JLL Joins the Northern Housing Consortium

We are delighted to have joined the NHC having heard so many positive views relating to the platform and forum it provides our northern Registered Providers, Housing Associations and Local Authorities.

JLL have worked in the social housing sector for over 25 years, keeping pace with massive financial, political and social change. What has been most apparently clear over this time is the importance of sharing knowledge and the real benefit a collaborative approach can bring to those operating within the sector, certainly when trying to navigate the many challenges presented along the way. With this in mind, we are keen to engage across the various channels that NHC offers.

The last few years have brought unprecedented change which has had a profound impact on our businesses – Brexit, the pandemic, fire safety, the acceleration towards decarbonisation, real challenges around the quality of some homes and customer service, and the return of inflation. As if all that wasn’t enough, the continual political drive to push home ownership without any real workable solutions presented to address the stock replacement conundrum, only adds to the list. Cynical views aside, only time will tell how this latest government initiative plays out.

All this puts pressure on how providers are financed to meet these challenges, and therefore on assets – not only value, but also long-term cost and the need for active asset management.  For RPs of all types and sizes, how well they understand their assets, and how they decide to use them to best effect to meet the needs of residents and fulfil their social purpose in a way that is truly sustainable, will be pivotal to their success.

Here at JLL we advise RPs of all types, funders, investors and developers, to help our clients optimise the value of social housing and commercial assets for lasting, social purpose.  We provide a national service offering supported by regional networks, with a specific Affordable Housing northern presence in Leeds, Newcastle and Manchester. Our services include valuation, asset management, portfolio transactions, development consultancy, building surveying and project management. As a result of some of the insights we are afforded, we hope to add some value to your ongoing discussions, providing support where we can but also learning from those directly involved in the sector as it continues to evolve.

We look forward to meeting many of you over the coming months, but in the meantime if any members would like to direct any questions to us, please do not hesitate to get in touch. On a separate note, any suggestions for any roundtable topics or CPD items we can lead on, please do let us know.  We are very much hoping we can provide a different perspective, or at very least another voice to the discussion.

Richard Houghton Marc Burns Richard Petty
Head of Affordable Housing Loan Security Valuation North Co-Head of Affordable Housing Loan Head of UK Living – Valuation Advisory
+44 (0)7764 327018 +44 (0)7792 309183 +44 (0)7767 413631
richard.houghton@eu.jll.com marc.burns@eu.jll.com richard.petty@eu.jll.com

 

Pride, Belonging, and what it can mean for NHC members

Since we first became familiar with the term ‘Levelling Up’, debate has centred on how the Government’s flagship agenda would strike the balance between innovation and infrastructure, and the desire to shift attention to our smaller towns and rekindle community identity. So it was, with the publication of the Levelling Up White Paper, that the Government set out 12 defining missions focused on, yes, productivity and ‘globally competitive cities’, but also on improving local agency and restoring pride and belonging. What Andy Haldane, the White Paper’s central architect, described as Levelling Up’s core function to address both ‘low-growth’ and ‘low life satisfaction’.

Terms like ‘pride’ and ‘life satisfaction’ don’t necessarily fit well with the White Paper’s emphasis on data, monitoring, and evaluation. As much has already been admitted, Will Garton, the Director General for Levelling Up at DHLUC, described the missions covering wellbeing and pride as ‘deliberately exploratory’, and not the kind of metrics that can measured in the same way as broadband rollout. The Government is in listening mode to get this right.

Many are answering this call, the Levelling Up agenda has also developed a new network of academics and policy makers focussing on areas perceived as ‘left behind’ and grappling with issues like civic identity and an areas’ ambitions.

Last year UCL published their report Sacriston: towards a deeper understanding of place, an exploration of the perceived and actual needs and aspirations of those that make up the North East ex-mining village. The Universities of Southampton and Sheffield have directly looked to address Levelling Up’s pride problem with their project Feeling Towns: the role of place and identity in governance and local policy, an attempt to gain a greater understanding of civic pride and place attachment and the roles they play in regeneration strategies. Finally, We’re Right Here, a campaign supported by organisations including Power to Change, New Local, and the JRF, takes inspiration from the Mutual Aid support groups that sprung up during the Covid Pandemic to call for a Community Power Act based on good practice from neighbourhoods across the country working toward success on their own terms.

There is also an important role to play here for Northern Housing Consortium members. After all, it is within the mission to restore a sense of community that we find targets around improving home ownership and improving housing quality. As we’ll be underlining at our 14th July Levelling Up Conference, housing providers have a central role to play in working collaboratively across areas and sectors to support thriving neighbourhoods, including empowering and working with communities directly. Whilst focussing on Net Zero, the Social Housing Tenants’ Climate Jury also showed the enthusiasm tenants have for their areas and how, given the chance, active stewardship of neighbourhoods could also be a shared stewardship between tenant, landlord, and other anchor institutions; harnessing new green industries to Level Up areas into more environmentally sustainable, happier, healthier places. This work also plays into the Social Housing White Paper agenda concerning access to, and quality of, green spaces.

In the coming months the NHC will be thinking more about how innovative engagement methodologies can be used to bring our communities into the heart of the discussion on what improving pride and belonging means for Levelling Up success: How can we better understand our resident’s perspective on pride in place at a neighbourhood level? What factors affect the pride they feel? And what influence do NHC members, as builders and custodians of neighbourhoods, have over improving this sense of belonging?

