NHC writes to Ministers to highlight urgent need for housing-led regeneration in the North

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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.

Northern Housing Monitor finds urgent action needed to address housing crisis in the North

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Our new state of the region report has been launched in parliament at an event attended by Northern MPs, members, government officials and other stakeholders.  

This year’s Northern Housing Monitor revealed the urgent need for more social housing in the North. It found that there are nearly 500,000 households on social housing waiting lists in the North – a 13 per cent increase on the previous year.  The number of households forced to live in temporary accommodation is also rising fast with a yearly increase of around 16%, with over 14,000 children in the region living in temporary accommodation. 

600,000 social rent homes in the North have been sold though Right to Buy and only 1 in 7 have been replaced. This contributes to a lack of social housing, increasing homelessness and people in the lowest income group being forced to rent in the private sector where rents are higher and quality is lower. A quarter of people renting privately in the North fall into the lowest income bracket and 1 in 3 children in the North live in households that are pushed into poverty after housing costs.

The Government has committed to the “biggest growth in social and affordable housebuilding in a generation” with an ambitious target of building 1.5 million homes – 370,000 homes per year. This has subsequently seen housebuilding targets increase by 52 per cent in the North. However, the previous Government’s targets were exceeded in the North, so to hit the new targets the delivery of new homes in the North needs to increase by 27 per cent. 

The report revealed that as well as a need for more social housing, there is the twin challenge of a need to regenerate our communities with around 27 per cent of private rented homes in the North not meeting current Decent Homes standards. Rates of demolition in the North have dropped by around a quarter since 2019/20 suggesting the worst quality homes are not being replaced.

Tracy Harrison, Chief Executive, Northern Housing Consortium said: “Housing waiting lists are increasing and the number of people forced into expensive and unsuitable temporary accommodation is skyrocketing. 3.6m people in the North are pushed into poverty after housing costs, demonstrating the urgent need for more social housing.  

“Housing associations and councils are ready to deliver the homes their communities need and to contribute to Government housebuilding targets and economic growth, but to do this they need the right resources. The Government recently announced a £2 billion top up of the Affordable Homes Programme, something we’d been campaigning for to enable our members to continue building. However, to make a real change, longer term funding is needed to build more homes and improve existing homes and places. Lower land values make building in the North more affordable. We are leading the way with devolution, which means in many areas there is already the infrastructure and collaboration in place to better target funding.  

“It is vital that action is taken urgently to make sure that everyone in the North has access to a good quality, safe home. I’m optimistic that with the right support from Government, the social housing sector in the North can make a real difference.”

To make sure everyone in the North has a good quality safe place to call home,  we’re calling on the Government to:  

  • Launch a new ten-year affordable homes programme announced at the Spending Review:  
  • With flexibility to support housing led regeneration schemes, so outdated homes that are not fit for purpose can be replaced by new homes that meet the needs of communities. 
  • Greater devolution of funding to make sure it is targeted effectively to meet local needs.  
  • Targeted support for local authorities to ensure they are set up to build new council homes.  
  • A dedicated funding stream of at least 1.37 billion over 5 years to support housing-led neighbourhood regeneration in the North.  
  • This would run alongside the recently announced Plan for Neighbourhoods, which supports social regeneration in specific towns.  
  • Unlock up to 320,000 homes on brownfield land in the North through a ten-year £4.2 billion programme to remediate all the North’s brownfield land.  
  • Make quality a priority: 
  • Confirmation of the new Decent Homes Standard and the right financial support to make sure existing homes meet the new standard. 
  • Continued investment in energy efficiency, which lowers bills for tenants and improves quality of homes.  Previous NHC research found £500 million of retrofit funding per year up to 2030 is needed for the North to upgrade all social homes to EPC band C, and from 2030 to £1 billion per year is needed to accelerate the decarbonisation of the North’s homes. 
  • Devolved combined funding for housing quality and energy efficiency so social housing providers can work more efficiently, and the funding is targeted where it’s needed most.   
  • Support for local authorities to drive improvements in the private rented sector. 
  • Make sure that housing associations and local authorities have the financial stability needed to invest in new homes. 
  • A ten-year rent settlement at CPI plus one, with the option of rent convergence where needed.  

