Questions to Consider - Northern Housing Consortium

GREATER MANCHESTER DEVOLUTION – A FUTURE FOR SOCIAL HOUSING?
“WHAT HOUSING PROVIDERS CAN OFFER AND WHAT THEY CAN HOPE TO GET IN RETURN”
Cath Green
CEO – First Choice Homes Oldham
AREAS TO COVER
 GM Devolution context
 Housing challenge and opportunities
 GM Housing Providers approach and work streams
 MoU
 Summary
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GM DEVOLUTION – CONTEXT
Greater Manchester Devolution Agreement
 Signed by Government and 10 leaders of GM Local Authorities –
Nov 2014
 Sets out new powers and responsibilities
 Move to a directly elected Mayor
 Focus on growth and reform
 Ambition to secure control of or influence over all £22bn of
public sector funding in GM.
 Close the gap through Growth and Reform
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GM DEVOLUTION – CONTEXT
 Interim Mayor elected – Tony Lloyd (11th member of Combined
Authority)
 A number of commission with a political lead identified
* Housing and Planning Commission * Local Enterprise Partnership
* Transport (TfGM)
* Scrutiny function
* GM Health and Wellbeing Board * Public Service Reform
* Police and Crime Commission
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GM DEVOLUTION – THE HOUSING CHALLENGE & OPPORTUNITY
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Weak new housing supply since 2008, out of step with
economic growth
Restricted mortgage lending and weak supply means Home
Ownership out of reach for many working households
(affordability issues)
Rapid growth in the Private Rented Sector
23% of GM Households live in the Social Rented Sector
Kept investing in new homes through the recession – between
a third and a half of GM total every year since 2009
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GM DEVOLUTION – THE HOUSING CHALLENGE & OPPORTUNITY
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Social housing tenants are key client groups for many of the
public service reform interventions
Housing providers active and committed partners on health &
social care, skills & employment, fuel poverty/carbon
reduction, crime and ASB and complex dependency work, etc.
Central stakeholders in the communities where their housing
assets are held (Anchor Institutions)
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SUMMER BUDGET
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Significant changes to Government approach to social and
affordable housing: 
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Reduce social rent by 1% p.a. for 4 years (previous rent formula
allowed for 1% +CPI increase per annum)
Social renting households with an income above £30k to pay full
market rent ‘pay to stay’
Right to Buy extended to housing association tenants
Benefit cap reduced to £20k per annum
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TIME FOR RADICAL CHANGE
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Two key drivers/opportunities for radical change to how we
deliver and manage our affordable housing offer in GM:
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A GM devolution opportunity to drive a sensible affordable
housing offer alongside market housing growth.
Government policy direction which threatens to undermine the
ability of housing providers to help deliver reformed public
services for residents.
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THE PARTNERSHIP – GM HOUSING PROVIDERS
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WHAT WE DO
Strategic
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Contribute to wider GM Strategy
Act as a voice on proposed policy
changes
Lead specific projects
Independent but complementary to
GMCA structures
Enhance best practice
Maximise benefit of Devolution
Contribution to Place shaping
Our connection to people
Delivery
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High quality homes
Supported accommodation/older
persons schemes and services
Support in communities and for
individuals
Work with complex families
Work to enhance life opportunities
Work across tenure – health pledges
Employment and skills opportunities
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GM DEVOLUTION – THE HOW?
Greater Manchester Growth & Reform Plan
Objective:
Create a Northern Powerhouse
Eliminate a £4BN Funding Gap
Enabling responsibilities delivered via Devolution
Transport
Housing
Skills & Training
Health & Social Care
Revenue Generation
Budget Responsibility
Bus Franchising
£300m Investment Fund
Strategic Planning Powers
Business Support Budgets
Apprenticeship Grant
Restructure Further Education
Joint Commission on Work Programme
Police & Crime Commissioner
Develop H&SC Business Plan
Locality Plans
£30m per year Earn Back
Greater Manchester Housing Providers
Anchor Institutions able to co-ordinate & deliver Housing, Skills, Health & Social Care at a GM, Locality & Neighbourhood level
7 Key Public Policy Areas to Revolutionise
Growth
Housing Supply
Reform
Employment & Skills
Place
Crime & Policing
Complex Dependency
Poverty
Health & Social Care
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BUILDING A NEW GM MODEL
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Rethink the purpose of our social housing stock
Make better use of the value of those combined assets
Actively help working age households to increase their income and along
flexible, affordable routes into home ownership
Commit to provide high need households and older households homes which
support their independence and reduce dependency on public services.
Reduce fragmentation and duplication to make management more efficient
and embed social housing in our integrated public service offer.
Embedding housing providers deeper into our public service reform
implementation
Co-design of a new future for housing provision by GM, providers and
Government
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THREE DEVELOPMENT STAGES
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3.
Principles: build an agreed initial picture of what we’re aiming
for.
Analysis: who we will be providing homes for, what models or
housing ‘products’ will be available to help them, what the
structural, financial and governance issues we need to resolve
are, what flexibilities or support we need from Government.
Implementation: aim to agree an MoU between GMCA and
providers to set out the stages of implementation.
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MEETING REAL HOUSING NEED
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Identify the groups of households we will continue to need to provide homes
for in the long term
Modelling what working age households can afford and the products that will
help them achieve their aspirations for home ownership
Understand how new homes for older households can match their current and
future needs and help reduce demand for health and social care services for
example through better step up/step down options
Define and map our vulnerable households and the demands they make on
public services
Understand which high need households can realistically achieve sustainable
employment and the support they will need to do that
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FINANCE AND GOVERNANCE
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Examine potential mechanisms to bring assets together to generate
more investment
Develop options for reducing the current fragmentation within the
sector
Build a framework to retain diversity of provision and local connection
while improving efficiency and reducing duplication
Scope out the help, investment and flexibilities we need from
Government and the regulator for the new model
Dialogue with the sector’s existing and potential new funders to
understand their views and requirements
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DESIGNING THE NEW OFFER
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Developing the flexible models or housing ‘products’ we should be
offering to give households a clear pathway to home ownership, while
being flexible enough to help households through temporary setbacks
Shaping the integrated service offers we will make to working
households, older households and those with higher level needs
Scoping how many new homes this could deliver in GM
Building the governance and financial structures needed to make this
work
Mapping the implications and benefits for individual housing providers
and their Boards
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GM DEVOLUTION – THE HOUSING OFFER - SUMMARY
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The case made on our contribution to GMCA
Developing a GM Housing Memorandum of Understanding :
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The work streams
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Our contribution to growth
Our “offer” to public sector reform
Our “asks” of the GMCA
Rethinking the purpose of our Social Housing stock
Increasing efficiency
Making better use of our combined assets
Meeting high needs in more efficient ways
Improving incomes for working aged households
Three spatial levels – neighbourhood, borough, and GM
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GM DEVOLUTION – WORK IN PROGRESS
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Firming up the “offers”
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Firming up the “asks”
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Increase our collaboration
Become more efficient and effective
Enhancing social support
Provide financial support and freedoms
Strategic development
Freedoms and flexibilities
Providing analysis – Assets, Finances, Needs & Demands for both Homes & People
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GM DEVOLUTION – WHY GET INVOLVED
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We want to be a delivery partner in GM Devolution
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Our Sector faces huge challenges
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This is an opportunity to improve the life chances of our customers
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We have a BIG contribution to make
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