Local Investment Planning - Learning lessons and a view of the future.

10 November 2011

Phil StephensDevelopment and Commercial DirectorSovereign HA

Local Investment Planning - Learning lessons and a view of the future.

West of England Partnership

• Established Group with established working arrangement with a defined lead

• HA’s brought into the LIP process quite late• Perception that it was quite planning driven• Large strategic sites were being prioritised.• All happening in an environment where Government

were putting in substantial levels of grant funding to keep housebuilding active.

Local Investment Planning - Learning lessons and a view of the future.

HA Input to LIP Process• Sovereign and Arcadia (PS/NH) – about 14 other

businesses requesting updates• Major concern over deliverability of large strategic

sites• Concern that large sums of grant could be withheld

to feed the strategic sites.• Instigated joint meetings with developers and land

owners• Developed idea of “Suburban Intensification” for

“Traditional HA sites”• Excluded from discussions around investment

“allocations”

Local Investment Planning - Learning lessons and a view of the future.

Affordable Rent Programme

• Along came CSR and the Affordable Rent Programme

• Introduced after LIP process• Reduced grant levels – Serious doubt over scheme

deliverability• LA’s staying firm on nil grant S106 – target rent

policy• Lack of grant on strategic S106 sites – reducing

“affordable” numbers following “viability” challenges• LIP priorities need to be reviewed…….….but no

further meetings

Local Investment Planning - Learning lessons and a view of the future.

Moving Forward• Affordable Rent moves goal posts• Financial strength of HAs key to delivery• Alternative sources of funding required – capital

markets?• Cross subsidy and mixed use necessary to create

viable projects but market conditions creating higher risk.

• Good HA sites lying fallow – grant risk too high• Joint venture potential but needs “a market”

Local Investment Planning - Learning lessons and a view of the future.

Moving Forward• Greater access to affordable mortgages for shared

ownership• Greater use of public land• HCA/LA to share abortive costs of pre-planning and

pre-construction• HCA steer on supportable levels of investment.• New initiatives needed – Growing Places Fund for

LEP’s, another kickstart??• What happens post March 2015

Local Investment Planning - Learning lessons and a view of the future.

Thank you