The Northern Housing Monitor, our annual state of the region report is produced by Arc4 and supported by believe housing, Bernicia and Yorkshire Housing. It covers housing and poverty, housing supply, housing quality and regeneration, and net zero and fuel poverty. It is available on the NHC website, alongside the Northern Housing data bank.

Speakers at the parliamentary event included Member of Parliament for Huddersfield Harpreet Uppal, Lord Best OBE DL, Director, Social Housing at Ministry of Housing, Communities and Local Government Emma Payne,  Chief Executive of Bernicia Homes John Johnson, and the NHC’s Tracy Harrison.  

Showcasing improvements to home quality and safety in Huddersfield with Harpreet Uppal, MP

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We visited Kirklees Council’s Buxton House in Huddersfield with MP for Huddersfield, Harpreet Uppal. Kirklees Council is investing £16m on the tower block to refurbish and remodel the building, with improvements to fire safety, energy efficiency and quality of the homes.

Kirklees Council have developed the ‘Huddersfield Blueprint’, a ten-year vision to create a thriving, modern-day town centre. The work to improve Buxton House aligns closely to the aspirations of the Blueprint, particularly around improvements to the appearance and contribution to sustainable and affordable town centre living.

The project will result in 46 new one and two bed affordable apartments, meeting modern building regulations and designed to link to the proposed Huddersfield Heat Network.

We are keen to continue to highlight the fantastic work our members are doing across the North to build new homes, improve the quality of existing homes, and reach net zero targets – please get in touch in your organisation has a project you would like to showcase (josef.bews@northern-consortium.org.uk).

Housing Minister announces £2 billion of new Affordable Homes Programme funding

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On 25th March, the government announced a £2 billion top up and one year extension for the Affordable Homes Programme, aiming to deliver a further 18,000 new social and affordable homes. Following this, the Housing Minister, Matthew Pennycook, has written to all housing association chief executives, through the Northern Housing Consortium, National Housing Federation and other sector bodies.

The Minister’s letter confirms that the majority of this new funding will be allocated for the financial year 2026/27, will be delivered under the terms of the current 2021-26 Affordable Homes Programme, and will prioritise the delivery of new homes for social rent. This means that this new funding will be able to benefit from the regeneration flexibilities introduced to the current programme in 2023, which allow grant funding to fund replacement homes on regeneration schemes where there is a net addition of homes overall.

The Minister also confirmed that the Spending Review “will set out the full details of a new grant programme to succeed the 2021-26 Affordable Homes Programme”, and that this will include further grant funding for new homes for both 2026/27 and subsequent years. This new funding, therefore, will act as a bridge between the current Affordable Homes Programme and its successor.

The full letter can from the Housing Minister can be found here.

In response to the announcement, Tracy Harrison, Chief Executive of the Northern Housing Consortium, said:

“We called for immediate action in the Spring Statement on the Affordable Homes Programme, so this £2 billion top up is very welcome. It will mean our members can continue to build much needed social homes at a time when housing waiting lists and homelessness are rising in the North. We are pleased that even in challenging times the Government is prioritising making sure everyone has a good quality, affordable, safe home.

“We look forward to details of the new longer-term programme at the Spending Review in the summer. We have called for the new fund to have a greater role for Mayoral Combined Authorities so there is more flexibility to meet local needs, something the Government indicated they are looking at in the English Devolution White Paper. To meet the needs of communities in the North regeneration and housing quality must also be a priority. This includes flexibility with affordable homes funding so it can be used to replace poor quality existing homes and a separate £1.37 billion fund over 5 years to support housing led neighbourhood regeneration in the North.”

You can read the NHC’s full Spending Review submission here.

Understanding the need for regeneration in the North – member research

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To better understand the issues related to the North’s ageing homes and the need for future regeneration funding streams, we surveyed a group of housing association members. The findings have been shared directly with the Ministry of Housing Communities and Local Government (MHCLG), and they also formed part of our Spending Review submission to the HM Treasury.

Responses to the survey came from housing associations that collectively own and manage approximately 340,000 Low-Cost Rental Accommodation homes with representation from each of the three northern regions. The size of landlord respondents ranged from 9,000 to 49,000 homes, with the largest provider having some operations outside of the North.