We’d love to carry on the conversation with you and hear about any plans you have in place or ambitions you hold for future work connected to this agenda. Over the course of the next year, we hope to work with a small number of NHC members to identify innovative methodologies that will allow us to truly listen to residents and understand what housing organisations can do at neighbourhood level to develop pride in place.

If you’d be interested in exploring this with us, or have learning you’d like to share, please contact Brian Robson at the NHC : brian.robson@northern-consortium.org.uk

Together we hope NHC members can develop a community of learning that can both centre the needs and ambitions of northern communities and ensure housing’s vital contribution to the Levelling Up is recognised and valued.

What did Boris Johnson announce on housing in his speech in Blackpool today?

Today’s speech was delivered during a tough week for the Prime Minister, following the vote of no confidence in his leadership on Monday which he won by a smaller margin than he was anticipating. Political commentators now see Boris Johnson on a mission of political revival ahead of the two by-elections this month (Wakefield and Tiverton), including the delivery of today’s housing policy speech at Blackpool and the Fylde College. On housing, his speech focused on expanding home ownership for those living in housing association homes and for those on low incomes. Here’s what Johnson announced:

 

Extending the Right to Buy to housing association tenants

The expansion of Right to Buy to housing associations was heavily trailed in the run-up to today’s speech where Johnson confirmed Government intend to go ahead with the policy. It is expected that discounts of up to 70% will be available to those living in housing association homes.

Johnson said he wants to give greater freedoms to housing association tenants to buy their homes and said Government are planning to work with the sector over the coming months to bring the new scheme forward “within existing spending plans”.

Extending Right to Buy (RTB) to housing association tenants is not a new Conservative Party policy, it was first suggested by David Cameron and then Theresa May but it has been continuously dropped. Now Boris Johnson is dusting it off once again.

In an interview this morning, Michael Gove confirmed that the scheme would be capped initially and grown over time, stating each home sold will be replaced “like for like, one for one”, which was echoed in Johnson’s speech this afternoon. Under May’s Government, a voluntary scheme in the West Midlands was piloted to test the policy’s feasibility, it showed that replacement homes would likely include more shared ownership properties with fewer for rent. This is a huge risk to the already low level of socially rented homes across the country, especially with the knowledge that only around 5% of the homes sold under RTB so far have been replaced, despite government commitments.

Across the North, there are supply concerns due to expected low value sales receipts in many areas not being able to cover the costs of delivering new replacement social homes. The Northern Housing Monitor shows the shortfall of social homes when comparing average annual affordable home completions in recent years against identified need is -81.3%, the largest shortfall in provision across affordable home types in the region:

Michael Gove has recently said that we need to be building more social homes and bringing a new RTB policy forward now puts this ambition at risk, signalling there may be a degree of disconnect between DLUHC and Number 10. Though the detail has not yet been revealed, the West Midlands pilot estimated a national roll-out of the policy would cost Treasury around £15bn over a decade to cover the discounts – a high figure that could be used elsewhere to achieve the Government’s existing housing commitments, such as the levelling up mission to improve housing quality and achieving net zero targets by bringing social homes up to Energy Performance Certificate (EPC) Band C (the energy efficiency benchmark) by 2030.

There are also concerns around housing quality: historically, RTB has led to the sale of the most attractive social homes in higher demand areas, with those who cannot afford to buy a property left with reduced choices. Over the long-term, depleted social housing stock could see further demand shifted to the private rented sector and rising numbers of homelessness.

The NHC’s housing association members are already facing enormous pressure to deliver on important but competing agendas: increasing the supply of good quality, sustainable, affordable homes; retrofitting existing homes to reduce carbon emissions and reduce household energy bills; and delivering on building safety. Though Michael Gove has confirmed this new policy will not affect the Affordable Homes Programme, there are concerns around how housing associations’ resources will be impacted by it.

We await further details to be published by Government about how this could be taken forward in practice.

 

Mortgages for housing benefit recipients

Another key announcement was also about expanding home ownership, coining a new slogan ‘Benefits to Bricks’. This would see those receiving housing benefit able to use that income to apply for a mortgage, switching the stream of housing benefit from rent to mortgages.

Johnson made reference to the level of housing support (£30bn) currently “being swallowed” by private landlords and housing associations through rents and the potential to change rules on welfare so “working people” can start to put housing benefit towards a mortgage.

There are questions here about how this would work in practice, especially around households’ ability to save for a deposit with the capital limit for means-tested benefits being £16,000 and any savings above £6,000 being treated as income, therefore reducing the level of income received.

With the surging cost-of-living, it’s also difficult to see how the Government can envision people at scale being able to save a deposit to buy a home, even in areas with lower value properties. There are further affordability concerns about how low-income households will be able to maintain their homes in the long-term and the impact of this on levels of poverty and quality of life in the owner-occupied sector.

As with the Right to Buy announcement, the demand for these changes is uncertain, therefore the scale may be limited when they are introduced.

Boris Johnson also announced there will be a comprehensive review of mortgage products on the market to “unbolt the door” of home ownership by looking at how people (especially young people who are in the “ludicrous situation” of being able to prove they can pay high rents but cannot get a mortgage) can access low-deposit mortgages. The review will report back in the Autumn.

