NEWS RELEASE

21 September 2006 Media contacts:  Sandra White - 0207 393 2094
      Michael Williams – 020 7393 216  Ref: 94/06

Top performers to gain higher rewards: Future investment approaches

Discussion paper on radical modernisation to Housing Corporation’s future investment programme launched.

The very best partners could be rewarded with increased access to Housing Corporation funding over the next three years, it was announced by Housing Corporation Deputy Chief Executive, Steve Douglas, in his speech at the National Housing Federation (NHF) Annual Conference in Birmingham today (Thursday 21 September). Housing Associations and non-registered developers from both public and private sectors would benefit if they could deliver top performance.

Launching a new discussion paper on Future Investment Approaches which sets out proposals for radical changes in the Housing Corporation’s approach to investment, Steve Douglas delivered a vision for the future which includes:

• Rewards for best performance
• Longer term programmes, particularly for strategic sites;
• A move away from the artificiality of a once every two year bid round to give affordable housing providers the ability to bring schemes to the Housing Corporation when they are ready.
• A reduction in  the burden of information requirements from the Corporation and for the Corporation to streamline its processes;
• A review of the Corporation’s  Scheme Development Standards to ensure the Housing Corporation’s requirements are fit for purpose and focus on what customers need and want.

The discussion document follows work by the Future Approaches to Investment Group, which was set up by the Corporation with representatives including Housing Associations, lenders, and private sector house builders - to look at how further flexibilities and freedoms could help speed up supply of affordable homes and improve value for money, whilst maintaining the highest quality standards.

Steve Douglas said: “We are giving the housing sector what it is asking for.  Where we go next will depend on how positively it responds.  But we are confident. that we can transform the way we invest whilst ensuring continued delivery, performance on quality and value, and accountability to regional, local and national stakeholders.

“The challenge for the sector is whether it can embrace these proposals, delivering a step change in quality and efficiency. As we go into the Comprehensive Spending Review, there is a golden opportunity for the sector to demonstrate its ability and willingness to respond”.

The NHF Annual Conference is taking place between 20 and 22 September 2006, at the International Conference Centre in Birmingham.

A full copy of the speech and the discussion document, Future Investment Approaches, is available on the Housing Corporation website www.housingcorp.gov.uk

-Ends-

Notes to Editors
1) For further information, please contact either Sandra White on 020 7393 2094 or Michael Williams on 020 7393 2160 in the Housing Corporation Press Office.

2) The Future Approaches to Investment Group (previously titled the New Approaches to Investment Review Group) was announced in June this year.  It  was set up to consider arrangements for managing the Housing Corporation’s investment programmes.  Key issues for the group include bidding timetables; standards requirements and compliance arrangements. 

The group includes senior representatives from: the Home Builders Federation; the National Housing Federation; the Building Research Establishment; the Council of Mortgage Lenders; and the Department of Communities and Local Government.

3) 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.