A new development located in Newhaven, East Sussex, on the former Parker Pen factory site, has marked leading social housing provider, Stonewater’s 5000th new home completed since the association’s formation in 2015. Representatives from Stonewater, including Chairman Sheila Collins, CEO Nicholas Harris, as well as members of the development team
CROSS KEYS HOMES (CKH) has signed contracts with Willmott Dixon to build their flagship Northminster development. Willmott Dixon was invited on to the development team by Peterborough Investment Partnership (PIP) earlier this year before the site was sold on to CKH, and since then have led on the demolition of
Blending city and countryside lifestyles, Welwyn Garden City is quickly becoming an untapped hotspot for those wanting to be within touching distance of London but surrounded amongst acres of green space. SO Resi’s latest launch in the so-called ‘Utopia’ of Hertfordshire will see the new homes enter the affordable property
Government backing for modular construction would deliver 20,000 low energy use homes across the UK – costing 55% less to heat than the average British ‘bricks and mortar’ family house Planning permission should be fast tracked for modular housing to create homes 50% faster and 4,000 jobs in left behind
Housebuilder Hayfield has started construction on a prime 6.75-acre (2.73Ha) site in the Buckinghamshire village of Little Kimble to deliver 40 future-proofed zero carbon ready homes. Planning permission for the £21m development was secured from Buckinghamshire Council in June. Hayfield Crescent, as the development is called, will include a range
With a national housing shortage and ambitious housebuilding targets for developers and local councils to meet, is now really the time to put the pressure on the industry to explore more sustainable methods of construction? The answer is a very clear yes from Wayne Oakes, a director at the sustainable
Research by Warwick Estates reveals that Scotland is set to continue its domination over Britain’s new-build market with the total number of annual sales once again dwarfing those of any other region in 2022. In 2021, there were 54,788 new-build sales transactions in Great Britain. Scotland was, by far, home
Finance House offers residential consent and BTR potential A prime residential development site in the west end of Edinburgh has been brought to market by Lismore Real Estate Advisors and Scarlett Land and Development, on behalf of Square and Crescent. Located on Orchard Brae, between the west end and Stockbridge,
Sovini Construction, part of The Sovini Group, has been appointed to LHC’s £1bn new build housing framework (H2) which will deliver public sector construction projects across England. Following the appointment to the framework, Sovini Construction will have access to a wide range of exciting projects until 2026 as part of
The Department for Levelling Up, Housing & Communities (DLUHC) forecasts that it will spend £20.7 billion on new grant funded homes through three rounds of the Affordable Homes Programme between 2015 and 2032.1 However, the Department could be more ambitious in how the Programme supports wider government objectives, such as
A new development located in Newhaven, East Sussex, on the former Parker Pen factory site, has marked leading social housing provider, Stonewater’s 5000th new home completed since the association’s formation in 2015. Representatives from Stonewater, including Chairman Sheila Collins, CEO Nicholas Harris, as well as members of the development team that have been involved in the project, welcomed the Mayor of Newhaven, Councillor Paul Boswell to the site opening, which took place recently. The scheme, called Safford Park, incorporates 145 new homes being built on the former Parker Pen factory site and close to the River Ouse, which will provide a range of affordable housing options for residents. Developed by Hill Partnerships, an award-winning house builder that operates across London and the Southeast, the Safford Park scheme is the first collaboration between Stonewater and the construction firm. Each of the homes have been built to EPC B energy rating standards and offer electric vehicle charging points. The development will also incorporate a community garden and allotment space to encourage environmentally friendly living. Stonewater, which is renowned for its inclusion of public art at its developments has paid homage to the history of the site with the artistic display for Safford Park. The entranceway to the development will be home to two oversized fountain pen nibs, while further nods to the Parker Pen history will be seen in pen lid shaped bollards and nib shaped railings that will be installed