 

Other announcements

Additional announcements today included plans to “supercharge” leaseholders’ ability to buy their own freehold. There was also a reference to plans to use more publicly-owned brownfield land to ramp up housebuilding – the NHC supports plans for brownfield renewal in the North, with the Northern Housing Monitor identifying the North’s brownfield capacity as having the potential to generate over 300,000 homes across 5,000 sites.

The speech also covered pressures on households due to the rising costs of food, energy, childcare and transport. Johnson highlighted the £37bn package of support provided so far to help with the cost of living (both targeted and universal). On the gas crisis that is driving up energy bills, Johnson referenced their track record on developing off-shore wind and their plans to expand nuclear power as alternatives to gas. The NHC will continue to make the case on behalf of our members that a key solution to the cost-of-living crisis, the gas crisis, and the climate crisis is to insulate homes at scale and transition them to clean heat in the medium- and long-term.

Please do not hesitate to follow up on this with the NHC by contacting Anna Seddon (Policy and Public Affairs Manager) at anna.seddon@northern-consortium.org.uk.

The NHC joins the National Housing Federation and Homes for the North at the North West CEO Sustainability Forum

On 26th May, we joined with the National Housing Federation and Homes for the North in Manchester to bring together housing leaders in the region to look at housing decarbonisation and the steps needed leading up to 2030 to turn theory into reality. 

Charlie Norman, Chief Executive of MSV, chaired the first half of the session and began by welcoming delegates and outlining the huge challenge, but accompanying huge opportunities, ahead for the sector on this agenda. The NHC’s Chief Executive, Tracy Harrison, then set out the scale of the challenge for the North West: 28% of the region’s carbon emissions are attributable to homes. Tracy referenced the Northern Housing Monitor findings that we need to ramp up retrofit in the North West to upgrade 125,000 homes per year to achieve energy efficiency targets. This could be transformational for communities, and Tracy said we need to turn our steps into strides and work together to cut carbon, lower energy bills and bring new jobs to the area. 

 Engaging, collaborating and supporting tenants on sustainability 

 The first session of the day explored tenant engagement. Tracy Harrison began by stating working with tenants is absolutely central to sustainability strategies and outlined the Social Housing Tenants’ Climate Jury’s key recommendations to the sector. The Jury worked together to produce a set of recommendations about how to tackle climate change in our homes and neighbourhoods, including around ensuring high retrofit standards, transparent communication with tenants, expanding climate education within organisations and amongst tenants, and around decarbonisation’s role in wider regeneration. You can see the full report here. 

 Sue Sutton, Chief Executive of Salix Homes, went on to illustrate the vital importance of getting communication with tenants right at the outset. Sue said we must be clear on our offer to tenants and be able to communicate it well, making sure we can address tenants’ queries from the beginning. Jenny Osbourne, TPAS Chief Executive, explained the sector needs to get repairs and maintenance services right now to build trust with tenants as a first step. Jenny said this is critical to getting tenants on board with net zero. Open and regular communication about retrofitting plans and how they fit into the wider neighbourhood is also key, as the Tenant Jury suggested, and these plans must work for everyone from the beginning.  

 There was discussion with delegates around tenant concerns about being the ‘guinea pigs’ for different energy efficiency measures and low carbon heat technologies, illustrating that the tenant engagement aspect of the decarbonisation agenda should not be understated. This was considered a reframing issue by many, and perceptions can be challenged by communicating the benefits clearly to relieve anxieties. The Tenant Jury recognised their role in going first on this work but they were happy to do so as long as providers were open to learning lessons and adapting along the way. Delegates also noted links here to the current cost-of-living crisis and the potential now to pivot the conversation to cost-savings. 

How do we make the most of ‘green’ training and job opportunities, for our  

employees, tenants and communities? 

 The second session of the day considered the green skills and jobs available to communities through retrofit. Lynsey Sweeney, Managing Director of Communities that Work, opened by saying there are currently huge pressures across the labour market caused by a range of issues from Brexit, younger retirees and people staying in education longer. Lynsey noted there is a moral imperative involved in the green agenda to ensure communities are supported and carbon-heavy jobs are replaced with new opportunities. Lynsey argued there is a big trick currently being missed: the housing sector and further education should be much more strongly connected and intelligent partnerships between housing providers, contractors and the Adult Education Budget now need to be formed to deliver the skills and jobs we need. 

 Joe Crolla, Skills and Intelligence Lead at GMCA, agreed that alignment between housing and education is key. Joe explained that GM currently has a good-sized construction sector but less than 1% of those are registered with MCS/Trustmark. Joe said the GM net zero target of 2038 is ambitious and one of the biggest contributions we can make to this is upgrading draughty homes. He also mentioned that the stop-start nature of government subsidies so far have hindered the development of the required skills infrastructure. 

 Finally, Jon Lord, Chief Executive of Bolton at Home, talked about their ‘Greenworks’ initiative, which will see a retail park transformed into a community-focused green technology, business and skills hub. It will focus on developing the long-term jobs around maintaining and replacing new technologies. Jon commented that linking the net zero agenda with new skills and jobs opportunities for Bolton has been really effective with tenants.  

 Discussion in this session included recognising that housing providers will all be looking for the same skills at the same time, as happened when the Decent Homes Standard was first introduced, so there needs to be careful planning to avoid competition between providers. It was noted that there is a significant opportunity to attract green-minded young people leaving education to these new jobs where they can contribute to reducing carbon emissions. The challenge to retrain and upskill the current workforce was also noted. 

