Speech by:

Rona Nicholson
Field Director, London - Housing Corporation

Slide 1 - Introduction.
Thank you for inviting me here today.  I’m going to talk to you about the Housing Corporation’s position in meeting the needs of London’s communities over the next 10 years & in particular about 3 things – our recent achievements, the changes and challenges that all of us face working to meeting housing needs in London, and our strategic partnerships for the future.

Slide 2 - Achievements.

Many of you will know that I have recently joined the Housing Corporation as Field Director for London.  This is in fact Day 6 for me in my new role so I hope you’ll be kind to me when it comes to question time.

Being so new I can’t, of course, take any credit for the Corporation’s past achievements although it’s a great position to be able to talk about such an impressive track record.  We’re on track to deliver over 10,000 completions and are spending a total of approximately £730m investing in new homes for London this year alone.  As always the last month of the financial year is a challenge in trying to ensure our housing association partners complete their delivery on time but we’re hopeful this will happen. This links to one of the challenges we have for the future in bringing forward land and strategic sites to ensure we can meet the future step change in delivery.  And in delivering this investment programme we’ve been working hard with Associations to ensure we meet the priorities of the London Housing Board. In our regulatory role, we’ve been working to make sure that all associations have robust plans to meet the Decent Homes standards and are pleased that they are on track to meet the 2010 deadline.
We’ve continued to work closely and effectively with the Audit Commission to ensure that services to residents improve.  With associations now providing over 450,000 homes in London, 9% of London’s homes, this is a critical area. But as I know from my experience, housing is not just about delivering new homes and ensuring existing ones are decent homes.  It is also about making use of all delivery agents in building social capital, delivering quality local services and turning around whole neighbourhoods.

There has been some excellent work by housing associations reaching beyond their core housing role to act as social entrepreneurs and service delivery agents for whole neighbourhoods and communities.  From nurseries to health centres to financial advice through to neighbourhood wardens.   Next week, we will be hosting a major conference on the role of social landlords in delivering Respect – a key agenda for those living in many of the communities we serve.

The Corporation is looking to support and encourage associations to look beyond their core housing role and extend their offer to neighbourhoods and communities, working with local authorities as well as their own residents, to develop and deliver these initiatives,

And there is a role that housing associations can play in contributing to tackling some of our more difficult neighbourhoods, delivering mixed tenure; in the words of David Miliband, moving the agenda on from decent homes to the creation of decent communities.

Lastly, we’re pleased that associations have responded well to the efficiency agenda.  As well as savings on supply chain and new housing initiatives, associations are on target to deliver £450m savings on management and maintenance, capital works and commodities.
Those achievements give us something very tangible to build on as we look forward to the challenges for the future.

Slide 3 – Changes & Challenges.
There is considerable change going on around us and there remain lots of challenges in delivering London’s Housing Strategy.  Of course, these are not just challenges for us at the Corporation but common challenges that we face with all our strategic partners.
As the strategy makes clear London’s population is projected to grow from 6.8m in 1983 to 8.1m in 2016.  Household numbers are increasing as household size tends to decrease, whilst at the same time there are overcrowded families in all the rented tenures, especially some specific BME communities, in desperate need of larger homes.
The rate of increase in overcrowding is dramatic relative to the rest of the Country.  To meet the target set by London Housing Board for the 06/08 programme is for 35% of the rented programme to be for 3 bed or larger homes. And although the number of families placed in B&B have dropped, there are still record numbers of households in temporary accommodation.

Lettings to statutory homeless households have dropped. We are analysing association’s performance in housing homeless families and this is an important area for us.

Affordability continues to be an issue with average house prices continuing to increase, particularly around the proposed Olympic Village where the heavy investment in transport and infrastructure will benefit the area long after 2012.  We also know that Bangladeshi and Black African  households are least likey to be able to afford housing.  Home ownership is out of reach of many and so part of our 06/08 programme will focus on intermediate housing, including for keyworkers with an emphasis on achieving retention as well as meeting recruitment needs.

We are committed not only to building good quality sustainable homes for the future but also communities that are inclusive and socially cohesive and places where people want to live.  And I know from my work in the sector that a vital part of creating sustainable communities in London is in engaging BME communities and ensuring London is a welcoming city for everyone. There are rising expectations to consider.  From residents who want good quality local services, to potential residents who want well-designed and high quality homes. There is a new vision for neighbourhoods and communities built around successful engagement of voluntary & community organisations.  At the heart of this is the local government’s leadership role across housing sectors, tenures and markets as a custodian of local communities. Housing can’t be delivered in isolation and we will continue to work with our strategic partners on these wider agendas.

