Taking stock of housing provision: So much said...but far from being enough!
So much has happened this year with respect to dealing with the UK housing crisis, but much of it has been a lot of talk and very little in terms of impactful action. Like many, I look forward to a 2024 that takes us from all the fantastic ideas debated throughout the course of this year (and prior) to crystalising them for implementation.
Crystalising ideas into viable implementation plans has been the focus of the Councils Building Homes (CBH) initiative spearheaded by Airey Miller over the past 5 years and I am pleased to note that we are already supporting a number of our Local Authority clients in implementing pragmatic initiatives to address their housing provision challenges.
Our 29th November 2023 CBH 13 forum was particularly enlightening in promoting other creative ways in which Local Authorities can unlock their development and regeneration projects even in these austere times. Local Authorities need a step change in their approach to housing provision if they are to eschew wasteful expenditure on temporary accommodation provision. Yes, we are where we are, but we need to move from this spot!
Firstly, we all need to accept that the status quo on individual Local authorities expending (on the average) in excess of £2M/annum on temporary accommodation is not sustainable! It only gets worse with an increasing number of people becoming homeless due to increasing rent levels relative to incomes; reducing availability of private rented homes; and lack of adequate funding from central government.
The solution has to lie in scaling up house building and particularly in the Social Rented sector. To do that will involve, as key drivers, a massive injection of private sector funds via Public-Private-Partnerships (PPPs) & private finance. Plugging in other initiatives such as Build-to-Rent (BtR); Optimising true value for money (VfM) in regeneration & development projects; & a structured retrofit programme will together help scale up housing provision to enable us to turn the tide much quicker in filling the 1.1 million shortfall in social rent homes.
Feedback to polls conducted at CBH13 indicates a clear understanding of the benefits of the initiatives discussed:
100% of respondents see PPPs as a key solution to our housing crisis and that private sector funding can increase overall housing supply;
80% of respondents agree that PPPs can help deliver more social housing and other affordable tenures at scale;
60% agree PPPs have the potential to save local authorities expenditure on temporary accommodation and help reduce temporary accommodation needs.
60% agree that PPPs can help stimulate local and national economy
56% believe their local authority is not getting VfM in their development and regeneration projects
There is work for central government to do here also – including planning reform and I must say, our Land Use Act! Homes England and the GLA initiatives in increasing / expanding funding to replacement homes and the Council Homes Acquisition Programme (CHAP) are laudable. On their own, however, we will not be addressing the housing crisis at the scale urgently required.
So, a good mix of solutions is what is required and best we focus on the most impactful as covered in our CBH13 event.
The current landscape is different from that of the last recession where Housing Associations were able to step in to fill the housing provision gaps. Through 2024, Housing Associations will continue to grapple with the cost of making their homes decent and in dealing with fire remediation works – both of which continue to divert investments away from new housing provisions.
Local Authorities will therefore need to get creative in stepping up to the challenge or continue to expend £billions on temporary accommodation and other housing-related costs. It is a path to nothing, which is why Airey Miller is keen to assist many more Local Authorities with our significant experience and expertise in unlocking development and regeneration projects.
Speak to us to discuss your challenges and requirements. We know there is no “one-size-fits-all solution”, so we will work with you to develop the best solutions – including structuring appropriate Joint Ventures; helping you secure maximum funding (both mainstream and others), workable financial viabilities assessments and in optimising the value of your assets through your development and regeneration projects.
There is so much more we can do together! Let’s go into the action phase in 2024 and start turning the tide on our housing crisis!
Wishing you a more impactful 2024!
‘Kunle Awofeso
