Housing Corporation News Release

Northern Housing Challenge – Shortlist announced

27/02/07 Ref: 20/07

A shortlist of innovative proposals aimed at delivering affordable homes and contributing to economic growth in the North of England has been announced today by the Housing Corporation (27 February 2007).  Seventeen schemes have been short listed for the Corporation's Northern Housing Challenge, which altogether propose to provide homes for over 10,500 people.

The short listed schemes are from a mixture of housing associations, private developers, ALMOs and joint venture companies.  The proposals range from new homes to halt migration of young talent from regions in the North, to regeneration projects, and schemes linking access to training and employment opportunities.

The Northern Housing Challenge was launched by the Housing Corporation to promote new housing-led projects which will help shrink the North’s annual £30 billion output shortfall compared to the South, stimulate creative thinking and generate innovation.   Key objectives include:

• developing new and replicable approaches to the provision of affordable housing that will support the economic growth of the North;
• demonstrating how investment in housing can produce wider additional socio-economic benefits.

Chairman of the Housing Corporation, Peter Dixon, said, “This is not just about houses, but the bigger picture.  Creating the right kind of affordable housing in the right place is central to achieving the key objectives of economic growth and sustainable communities in the North.

“The Northern Housing Challenge not only illustrates the Corporation's commitment to new approaches to investment, but we designed it to find new ways with Regional Housing Boards for affordable housing to contribute even more to the prosperity and life chances of Northern residents.

“The seventeen short listed proposals illustrate a real opportunity to try out new thinking.  Given the North’s long track record of innovation, we look forward to these proposals for new products, new funding approaches and new ways for residents to benefit from affordable housing investment.  I know that making the final decision is going to be incredibly tough.”

Housing Minister Yvette Cooper, said, “Affordable housing is now recognised as one of the essential agents of economic regeneration in the North.

"We welcome the Housing Corporation’s Northern Housing Challenge, and look forward to following the progress of these schemes, and seeing how the different contributions from housing-led projects can help meet the Northern Way's wider goals.”

The final decision will be made as part of the National Affordable Housing Programme in early 2008.

-Ends-

The 17 short listed schemes are as follows:

Tees Valley Housing Group - Shore Stockton (title of proposal)

Tees Valley Housing Group proposes to develop 80 homes for rent and sale in North Shore, Stockton, aimed at halting the out migration of young talent from the region.

Sunderland Housing Group - Virtual Developments

Sunderland Housing Group proposes to develop 100 homes for rent and sale.  The aim is to deliver a mixed tenure scheme that will link access to training and employment  opportunities.

Housing Hartlepool - Sustainable Regeneration Project

Housing Hartlepool proposes to develop over 500 new build homes for rent and sale which will greatly improve the housing offered in Central Hartlepool.

Erimus Housing, Middlesbrough - BOHO Live/Work Zone

Erimus Housing proposes to develop 38 homes for rent and sale.  The project will be aimed at professionals on lower incomes who require an affordable base in the area.

St Vincents Housing Association, Rochdale - 21st Century Industrial Town

St Vincents Housing Association proposes to develop over 200 homes for rent and sale in Rochdale.  The proposal will provide improved employment sites for industrial and commercial users.

Great Places, Bolton - Community Equity Trust

Great Places aims to develop a flexible equity model linked to community ownership in the Union Road, Bolton area.

Contour, Preston - Second Steps

Contour proposes to develop 100 new build homes for rent and sale.  The aim is to provide flexible home ownership allowing greater choice in the Preston travel to work area.

Riverside Housing Association, Liverpool - Brownstones Initiatives

Riverside Housing Association aims to renovate over 150 homes for rent and sale within the New Heartlands area of Liverpool.  The aim is to provide housing where the purchaser/owner of the converted property is required to live in one part of the house and may choose to rent out other units within the same building.

LPC/Northwards, North Manchester - Housing Freshfields

LPC Living and Northwards Housing propose to undertake a substantial regeneration programme  in North Manchester.  The proposal will involve the provision of 285 new build homes for rent and sale.

Mosscare Housing, East Manchester - NEM Creative Solution

Mosscare proposes to develop 50 homes for rent and sale.  The new housing development will contribute to the regeneration of the new East Manchester area.

Firebird JVC - Leeds/Bradford Corridor Project

A partnership between Firebird, Bradford Community Housing Trust and Leeds West Homes, will involve a programme of developing over 900 homes for rent and sale and intends to make linkages with the city centre of Bradford and Leeds.

