We’ve written to Ministers, northern MPs and Mayors, ahead of the Government’s Spending Review to highlight the urgent need for action to support housing-led regeneration across communities in the North.

The Northern Housing Monitor, our state of the region report, found that 1.2 million homes don’t meet Decent Homes Standards in the North – a disproportionally high 33.8% of England’s total. The problem is most acute in the private rented sector where around 27% of homes do not meet the minimum standard. Almost 25% of the lowest income households are housed in the private rented sector, compared to 18% nationally – suggesting those on the lowest incomes are being forced into substandard homes.

Alongside this our recent research found that 126,000 social homes across the North are reaching the end of their life, and are in need of regeneration. Social housing regulation means social housing providers must prioritise maintenance of existing homes, so finite resources are available for building replacement homes.

The North also has 90,000 long term empty homes. Lower land values in the North mean regeneration schemes are more reliant on grant funding as it is harder to fund schemes based on land value capture or market sale.

Northern Housing Consortium Chief Executive, Tracy Harrison, said: “At the moment, there is no major Government funding to replace ageing homes and revitalise places. This needs to change as housing-led regeneration is essential if we want to address the problems, such as health inequalities, northern communities face due to being disproportionately affected by poor quality homes and places.

“We’re pleased the government has committed to building more new homes, but this must sit alongside replacing homes that are no longer fit to live in. The last Labour Government’s Housing Market Renewal programme provided funding to replace homes and revitalise places – we need to see something similar now.”

The NHC Spending Review submission, which was backed by housing partnerships across the North, called for:

1. The next Affordable Homes Programme (AHP) to continue to support regeneration by permitting up to 30% of the fund to be used for the replacement, refurbishment and acquisition of homes on regeneration schemes. Flexibilities were introduced in the current AHP to allow Homes England to fund ‘replacement’ homes as long as there is an overall increase in the number of units on the site.
2.  A new place-based housing regeneration fund of £1.37bn over 5 years, devolved to Mayors to support:

• selective demolition, replacement or remodelling of properties that are no longer fit for purpose, including on sites that cannot deliver an increase in homes
• property refurbishment and improvements to increase the quality and energy efficiency of properties
• physical improvements to the area including improving connectivity and the overall attractiveness of a place
• activity that will enable regeneration such as acquiring parcels of land or properties sold through the Right to Buy.

This fund could work in tandem with the Government’s ‘Plan for Neighbourhoods’. This would be similar to the last Labour government’s twin-track approach to housing-led regeneration, where a funding programme for physical regeneration (Housing Market Renewal) was accompanied by funding for social infrastructure such as employment support and health initiatives (the New Deal for Communities).

You can find out further information about our Spending Review submission here.

The next Affordable Homes Programme (AHP) to continue to support regeneration by permitting up to 30% of the fund to be used for the replacement, refurbishment and acquisition of homes on regeneration schemes.