Executive Director of Policy and Public Affairs Patrick Murray said: “We know regeneration is a real need for communities across the North and that members face some big challenges around homes coming to the end of their life and places in need of renewal. It’s vital we understand the scale of this so we can put forward a strong case to Government for housing-led neighbourhood regeneration.

“We have met with MHCLG officials several times to discuss the survey results and are providing further information to support their Spending Review work. The Housing Minister Matthew Pennycook raised these issues at a recent event, so we know it’s gaining prominence with Government.”

Key findings are below, or you can read a summary report here.

Key takeaways:

  • Of the c.340,000 homes owned and managed by respondents, it is believed that around 6,450 (1.9%) will be unable to remain compliant with emerging regulatory requirements between now and 2030 due to physical or structural constraints, so will need to be replaced. Applied to the North of England more widely, an estimated 25,500 social homes would fall into this category.
  • Certain property archetypes are more likely to fall into this category. This includes pre-1919 housing, listed buildings, non-traditionally built stock and twentieth century high-rise blocks of flats, including those built using Large Panel System (LPS) construction, that will struggle to achieve EPC Band C.
  • Of the c.340,000 homes owned and managed by respondents, around 11,900 (3.5%) will meet one or more of three ‘end of life categories’ in the next five years. Applied to the North of England more widely, this would be 46,952 social homes in total. This rises to 7.6% or 101,757 homes when the timeframe is extended to the next 10 years. End of life categories include homes that would not meet regulatory requirements, are not finically viable or homes located in an area in need of regeneration.
  • Of the 11,900 homes identified as approaching ‘end of life’ in the next five years, 4,507 (38%) were identified as being in sites where densification would be possible. However, densification was not always a desirable outcome, for example, where providers wish to replace low-demand, outdated bedsits or other small properties with family homes in an area with high demand for larger homes. To address this there will need to be flexibility with net additionality requirements of grant programmes to enable housing providers to meet the needs of the community in their area.
  • A relatively small number of homes, especially twentieth century high rise blocks of flats, are causing significant financial issues for housing providers due to exceptionally high repairs and maintenance costs. It is likely that these homes will be impossible for the landlord to maintain into the future.
  • Of the c.340,000 homes owned and managed by respondents, 9.4% were deemed to be in an area in need of physical regeneration. Applied across the North of England, this would be 126,012 homes in total.
  • The social housing sector needs long term certainty about future funding and policy to plan. As part of our Spending Review response the NHC called for a £1.37 billion fund over 5 years for housing-led neighbourhood regeneration in the North. For the sector to be able to deliver good quality homes and be financially stable this must sit alongside, flexibility in the Affordable Homes Programme to support regeneration, confirmation of the new Decent Homes Standard and the right financial support to improve quality and energy efficiency of homes.

NHC responds to £300m Affordable Homes Programme top up announcement

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The Northern Housing Consortium (NHC) has welcomed the £300m Affordable Homes Programme top announcement but flagged the urgent need for a new longer-term fund.

Chief Executive of the Northern Housing Consortium Tracy Harrison said:

“Many of our members have reported that the £500m top up announced in the Autumn Budget was running out, so this extra £300m of funding is welcome news. With housing waiting lists growing fast in the North and over 12,000 households living in temporary accommodation we desperately need more social housing.

“However, we need a longer-term affordable homes programme to be announced as soon as possible, ideally as part of Chancellor’s statement on 26th March. The affordable housing development process is complex, and our members say it normally takes two to three years from obtaining a grant agreement from Homes England to completing a development. The lack funding certainty over the next few months risks identified sites not being progressed and puts government housebuilding targets at risk.”

The government announcement also features plans to:

  • £50 million increase to the Local Authority Housing Fund to provide homes for those in need of better-quality temporary accommodation.
  • Crack down on exploitative behaviour by rogue and criminal supported housing landlords – further details are expected shortly.

 

NHC joins Housing Minister and Business Secretary for discussion on planning reform

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Our Chief Executive Tracy joined a roundtable discussion on reforms to the planning system with Secretary of State for Business and Trade Jonathan Reynolds MP and the Housing Minister Matthew Pennycook.

