The development activity of the G15 associations

Transcription

1 The development activity of the G15 associations

2 There are over 400 housing associations operating in London. They manage some 460,000 homes in the capital. Of these, the G15, (a group of 15 large housing associations), manage over 250,000. Therefore, the G15 is a major force in London. Development Capital offers an independent review of the G15 s development record for the first time. It is based on independent research commissioned by the G15 and undertaken by Helen Cope with David Levitt of Levitt Bernstein. The research report is available separately and examines in substantial detail the development capacity of the G15 and the quality of their product; it includes ten extensive case studies covering over 2,000 homes. The G15 comprises: Affinity Group Catalyst Housing Group Circle Anglia East Thames Group Family Housing Group Genesis Housing Group Horizon Housing Group The Hyde Group The L&Q Group Metropolitan Housing Trust Mosaic Homes Network Housing Group Notting Hill Housing Group Peabody Trust Southern Housing Group Development Capital complements the companion report, Social Capital (G ), which examined the response of the G15 to the regeneration agenda. Contents The offer Leadership and development capacity Mixed tenure and housing for sale The product Adding value Investing in neighbourhoods Contacts

3 The offer This report demonstrates that we are community developers but also sophisticated and major operators that are able and willing to take calculated risks to procure affordable homes efficiently. We offer high quality, award-winning products. We hope that this report will help to continue the dialogue between the G15 and all our partners. The message is clear; by putting the G15 in the lead, together we will be able to build more, higher quality and affordable homes in lasting communities. Key messages We are effective lead partners Our quality product, neighbourhood presence and community investment, means that we can offer added value as lead partners. We have the capacity and track record to do more We have the track record, expertise, financial strength and the capacity to do more. We are willing to take measured risks, including the direct provision of housing for sale. We deliver a quality product The ten case studies, independently selected for review, demonstrate that we not only find creative methods of funding affordable housing but also can achieve high quality, award winning, standards of design and construction at the same time. We optimise land use With our public and private sector partners we are in the best position to optimise the use of scarce public land supply to provide more affordable housing. We are in neighbourhoods for the long term We are trusted partners, committed to meeting diverse housing needs by offering an integrated approach to development, management, maintenance, community investment and housing sales.

4 1 Context Homes for all and People, Places and Prosperity have reinforced the Government s commitment to a step change in housing supply and diversification of tenure. In return for more capital funding the Government expects greater use of speedy and sustainable methods of construction, and increases in efficiency. Housing associations must now compete with all-comers for grant, demonstrating competitiveness and added value in their development activities. The Housing Capacity Study identifies a capacity, in London, for the ten year period 2007/8 to 2016/17 to deliver over 315,000 homes (equivalent to just over 31,500 a year). 1 Leadership The case studies demonstrate the G15 s willingness to develop new partnerships and the ability to lead complex developments, which include commercial and for sale housing. The G15 are successful at assembling sites from a range of sources including public disposals. Several members have developed land banks and regularly acquire sites at risk. 1 London Housing Capacity Study 2004 (GLA 2005) Leadership and capacity In the five years from 2003 to 2008 the G15 have delivered or plans to deliver over 53,000 new homes. By 2007/08 this could represent half London s annual capacity for new homes. Development spending for the same period (actual or estimated) amounts to 6.55 billion. The case study homes show excellent leverage. For every 4 of capital spent on procuring the homes only 1 of capital grant was received. The G15 are engaged in volume programmes and award winning, large schemes including the creation of complete neighbourhoods of over 500 homes. The G15 associations are leading on major developments and assembling sites, often at their own risk. Spend has doubled since 2003 reflecting the enhanced programmes and both the G15 s increased capacity to deliver and their financial strength. The G15 s expenditure profile reflects national and London priorities.

5 Case studies Bermondsey Spa, Southwark Sited near Jamaica Road, less than 200 metres from the new Bermondsey underground station and close to local shopping, this large, mixed tenure and mixed-use development comprising 627 homes, received a Project Award at the Housing Design Awards 2005 and was commended in the National Home Builders Awards The Hyde Group is renewing part of Bermondsey and this is a prime example of a housing association taking the lead. Bermondsey Spa There are several notable features: Family homes are offered; two thirds of the dwellings provide two to five bedrooms. A GP health centre, supermarket, and retail facilities are being provided. 10% of homes meet wheelchair standard or are adaptable. 100% conformity to lifetime homes. There is a vibrant partnership with local community groups and a sustainable management organisation to manage the neighbourhood in the long term. In addition to a youth centre, there are five separate children s play areas located in private or public places. The homes have been designed and are to be managed with energy consumption and sustainability in mind. All homes are to Eco standard very good. A site-wide, district energy scheme is proposed. Finance and risk Sales receipts will cross subsidise the affordable housing. Hyde is taking the risk on private sales and on achieving future grant allocations for later phases. Hyde is also developing and letting the commercial property at its own risk. Scheme analysis Bermondsey Spa (Sites E-U) Density Number of homes dwellings/hectare Housing mix by type 226 x 1B 62 x 2B 3P 169 x 2B 4P 156 x 3B 10 x 4B 4 x 5B Housing mix by tenure 204 private for sale 141 shared ownership 208 affordable 67 intermediate rent 7 live work Commercial use GP health centre at 1,269m 2 supermarket at 1,000m 2 shops / retail at 500m 2 car sharing scheme

