Social Housing Grant - Future Developments

Seminar - Wednesday 22 June

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• Terry Fuller, Partnering Director, Taylor Woodrow
• Steve Douglas, Acting Deputy Chief Executive, Housing Corporation
• Anu Vedi, Group Chief Executive, Genesis Group

The new policy of making Social Housing Grant available to non-RSLs has been widely debated, with strong arguments both for and against the change. The three speakers highlighted the key features of these debates and their visions for the future.

Steve Douglas described 2005 as a transitional year which will see the start of a mixed economy in the provision of social housing, from which 'there is no going back'. He acknowledged the concern within the sector about the impact of the policy, but said that RSLs have always greeted Housing Corporation-driven change with loudly-voiced concern and then worked hard to deliver within the new frameworks - he expects nothing less with this new policy. Mr Douglas committed the Housing Corporation to acting as an investor rather than an administrator, and to working closely with the priorities set in Regional Housing Strategies. In the future, he said, the Housing Corporation will focus on maximising the return on public investment and will be considering different funding options to deliver this.

Terry Fuller spoke of his belief that the concerns raised by RSLs are unfounded. He explained that Taylor Woodrow would keep ownership of stock they developed using SHG and would select an RSL partner to manage them. He predicted that the future will see the Housing Corporation retaining an equity share in grant funded properties, fewer RSLs developing and managing property, and the increased use of innovative delivery models. He was critical of RSLs who have complained about the new policy, saying that 'losers visualise the penalties of failure, but winners visualise the rewards of success'.

Anu Vedi explained his strong disagreement with the assertion that paying grant to developers brings added value to the development of social housing. RSLs have delivered over the last 30 years, and some Housing Corporation policy acts against their ability to do this. He presented a 'manifesto for change' which included the introduction of longer term funding programmes, improved decision making networks, writing off grant, and relaxing rent regulation. He also raised a strong concern that the grant regime is driving the development of too many small apartments at the expense of larger family homes, which means RSLs cannot meet the needs of BME communities.