Housing Corporation News Release 

Flexibilities for the second round of the Housing Corporation's Regular Market Engagement process announced today

2 July  2008                      48/08

Flexibilities for the second round of the Housing Corporation's Regular Market Engagement (RME) process have been announced today moving towards the shortening of timescales for the next round and a subsequent move to a more continuous bidding process.  The Corporation will also be establishing a national clearing house to act as a lead contact point for offers from Investment Partners.

The Corporation was given further flexibility by Caroline Flint, Minister for Housing, in the payment arrangements on its programme to fund start of work on schemes at a level that would help ensure future supply.

The Corporation announced today the outcomes of the first round of Regular Market Engagement within which the Corporation has:

• agreed allocations for £269.7m to build 4,249 homes for affordable rent and 1,744 homes for affordable sale;
• accepted a high proportion of bids showing the RME message of only bidding for deliverable schemes continues to be heeded in the sector;
• agreed new allocations to deliver to CSH level 3 or better, including one scheme to deliver 40 homes for affordable rent at CSH level 5;
• agreed new allocations that will deliver 30% larger homes for affordable rent.

The Corporation also announced the outcome of its second pre-qualification round.  A total of 31 organisations have newly pre-qualified to receive funding from the Corporation’s National Affordable Housing Programme.  This includes sixteen Arms Length Management Organisations (ALMOs), four local authority special purpose vehicles,  four housing associations and seven private sector partners. 

Steve Douglas, Housing Corporation Chief Executive said, "The outcome of the first regular market engagement is a strong response from the affordable housing sector showing a continued  commitment to quality and to delivery.  I am pleased that RME has been so well-received by our partners.  We are announcing today some further changes – speeding our timescales, moving to continuous bidding and offering quick headline feedback to Investment partners – which will allow us to respond to the changing housing market.

In the current market I am extremely pleased that we have once again been able to broaden the base of supply – bring more ALMOs, local authorities and private sector partners into our programme.  I am confident that a strong mixed economy of providers is the way in which we will continue to deliver high quality affordable housing”

Ends. 

For more press information please contact Sandra White on 020 7393 2094

Notes to editors:

1) A full list of new pre-qualified partners:

NEW PRE-QUALIFIED PARTNERS
 
NAHP 2008-11:  2nd PQQ Process  
 
Anchor Trust - RSL
 
Barking and Dagenham (with First Base) * - LA
 
Berneslai Homes Ltd - ALMO
 
Blyth Valley Housing Limited - ALMO
 
Carrick Housing - ALMO
 
Cheltenham Borough Homes - ALMO
 
Concept Developments - NON RSL
 
David Maclean Homes - NON RSL
 
Estuary Housing Association - RSL
 
First Choice Homes Oldham Limited - ALMO
 
Gateshead Housing Company Ltd - ALMO
 
Gloucester City Homes - ALMO
 
Harrison Housing - RSL
 
High Peak Community Housing - ALMO
 
Hillingdon Homes - ALMO
 
Homes for Islington - ALMO
 
Kirklees Community Association - NON RSL
 
Larkfleet Homes - NON RSL
 
London Borough of Barking & Dagenham (with Southern HG) * - LA
 
Mar City Developments Limited - NON RSL
 
Morris Homes * - NON RSL
 
Orwell (Pre-qualified the ALMO Colchester Borough Homes) - Bringing in ALMO
 
Portsmouth Social Housing * - LA
 
Rochdale Boroughwide Housing Ltd - ALMO
 
Solihull Community Housing - ALMO
 
South Holland District Council * - LA
 
Stockport Homes - ALMO
 
Urban Splash - NON RSL
 
Walsall Housing Group - RSL
 
Wigan and Leigh Housing - ALMO
 
Your Homes Newcastle - ALMO

* Denotes organisations that have passed on a conditional basis.

This means that the Corporation has investment partners drawn from a range of sectors aiming at developing affordable housing as part of the 2008-11 programme.

2) Guidance on Regular Market Engagement (RME)

3)  In February 2008, the Housing Corporation announced the outcome of its initial NAHP bidding rounds.  Through the initial bid round the Corporation:

• expanded the range of affordable housing providers and included Local Authorities (via ALMOs and SPVs) for the very  first time;
• met the grant per unit efficiency targets required to deliver Housing Green Paper affordable housing supply commitments;
• achieved these efficiencies whilst also implementing Code for Sustainable Homes 3* for new build affordable housing;
• significantly increased the number and proportion of larger homes;
• kept on track to deliver beyond Regional Assembly rural housing targets;
• maintained the Corporation's excellent record in funding Supported Housing.

4)The Housing Corporation is the Government's national affordable homes agency, responsible for investing in new affordable homes  and regulating nearly 2,000 housing associations who provide some two million homes across England.

5) The Corporation's £8.4 billion investment programme for 2008-11 is its biggest ever, set to fund at least 155,000 homes.  Over  100,000 of these are for affordable rent and more than 50,000 for affordable sale through the Government's HomeBuy initiatives, helping people get a foot on the property ladder.

6) The Housing Corporation is working with Communities and Local Government and English Partnerships to establish the proposed Homes and Communities Agency and Tenant Services Authority.