Local authorities have been urged to bolster collaboration with Homes England for improved housing initiatives.
In a recent independent review, Homes England has been recommended to adopt new funding and partnership strategies to deliver coordinated housing and regeneration ambitions. The proposed changes aim to align Homes England's efforts with local priorities through strategic partnerships with Mayoral Combined Authorities and other regional bodies.
Peter Denton, the chair of Homes England, has acknowledged that some of these recommendations are already being implemented. He believes that progressing with the remaining suggestions could be transformational in delivering new homes and creating thriving places.
The key proposed changes include:
- Emphasising Strategic Place Partnerships (SPPs) to align Homes England funding with local housing and regeneration priorities.
- Integrating ESG-linked private capital by using sustainability-linked loans and social bonds alongside grant funding.
- Developing "grant-ready" land banks by targeting sites with planning consent and infrastructure connections in areas with housing supply deficits.
- Implementing data-driven approaches, such as geographic information systems (GIS) and heat-mapping, to identify optimal sites for funding streams based on deprivation and retrofit need indices.
- Creating innovative joint-venture models that allow private investors to forward-fund development while registered providers access grant funding via lease-and-leaseback arrangements.
- Establishing dedicated grant management teams, standardizing appraisal templates, and investing in data analytics capabilities to streamline funding applications across schemes.
- Continuing engagement with housing providers early in the funding cycle to facilitate smoother bid submissions under the new Social and Affordable Homes Programme (SAHP), supported by £39 billion government funding over 10 years.
These strategies indicate a shift from traditional unilateral grant funding towards more integrated, partnership-based, and evidence-driven approaches that leverage private capital, data analytics, and local strategic alignment to enhance housing delivery efficacy.
The review also suggests that Homes England should be allowed to take more risks at certain points in the economic cycle to increase additionality and impact. Michael Gove, in response to the review, has stated that Homes England is the right vehicle to deliver more affordable homes and support plans to regenerate towns and cities across the country.
However, the Department for Levelling Up, Housing & Communities (DLUHC) will determine the balance between Homes England's role in regeneration and housing delivery. The DLUHC will also be responsible for ensuring that the closer relationships with local authorities, as recommended by the review, are implemented effectively to prioritise urgent projects.
In 2023, Homes England faced backlash after they were forced to return funding to the Treasury. Despite this, the organisation continues to play a crucial role in the government's housing and regeneration agenda. Tony Poulter, a non-executive director for the Department of Transport, led the review.
- The local government, in collaboration with Homes England, might work closely on strategic partnerships for placemaking, focusing on housing regeneration and priority areas, as the new strategies suggest the emphasis on Strategic Place Partnerships (SPPs).
- Businesses may become involved in the housing sector through innovative joint-venture models, providing forward funding for development, while aligning with Homes England's grant funding via lease-and-leaseback arrangements.
- Financing for housing and regeneration projects could leverage sustainability-linked loans, social bonds, and data-driven approaches, such as geographic information systems (GIS) and heat-mapping, to identify optimally placed funding streams.