across the site. Nicholas Harris, CEO at Stonewater said: “We’re hugely proud to have reached our 5000th home achievement and at such a fantastic development at Safford Park, which really showcases the quality of sustainable homes we have built over the last seven years. Achieving this significant milestone is a testament to the team and our partners that have worked with us across every project that Stonewater has delivered to get us to this point.” Jonathan Layzell, Executive Director – Development at Stonewater “The site in Newhaven is incredibly important, not only to the local area where affordable housing is needed, but also to our overall mission to delivering good quality homes to people who need them most. “While we take a moment to celebrate the work that has got us to this point, we also look forward, as a team, to the next milestone, and beyond.” Paul Boswell, Mayor of Newhaven said: “I was delighted to be asked to attend the ceremony to mark the construction of the Stonewater’s 5000th home. The development in Newhaven is an attractive mix of houses and apartments of various sizes. New homes in our town are in high demand and I’m sure it won’t be long before all these quality properties are fully occupied. Harvey Dhami, Deputy Regional Director at The Hill Group comments: “We would like to congratulate Stonewater for achieving this impressive milestone and are delighted that homes at our Safford Park development have contributed to the 5,000 new homes provided. These energy efficient homes will deliver much needed affordable housing for the local community at Newhaven and ensure current and future generations can enjoy living in a high-quality sustainable home.” The development also provided opportunities for engagement with the local community. Strong links were established with students studying construction at Sussex College, who were invited to attend regular site visits and meet staff working on site, while children at the local primary school were involved in a poster competition showcasing what they like about their local area, with the winning posters displayed on site. The Hill Group also employed a number of local students at the site and plumbing apprentice, Kai Sol was presented with a new tool bag as a sign of appreciation for his involvement in the project at the opening event.
CROSS KEYS HOMES (CKH) has signed contracts with Willmott Dixon to build their flagship Northminster development. Willmott Dixon was invited on to the development team by Peterborough Investment Partnership (PIP) earlier this year before the site was sold on to CKH, and since then have led on the demolition of the existing buildings and groundworks on the site. Now it has signed a main works development contract which will see Willmott Dixon leading on all aspects of the build of this exciting £70 million development project. CKH’s Chief Executive, Claire Higgins, said: “We are delighted to have signed contracts with Willmott Dixon to deliver this flagship scheme for the city, which will provide 315 new affordable homes. “Willmott Dixon’s purpose is to deliver brilliant buildings, transform lives, strengthen communities and enhance the environment, which goes hand-in-hand with our core objectives and makes them the ideal partner for this exciting development.” David McCallion, director at Willmott Dixon, said: “We’re pleased to have now signed contracts with Cross Keys Homes for this fantastic ten-storey flagship development. “This is a hugely significant regeneration project, and we will be using innovative construction methods to build better, greener and smarter. Offsite elements will include a lightgauge steel frame, brick slips and the use of bathroom pods, which will help to ensure quality, programme certainty and come with environmental benefits.” Due to be finished in October 2024, the Northminster development, which is in part, being funded by a £12.5 million grant from Cambridgeshire and Peterborough Combined Authority, will provide much needed high-quality affordable housing in the city centre. CKH are being advised on this project by construction consultants AA Projects, and working alongside Willmott Dixon are a project team which consists of architects Corstorphine & Wright, planning consultants ELG, structural engineers SBK, and mechanical and electrical engineers Briggs & Forrester. Willmott Dixon will be prioritising locally sourced labour, providing training opportunities and investing in local businesses throughout the build period, which is anticipated to take around two years with the first completed homes expected by summer 2024. The bespoke social value commitment planned will generate a social return on investment in the region of £3.2 million.
