By Neil Merrick
2 October 2009
Grant rates for new development schemes are set to fall as part of the squeeze on public spending.
Richard Hill, director for investment and renewal at the Homes and Communities Agency, warned that the extra ‘flexibility’ over grants offered by the HCA following the credit crunch was unlikely to continue much longer.
Instead, the agency expects schemes put forward by RSLs and other developers to show value for money by reflecting lower land and construction costs. ‘Bidding under the National Affordable Housing Programme is becoming much more competitive than a year ago,’ said Hill.
At the same time, it was becoming easier to borrow from private lenders.
‘Long-term money is available in a way that it wasn’t 12 months ago,’ he said. ‘Lending margins are better, but nowhere near where they were pre-crunch.’
A consultation paper due from the HCA later this year will suggest that homes built for low-cost ownership schemes should be funded on an investment basis, with the agency retaining a stake in properties as their values rise. Grants would continue for social rented housing.
Later, housing minister John Healey announced that RSLs and other developers would no longer be eligible for grants through the NAHP and other programmes unless they offered apprenticeships. Many already had training schemes in place, he said.
NHF chief executive David Orr said the federation would work with ministers to increase the number of apprenticeships offered by housing associations. However, the costs would have to be fully reflected in grant contracts.
Healey also called for more associations to back the government’s mortgage rescue scheme. To date, 23 are taking part in the scheme, under which struggling homeowners can sell their home and rent it back as tenants.
RSLs are to receive extra grants to improve the condition of properties.
The NHF’s pre-election manifesto called for £11.7bn to enable associations to build 150,000 homes between 2011 and 2014. It also wants more transparent allocation of social housing.
2 October 2009
Grant rates for new development schemes are set to fall as part of the squeeze on public spending.
Richard Hill, director for investment and renewal at the Homes and Communities Agency, warned that the extra ‘flexibility’ over grants offered by the HCA following the credit crunch was unlikely to continue much longer.
Instead, the agency expects schemes put forward by RSLs and other developers to show value for money by reflecting lower land and construction costs. ‘Bidding under the National Affordable Housing Programme is becoming much more competitive than a year ago,’ said Hill.
At the same time, it was becoming easier to borrow from private lenders.
‘Long-term money is available in a way that it wasn’t 12 months ago,’ he said. ‘Lending margins are better, but nowhere near where they were pre-crunch.’
A consultation paper due from the HCA later this year will suggest that homes built for low-cost ownership schemes should be funded on an investment basis, with the agency retaining a stake in properties as their values rise. Grants would continue for social rented housing.
Later, housing minister John Healey announced that RSLs and other developers would no longer be eligible for grants through the NAHP and other programmes unless they offered apprenticeships. Many already had training schemes in place, he said.
NHF chief executive David Orr said the federation would work with ministers to increase the number of apprenticeships offered by housing associations. However, the costs would have to be fully reflected in grant contracts.
Healey also called for more associations to back the government’s mortgage rescue scheme. To date, 23 are taking part in the scheme, under which struggling homeowners can sell their home and rent it back as tenants.
RSLs are to receive extra grants to improve the condition of properties.
The NHF’s pre-election manifesto called for £11.7bn to enable associations to build 150,000 homes between 2011 and 2014. It also wants more transparent allocation of social housing.
