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Housing & Planning Act:
Setting the scene Gavin Smart
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• The political landscape
• Government priorities for housing
• The main measures in the Act
• Underlying themes
• What does all this mean for housing
organisations and the services they
deliver?
I’m going to cover
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• Government in a hurry
• Deluge of policy ideas
• Now in implementation
phase
• Significant investment for
housing but in an overall
context of fiscal constraint
• See social housing as
ripe for reform
• Keen to deregulate HAs
& return to ‘private’ status
The new political landscape
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• Increase overall supply of new homes
• Reverse declining home ownership
• A very different vision for social housing
Stronger focus on efficiency
A ‘spring-board’ to help tenants into home ownership
Social housing only for those in greatest need
• Reduce government spending, particularly on
welfare
• Improve life chances: regenerate up to 100 of the
worst housing estates
Government priorities
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“Housing fat cats' hypocrisy: Furious backlash at PM's
right-to-buy revolution... from housing chiefs with
lavish homes and six-figure salaries” (Daily Mail)
“Housing associations
are failing, says George
Osborne” (The Times)
What are government’s perceptions?
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• High Value Asset Sales
• Voluntary Right to Buy – “home ownership
criteria”
• Pay to Stay & fixed term tenancies (2-10 yrs) for
LAs
Voluntary for HAs
• Changes to the HA regulatory framework
• Starter Homes
• Measures for rogue PRS landlords
• Planning & CPO changes
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• Package of welfare cuts – including applying LHA
rates to social rented tenants
• 1% rent reduction for social tenants
o HA loss £3.85bn, LAs £2.6bn
o Supported housing exempt for a year
• Significant change in focus of support
for new affordable supply
• 135k new Shared Ownership homes
by 2020
• Stamp Duty & tax changes for PRS
landlords
Other related changes
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Drive for home ownership - HVAS, RTB for HAs etc
Drive to increasing housing supply
Fixing HA classification (+ targeting efficiency)
Rationing & targeting housing support
E.g. Pay to Stay, LHA, fixed term tenancies
Efficiency agenda and perception of social &
affordable housing
• Inefficient, wasteful, doing the wrong things etc.
• HVAS, rent cuts etc
Preference for deal making
Govt in a hurry and no is not a good answer
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• Fewer affordable homes to rent
• A tougher development environment?
• How do you take tenants with you?
Some tough choices to be made
• Income collection more challenging
• Strong focus on efficiencies/innovation to offset
loss of income Cost savings
Efficiency & effectiveness
New things to master – HVAS, RTB
What does it all mean? (1)
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• Significant changes to the way
we manage tenancies
Pay to Stay and Fixed Term Tenancies
• Harder to house people receiving benefits
Longer void periods? Rent loss? Harder to let
homes?
Who will house the poor?
Ethical and moral dilemmas?
What does it all mean? (2)
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• A lot of soul searching:
What is your organisation there to do?
What are the ‘must dos’ versus the ‘nice to dos’?
• Reviewing your partnerships
The right ones?
Delivering value?
• Avoiding knee-jerk decisions
What does it all mean? (3)
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• Greater risk to be managed
We are much more pro-cyclical
• Taking a long term view:
5 – 10 – 15 years…and beyond
How is your client base likely to change?
How might government/governments change?
And what will that mean for what you do and the way
that you do it?
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• Understand the problem and come up with
solutions that can be delivered
• Base comments/representations on evidence
• Showcase how our ‘offer’ supports key
government priorities:
Contributing to new housing supply - including
affordable home ownership
Development/regeneration boosts economic growth
Activities to help people off benefits and into work
Supported housing services reduce pressure on
NHS and social care budgets
Can we change perceptions?
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• Scope for shared/joint service delivery?
Or at least ‘back office’ functions?
• Develop a commercial offer?
• Mergers? Mega-mergers?
• Stock rationalisation & stock swaps
• Share learning and collaborate to drive
innovation and value
• Future policy changes…?
• Be like Bruce?
And what are the opportunities?
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• Commenting based on evidence:
High value asset sales/RtB
Combined impact of policies on supply of social
rented homes
Impact on LA HRAs/ self-financing
• Making the case for affordable homes to rent
• Raising concerns about LHA cap
• Member updates and webinars
What is CIH doing?
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• Are you a CIH member?
• Do you have views you’d like to share?
• Why not join our member opinion panel?
• Contact: [email protected]
Finally…