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HCA reveals new financial models to SocInvest
Published: 2009-08-13 10:20:26
Homes and Communities Agency (HCA) director of strategy, policy, performance and research, Trevor Beattie, has spoken exclusively to SocInvest about new financial models the agency is exploring to revive affordable housing development under the umbrella of the National Affordable Housing Programme. One of these initiatives involves redefining the private public partnership model.
“Under the usual development model, developers look for a 24-26% return that takes into account their role in upfront financing,” Beattie said. “We want to move towards a model where contractors are less highly geared and can work with a lower return consistent with a contractor relationship. The HCA will take more of the risk by providing upfront funding for which it will take an equity stake.”
The HCA is in the process of evaluating potential partners and suitable schemes for this new contractual formula.
Beattie added that the HCA is on track to meet its targets, although a good proportion of outcomes are not due until the end of the year. He cited the success of the Kickstart programme in relaunching stalled housing programmes. “We had an excellent response to the initial programme. The £400 million is oversubscribed and the quality of bids has been good. The Government is putting as much again into the programme.”
With an election looming, is Beattie concerned about a change of Government? “Whoever is in office will want to see how well we’ve performed,” he responded. “The Conservatives have said they will see what we’ve achieved. The best we can do is get on with the job.”
Social housing investment has increased, with a total pot of £3 billion for the national housing programme. “It would be difficult to deliver this without the HCA,” said Beattie.
Beattie is one of the latest leading figures from the regeneration funding community to join the SocInvest 2010 Steering Committee. “I am very happy to become a member of the committee,” he noted. Responsible for HCA strategic policy and planning, including communications, the production of the corporate plan and the agency’s approach to design and sustainability, Beattie also headed the team that brought the HCA into being at the end of 2008.
SocInvest 2010 will include a session of detailed insights into one of the regional housing schemes, how it was designed and how it is delivering its development plan.