Housing Corporation News Release

Corporation unveils responses to future investment approaches

21/12/06           Media Contact: Sandra White 020 7393 2094            ref: 129/06

The Corporation's proposal that funding for affordable housing grant will be allocated at different points in the cycle rather than at a singe point every two years has received a warm welcome from the sector says the Housing Corporation as it launches its latest investment paper - Future Investment Approaches: Towards the 2008-10 bid round.

Other proposals being considered include:

• the introduction of a new Partnership + status to reward excellent performance from its partners;

• the modernisation of  its processes both for accessing funding and for guaranteeing design and quality standards;

• setting out a flexible approach to how it  works with delivery organisations: offering certainty where this is needed to unlock large or strategic schemes - including five year funding commitments and responsiveness to allow new development opportunities to be realised. 

The changes could come into force in time for the start of the  2008 bid round.

It follows extensive consultation with key stakeholders including housing associations, developers, regional assemblies and local authorities on the Corporation's Future Investment Approaches discussion document which set out proposals for modernising the investment system.

A working group was also set up  bringing together housing associations, house builders the National Housing Federation, the Home Builders' Federation, the Building Research Establishment and the Council of Mortgage Lenders to consider the arrangements for managing the Corporation's investment programmes. Key issues explored included bidding timetables, standard requirements and design and quality.

A clear majority of respondents welcomed the overall thrust of the proposals - that more flexibility and a closer alignment with the organisation's business models would help drive greater efficiency. 

Housing Corporation Deputy Chief Executive, Steve Douglas said; "We need a funding system that minimises bureaucracy whilst responding to the needs of those operating in the market.

"The response to our discussion document from stakeholders was extremely  positive and give 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 of new homes and of some of the most difficult regeneration projects that face us. "

A copy of the paper is available from the housing corporation website www.housingcorp.gov.uk

An independent evaluation of the Housing Corporation's  2006-2008 bid round "The developing new approach to investment: an evaluation" by Campbell Tickell is also published today and available on the corporation website http://www.housingcorp.gov.uk.

Ends.

Notes to editors:

• The Housing Corporation is the Government agency responsible for investing in new affordable homes and regulating over 1,500 housing associations across England. It 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.