Source: Kate Henderson, Twitter, @KateNHF

 From retrofitting too hard to heat homes, what do we need to do by 2030 to make our homes sustainable and energy efficient? 

 Steve Coffey, Chief Executive of Torus, took over as Chair for the rest of the day and introduced a session looking at ‘hard-to-treat’ homes. James Johnson, North West Net Zero Hub, said the case to increase the energy efficiency of homes is growing stronger and stronger with the ongoing cost of living crisis and energy crisis. 

 Mark Lowe, Director of Sustainability at ForHousing, said around one third of homes in England fall into the hard-to-treat category so this will be a real challenge for the sector. He said data will be key to understanding stock (and identifying hard-to-treat properties early) and where the costs of deep retrofit can be weighed up with business plans. Charlie Whitford, Manufacturing Technology Centre, added that the challenge now is scale, not product, and the system needs to be expanded through productivity to drive value. Charlie said the sector should develop a unified approach and then tell the supply chain what is needed in terms of value in response. 

 There was discussion here around weighing up retrofitting plans with development plans and making sure we invest in the right technologies. There was some discussion around hydrogen but the panel explained that it would not be scalable in domestic buildings for at least two decades, saying electrifying heat is the best option now. Overall, it was agreed that the sector needs to be more confident as we are well-placed to shape the market. An important point was made around the language the sector uses with regard to hard-to-treat homes as tenants will be aware of these challenges. 

 What does the next 8 years look like from levelling up to decarbonisation funding? 

 Kate Henderson, Chief Executive of the NHF, opened the session on levelling up and housing decarbonisation over the next eight years. Kate said there is a huge amount of ambition and willingness in the sector to act on climate change, explaining we are the best placed to do so because of the sector’s unique relationship with tenants, the potential for economies of scale, and the ability for the sector to be market-shapers. Kate went on to say Lord Callanan, BEIS Minister, is supportive of our ambitions but we need to call for longer-term funding and ask what happens after the next wave of the Social Housing Decarbonisation Fund. Kate also outlined further opportunities to focus Homes England on the regenerative aspects of decarbonisation, as part of the Government’s approach to levelling-up. 

 Selvin Brown, Director of Domestic Net Zero Buildings at BEIS, set out the urgency of the challenge we face, with the UK having the oldest housing stock in Europe and unacceptably high levels of fuel poverty. Selvin said we are in a good place following the manifesto commitments on decarbonisation, the Heat and Buildings Strategy, and the funding allocated so far. He said only the social housing sector can “do what needs to be done” by deploying technologies at scale across different archetypes. He was clear that the social housing sector will lead the way on this for the private rented and owner-occupied sectors. Selvin noted that data is going to be a big part of the solution, and they are planning to publish some of their evaluation around the Demonstrator round of SHDF. He implored providers to get involved with the Social Housing Retrofit Accelerator now – the technical assistance facility funded by BEIS and ran by Turner and Townsend – no matter what stage of the process they are at bidding for Wave 2.  

 The NHC will continue to work with the sector and beyond to call for longer-term funding and policies from Government to support the North to lead the way on home upgrades as part of wider plans to rebalance the regions of the UK, reduce carbon emissions and energy bills, and make homes warmer and healthier. We’ll also work with our members to progress the recommendations of the Social Housing Tenants’ Climate Jury to ensure tenants are central to the planning of more sustainable homes and communities. 

 Please do not hesitate to follow up on this with the NHC by contacting Anna Seddon (Policy and Public Affairs Manager) at anna.seddon@northern-consortium.org.uk 

Our Corporate Plan Objective – Housing at the heart of a rebalanced country

We’ve launched our ambitious, new corporate plan – it sets out how we’ll support you over the next three years to help you create better homes and places.

This new plan focusses on your unrivalled member experience, it outlines our influencing priorities for the next few years: meeting the net zero challenge and housing at the heart of a rebalanced country, and it highlights our plans to provide the best services to support you now and into the future.

One of the objectives within our corporate plan states ‘we’ll work with NHC members to ensure that housing’s vital contribution is recognised and valued; and to secure the policy and resources necessary to make rebalancing a reality for people and places across the North.’

Within this objective we cover six ambitions which ensures housing is put at the heart of the governments rebalancing agenda.

 

Ambition 1: Ensure that the contributions NHC members make to a range of ‘levelling-up’ missions, particularly to employment and health, are recognised.

As part of the governments levelling up agenda there are four missions:

  • Boost productivity, pay, jobs and living standards by growing the private sector, especially in those places where they are lagging;
  • Spread opportunities and improve public services, especially in those places where they are weakest;
  • Restore a sense of community, local pride and belonging, especially in those places where they have been lost; and
  • Empower local leaders and communities, especially in those places lacking local agency.

We will map activity against the levelling-up missions ensuring our member contributions are recognised, particularly in the area of employment and health. We’ll kick this off at our Levelling Up Conference: Housing at the Heart of a Rebalanced Country which takes place on 14th July in Leeds. We’ll be bringing together key stakeholders to define the debate on how best to achieve place-based regeneration. We will discuss and share knowledge, and good practice in place-based working and develop the frameworks needed to maximise housing’s role in partnership with others. Our aim is to build an understanding of the contribution housing providers can make to the rebalancing agenda. Through this we can ensure that the great work of our members is recognised. Book your free place at the conference here.