Kirklees Neighbourhood Housing - Fieldhead Regeneration

Kirklees Neighbourhood proposes to develop over 100 new build homes for rent and sale in the Fieldhead Estate, Batley, by developing linkages to local employment opportunities.

Igloo Regeneration, Leeds & Newcastle  - Affordable Creative Lofts

Igloo, a private sector institutionally financed investor, proposes to deliver affordable live/work units on the edge of Leeds and Newcastle city centres.

Chevin Housing Group, Sheffield - Darnell & Attercliffe Regeneration

Chevin Housing proposes to develop 200 new build homes for rent and sale in the Darnell & Attercliffe area of Sheffield. Chevin and Arches Housing Association will work in partnership to increase the residential offer in terms of dwelling types and tenure mix.

South Yorkshire Housing Association - Northern Edge, A Gateway to Regeneration

Northern Edge, a group of four housing associations, proposes to develop 450 new build homes for rent and sale on the former Prince of Wales Colliery site near Pontefract. 

South Yorkshire Housing Association - Fir Vale, Supporting Economic Regeneration

South Yorkshire Housing Association proposes to renovate some 300 homes for rent and sale in the Fir Vale area of Sheffield, in addition develop 250 new build homes for sale.

Keepmoat PLC, Durham, Barnsley and Liverpool - Private Sector Homebuy Plus

Keepmoat's proposal is to pilot the delivery of 85 new build 'Homebuy' units in the Durham, Barnsley and Liverpool areas.

Notes to Editors:

1) For press information please contact Naomi Evans in the Housing Corporation Press Office - 020 7393 2118.

2)The Northern Housing Challenge was announced at the Northern Development Summit in November 2005 (see Housing Corporation press release 95/05),  and was launched by Housing Corporation Chief Executive, Jon Rouse in June 2006 (ref: 64/06). 

3) The Challenge will test out new ways of contributing to the economic development work of bodies like the three Northern RDAs, the Northern Way and the North’s ten urban regeneration companies.  The focus will be on delivering tangible wider social and economic benefits for people in the North, for example through Section 106 agreements.

4) With 13.4 million residents, the North is more populous than many European countries.  It has 29% of England’s housing, 35% of its affordable housing, and 27% of Housing Association properties.  The North also has 74% of England’s 200 most deprived places (Index of Multiple Deprivation, 2004), with profound consequences for housing:
• The highest levels of low demand in the country with over 500,000 empty homes, but combined with over 50 unaffordable locations;
• An older than average housing stock where 25% of properties were built before 1919;
• The two English regions (North West and Yorkshire & Humber) with the lowest % of homes with central heating; and
• An ageing population, with over-75s up by 17%.

5) The latest data sets released by the Office of National Statistics (ONS) show that the North lags someway behind the South with regard to economic activity:
• Using the Gross Value Added (GVA) indicator of economic activity, average GVA across England is £16,800 versus just £14,400 in the North.  In contrast the average GVA in London is £22,200.
• Gross Disposable Household Income (GDHI) in 2003 was nearly £3,000 less per person in the North (£11,270) than in the South (£14,068).
• Average unemployment rates across the North, at 4.7%, are 1.3% higher than in the South, excluding the Capital.
Detailed statistics can be downloaded at www.statistics.gov.uk

6) The Northern Way is being led by the three Northern Regional Development Agencies (RDAs) to develop a long-term strategy for meeting the above inequalities, capitalising on new found regional confidence and energy, and growing the economy of the whole of the North.  Further information on the Northern Way can be found at www.thenorthernway.co.uk

7) Recent Corporation investment in the North is as follows:
• National Affordable Housing Programme (NAHP) 2006-08: £435 million to create over 8,000 homes.

Funding awarded by the Housing Corporation is matched by private sector investment, bringing the total investment generated to around £1 billion in each 2-year funding programme.

8) The Housing Corporation is the Government agency responsible for investing in new affordable homes and regulating nearly 2,000 housing associations across England.  Its biggest ever investment programme of £3.9 billion for 2006-08 will fund 84,000 homes;  49,000 of these will be for affordable rent, and 35,000 will be for affordable sale through the Government's new HomeBuy initiative, helping people to get a foot on the property ladder.

9) The Housing Corporation is working with English Partnerships and Communities and Local Government to establish the proposed new national housing and regeneration agency, Communities England.