Tracy emphasised that the North is open for business, highly collaborative, and ready to help the government achieve its growth missions – including building 1.5 million homes. She also stressed the importance of a new Affordable Homes Programme being bigger to deliver on the government’s new homes target and structured in a way that delivers maximum benefits to northern communities. This includes provision for regeneration to tackle housing quality alongside homelessness, and devolution of funding so it can be targeted where it’s needed most.

In December, the Ministry of Housing, Communities and Local Government (MHCLG) published a revised National Planning Policy Framework (NPPF) having consulted on reforms to the planning system earlier in the year. You can read our response to the consultation here.

The government ministers also confirmed that the Planning and Infrastructure Bill would be introduced in the coming weeks.

Long Term Plan for Housing Roundtable

Our Executive Director of Policy and Public Affairs Patrick Murray attended a roundtable hosted by the National Housing Federation and Chaired by senior MHCLG civil servants, to discuss the Long Term Plan for Housing.

Patrick highlighted that devolution is a real opportunity to deliver on housing ambitions and that the North is ready to work collaboratively to ramp up delivery. He also said that housing-led regeneration should be central to the Long Term Plan for Housing, and that funding should be made available to support this.

NHC Spending Review response – regeneration alongside longer term funding and more local control priorities for the North 

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Building on extensive engagement with members and Government, we have submitted a detailed response to His Majesty’s Treasury’s call for feedback on government spending priorities ahead of the Comprehensive Spending Review.  

Our response sets out the role of housing providers in the North in unlocking economic growth and supporting the Government to deliver real change. It highlights the unique opportunities and challenges for members and communities in the North.  

Our submission covers the importance of: 

  • Housing-led regeneration as a priority for the North, alongside investment in new and existing homes. 
  • Introducing longer term funding with more local control and flexibility, which builds on the North leading the way with devolution and genuinely enables delivery across different housing markets. 
  • Giving local and combined authorities the right resources to make a difference. 
  • Supporting social housing’s role in making Britain a clean energy superpower 

Chief Executive of the Northern Housing Consortium Tracy Harrison said:  

“The social housing sector in the North is ready to act. We sit at the heart of devolution and have a strong track record of collaboration. We can go further and faster in our bid to tackle the housing crisis, and deliver economic growth, with the right support from the Government. 

“Housing quality is a big issue in the North, affecting the health and wellbeing of thousands of Northerners, particularly in the private rented sector. Regeneration must be at the front and centre of government policy, alongside building new homes. Our spending review submission calls for a dedicated funding stream of £1.37 billion over 5 years for place-based renewal, alongside continuing flexibility in a new Affordable Homes Programme to support regeneration.  

“Our members are regulated on the quality of their homes and their service to customers so rightly must prioritise finite resources to these areas. This means that long term funding for improving existing homes and places will unlock more investment and capacity for building new homes.  

“The spending review should embrace recommendations in the English Devolution White Paper and deliver more local control of funding. The North is leading the way with devolution and ‘one size fits all’ centralised funding pots often do not meet the diverse needs of Northern communities. The Government should also review how it measures value-for-money to capture the widest possible social and economic benefits and unlock more delivery in the North. We have also strongly advocated for local authorities to receive the right level of investment to take a leading role in tackling the housing crisis in their area. 

“Housing Partnerships across the North have fed into and supported our spending review submission. If Government wants to make quick progress on its housing priorities, working with the NHC and our members will unleash established partnerships that are ready and willing to deliver on the government’s housing and growth agendas.” 

The outcome of the Spending Review will be announced this summer and will set budgets departmental budgets for future years. In the run up to this we will continue to engage with politicians and civil servants highlighting how the housing sector in the North can work in partnership with the Government to achieve shared objectives.  

You can read the full response or our executive summary here.  

If you would like to discuss this submission further or be part of follow up work contact:  

Patrick Murray, NHC Executive Director Policy & Public Affairs 

Email: patrick.murray@northern-consortium.org.uk   

The Northern Housing Consortium spending review submission has been backed by the Housing Partnerships across the North. A big thank you to:  

  • Greater Manchester Housing Providers 
  •  Liverpool City Region Housing Associations 
  •  North East Housing Partnership  
  • South Yorkshire Housing Partnership 
  •  Tees Valley Housing Partnership 
  •  West Yorkshire Housing Partnership  
  • York and North Yorkshire Housing Partnership.