The All-Party Parliamentary Group for Housing in the North have decided to use their meetings in 2022/23 to consider the role of housing in levelling-up. The NHC, as secretariat to the APPG, will be working with the Group’s officers to facilitate this. Look out for updates on our website.

Any member organisations who are running projects which deliver against the missions of the Levelling Up White Paper, particularly on the Missions related to health, wellbeing, employment and pride of place are invited to get in touch to share the details with the NHC.

 

Ambition 2: Continue to make the case that greater capacity is required in northern local authorities if we are to make rebalancing a reality.

The average net spend on housing in Northern councils has fallen by 54% since 2010/11, impacting on housing strategy, private sector housing renewal, homelessness and housing advice, and housing-related support services. The average net spend on planning in Northern councils has fallen by 65% since 2010/11, and this has impacted the development of local plans, planning policy, development and building control, environmental initiatives, and business, economic and community development activity.

We will continue to evidence current housing and planning capacity through this year’s Northern Housing Monitor – our ‘state of the region’ report for housing in the North.  We will evidence as far as possible the current level of capacity in housing and planning teams, and we’ll collect evidence on the roles required in housing and planning to deliver new services.

One of the opportunities to boost capacity includes the Public Practice model. Public Practice is a social enterprise with a mission to build the public sector’s capacity to improve the quality, equality and sustainability of places. The model brings diverse skills from the private sector through its Associate Placement Programme to attract, talented, motivated and experienced built environment practitioners – Associates – who want to work within the public sector.  The NHC championed their programme earlier this year and were delighted they have chosen to expand services into the North.

For the planning aspects of the Levelling Up and Regeneration Bill, we will hold a consultation event on the aspects that the government will be consulting on including the proposed infrastructure levy. This will be a similar format to the consultation event held on the Planning for the Future White Paper in October 2020 working with supporter member Ward Hadaway.

 

Ambition 3: Contribute to the development and delivery of an updated Decent Homes Standard; improving housing quality across the North.

We plan to build on our compelling and robust evidence base on the quality of the North’s existing homes, ensuring that the Levelling-Up White Paper’s mission to improve housing quality results in a sustained focus on the North of England.

We will continue to contribute to the DLUHC Decent Homes Review Sounding Board, contributing member views and ensuring that the Standard is ambitious and deliverable. We’ve worked as part of the sounding board for the past year and we’re nearing the end of the process now. We advised on a range of different criterion which varied from ventilation and electrical safety to more placemaking measures. DLUHC have changed the ambitions and scope of the programme, and in their latest update have grouped the Standard’s focus into three areas: thermostatic-mixer valves and windows; electrical safety, refuse management and water efficiency; and ventilation and home security.

There are also plans to design a standard which covers both socially rented and private rented homes.  The NHC will continue to monitor the development of the new standard as it relates to both tenures.

Our next edition of the Northern Housing Monitor will evidence current levels of decency and energy efficiency standards across tenures in Northern regions and will anticipate and highlight any gaps against possible future standards.

 

Ambition 4: Work with Government, Parliament and our members to drive up standards in the North’s private rented sector.

We will be monitoring and responding to the expected 2022 Renters Reform White Paper and subsequent legislation on behalf of and in consultation with our members. The proposals on renter’s reform include commitments to abolish so-called ‘no fault’ section 21 evictions and strengthen landlords’ rights of possession, delivering on the levelling up mission to halve the number of non-decent rented homes by 2030 and create a rental market that is fairer and more effective for tenants and landlords.

Our Private Rented Sector member network offers the opportunity for members to come together and discuss emerging themes and issues. The key themes emerging from the network in relation to renters’ reform include: the need for streamlined standards in relation to HHSRS and MEES; place-based issues about areas of low value where landlords can’t or won’t invest due to viability; and avoiding ‘two-tier’ regulation where some properties will be exempt from raising homes to a level of decency because sum of investment outweighs overall value of the property. We’ll continue to bring members together to discuss and debate these important issues over the coming year.

 

Ambition 5: Secure funding for brownfield renewal across the North – evidencing the need and celebrating success.

Using our connections with the Northern Combined Authorities, we will demonstrate the difference existing Brownfield Funding has made, celebrating success and making the case for further funding to existing Combined Authorities and to new Combined Authorities if and when these emerge. Our current priority is to support members where possible on operational issues with the current fund, and to celebrate the success and ensure more investment in brownfield renewal into the future.

 

Ambition 6: Raise awareness of solutions available to support members with their rebalancing objectives.

We’ll strive to support members with any challenges coming out of the Decent Homes Standard, ensuring our procurement solutions support members with their rebalancing objectives.

 

Making rebalancing a reality for people and places across the North

Created by our full staff team alongside our member-led Board, the corporate plan has been shaped by insight built through our member engagement opportunities, by looking ahead to future challenges and from our member perceptions research which took place last year.

Within this corporate plan objective we will strive to ensure the contribution housing and of our members is recognised and valued; and through our activity we’ll work to secure the policy and resources required to make rebalancing a reality for people and places across the North.

Shared Prosperity Fund launched

The Shared Prosperity Fund (UKSPF) was launched by Government on 13 April 2022 and this paper briefly summarises the UKSPF Prospectus.