Blending city and countryside lifestyles, Welwyn Garden City is quickly becoming an untapped hotspot for those wanting to be within touching distance of London but surrounded amongst acres of green space. SO Resi’s latest launch in the so-called ‘Utopia’ of Hertfordshire will see the new homes enter the affordable property market which has experienced a boom in 2022.[1] Sitting in landscaped gardens and designed around the iconic Shredded Wheat Factory, SO Resi Welwyn Garden City complements the area’s rich heritage. All apartments will benefit from private balconies and terraces to enjoy the local scenery. The new homes are available through shared ownership with prices starting from £68,750 for a 25% share. Residents then have the opportunity to purchase more shares through a process known as ‘staircasing’, which enables them to eventually own 100% of the property. Founded by Sir Ebenezer Howard 102 years ago, this ‘garden city’ was designed to give residents the best of both worlds. The town, which includes a 126-acre park, sits a 29-minute train journey from London Kings Cross making it an ideal balance of the two. It also offers a fortnightly food and craft market, unique pubs in the outlying villages as well as largescale community initiatives including the Barn Theatre which hosts the Welywn Drama Festival annually in May. Kush Rawal, Director of Residential Investment at SO Resi, comments, “SO Resi Welwyn Garden City is our second development to launch in the town highlighting the need and want for accessible properties in the area. With a combination of fast connections to London and ample green countryside, we have seen interest from young professionals, especially those who are first time buyers, wanting to get the best of both worlds without breaking the bank especially during the current economic climate. We are proud that our shared ownership scheme here will offer buyers an opportunity to get onto the property ladder in a commuter hotspot at an accessible cost.” SO Resi Welwyn Garden City is also ideal for those seeking access to an adventurous lifestyle. The Gosling Sports Park sits on the development’s doorstep, offering a dry ski slope, a cycling velodrome, driving range and athletics track to name but a few of its amenities. As well as this, the two large lakes providing opportunities for residents to enjoy a variety of water sports at the activity centre. The area is also home to a variety of ‘good’ and ‘outstanding’ Ofsted primary schools and secondary schools, with GCSE and A-Level results recorded well above average. SO Resi Welwyn Garden City is a collection of one, two and three-bedroom homes, with prices starting from £68,750 for a 25% share in a one-bedroom apartment [full market value £275,000]. To find out more, visit www.soresi.co.uk or call 020 8607 0550. [1] https://metro.co.uk/2022/02/01/welwyn-garden-city-is-a-surprisingly-cheap-place-to-buy-for-commuters-16024550/
Government backing for modular construction would deliver 20,000 low energy use homes across the UK – costing 55% less to heat than the average British ‘bricks and mortar’ family house Planning permission should be fast tracked for modular housing to create homes 50% faster and 4,000 jobs in left behind areas of UK – Make UK Modular analysis Modular homes cost 55% less to heat than the average UK home and 32% less than traditional new builds, delivering savings of up to £800 a year for a three-bedroomed family home Modular homes are built 50% faster to make from start to finish than bricks and mortar homes Building with modular can halve emissions when building a home, cutting the amount of CO2 produced as a result of construction by up to 83% Modular manufacturers have already built factories in post-industrial provincial towns or cities, creating over 3,000 jobs, and delivering £700m of investment to low-growth, low employment areas Government should fast track the planning route for modular homes and commit to using modular for 20% of its affordable housing programme to double new jobs overnight Modular home construction is both more efficient and kinder to the environment with substantially less waste, 90% down on materials wastage than traditional builds Modular building heavily reduces the amount of transport access needed for building sites, with 80% fewer vehicle movements to sites and therefore far less local disruption and pollution of the environment Britain’s modular construction companies are moving at speed to deliver widescale change in the housing market unseen in the UK for generations, according to new research published today by Make UK Modular. ‘Greener, Better, Faster: Modular’s Role in Solving the Housing Crisis’, shows that while innovation has left the construction industry largely untouched till now, precision engineered homes, factory-built in areas where employment is required and delivered to regions of the UK where housing is scarce, are set to revolutionise the sector and help solve Britain’s growing housing crisis. Factory engineering means modular homes can be built to consistently high sustainability standards, delivering savings of 55% on energy consumption compared to the average UK home and cost 32% less to heat than a traditional new build. This translates to savings of up to £800 a year for a three bedroomed family home, and energy reduction rises to 60% for single or two person households living in smaller properties. Record spending by modular construction companies in Research and Development accounts for 30% of all R&D in across the whole construction sector. This investment is set to deliver even more energy efficient homes in the coming months at a time