1. Housing Delivery Partnerships – breaking down the barriers
Presentation ———— 28 June 2017
Housing Delivery Partnerships – breaking down the barriers

2. Speakers Geoff Raw – Chief Executive, Brighton & Hove City Council
Tom Shaw – Development Director South, The Hyde Group
Tonia Secker – Partner, Trowers & Hamlins
Amy Shaw – Partner, Trowers & Hamlins

3. Introduction Chronic under supply of housing Challenge to deliver more
Housing Delivery Partnerships
Local authority view
Housing association view
Legal considerations

4. The council perspective
Context - LA view on local housing market
Local authority drivers
The advantages from the LA side
Challenges
The future – opportunities and the market

5. The housing association perspective
Housing association drivers
The advantages from the housing association side
Context - HA view on local housing market
Social and economic benefits - an example from the Hyde / Brighton & Hove model
The procurement challenge
The future – opportunities and the market

6. Nothing (Joint) Ventured, nothing gained
Very obvious alignment between HA and LA partners objectives – shared mindset
Both have an open culture which encourages collaboration
Both have strong governance which gives assurance
Stretched capacity; capital able to go further to deliver more projects and more homes
Risk sharing reduces exposure
Shared technical expertise and skills
A long term strategic relationship which will deliver tangible benefits for both HA and LA, as well as social and economic benefits for the local area

7. What’s in it for the LA
Portfolio of LA sites identified for disposal as part of existing asset management plan
LA secures budgeted capital receipt through disposal of sites to JV SPV
Unlike under its usual disposal arrangements, the LA gets to retain a 50% interest in the asset through its long-term interest in the JV SPV
LA secures long-term revenue stream, gets access to HA commercial developer skills, place-making and regeneration expertise and volume buying arrangements
LA gets to expand its housing product range outside the constraints of the housing revenue account

8. What’s in it for the HA
Access to sites, working with like-minded LA partner
Model supports delivery of affordable housing without cross subsidy requirement and therefore no risk from market sale activity
Able to accelerate delivery without usual phasing constraints due to risk of market saturation from sales
Access to LA housing register, nominations from low income working households
Flexibility to explore new affordable models – bespoke genuinely ‘affordable’ housing to meet local incomes
Able to share skills and expertise, both parties contribute to the delivery of a successful project

9. Accelerated delivery: 10x increase in affordable supply over 5 years

10. Impact of a Living Wage = £2
Impact of a Living Wage = £2.8M annual saving in rent for 500 low income households

11. Access to home ownership: 500 shared ownership homes with average £6,640 deposit. Total housing costs lower than private renting.

12. Social & Economic benefits for Brighton & Hove from 1000 new homes
Over 700 opportunities for education, training and apprenticeships
400 FTE construction jobs supported
£6.7M of new Council Tax revenues (5 years)
£5M new homes bonus (5 years)
£6M community investment S106 (5 years)
Estimated Gross Value Added to the economy of £350M over 5 years

13. Streamlined, efficient procurement
All time, resources and combined effort is invested into delivering tangible outputs for both parties – nothing is wasted
50:50 JV SPV structure motivates the right behaviour of both parties and ensures value for money
For each £ of LA money invested there is a £ of HA money – this is the best motivator that exists to drive value for money out of the project
All services from project partners provided at cost
All consultant and contractor services procured through an OJEU compliant framework – open book on all costs

14. The market for future opportunities
LAs have capacity to deliver now outside of HRA caps – Brighton & Hove is a perfect example
Innovation and partnership can unlock funding for new supply, accelerate delivery and provide both capital and revenue streams for LAs whilst delivering on their local social and economic priorities
Replicable model – easily repeated, set-up is quick and costs are small (and no specific consents needed)
LA pension funds are already major investors in PRS asset class, could invest in lower risk affordable income streams taking long term inflation linked returns for beneficiaries
HAs are gearing up to play their part in addressing the structural under supply of new homes and open to JVs
Successful partnerships = innovation, risk, resource and skill sharing with tangible benefits for both parties

15. Legal considerations Complexity Procurement Understanding control
Funding options
Exit mechanisms

16. Q&A
Any Questions?

17. Amy Shaw
Partner – Housing and Regeneration
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Tonia Secker
Partner – Housing and Regeneration
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