There will be opportunities in the development of local Investment Plans for the housing sector as a whole to work in partnership so that the UKSPF flowing into communities aligns with housing priorities.

Within the short window for submission of investment plans, the housing sector’s collective evidence will support the prioritisation of housing need and for all stakeholders across social housing to contribute their evidence in partnership.

The Northern Housing Consortium will work to highlight areas of good practice and collaboration between our unique membership of Local Authorities, Housing Associations, and ALMOs and ensure the contribution of each is maximised.  We encourage all those working in relation to the UKSPF to share their views and examples of collaborative working by getting in touch.

 

What is the UKSPF?  – The UKSPF, which will succeed the EU structural funds, is designed around three key themes: Community and Place; Supporting Local Businesses and People and Skills.  It complements the Levelling Up Fund with investment covering regenerating high streets, tackling anti-social behaviour or helping more people into jobs. It will be the main source of funding to support employment provision. The initial fund will total £2.6bn between 2022-2025, reaching £1.5bn per year by March 2025 and this funding is central to the Levelling Up agenda. There is also a £559m adult numeracy programme for the whole UK called Multiply[1].

 

Delivery – The Fund operates primarily over the strategic geographies of the Mayoral Combined Authorities (MCAs) and will be planned and delivered by lead authorities that can be either a local authority or a mayoral combined authority.

 

Allocations – The Fund will be allocated via a funding formula rather than a competition through local partnerships. DLUHC said the allocation formula considers local population data and a broadly based measure of need, including factors such as unemployment and income levels.  See Appendix A for Northern regional allocations.

Each allocation will comprise both revenue and capital funding over the next three years and all places will receive an allocation which is conditional upon an investment plan being submitted to the Government for approval.

 

Investment Plans – Local government is being given responsibility for developing investment plans which should set out their local evidence of opportunities and challenges within the three investment priorities. Investment plan submissions will be between 30 June 2022 to 1 August 2022 with first payments expected to lead local authorities from October 2022.

 

Next steps – each place must work with partnerships to develop a plan setting out how they will target their funding on local priorities, against measurable goals.

 

 Appendix A

 UK Shared Prosperity Fund Funding Allocations

 

Local Authority and CA UKSFP Core Multiply Total UKSFP Core
Newcastle £17,286,922    
Northumberland £19,077,888    
North Tyneside £10,720,251    
North of Tyne CA £47,085,061 £4,128,607 £51,213,668
       
Barnsley £7,287,599    
Doncaster £8,960,876    
Rotherham £7,083,489    
Sheffield £15,574,166    
South Yorkshire CA £38,906,130 £7,256,309 £46,162,439
       
Halton £3,493,101    
Knowsley £4,500,786    
Liverpool £14,721,188    
Sefton £7,451,277    
St Helen’s £5,409,403    
Wirral £8,804,552    
Liverpool City Region £44,380,307 £8,375,194 £52,755,501
       
Bradford £17,177,855    
Calderdale £6,265,510    
Kirklees £13,203,570    
Leeds £21,292,920    
Wakefield £10,063,022    
West Yorkshire CA £68,002,877 £12,483,680 £80,486,557
       
Bolton £9,115,364    
Bury £5,526,207    
Manchester £16,613,628    
Oldham £7,578,496    
Rochdale £7,148,507    
Salford £7,393,130    
Stockport £8,117,036    
Tameside £6,569,667    
Trafford £5,850,460    
Wigan £9,938,101    
Greater Manchester £83,850,595 £14,384,692 £98,235,287
       
Darlington £6,379,149    
Hartlepool £6,137,059    
Middlesbrough £9,392,874    
Redcar & Cleveland £9,160,627    
Stockton on Tees £11,655,967    
Tees Valley £42,725,676 £3,631,629 £46,357,305
       
Unitary Authorities UKSFP Core Multiply Total UKSFP Core
Blackburn with Darwen £5,933,293 £851,021 £6,784,314
Blackpool £5,114,423 £770,711 £5,885,134
Cheshire East £11,585,762 £1,535,547 £13,121,309
Cheshire West and Chester £11,145,008 £1,497,303 £12,642,312
County Durham £30,830,618 £2,803,077 £33,633,695
East Riding of Yorkshire £10,419,619 £1,523,637 £11,943,257
Gateshead £11,634,466 £1,169,621 £12,804,087
Kingston upon Hull £9,081,013 £1,533,466 £10,614,478
South Tyneside £8,868,632 £810,389 £9,679,020
Sunderland £14,936,161 £1,641,730 £16,577,891
Warrington £6,496,128 £916,581 £7,412,709
York £5,107,510 £741,291 £5,848,801
Lower tier authorities UKSFP Core Multiply Total UKSFP Core
Adur £1,000,000 £0  
Allerdale £3,842,852 £0  
Barrow-in-Furness £2,477,528 £0  
Burnley £3,488,102 £0  
Carlisle £4,104,659 £0  
Chorley £4,212,901 £0  
Copeland £2,638,112 £0  
Eden £1,990,203 £0  
Fylde £2,643,292 £0  
Hyndburn £2,943,592 £0  
Lancaster £5,293,336 £0  
Pendle £3,626,135 £0  
Preston £5,243,004 £0  
Ribble Valley £1,967,754 £0  
Rossendale £2,643,864 £0  
South Lakeland £3,845,592 £0  
South Ribble £3,367,878 £0  
West Lancashire £4,256,708 £0  
Wyre £3,929,132 £0  
Upper tier local authorities UKSFP Core Multiply Total UKSFP Core
Cumbria[2] £0 £2,326,432  
North Yorkshire[3]

comprising:

Craven

Hambleton

Harrogate

Richmondshire

Ryedale

Scarborough

Selby

£16,892,952 £2,667,945  

[1] ‘Multiply’ is a programme that aims is to increase the levels of functional numeracy in the adult population across the UK.

