Lessons from Elsewhere Growth & Development in the South West - - PowerPoint PPT Presentation

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Lessons from Elsewhere

Growth & Development in the South West

Barbara Richardson Executive Director Growth & Investment

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Introduction…

• Setting the scene
• Issues to consider
• Potential solutions
• Kingsdown, Bridgewater

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Setting the scene…

• Average House prices
• Average Income
• Average age of FTB
• No of homes built

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NHF Statistics for 2013

• Average house price

£241,300

• Average Regional income

£19,573

• House price 11.5 x income
• 21,500 new households

formed

• 13,460 new homes built in

2013-2014

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Issues to consider…

• Access to Finance
• No of organisation building

new homes

• Planning Process
• Employment Opportunities
• Transport & Infrastructure

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Regional summary of labour markets…

Headline estimates for October to December 2013

Economically active Employment Unemployment Economically inactive Aged 16+ Aged 16-64 Aged 16+ Aged 16-64 Aged 16+ Aged 16+ Aged 16-64 Aged 16-64 Level Rate (%)2 Level Rate (%)2 Level Rate (%)3 Level Rate (%)2 1 2 3 4 5 6 7 8

North East 1,304 75.1 1,174 67.4 130 10.0 423 24.9 North West 3,423 74.9 3,146 68.6 277 8.1 1,117 25.1 Yorkshire and The Humber 2,781 78.0 2,541 71.2 240 8.6 763 22.0 East Midlands 2,328 78.1 2,166 72.6 162 6.9 631 21.9 West Midlands 2,712 75.7 2,486 69.2 226 8.3 835 24.3 East of England 3,141 80.4 2,961 75.7 180 5.7 734 19.6 London 4,352 77.6 4,001 71.3 351 8.1 1,224 22.4 South East 4,596 80.8 4,362 76.6 233 5.1 1,049 19.2 South West 2,736 79.8 2,559 74.6 177 6.5 664 20.2 England 27,373 78.0 25,396 72.3 1,977 7.2 7,440 22.0 Wales 1,492 76.3 1,387 70.8 105 7.1 447 23.7 Scotland 2,751 78.5 2,556 72.8 195 7.1 732 21.5 Great Britain 31,617 78.0 29,339 72.3 2,277 7.2 8,619 22.0 Northern Ireland 871 73.1 807 67.6 64 7.4 313 26.9 United Kingdom 32,488 77.9 30,146 72.1 2,342 7.2 8,932 22.1

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Unitary County/District

• Legislation
• Planning framework
• Funding
• Statistical analysis
• National v Regional

infrastructure

• Plus lots of non-

housing functions

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Potential Solutions…

• Help to Buy Scheme
• Flexible Tenures
• PRS
• LEP’s
• Joint Venture

Partnerships

• Proactive Planning
• New Homes bonus

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Help to buy v shared ownership…

Help to Buy Shared Ownership (50% share) Equity Loan Mortgage Guarantee Value of property £200,000 £200,000 £100,000 Deposit required (%) 5% 5% 5% Deposit required (£) £10,000 £10,000 £5,000 Household income required (x 3.5 multiplier) £42,857 £54,285 £27,143 Interest rate* 2.39%* £4.99%* 4.99%* Mortgage term 25 yrs 25 yrs 25 yrs Monthly mortgage payment £660 £1,110 £561 Monthly rent payment £0 £0 £229 Total monthly costs £660 £1,110 £790

*Lowest available rates (2/1/2014)

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Potential Solutions…

• Housing benefit currently costs taxpayers £24bn

a year and most of it goes to private landlords rather than towards building new homes.

• For a fraction of that, the Government could

support areas experiencing economic growth by building more affordable homes.

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Aerial view of Kingsdown

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Development overview

• Issues –

– Infrastructure timing – Ground Conditions – Planning s.106 contributions – Low value area – High build costs

• Solutions –

– Re negotiated triggers – Temporary change

• f use – planning

– Cash flow of contributions – Re-appraise viability

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Kingsdown

• Largest kick-start £8m
• Gov. funding to start site
• Phase 1 - 200 affordable

units part of 1,000 site

• Keeping economy moving

and providing homes

• Tenure and clustering

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EDF – Hinckley Point – Power Station…

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Summary

• Government central/local
• Need for housing
• Role of Registered

Providers

• Financing low cost homes
• Kingsdown and EDF
• Role of Developer and

land owner

• Standards of new homes
• Tenure

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Questions?

Barbara.richardson@yhg.co.uk