05 December 2008
By Neil Merrick A new multibillion pound housing and regeneration agency must understand local government better than its predecessor if council-owned housing companies are to become more involved in development, it was claimed this week. The Housing Corporation failed to win the full support of arm’s-length management organisations prior to it disappearing last week, because of excessive red tape and an unwillingness to share risk with councils, according to the National Federation of Almos. The Homes and Communities Agency, which inherited responsibility for development grants on December 1, should not expect councils to carry all the risk when they supplied land and borrowed money for house building, said NFA policy officer Gwyneth Taylor. ‘Local authorities are financially prudent but concerned they are being told to carry the can if something goes wrong,’ she said. According to Taylor, the corporation never properly understood the way councils operate. Five Almos were awarded grants earlier this year, but only Stockport Homes has so far signed an agreement allowing it to receive funds. Richard Hill, the HCA’s director of investment, who was in charge of the National Affordable Housing Programme at the corporation, said it had tried to establish good working relations with Almos. The new agency, which has a three-year budget of £17bn, was keen to diversify the range of providers. ‘We recognise the importance of Almos and the local authority sector,’ he said. Council leaders are hoping that the local government background of Sir Bob Kerslake, the HCA’s chief executive, means it will be more aware of their needs. Speaking as the agency opened for business, Kerslake said it would invite councils to come forward with development packages while ensuring more public sector land is redeveloped. The HCA would introduce tailored programmes for housing associations, expand joint venture models with developers and promote rent-to-buy homes. ‘Our response to the credit crunch will be investment led and counter-cyclical to maintain a level of activity in house building and prepare the industry for the upturn,’ he said.
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