[2] Restructuring of local government in Cumbria will mean that delivery arrangements will be updated.  Individual plans for each of Cumbria’s district council areas are still needed.

[3] Parliament has agreed legislation to restructure local government in North Yorkshire (excluding York). North Yorkshire County Council, as a ‘continuing authority’ is now tasked with developing a county-wide plan for delivery of UKSPF.

NHC Private Rented Sector Network Reconvenes for 2022

The Northern Housing Consortium’s Private Rented Sector Network met for the first time in 2022 this month, with plenty to discuss since the recent Queen’s Speech. The Network was established to offer NHC members working in or connected to private sector housing the space to network and share good practice from across the northern regions and is Chaired by Dr Julie Rugg who informs discussion based on her expertise researching the Private Rented Sector.

This first session was used to digest announcements made in the Queen’s Speech and arrange a work programme to ensure the northern voice is heard. Announced earlier in the month, the introduction of the Renter’s Reform Bill is intended to fulfil the Conservative Party’s manifesto commitment to abolish Section 21 ‘no fault’ evictions; and to strengthen other grounds for possession, such as for rent arrears and anti-social behaviour. The Bill will also legislate for the extension of the Decent Homes Standard to the private rented sector (a Levelling Up White Paper commitment), introduce a new ‘property portal’ to give tenants performance information to hold their landlord to account and create an Ombudsman for private landlords.

Acknowledging the Network’s large, pan-northern membership, NHC members were joined by colleagues from the Department for Levelling Up, Housing and Communities’ Private Rented Sector Division. Discussing their work in Standards and Enforcement, David Selby and Lisa Whiting, shared their desire to hear the views of NHC members on the expansion of the Decent Homes Standard into the PRS. In particular, as the standard is developed, the Department would be looking closely at what success would look like for colleagues in the implementation of the Standard, and how any issues in relation to costs could be navigated.

In a wide-ranging discussion, NHC members discussed with the Department the need to avoid the duplication and ‘layering on’ of regulation, and the need to ensure that the Decent Homes Standard in the PRS compliments developments in the review of the Housing Health and Safety Rating System and Minimum Energy Efficiency Standards. NHC members saw an opportunity to create a ‘streamlined’ standard that Landlords could easily understand and importantly avoid any discrepancies that hinder Local Authorities in their work.

Equally, colleagues discussed the need to ensure that any work to enforce the new Standard be properly resourced. With sufficient capacity, it was felt that members could undertake proactive work providing support and education to professional landlords whilst effectively tackling the activities of criminal landlords.

Attendees also warned against the creation of ‘two-tier’ regulation where landlords in low-value housing markets could cite viability in alluding their responsibility to invest in their properties. Overall, it was felt that the wider Levelling Up agenda provided an opportunity to think holistically about how NHC members support homes of all tenures in their communities; looking at housing quality alongside decarbonisation and wider place-making to create better homes and places.

Recording and notes from the NHC’s Private Rented Sector Network are available to all NHC members signed up to the PRS Network Mailing List. To join the mailing list, please email Kristina.dawson@nhc.org.uk.

Steve Douglas: a huge loss to the sector

We’ve been reflecting on the sad news of the loss of Steve Douglas earlier this month. The NHC had a long-standing relationship with Steve, particularly through his role in the Commission for Housing in the North. The Commission articulated ambitions that were unique to the North, calling for more local flexibility and the importance of revitalising places; Steve understood both the challenges and solutions, and supported our work in his role as Commissioner.

He was also involved in our events programme, chairing larger conferences and sessions with the RSH. An absolute professional, Steve made a heavy agenda look like easy work, and his passion for housing was clear throughout. If you’ve attended any events where Steve was part of the programme, you will have no doubt seen that passion and professionalism yourself.

The NHC’s Chief Executive, Tracy Harrison, said:

“I’ve had the great pleasure and privilege of working with Steve on several projects over the years, including during his time at the Housing Corporation, at Altair, and when he served on the Commission for Housing in the North. He was consistently professional, kind and generous, and just oozed gravitas! An intelligent man who was deeply committed to his work, and a thoroughly decent, lovely person too. He’s a huge loss to the sector, and I’m just so sad for his family and loved ones.”

His work at St Mungo’s was just the latest evidence of his tireless commitment to improving housing and improving lives, and certainly the North’s housing sector will miss him. Friends and colleagues have paid tribute to Steve in Inside Housing here.

The Climate Change Committee have released their assessment of the Heat and Buildings Strategy

The Government’s independent advisor on tackling climate change has recently published their assessment of the Department of Business, Energy and Industrial Strategy’s (BEIS) Heat and Buildings Strategy, which was launched in October last year.

