Meeting the challenge

In the Autumn Statement we heard the chancellor set out a pragmatic approach to building “a country that works for everyone” with housing, transport and welfare as the cornerstones of his spending plans. This move towards a clear agenda to support and provide homes for families that are “just about managing” is a significant step change from the previous cabinet’s relentless focus on ownership for all. 

In an extremely positive move, we also have the government placing housing firmly as part of the country’s infrastructure and I believe there are three strong messages for us.

First, continued investment in housebuilding is central to stimulating inward investment, with every affordable home built generating an additional £106,000 into the economy, and creating 2.2 FTE jobs. In broadening their commitment to homeownership, the government’s funding announcements will see greater investment in affordable rent and enable the development of a greater range of products that, along with shared ownership, will support people in their transition from renting to homeownership.

Second, the sector has been listened to, with housing associations being given greater flexibility in tenure which will help us deliver much-needed homes to meet need and aspiration; a central plank of the National Housing Federation’s (NHF) submission to the government. This is a positive reflection of the new relationship with the government and recognition of our ability to contribute to the target of one million homes by 2020. It is essential that we as a sector respond to this situation positively and seek to provide more homes, showing our real value to communities and the broader economy.

Finally, there is an opportunity for us to provide a range of rented and homeownership products, to develop and deliver the ‘housing journey’ addressing both need and aspiration. At Orbit we provide five home options, and we welcome the flexibility to offer products like shared ownership, where in some areas of the country demand outstrips supply by 10:1. So far this year we have received 2,700 applications. Flexible tenure products are also being promoted by the NHF and developed by a number of housing associations.

While we await further detail in the forthcoming Housing White Paper, I think the Autumn Statement provides some encouraging announcements, including the chancellor’s nod towards further regional deals.

I believe we should provide low-rent homes through to outright homeownership, and do this in the most effective way with flexibility to maximise the business model we have. We should continue to pursue an operating environment that enables us to innovate, respond to local market conditions and provide affordable homes meeting the needs and aspirations of our communities.

For now, we must maximise the traction gained with this government and continue to work together as a sector to harness our ability to deliver our ambitions.

Paul Tennant, chief executive, Orbit