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Homes England has “got to do the right thing” on affordable housing and is focusing on increasing levels of social rent on large sites, its executive director for land has said.
Speaking at Housing 2019, the Chartered Institute of Housing conference and exhibition in Manchester, Stephen Kinsella accepted that “it is easy to beat up” the government agency over rates of affordable housing.
It comes a week after figures showed Homes England programmes delivered 45,629 homes in 2018/19 – a nine year high – but social rent made up just 1,231 of these.
Mr Kinsella said the delivery agency was seeking to combine its grant-giving powers with its strategic land role to ensure higher rates of affordable are built on large sites. He added that since he joined in 2017 all of its new sites have had “policy compliant” affordable housing rates.
“You can beat the government up on affordable housing and you can beat Homes England up as well, I understand that,” he told delegates.
“But the position we are clear on is we have to do the right thing on affordable housing. Since I have joined, every single site has to have policy-compliant affordable housing.
“But policy-compliant might not be enough – sometimes it can be affordable rent and shared ownership which can be out of people’s reach so we are aware we need to do more in terms of social rent as well.”
Mr Kinsella cited a scheme with Galliford Try where its intervention lifted the rate of affordable from 20% to 48%, as it brought in Sovereign – a strategic partner – to use its grant on the site.
Speaking on a panel discussing the delivery of new homes on large sites, Mr Kinsella called for a “new asset class” of master developers who could speed up delivery by providing early investment in infrastructure.
“We have got to get up to an average of 500 homes a year from these large sites and that’s well beyond where most of them are now,” he said.
“To do that requires deep pockets to invest in the social infrastructure up front, which is difficult for the house builders or the land promoters to do up front.”
He added that Homes England itself now has 12 large sites, and £350m to spend this year on investments to bring large, difficult sites to market.
“We can’t possibly be the only one. We want to create a new asset class of master developers,” he said.
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