The Heat and Buildings Strategy set out Government’s approach to decarbonising buildings, a major part of meeting the net zero by 2050 target. The Strategy confirmed £800m for the Social Housing Decarbonisation Fund, £950m for Home Upgrade Grants, £450m for the Boiler Upgrade Scheme and £338m for Heat Network Transformation Programme over a three-year period, amongst other funding and policy commitments. You can read more about the Strategy in our earlier blog here.

The Climate Change Committee’s (CCC) independent assessment comes at a time of rocketing energy bills for households and a time where energy security is high up on the Government’s agenda due to Russia’s invasion of Ukraine. ONS data released this month shows inflation has surged to 9%, with around three-quarters of this rise due to soaring energy bills. The Institute for Fiscal Studies (IFS) suggest that the level of inflation being experienced by low-income households is actually closer to 11% at the moment due to a higher proportion of their total income going towards gas and electricity bills.

Beyond the immediate support required through the benefits system to ease the impact of rising costs for households now, insulating our homes and transitioning away from exposure to volatile global gas pricing has never been more urgent.

The CCC report details the scale of the challenge, outlining that 77% of the UK’s domestic heating demand is being met by natural gas, with around 7% being met by electricity, the same for oil and bioenergy, and the rest by solid fuel. The report also reiterates that the UK’s relative domestic energy use is higher than all other nations across Europe due to having the oldest, leakiest housing stock that has not been suitably insulated.

In the North, we know there are higher concentrations of older homes and so the challenge is even more acute in these communities, represented through higher than average levels of fuel poverty across the North. Though the challenge remains vast, the CCC’s report advocates the benefits available through reducing emissions from our homes, namely, potential savings on energy bills, improving comfort and creating healthier spaces to live in. The CCC implore the pace of improvements to the fabric of existing homes and the move to low-carbon heating, committed to in the Heat and Buildings Strategy, to be ramped up quickly and continue over the next 10-15 years.

The CCC are clear that improving the energy efficiency of homes and widespread electrification of heat should be central to the response to increase the UK’s protection against high wholesale gas prices and meet net zero. Overall, the Heat and Buildings Strategy is identified as “an important (and long sought) step forward that offers a foundation for making progress in the sector”.

But the CCC assessment shows there are still significant gaps in plans. They recommend Government brings forward the consultations pledged in the Strategy, including the consultation on rebalancing levies between gas and electricity. This is particularly important for NHC members as reform in this area would make electrified heat cheaper and therefore increase the viability and appeal to tenants and residents of moving to low-carbon heat. Affordability is key to this and the NHC will be following developments on the consultation closely to ensure low-income households are able to reap the benefits of housing decarbonisation.

Other consultations the CCC call to be responded to include the BEIS consultation to set Minimum Energy Efficiency Standards (MEES) in the private rented sector, something the NHC has been calling for. They also identify driving improvements in the owner-occupied sector as a key policy gap to be addressed, as this is where the majority of poor energy performing homes are. These three consultations are all defined as “critical decisions” across tenures which Government now need to act upon.

The CCC welcome the Heat and Buildings Strategy’s commitment to developing the heat pump supply chain, and its focus on heat pumps (and heat networks where appropriate) as the priority option for home heating. Key to the CCC’s advice is ramping up the pace, scale and coordination to address the skills challenge associated with the roll-out of heat pump technology to upskill, retrain and attract new entrants to these new green jobs. The Northern Powerhomes report shows the huge opportunity for the North with potential for 77,000 retrofitting and low-carbon heating jobs in the region.

They also welcome that the Strategy recognises local action as key to housing decarbonisation with local authorities well-placed to develop area-based plans. The CCC highlight that local authorities will need the resources and capabilities to be able to do this, which the Strategy does not consider. This is particularly important for the North as the Northern Housing Monitor showed that over the last decade, local authority housing and planning capacity fell by 58% and 73% respectively. The CCC recommend Government review current and expected gaps in resources and provide additional funding and new centralised pools of talent that authorities can draw on to be able to deliver.

Public engagement was presented as critical to retrofit in the Strategy, and the CCC urge Government to launch a comprehensive public engagement strategy to ensure people know how the transition will impact them. NHC members are already doing some brilliant work with tenants on this, and the Social Housing Tenants’ Climate Jury’s final report includes some helpful recommendations about how providers can work with tenants on retrofit and wider climate action.

The CCC report also discusses the importance of retrofit plans taking into consideration homes’ resilience to future changes to the climate, such as expected warmer and wetter weather. CCC outlines there has been positive development on climate adaptation for new homes, such as to mitigate overheating and flooding, but there now needs to be policy focus on existing homes to ensure climate adaptation is central to energy efficiency programmes.

The NHC agrees with CCC’s assessment that the current cost-of-living and energy security crises mean the policy framework detailed in the Heat and Buildings Strategy must now be progressed at pace and scale and we hope Government heed their advice. It was disappointing that the Energy Security Strategy missed the opportunity to accelerate plans to reduce energy demand by making homes warmer and greener. The NHC will follow the Energy Security Bill, announced in the Queen’s Speech, as it goes through Parliament to keep members updated.

You can see the full Independent Assessment of the Heat and Buildings Strategy here.

Please do not hesitate to follow up on this with the NHC by contacting Anna Seddon (Policy and Public Affairs Manager) at anna.seddon@northern-consortium.org.uk.