Minutes:
The Chair introduced the report and welcomed David Orr, Chief Executive of the National Housing Federation (NHF), who would address the Board on the NHF’s agreement with government to voluntarily deliver the extended Right to Buy scheme, as well as on how housing associations and local authorities could work together effectively to meet housing needs.
David Orr highlighted that in 2014 housing associations had built 50,000 new homes, which was 40% of all new homes in the economy. The NHF’s submission to the Spending Review had stated that in the right circumstances, and through working with local authorities, they would be able to build up to 70,000.
Members noted that the NHF wanted to continue strong working relationships with local government and wanted to make common cause on rent cuts, as a 1% per annum cut set by the government was unhelpful, opportunistic and not strategic. If rents continued to be cut there would be less money for investment in future housing stock. Local government and housing associations were accountable to the public and should be setting rents in their areas.
In the discussion which followed, members raised the following points:
· Members welcomed David Orr’s comments on joint working and locally set rents. It was agreed that decisions on rents should be made by local authorities and housing associations who were locally accountable.
· There was concern that if housing associations sold high value property, replacement housing could be built a long way away from the area, leading to a decrease in housing. Replacement houses should be built in the same local area where houses had been sold. David Orr stated that housing associations had the ability to trade and sell under the voluntary Right to Buy scheme, and in some cases may sell in one area and invest in another.
· Options on planning consents were identified as a fundamental problem for house building. David Orr highlighted that the NHF was in discussions with the government on the possibility of preferential access to publically owned land in order to more quickly develop it, and so not to have to bid against private developers.
· The government should be aware that the best value housing was not the same as the highest priced housing. Best value should relate to what delivered most effectively in the long term. The NHF would continue to sell high value assets and use the money for internal cross subsidy.
· There was a challenge for housing associations and local authorities as funding for housing support from the government came with a requirement that it be used for affordable rents or shared ownerships. This made it difficult to continue to bring forward affordable housing. Both housing associations and local authorities should have the freedom to set their own rents.
Decision
· The EEHT Board thanked David Orr for attending and addressing the Board, and agreed that there should continue to be regular dialogue between the Board and the NHF through meetings with Lead Members.
Action
· Regular meetings between Lead Members and the NHF to continue, as well as regular collaboration between LGA and NHF officers.