Devolution Budget Responsibility Bus Franchising Objective: Create a Northern Powerhouse Eliminate a £4BN Funding Gap Greater Manchester Growth & Reform Plan Transport £30m per year Earn Back Revenue Generation Growth Housing Supply Reform Employment & SkillsPlace Complex Dependency Health & Social Care Poverty Crime & Policing £300m Investment Fund Strategic Planning Powers Police & Crime Commissioner Develop H&SC Business Plan Locality Plans Anchor Institutions able to co-ordinate & deliver Housing, Skills, Health & Social Care at a GM, Locality & Neighbourhood level Business Support Budgets Apprenticeship Grant Restructure Further Education Joint Commission on Work Programme Skills & TrainingHealth & Social Care Greater Manchester Housing Providers Housing
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12 B UILDING A NEW GM MODEL Rethink the purpose of our social housing stock Make better use of the value of those combined assets Actively help working age households to increase their income and along flexible, affordable routes into home ownership Commit to provide high need households and older households homes which support their independence and reduce dependency on public services. Reduce fragmentation and duplication to make management more efficient and embed social housing in our integrated public service offer. Embedding housing providers deeper into our public service reform implementation Co-design of a new future for housing provision by GM, providers and Government
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13 T HREE D EVELOPMENT S TAGES 1. Principles: build an agreed initial picture of what we’re aiming for. 2. Analysis: who we will be providing homes for, what models or housing ‘products’ will be available to help them, what the structural, financial and governance issues we need to resolve are, what flexibilities or support we need from Government. 3. Implementation: aim to agree an MoU between GMCA and providers to set out the stages of implementation.
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14 M EETING REAL HOUSING NEED Identify the groups of households we will continue to need to provide homes for in the long term Modelling what working age households can afford and the products that will help them achieve their aspirations for home ownership Understand how new homes for older households can match their current and future needs and help reduce demand for health and social care services for example through better step up/step down options Define and map our vulnerable households and the demands they make on public services Understand which high need households can realistically achieve sustainable employment and the support they will need to do that
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15 F INANCE AND G OVERNANCE Examine potential mechanisms to bring assets together to generate more investment Develop options for reducing the current fragmentation within the sector Build a framework to retain diversity of provision and local connection while improving efficiency and reducing duplication Scope out the help, investment and flexibilities we need from Government and the regulator for the new model Dialogue with the sector’s existing and potential new funders to understand their views and requirements
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16 D ESIGNING THE NEW OFFER Developing the flexible models or housing ‘products’ we should be offering to give households a clear pathway to home ownership, while being flexible enough to help households through temporary setbacks Shaping the integrated service offers we will make to working households, older households and those with higher level needs Scoping how many new homes this could deliver in GM Building the governance and financial structures needed to make this work Mapping the implications and benefits for individual housing providers and their Boards
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The case made on our contribution to GMCA Developing a GM Housing Memorandum of Understanding : Our contribution to growth Our “offer” to public sector reform Our “asks” of the GMCA The work streams Rethinking the purpose of our Social Housing stock Increasing efficiency Making better use of our combined assets Meeting high needs in more efficient ways Improving incomes for working aged households Three spatial levels – neighbourhood, borough, and GM 17 GM D EVOLUTION – THE HOUSING OFFER - S UMMARY
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Firming up the “offers” Increase our collaboration Become more efficient and effective Enhancing social support Firming up the “asks” Provide financial support and freedoms Strategic development Freedoms and flexibilities Providing analysis – Assets, Finances, Needs & Demands for both Homes & People 18 GM D EVOLUTION – WORK IN PROGRESS
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We want to be a delivery partner in GM Devolution Our Sector faces huge challenges This is an opportunity to improve the life chances of our customers We have a BIG contribution to make 19 GM D EVOLUTION – WHY GET INVOLVED
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