Developers East Sussex 8 th October 2019 Homes England and - - PowerPoint PPT Presentation

Making homes happen

Developers East Sussex – 8th October 2019 Homes England and Government Housing Objectives

Christopher Moore – Head of Development South East

#MakingHomesHappen

“[housing is] one of the central priorities

• f 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 improve construction productivity. We’ll ensure a range of investment products are available to support housebuilding and infrastructure. We’ll unlock public and private land where the market will not. We’ll create a more resilient and competitive market We’ll offer expert support for priority locations We’ll effectively deliver home

• wnership 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

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Burgess Hill – Site allocated, planning submitted, 1st phase marketing underway, Business Case for infrastructure submitted Northstowe – £49m infrastructure contract delivering, 400 units marketing progress, MMC office in construction

We are already working differently

Barclays Housing Delivery Fund – Barclays is providing £875m and Homes England £125m with a key priority to support SME developers Housing Association Strategic Partnerships - we have entered into 23 partnerships to deliver an addition 39, 400 homes by March 2022

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“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

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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 ensure successful delivery tomorrow

• We’re recruiting to ensure we have the expertise

necessary and intend to have doubled in size

£2bn

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.

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#MakingHomesHappen

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 have an ambition to develop c60,000 homes over the next five years We identify land suitable for housing that is unattractive or commercially unviable for the market to develop We use our investment to enable the site for housebuilding, accelerating the supply of homes whilst achieving our policy objectives We generate value for communities through the provision

• f quality homes, amenities and infrastructure

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Our Current Landholdings

We are one of the Government’s largest landowners

• 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

former new town land – e.g. South Warrington, Crawley, Peterborough

• Some legacy projects from previous agencies
• C70 sites transferred from other Government

Departments since 2015

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Total – 8564ha

non- developable, 1281 land in contract, 2932

developable for residential uses, 3672 developable for non- residential uses, 679

Developable Land, 4351

Homes England Land Holdings (hectares)

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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

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Case studies

#MakingHomesHappen

York Central - Planning Application submitted, HIF grant progressing, partnership and team progressed King’s School, Macclesfield complex

• acquisition. Good progress with new

school construction & site marketing Lea Castle, Kidderminster – planning and site enabling success, 650 units marketing

• progress. Greenbelt release of c1200

Blood Centre, Brentwood – Negotiated uplift from 22 to 55 units with planning, Disposal receipt secured £7.02m against c£2.5m investment Burgess Hill – Site allocated, planning submitted, 1st phase marketing underway, Business Case for infrastructure submitted Northstowe – £49m infrastructure contract delivering, 400 units marketing progress, MMC office in construction

18/19 Key Project Achievements

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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)

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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

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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

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Sussex – Future Activity

• Eastbourne
• Newhaven
• Lewes
• Brighton
• Worthing
• Chichester
• Ifield, Crawley
• Gatwick
• Burgess Hill

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Thank You. Any Questions?