Making homes happen Developers East Sussex – 8 th October 2019 Homes England and Government Housing Objectives Christopher Moore – Head of Development South East
“[housing is] one of the central priorities of this government, so we are very interested in ways that we can get homes built.” Robert Jenrick, Secretary of State for Housing Communities and Local Government #MakingHomesHappen
Our objectives We’ll unlock public and We’ll ensure a range of investment We’ll improve construction private land where the products are available to support productivity. market will not. housebuilding and infrastructure. We’ll create a more resilient and We’ll effectively deliver home We’ll offer expert support for competitive market priority locations ownership products #MakingHomesHappen
To achieve this mission we have a new approach • More strategic leadership: We will be ambitious and develop long-term pipelines for places, markets, and partners – not just deliver targets day to day • Approach tailored to diverse areas of the country: Our activity will be differentiated across England, supported by stronger, more digitised national capabilities • Staying as long as needed – not creating dependency: Our job is to leave places, markets, and partners in a better state to deliver homes and then depart – success is others needing us less • Shifting decisively towards increasing supply: Ambition to help deliver 300,000 new homes annually is our core goal – our future focus will not be on national regeneration #MakingHomesHappen
We are already working differently Barclays Housing Delivery Fund – Burgess Hill – Barclays is providing £875m and Homes England Site allocated, planning submitted, 1 st phase marketing £125m with a key priority to support SME developers underway, Business Case for infrastructure submitted Northstowe – Housing Association Strategic Partnerships - £49m infrastructure contract delivering, 400 units we have entered into 23 partnerships to deliver an marketing progress, MMC office in construction addition 39, 400 homes by March 2022 #MakingHomesHappen
“We plan to be bold, creative and think big. We hope the whole of the housing sector – big and small, up and down the country – will join us for the next five years and beyond.” Sir Edward Lister Former Chairman, Homes England #MakingHomesHappen
Our development business #MakingHomesHappen
We are changing our land business • We are becoming one of the largest professional master development businesses driving housing completions on its own land and supporting others with their sites and new settlements • This includes enabling structural change in the housing market through incorporating policy objectives • Delivering successfully today whilst planning and implementing transformation and growth initiatives to £2bn ensure successful delivery tomorrow • We’re recruiting to ensure we have the expertise necessary and intend to have doubled in size Capital fund for land activity #MakingHomesHappen
And altering the way we work • We’ve updating the Land Development and Disposal Plan (LDDP) to create a new Land Hub • Improving our technical packs by making greater upfront investment which will allow developers to tender with improved cost and timing certainty • We’re simplifying our tenders into a single consistent format • These changes are developed through consultations with out partners. These include how we can better pair opportunity across Homes England and how to reach out more to SME developers #MakingHomesHappen
We are supporting cross government objectives • Pace: Accelerating delivery of homes without eroding value • Modern Methods of Construction (MMC): Encouraging the industry to use innovation as a way of increasing productivity • Diversification: Expanding the range of development companies who are active in developing on Homes England land • Affordable housing: Delivering affordable housing to meet local needs • Design: Encouraging developers to be more ambitious with design & measuring this against Building for Life 12 performance principles All of these objectives are considered on a site by site basis with a consistent framework. We need to balance policy objectives with the need to generate receipts and we use our Building Lease to ensure delivery. Other emerging priorities include: sustainability, skills and employment. #MakingHomesHappen 10
What do we have to work with? #MakingHomesHappen
Unlocking Land The Development team at Homes England support the agency to achieve its Strategic Objectives We identify land suitable for housing that is unattractive or commercially unviable for the market to develop We have an We use our investment to enable the site for ambition to housebuilding, accelerating the supply of homes develop c60,000 whilst achieving our policy objectives homes over the next five years We generate value for communities through the provision of quality homes, amenities and infrastructure #MakingHomesHappen
Our Current Landholdings We are one of the Government’s largest landowners • Homes England Land Holdings (hectares) c600 projects / sites at all stage of the development cycle • Around a dozen large strategic sites (Northstowe, Burgess Hill etc.) • We still have value to realise in undeveloped land in contract, developable for former new town land – e.g. South residential uses, 3672 2932 Developable Warrington, Crawley, Peterborough Land, 4351 • Some legacy projects from previous agencies non- developable for non- developable, • C70 sites transferred from other Government residential uses, 679 1281 Departments since 2015 Total – 8564ha #MakingHomesHappen 13
Rationale for our involvement • Supplement not replicate/duplicate the market • We are not a speculator • We are here to facilitate others • Demonstrable market failure -including – of co-ordinations failure eg land fragmentation – public good eg enhancement to wider area – Infrastructure investment – social and physical – peak cash – Market Power – Viability, site size, planning status issues #MakingHomesHappen
Case studies #MakingHomesHappen
18/19 Key Project Achievements King’s School, Macclesfield complex York Central - Planning Application Burgess Hill – Site allocated, planning acquisition. Good progress with new submitted, 1 st phase marketing underway, submitted, HIF grant progressing, school construction & site marketing Business Case for infrastructure submitted partnership and team progressed Blood Centre, Brentwood – Negotiated Northstowe – £49m infrastructure Lea Castle, Kidderminster – planning and uplift from 22 to 55 units with planning, contract delivering, 400 units marketing site enabling success, 650 units marketing Disposal receipt secured £7.02m against progress, MMC office in construction progress. Greenbelt release of c1200 c£2.5m investment #MakingHomesHappen
Kings School Macclesfield • Sale and leaseback terms were agreed for the 3 smaller campuses – however no developer prepared to buy and leaseback the largest site • Homes England acquired largest site (June 2018) and enabled the three other deals to proceed • Technical work undertaken – technical pack, planning brief, soft market testing and opportunity advertised via DPP3 (Nov 18) #MakingHomesHappen
What do we need from you? #MakingHomesHappen
What do we want from you? We cannot deliver alone the 300,000 homes needed each year and we are calling for partners and the wider industry who share our ambition to challenge traditional norms and build better homes faster • Engagement – informal feedback on how we are doing • Your ideas on how to meet our objectives • Participation in opportunities • Supporting our policy objectives #MakingHomesHappen
What does that look like? • We need your specialist skills, advice and capacity . • Our role is to act where the market can or will not and this means many of our sites are difficult or challenging to bring forwards which need good problem solving skills. • Identify opportunities – sites or portfolios that we could support. This isn’t just about buying land, but any situation where the market is struggling to deliver. We have a wide range of tools. • Engage with out Strategic Plan and our objectives . Don’t just do the job, but buy in to our mission – both for the housing market and equality and diversity. • Challenge us to keep thinking differently and improve #MakingHomesHappen
Sussex – Future Activity • Eastbourne • Chichester • Newhaven • Ifield, Crawley • Lewes • Gatwick • Brighton • Burgess Hill • Worthing #MakingHomesHappen
Thank You. Any Questions? #MakingHomesHappen
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