households are struggling with an unprecedented cost of living crisis. With housing availability and affordability at an all-time low, traditional construction is struggling to deliver Government targets for 300,000 new homes a year, exacerbated by a chronic and worsening shortage of skilled construction labour. Homes England missed its 2021-22 affordable homes target by 21.5%. However, modular housing has already proven it can build new homes at pace. Modular factories have been set up in those areas of the UK where employment is needed, creating a secure labour pipeline. Employment prospects are attractive with modular manufacturers delivering quality training and upskilling for new staff, enabling much-needed homes to be guaranteed for speedy delivery to regions of the UK where housing is in short supply. Modular manufacturers already produce 3,300 homes a year, one in 60 of all new houses in the UK and by 2025, and with the right support, this could grow to over 20,000 new modular buildings each year. Not only are these modern precision-engineered homes quicker to build than traditional homes, but with no snagging or defects it is possible for a single crane to install a house perfectly in just one day. Despite the pandemic, modular has doubled its delivery of new homes since 2017 with a contracted pipeline of 8,000 homes already in place. Modular manufacturers have chosen to build over 40 factories in post-industrial provincial towns or cities, creating over 3,000 jobs and delivering £700m of investment to low-growth, low employment areas – a figure which could easily double with some simple Government support. To help give the modular sector the push to achieve its full potential, Government should: Dedicate 20% of their programme of affordable housing provision to modular housing which has already shown it can deliver new homes fast Offer fast-track planning, prioritising modular and green homes in land allocation Raise energy efficiency standards for new housing, where modular already meets a higher criteria than traditional building, reduce stamp duty based on energy efficiency and net zero performance and require all for sale and to let homes to provide accurate date on energy bills Collectively, these changes would drive up standards, while offering pipeline security for modular producers and helping the industry to scale up. Steve Cole Director of Make UK Modular, the trade body for modular housing said: “There is a housing success story in this country, and it is modular. This report shows definitively that modular is now a significant player in the UK housing market. Government must capitalise on this as opportunities to transform our broken housing market into the most sophisticated in the world do not come around every day. “Government must accelerate modular delivery, building on the investment made and the jobs created, by removing the remaining barriers holding the industry back.” Read full report here: Greener, Better, Faster: Modular’s Role In Solving The Housing Crisis | Make UK
Housebuilder Hayfield has started construction on a prime 6.75-acre (2.73Ha) site in the Buckinghamshire village of Little Kimble to deliver 40 future-proofed zero carbon ready homes. Planning permission for the £21m development was secured from Buckinghamshire Council in June. Hayfield Crescent, as the development is called, will include a range of one, two, three, four and five-bedroomed homes through a mix of terraced, semi-detached and detached styles, a landscaped area of public open space and a village shop and will be accessed off Risborough Road. Up to 48% of the new homes will be affordable, 19 in total, with tenure split between affordable rent and shared ownership. Andy Morris, Managing Director of Hayfield, WhatHouse? Housebuilder of the Year, said: “Breaking ground is one of the highlights in the lifecycle of a new development, and we are thrilled to be one step closer towards bringing our family homes to Little Kimble. “This will be our third development in Buckinghamshire and we will be building on our reputation for high specification homes by delivering some of the largest houses within our range. “Each of our new homes will feature spacious living, while the zero carbon ready specification far exceeds the Future Homes Standard. We are excited to showcase how sustainable living need not compromise on luxury.” All of the homes at Hayfield Crescent will feature air source heat pumps, energy-efficient underfloor heating, the smartest electric vehicle fast-charging points and ultra-fast broadband. They will include ‘lifetime homes’ construction standards to offer enhanced accessibility and adaptability, ensuring all of them are future-proofed for wheelchair uses. The first homes are expected to be released for sale off plan by the end of October. Hayfield will create a new access road and footpaths to adoptable standards, and the houses themselves will be in-keeping with the rest of the village with features to include brick detailing, traditional porches and brick chimneys. As with all signature Hayfield developments, the density of homes will be much lower than typical new build schemes. Hayfield Crescent is opposite The Chiltern’s AONB, and a quarter of the landscape-led scheme will be covered by tree canopies to reflect this. The extensive new planting and range of additional environmental enhancements will deliver a net biodiversity gain. Little Kimble is conveniently located on the Chiltern Railways Line and Little Kimble Station is within walking distance of the site. Regular services to London Marylebone take less than an hour, with additional services into Aylesbury and High Wycombe.