Slide 4 – Changes & Challenges.
We are now close to announcing the outcome of our 2006/08 National Affordable Housing Programme.  That will see a total of £1.7bn to be invested to meet housing needs in London in accordance with the London Housing Board’s priorities.  Our role in the Corporation will be to work with all of you to deliver this programme and there are a number of challenges in doing so.

London is one of the most complex markets in which to operate and there are a range of local markets.  Prices, costs, land availability and competition for it, all vary across the capital.  There are a number of large strategic sties, notably within the Thames Gateway.

Whilst value for money is a key driver, our customers want to live in a quality product, in a safe environment and have access to a range of services that meet their needs.  Quality, through the approach to design, has been part of the detailed bids assessment for our new programme.  Associations have had an opportunity to provide a method statement that links design of the product with that of the surrounding environment and the considerations taken into account on how a scheme links in with the wider development of a cohesive community.

We will continue to promote improved methods of procurement to achieve higher output balanced against quality of product and achieve our Gershon efficiency targets.  We encourage our sector to utilise modern methods of construction, innovative product design and manufacture to reduce costs.  Having a supply chain method statement is expected as part of securing our funding in 2006-08. And all this efficiency is important to ensure our investment is effective and to maximise the resources we have to meet London’s housing needs.

Slide 5 – Changes & Challenges.
The housing sector is changing and we need to avoid artificial barriers between different parts of it.  Within the RSL sector there continues to be change, with smaller numbers of development partners, the growth of development consortia and the continued number of new mergers and partnerships.

In terms of focusing on performance we have been rolling out a new approach to regulation which focuses our efforts on those with higher risks and which frees up well-run, lower risk associations to get on with delivering quality local services.  We continue to work closely with the Audit Commission on service delivery and want to see continued improvement from associations on customer services.

As we approach 2010, ensuring that associations remain on track to achieve Decent Homes will also be a key area to focus on.

Finally, involving residents is a critical area and one that will be a priority for the Corporation this year.  From my experience in the sector, I believe  there are opportunities for associations to build even closer links with their residents, taking on board their views and responding to their priorities.  The Corporation is looking forward to the recommendations of the current Review being taken forward by Sir Les Elton, and are likely to be bringing forward new proposals in this area later this year.  A key issue will be around how associations can ensure that they are meaningfully engaging with communities at a local and neighbourhood level.

Slide 6 – Working In Partnership.
The Corporation works in partnership with a range of London wide and local bodies that serve London and its communities, notably the Mayor’s office, GLA, ALG, LA sub regional partnerships & LAs themselves.

We are the regulator of London associations and the main investor in new affordable homes in the capital.  As a member of the London Housing Board, we’ve been closely involved in developing the London Housing Strategy and in delivering the investment programme.  We are committed to delivering the housing priorities set out in the London Housing Strategy and the Mayor’s London plan.
We have existing protocols in place on a number of key issues and look forward to the opportunity to review and update these to make sure they cover everything they need to for the future.

Our work with individual local authorities  and sub regions is critical, particularly on looking at future supply, planning and strategic sites.

We also welcome the positive contribution from the Mayor and the GLA who have provided clear strategic leadership in promoting high quality development with a significant affordable housing component.  In its response to the Government’s recent consultation exercise, the Corporation has indicated we welcome the proposals set out in the paper.  The Corporation believes either of the options highlighted in the consultation paper would offer significant benefits over current arrangements.  Both would provide clearer decision making structures and increase synergy with the Mayor’s existing strategic functions.  At the same time, the Corporation’s role in focusing on delivery would continue  ensuring that Londoners get the maximum affordable housing return for the investment made.

The Corporation has made it clear it would be content to work with the Mayor & the GLA under either option.  Whatever the outcome of the consultation exercise we remain committed to working in partnership with the Mayor and the GLA as well as our other key partners in London.

The Corporation has been at the heart of housing in London for over 40 years.  Our experience, our ability to work in partnership, to innovate and to deliver in ever changing  environments mean we are well equipped to work with all our partners to meet the challenges or meeting the needs of London communities over the next 10 years.

Thank You