Housing Corporation News Release

Sector welcomes Housing Corporation Future Investment Approaches

31 October 2006

Media contact: Sandra White Tel: 020 7393 2094  Ref: 112/06

The Housing Corporation has received widespread approval to proposals in its discussion paper on Future Investment Approaches.

By the deadline of 20 October 2006, the Corporation had received over 90 responses across the country.  Responses were received from providers, local authorities and other statutory bodies.

Housing Corporation Deputy Chief Executive, Steven Douglas, said,

"A first read of the responses confirms our direction of travel was right and we are extremely pleased that the sector has responded positively.  This gives us confidence that as we develop our proposals, we should be able to achieve real efficiency gains in the system and greater certainty of delivery.  Local authorities will also be pleased to see that we have acknowledged their accountability role in our Neighbourhood and Communities Strategy Consultation.

"We also received a strong message that whilst there should be the opportunity for strategic sites at a local level, with local authorities involved in the prioritisation of such sites, the principle definition of a strategic site should be determined by the regional housing strategy."

Feedback will be provided to respondents over the coming months.  The proposals will now be worked up in detail and taken forward as part of the Comprehensive Spending Review 2007 and will feed into the Housing Corporation's Affordable Housing Programme Bids round for 2008/10.

Other highlights included:
• Partnership Plus received a positive endorsement as a future standard for all affordable housing providers, with its emphasis on quality, design and service standards, as well as on efficiency and speed of delivery;

• regular market engagement is seen as crucial to helping delivery and in particular securing land opportunities;

• longer term funding for strategic sites is welcomed by all respondents;

• streamlining of the Housing Corporation's information requirements was felt to be important in getting more providers involved.

Ends.

Notes to Editors
1) The Future Approaches to Investment 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.

2) The Housing Corporation's Neighbourhoods and Communities Strategy was launched in October 2006 (press release ref: 103/06)  The strategy aims to encourage more associations to become further involved in activities beyond simply housing.

3) The Housing Corporation is the Government agency responsible for investing in new affordable homes and regulating over 1,500 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.