‘The whole sector needs to be firing to meet the affordable housing challenge’

The new Government, having only taken office in July, has already unveiled a radical reform agenda in response to the housing crisis.

With a new target of 1.5 million homes, the delivery of affordable housing is amongst the most pressing of national priorities.

‘The scale of ambition is high, but it is also exciting’ Peter Denton, Homes England.

This week, we brought together some of the country’s leading experts in regeneration and affordable housing as part of an agenda-setting panel discussion. We set out the challenges, tackled some of the blockages, but also reflected on the opportunities which come with delivery.

Chaired by Jane Groom (LCA), the panel featured Peter Denton (Chief Executive, Homes England), David Joyce (London Borough of Haringey), Will Gardner (Home Group) – with Elizabeth Oliveira and Duncan Cumberland (both part of the Muse team).

There is little doubt that delivery of affordable housing has become more challenging in recent years.

‘Muse is focussed on challenging brown field opportunities, where we can deliver new and vibrant communities. Undoubtedly the costs for these schemes are challenging, but we are committed to delivering the right housing and this requires transparent funding structures and debate’ Duncan Cumberland, Muse.

Borrowing costs are high, construction costs have risen sharply, whilst the value of homes on the open market has tailed off. It all contributes to an increasingly difficult environment in which to deliver.

‘Construction and labour costs are really high. We need to make the sector more attractive and aspirational’ Elizabeth Oliveira, Muse.

Nevertheless, working in partnership with registered housing providers, over the last four years we have delivered 1,030 affordable homes. We have a forward pipeline of 2,408 affordable homes – representing 38% of all the homes we expect to deliver.

Of course, it’s about much more than numbers. Quantity is important but quality is non-negotiable.

Hale Wharf, delivered in partnership with the London Borough of Haringey, and the GLA, was singled out as some of the best council homes in the country. As part of the second phase, 191 are being delivered.

‘Schemes like this demonstrate London boroughs are firing now and building homes. It’s really exciting’ David Joyce, Haringey Council.

A diverse range of housing is fundamental to placemaking, community building, and regeneration by creating genuine social value.  As part of the affordable housing mix, key worker housing – allowing local services to retain and recruit staff – is also growing in importance, with greater emphasis on the phraseology of social housing to define what communities need.

Affordable housing is both more important than ever before, and more difficult to deliver.

According to our panel, the challenges and blockages are across the whole of the development ecosystem. The solutions, therefore, must involve a whole sector approach.

‘The whole sector needs to come together to meet our collective challenges’ Peter Denton, Homes England.

Whilst additional public subsidies are an important element, there are lots of ways – beyond additional funding – to support affordable housing delivery. These include greater density, intelligent use of public sector land, or infrastructure.

Bringing such solutions forward in an integrated way requires collaboration across the public and private sector. Early engagement is fundamental and the whole sector needs to be firing to meet our shared ambition.

Increasingly, private sector partners are surprised at what registered housing providers and the public sector can deliver. In fact, many housing associations now act as land-led developers and take a much more active role designing and delivering homes.

‘Housebuilders are often surprised at what we can do, but we want good design and great quality’ Will Gardner, Home Group.

Planning reforms, already set out by the Government, may also support greater delivery of affordable homes by lowering barriers and unlocking more land for regeneration. The role of Homes England to accelerate delivery will be ever more important to meet our national targets.

What is clear is that to meet the needs of communities affordable housing delivery needs to accelerate. There is no magic bullet, but by working in partnership we can find the solutions.