19 January 2007
A new multi-billion pound agency will take charge of housing and regeneration in England within the next two years, the government confirmed this week.
The Housing Corporation and English Partnerships will both disappear in the shake-up, which will also lead to changes at the Department for Communities and Local Government.
The proposed agency, to be known as Communities England, will fund and regulate social landlords and developers that receive grants for social housing.
It will also take charge of decent homes programmes, housing market renewal and the Private Finance Initiative in housing.
Announcing the shake-up on January 17, Communities and Local Government Secretary Ruth Kelly said the agency would have major implications for local authorities as well as housing associations. 'It will shift housing regeneration closer to local communities,' she said.
The creation of Communities England, which will have an annual budget of about £4bn, follows a nine-month review of housing and regeneration by the DCLG.
In July, Kelly extended the review to cover functions that might be transferred away from her department.
Kelly would not say whether the agency would save money. 'It's about trying to improve the capacity to deliver homes on the ground and eliminate duplication,' she said. 'Over the long term, there may be some administrative savings, but it's not an objective of the new agency.'
Further details will be worked out over the next six months by a transition team headed by Baroness Ford, chair of English Partnerships, the agency currently in charge of regeneration schemes.
She said one of its key roles would be to find ways of getting more from existing investment. It will also take on board changes to regulation recommended by Professor Martin Cave, whose review is due to conclude this spring.
Peter Dixon, chair of the Housing Corporation, insisted that the two bodies were not merging. 'We want a new agency with clear powers that does some of the things that the department does,' he said.
The posts of chair and chief executive will be subject to open competition. Existing staff will receive Transfer of Undertakings Regulations protection if they wish to work for the agency, while some DCLG civil servants may also transfer.
The creation of Communities England was broadly welcomed by the National Housing Federation and the Local Government Association.
NHF chief executive David Orr praised the government for doing more than 'simply bolting together' the Housing Corporation and EP, but called for the agency to have a stronger environmental focus.
He said: 'Communities England could be a powerful force for change, but it must have the resources to do the job properly.'
PFjan2007