With a national housing shortage and ambitious housebuilding targets for developers and local councils to meet, is now really the time to put the pressure on the industry to explore more sustainable methods of construction? The answer is a very clear yes from Wayne Oakes, a director at the sustainable engineering consultancy, Dice. He believes a greener modular building approach can increase sustainability, reduce construction time and begin to tackle the huge volumes of waste generated by the construction industry. The UK’s housing crisis is well documented, with ambitious targets set by the government of 300,000 new homes a year. With that comes a secondary problem, that of construction waste. A DEFRA report highlighted that in 2018, construction, demolition and excavation accounted for 62% of the UK’s total waste. So how do developers continue to build at speed, reduce the volume of waste materials and create more sustainable methods of construction? The answer is staring us all in the face – modular homes. Modular homes are designed to be energy efficient and very efficient to manufacture. They’re created off site – where waste can be kept to a minimum – and different elements of a build can all be happening at the same time. Offsite construction enables phases of work to be undertaken concurrently. Onsite substructure and infrastructure work can be taking place whilst the superstructure is being built in a factory. Factory conditions also mean that there are no delays due to inclement weather. And there are environmental benefits to working offsite, helping us to fight the climate crisis. It is more straightforward to manage waste in a factory environment rather than on a construction site. It allows for far more control meaning less contamination, more recycling and less overall waste. Another large contributor to climate change is pollution and energy output. Modular designs see a 40% reduction in HGV movement at construction sites, and manufacturing off site also minimises the time and energy spent on site. This cuts travel and transport, as workers are more likely to be concentrated around a specific factory. Due to these factors, overall pollution is reduced. Recycling is another big focus across every sector. Materials in traditional construction like timber, brick and concrete, are very rarely re-used and it can be hard work to do so. The volumetric and panelised systems found in modular building lend themselves to recycling in a much more practical and efficient way. There are challenges, as there are with every construction project, and they do require a different approach to traditional methods of construction. Modular projects and units do differ from the traditional, standard residential units. They have specific requirements in terms of their sub-structures and external works. This is particularly the case in sites with gradients and water management requirements. On our first modular project, we worked very closely with the manufacturer on specific design standards, in particular with regards to the National Housebuilding Council’s requirements for the substructure. This was a condition of the offsite manufacturing partner, to ensure that each of the plots met the requirements of building control. As engineers, we need to be agile, responsive to site specific needs and challenge design to ensure modular methods of construction get the recognition they deserve. We’ve realised technology’s potential and are driving the change. It’s our duty to think creatively to develop new, more sustainable ways of construction and ultimately living.
Research by Warwick Estates reveals that Scotland is set to continue its domination over Britain’s new-build market with the total number of annual sales once again dwarfing those of any other region in 2022. In 2021, there were 54,788 new-build sales transactions in Great Britain. Scotland was, by far, home to the largest proportion of these sales with a total of 11,677. The next closest region was England’s South East with 7,335 sales. Warwick can now reveal that Scotland is once again on track to dominate the market this year. Of an estimated 16,158 new-build sales in Britain in 2022, it looks like 10,914 will be in Scotland with the next closest region, the South East, far behind with 1,191 sales. Scotland’s strong performance comes despite a forecasted annual new-build sales decline of -70.5% across Britain as a whole in 2022. In fact, Scotland’s annual decline of -6.5% is nothing compared to the rest of the British regions where annual declines have exceeded -80%. However, when looking back over the last five years of new-build sales data, Scotland slips into second place behind the South East. Of 473,630 new-build sales in Britain since 2017, 70,060 have been in the South East – an average of 14,012 per year. In Scotland, there have been 56,669 – an average of 11,334 a year. And in London, there have been 53,957 sales which works out at 10,791 a year. The worst performing new-build market over the past five years is Wales, home to just 13,721 sales – or 2,744 a year, followed by the North East where 21,357 sales equate to an average of 4,271 a year. Data tables Data tables and sources can be viewed online, here.
