The Chancellor’s Spring Statement included another top-up for the Affordable Homes Programme (AHP).
At £2bn, it is the largest yet since Labour came to power following on from two previous top-ups totalling £850m.
The government says June’s Spending Review will contain ‘full details of wider long-term and future grant investment’ and here JV Norh Chair, John Bowker, outlines what this means for the consortium and how it would welcome a conversation on how to best calculate grant rates.
“The top-ups are crucial, providing essential confidence to keep the wheels turning in terms of site finding, site investigations, obtaining planning and procurement,” says Mr Bowker.
“By doing this now instead of waiting for the programme announcement in June, it avoids hugely damaging downtime and delays. Our understanding is that Homes England are actively encouraging partners to continue bringing projects forward.
“There are questions regards the timing of these additional funds – are they available immediately or is there an in-built delay?
“In our experience, the strength of the JV North’s performance means we have always received strong support for schemes we have brought forward.
“At the same time more clarity is needed regards the suitability of certain schemes especially regeneration, but it comes down to the detail of the particular project.
“JV North members acknowledge the shift not just to a rent focussed programme from the previous onus on homeownership but more specifically a social rent programme over the coming years.
“The economics of this shift are very challenging in many areas and puts increased pressure on required grant rates; across JV North we have seen an increase in the levels of grant required.
“While we completely support the ambition to make homes more affordable, social rent undoubtedly puts significant financial pressures on viability so future grant levels will be key.
“We would welcome a broader conversation with Homes England and government regards how social rent is calculated because we strongly feel there are improvements that could be made here.
“Not least in terms of simplifying it but by also bringing the 1999 baseline data that is used closer to present day valuations to enable fairer and more representative grant levels to be achieved.
“In our experience, where there are extenuating circumstances, Homes England will continue to support Shared Ownership and Affordable Rent projects which there is still significant demand for in the North West where our members operate.
“However there needs to be clear justification why these are the right solutions for each scheme.
“Ultimately, we simply must rise to the challenge. We support government’s ambition and as Chair of JV North, I see there is a strong desire from all members to play their part.
“A strong, clear announcement from government in June of a new lengthy programme will give additional strength to the foundations of the programme the consortium has previously delivered.”