26 September 2008
New homes target 'will be missed'
Drastic measures are needed if the government is to avoid missing its key house building target by as much as nine years, social landlords have been warned.
With housebuilders feeling the full effects of the credit squeeze, it is unlikely that more than 1.6 million homes will be built by 2020 – just over half the 3 million target, David Orr, chief executive of the National Housing Federation, told delegates at the NHF's annual conference in Birmingham.
Based on the federation's projections, the 3 million target might not be reached until 2029, he said. Praising Gordon Brown for placing the 'dire need for new housing centre stage' when he became prime minister last year, Orr added: 'It is time to recognise that the very commendable 2020 target is now almost impossible.'
He said that the government must speed up the planning system, make public sector land available for development by registered social landlords at discounted rates and increase grants further to make up for the shortfall in private finance.
The 2008/11 house building programme should be brought forward, with RSLs helped to buy private land ahead of a market upturn. 'The climate for house building has changed beyond all recognition,' said Orr. 'We need the government to be even more radical, and housing associations to be even more creative.'
Earlier, Sir Bob Kerslake, the chief executive designate of the Homes and Communities Agency, came close to admitting that the 2020 target was beyond reach. 'They were very challenging targets to start with and they're even more challenging now,' he said. 'Things are shifting too fast to say how we are going to progress over the next few years.'
While the government had recognised that RSLs were finding it harder to borrow from private lenders, he added: 'We don't want a free-for-all with grant rates, where any proposal goes forward. That way we wouldn't use the money to the best effect.'
Later, during a 'question time' session, junior housing minister Iain Wright said the credit crisis should end irresponsible mortgage lending, with more households sharing ownership or renting.
Eco-friendly timetable 'bonkers', says Kerslake
The government's timetable for making new housing more eco-friendly has been dismissed as 'bonkers' by one of its main advisers.
Sir Bob Kerslake, chief executive designate of the Homes and Communities Agency, said it was unfair that housing associations have to build to zero-carbon standards sooner than private developers.
While associations and other developers of affordable housing must meet Level Three of the Code for Sustainable Homes immediately to qualify for government grants, builders of private homes have until 2016 to meet similar standards. Asked whether the situation was fair, Kerslake replied: 'I think it's bonkers. I've said all along that I don't agree with it.'
Social housing within mixed developments stands out because it is more likely to use energy-saving features, such as solar panels. 'It doesn't help development of these schemes if we've got different standards,' he said. 'We need to align the timetable.'
Kerslake, whose agency will be responsible for allocating the National Affordable Housing Programme from December, insisted that no developer should use the credit squeeze as an excuse to cut quality. 'People will not support housing growth if they think that what we're going to build is unsatisfactory,' he said.
Earlier, June Barnes, chief executive of East Thames Group, told a fringe session that RSLs faced a struggle to convince the agency that they have a vital role to play in regeneration schemes, as the HCA appears to favour local authorities. But Kerslake assured delegates that housing associations would have a key part to play in 'major transformational projects'.
You must work on your PR, RSLs told
Housing associations must work harder to improve their reputation with tenants and the wider public, said David Orr, the federation's chief executive.
Responding to claims by the chair of social housing's new regulator, Anthony Mayer, that many RSLs lack the customer focus of private companies, Orr said: 'The focus on customers is going to be critical and won't go away.'
Studies carried out by the NHF two years ago for its Tenant Involvement Commission suggest that, while some tenants give their landlord ten out of ten for service, others mark them as low as two out of ten. 'It's kind of inevitable but not acceptable,' said Orr, launching the NHF's customer service and accountability code.
Earlier, Mayer, chair of the new Tenant Services Authority, had called on RSLs to pay more attention to the needs of tenants.
PFsep2008