Finance House offers residential consent and BTR potential A prime residential development site in the west end of Edinburgh has been brought to market by Lismore Real Estate Advisors and Scarlett Land and Development, on behalf of Square and Crescent. Located on Orchard Brae, between the west end and Stockbridge, Finance House is immediately west of Edinburgh city centre, via the main arterial route of Queensferry Road. The Finance House development site extends to 2 acres and benefits from minded to grant planning consent for 151 apartments, over a total area of circa 135,000 sq ft. It also offers build to rent (BTR) potential for 172 apartments, subject to planning consent. The main building was constructed in 1968 for Lloyds Bowmaker over eight storeys, with a substantial five-storey extension added in 1978. The 1960’s building, which is almost entirely of concrete frame construction will be retained and converted in 86 apartments, whilst the 1970’s building will be demolished and replaced with a new build block, containing 65 residential apartments, ranging in height from three to five storeys. The development will also feature 3,000 sq ft of office/coworking space on the ground floor, and 23,000 sq.ft of private and communal external amenity spaces. With vehicle access from Learmonth Gardens, the site will have 32 car parking spaces plus 380 bike spaces. With sustainability credentials firmly in mind, the development is designed to be net zero ready – all-electric energy, with a predicted EPC rating of ‘B’ and an aggregated reduction in CO2 emissions of 40.6% lower than a baseline compliant development. The re-use of existing concrete frame will capture embodied carbon. The design standards ensure the development will achieve net zero in regard to operational carbon when the grid reaches net zero. It includes air source heat pumps via common centralised plant to provide heating and domestic hot water throughout. The standards will also meet the requirement of the new build heat standard coming into force in Scotland in 2024. Colin Finlayson, Director of Lismore Real Estate Advisors said: “Few UK cities can match the performance of Edinburgh’s private residential market, which has a proven history of growth and resilience, due to a combination of constrained supply and strong demand. “This development opportunity has so much to offer and is ideally placed in Edinburgh’s high desirable west end. It will be a real draw and we anticipate strong interest from potential developers, as well as institutional investors seeking exposure to the Edinburgh residential market.” Will Scarlett, Founder and Director of Scarlett Land and Development adds: “Large scale prime residential sites with planning consent rarely come to the market in Edinburgh. Not only does Finance House benefit from minded to grant planning for 151 apartments, it is also net zero ready – all electric (Air Source Heat Pumps) and uses no fossil fuels. “The opportunity also exists at Finance House for a BTR scheme of 172 units within the same massing in a city that boasts some or the strongest fundamentals in the UK, yet lags other regional cities in terms of supply due to multiple constraints.” Lismore Real Estate Advisors and Scarlett Land and Development are selling agents for Finance House and the architect is Morgan Architects. Further information on can be found HERE https://lismore-re.com/wp-content/uploads/2022/09/24229_FINANCE_HOUSE_FINAL.pdf
Sovini Construction, part of The Sovini Group, has been appointed to LHC’s £1bn new build housing framework (H2) which will deliver public sector construction projects across England. Following the appointment to the framework, Sovini Construction will have access to a wide range of exciting projects until 2026 as part of the deal. The framework offers a range of traditional housing solutions to the public sector, as well as low, medium, and high-rise construction, care homes, mixed-use sites and sheltered, student and key worker accommodation. In addition, the framework also provides a focus on creating net-zero homes which Sovini Construction proudly back through their own Group’s Net-Zero Carbon Commitment. LHC is a not-for-profit, central purchasing body providing procurement services across England, Scotland and Wales. Dean Fazackerley, Head of Technical Procurement at LHC, said: “The new H2 framework in England will equip providers to meet ongoing housing challenges within the public sector, addressing local housing demand while maintaining momentum in their journey towards the production of zero carbon homes. It’s hugely important that we continue to respond to the housing needs of local populations while at the same time looking to the future, creating healthier environments that embody social, human, and environmental considerations.” LHC frameworks are used by over 700 publicly funded organisations including local authorities, housing associations, registered social landlords, tenant management organisations, education authorities, publicly funded schools, further education authorities, NHS bodies and other publicly funded organisations. Sovini Construction has been successfully appointed their North West new build housing projects up to value of £10m. Steve Parrington, Managing Director of Sovini Construction, said: “The LHC framework provides a flexible and efficient procurement route for local authorities and social housing landlords. We are proud to have secured our place on their North West new build framework. “We look forward to strengthening our relationship with the LHC to deliver vital infrastructure for communities across the North West and working with local supply chain partners to leave lasting legacies in the areas in which we work”. Sovini Construction are delighted to partner with LHC, one of the UK’s leading, not-for-profit procurement consortiums within the built environment. To learn about the positive impact Sovini Construction in creating across the North west visit – https://sovini.co.uk/construction/ or follow them on LinkedIn @Soviniconstruction
The Department for Levelling Up, Housing & Communities (DLUHC) forecasts that it will spend £20.7 billion on new grant funded homes through three rounds of the Affordable Homes Programme between 2015 and 2032.1 However, the Department could be more ambitious in how the Programme supports wider government objectives, such as how it contributes to the government’s net-zero commitments, according to the National Audit Office (NAO). DLUHC intervenes in the housing market to try to ensure there is sufficient supply of affordable housing. The Affordable Homes Programme (the Programme)2 provides grant funding to housing providers in England to support the costs of delivering affordable homes. There are two main iterations of the Programme that are running concurrently, the 2016 programme and the 2021 programme. The NAO found that the Affordable Homes Programme’s targets have a focus on the number of new homes built. The 2021 programme has clear targets about the tenure (e.g. for rent or for sale) of housing it wants housing providers to provide, but there are few targets based on wider factors such as the quality or size of homes or environmental standards. DLUHC has not fully defined the wider outcomes it wants from the Programme, such as reductions in fuel poverty and the creation of mixed communities or set out what success would look like. There is a forecast shortfall of 32,000 in the number of homes to be delivered compared with published targets for the 2016 and 2021 programmes, as at May 2022. Under the 2016 programme, DLUHC forecasts it will achieve 96% of its target for housing starts, but some of these homes will not be built until 2032. DLUHC’s forecast is that Homes England and the Greater London Authority (GLA) will collectively achieve 241,000 starts, against a target of 250,000 starts, by March 2023 (this target includes some homes not directly funded through the Programme).3 Under the 2021 programme, DLUHC expects 157,000 new homes will complete by the time the programme has ended in 2028-29 compared with its target of ‘up to 180,000 should economic conditions allow’.4 It does not expect to meet sub-targets for supported homes (homes with support, supervision, or care provided alongside) and is at high risk of not meeting a sub-target for rural homes. There is also a risk that fewer homes are completed than currently forecast because of building cost inflation, a shortage of materials and labour and other challenges. The NAO found that DLUHC had inadequate oversight of the GLA in the 2015 and 2016 programmes. DLUHC receives performance reports from the GLA, but these contained insufficient information on GLA’s management of the Programme, for example lacking information on spending. In October 2021, DLUHC found that between April 2015 and October 2021, it had given the GLA £1.8 billion of funding which the GLA had committed but not yet used to pay housing providers. DLUHC accepts these payments were a basic error of programme management. DLUHC has started to make improvements to its governance and oversight of the Programme, including in data and performance reporting. There is a lack of strong incentives for housing providers to deliver affordable homes in areas of high housing need or in the most unaffordable areas. The Programme is not delivering a high proportion of affordable homes in areas that the Department assesses have high general housing need. In addition, housing providers are delivering fewer homes in more unaffordable areas, measured by the difference between local house prices and wages. The Programme could bring greater value to other parts of government. When designing the 2021 programme, DLUHC considered how it could generate cross-government benefits in relation to housing benefit spend, the number of people in temporary accommodation and adult social care. However, it did not include savings in temporary accommodation or adult social care costs from providing supported housing in its economic modelling. Potential savings in these areas are not factored into the way DLUHC allocates the Programme’s funding and the kind of homes delivered. If DLUHC used the Programme to deliver more affordable homes in London, this would lead to significantly higher savings on future housing benefit costs (including the housing element of universal credit). DLUHC and Homes England did not include any specific targets relating to reducing emissions under the 2021 programme. Before the end of 2022, the NAO recommends that the DLUHC should develop plans to mitigate the risk that the objectives for delivering affordable homes may not be achieved, and continue to improve its oversight of the Programme. For the next iteration of the Programme, DLUHC should consider what information it needs to improve its understanding of housing need in local areas, and review how the programme sets and monitors the Programme’s targets and sub targets and be clear how the Programme is contributing, when feasible, to wider government objectives, such as net zero and savings for other departments and local government. Gareth Davies, the head of the NAO, said: “Since 2015, the Department for Levelling Up, Housing & Communities has made improvements to the running of the Affordable Homes Programme, but there are still areas it needs to address. “It should reassess targets to ensure the Programme is delivering affordable homes in areas that need them the most. It should also use the Programme to bring about greater value to other parts of government, and advance wider efforts around net zero.”