6 Adastral Village, Barnet A new village is being created in Barnet. This development of 320 homes illustrates that it is possible to achieve better quality when the association is in control of the process. Notting Hill has delivered high quality design solutions through taking a greater degree of development risk and profit sharing with developers. Adastral Village The result is an award-winning scheme which in 2004 received: The Evening Standard commendation for Best Apartments for First Time Buyers The Mail On Sunday National Homebuilders Design Awards Commendation for Best Social Housing Development YNH (Your New Homes) Highly Commended for Best Urban Regeneration Project. Features include: Homes of all tenures that have been pepper-potted across the site. New community facilities. A community trust that has been set up to serve all residents. Finance and risk NHHG entered into a joint venture with Bellway Homes to build 150 affordable units and 170 homes for outright sale. The contract was procured on an open book basis with a target price rather than a fixed price, linked to inflation. The sale homes were delivered as a joint venture between NHHG and Bellway, with NHHG receiving 30% of net sales proceeds as land payments. After further costs were deducted, a super-profit was distributed between the two parties. Scheme analysis Adastral Village Density Number of homes 320 Housing mix by type 69 dwellings/hectare 72 x 1B 165 x 2B 74 x 3B 7 x 4B 2 x 5B Housing mix by tenure Commercial use 129 private sale 100 rent 91 shared ownership 1 shop 1 community centre

7 Sutton Park Road, Sutton. This prominent mixed use site in central Sutton, is a further example of a G15 member taking the lead. Horizon Housing Group purchased the whole site for redevelopment with the benefit of planning consent. Once in ownership Horizon applied for a revised planning permission for a higher density, in consultation with the local authority. The revised scheme will achieve a higher ratio of rented units, providing 27 rented units, 72 shared ownership units, six penthouses (for private sale), and B1 commercial space. The London Wide Initiative (LWI): key worker homes for the future The role of the G15 in the LWI further illustrates their ability to lead and provide an innovative approach to large-scale housing development. Three consortia have been chosen to lead the pilot phase of the initiative, each involving G15 associations: 1. Countryside Properties with Hyde Housing Group, MHT, Acton and Presentation Housing Associations. 2. A partnership led by First Base which is owned by Lendlease Europe and Stanhope working with L&Q, Southern and East Thames Groups. 3. Key London Alliance is led by Circle Anglia working with a subsidiary of Notting Hill Housing Group, Wilmott Dixon and Barratts. In September 2003, English Partnerships launched the LWI, a pilot scheme aimed at providing more affordable homes in Greater London. The pilot scheme will test a range of new ideas aimed at creating a step-change in the delivery of homes. Each site will include a mix of open-market sale as well as low-cost ownership and rental homes. The LWI will deliver up to 4,500 homes over the next five years. 1 1 Source: English Partnerships: press release 02/02/05 Fact file G15: New home completions / / / / /08 Rent 5,160 4,437 4,932 7,404 7,790 Shared Ownership 2,249 2,105 3,373 5,014 5,064 Sale ,191 1,797 Other TOTAL 8,019 7,033 9,049 13,983 14,990 G15: New home completions (actual and estimated) G15: Development spend M, all tenures (actual and estimated) / / / / / / / / / /08 G15: Development spend ( M) 2003/ / / / /08 Total Rent , Shared Ownership , Sale Other TOTAL , , , , ,545.47

8 2 Context In 2005, the second stage of the Communities Plan was launched. 2 Homes for All focuses on the principles of facilitating greater choice in housing and increasing opportunities for people to own, part own or rent their homes. The second stage plan introduced a number of proposals including increasing home ownership and tenure diversification. Track record in mixed tenure The 10 case study schemes also reflect the trend profiled by the overall development programmes of the G15, in that the G15 have been actively providing mixed tenure schemes for many years and have a proven record of tenure diversification and integration. Over 34% of the case study homes are for outright sale and most have been developed at risk by the associations themselves on difficult sites. Mixed use The case study schemes also illustrate the G15 s capacity to deliver mixed-use developments which include retail, community and other commercial space. Mixed tenure and housing for sale The G15 have responded positively to the Choice to Own agenda. The G15 are developing mixed tenure and mixed-use schemes and have done so for over two decades. The G15 are developing housing for outright sale at their own risk. Spend on affordable home ownership will increase from 30% in to an estimated 45% in Completions of homes for part or full ownership will increase three-fold during this period. Homes provided by the G15 for outright sale will increase six-fold in the period The agenda was set out in two documents Sustainable Communities: Homes for All and People Places and Prosperity (ODPM 2004/05)

9 Barkway Court Case studies Barkway Court, Hackney Only three minutes walk from the green lung of Clissold Park, local shopping and public transport, this scheme is a high quality example of mixed tenure. The scheme provides 106 homes, including a sheltered housing scheme, shared ownership, homes to rent and housing for sale. Circle Anglia completed Barkway Court in Notable features include: A design that delivers mixed tenure accommodation at a scale in harmony with the surrounding streets. All tenures are indistinguishable from each other. 38% of all homes are to full wheelchair standards. 40% of the affordable flats are to Lifetime Homes Standards. The scheme meets the Borough s Agenda 21 sustainable development objectives. Finance and risk The scheme demonstrates innovative financing arrangements. It is funded largely by cross subsidy from the sale of outright sale units, proceeds from shared ownership and the sale of a commercial unit. Scheme analysis Barkway Court Density Number of homes 106 Housing mix by type Housing mix by tenure 260 dwellings/hectare 50 x 1B flats 55 x 2B flats 1 x 2B maisonette 39 sale units 54 rental units (inc. 40 sheltered) 7 shared ownership units 6 low cost home ownership units Commercial use 1 shop unit (180m 2 )

10 Lingham Court Lingham Court, Lambeth Proceeds from housing sales, undertaken at risk by Metropolitan s home ownership subsidiary, Metropolitan Living Ltd., enabled 31 homes for frail elders to be provided with no Social Housing Grant. Recently completed, Lingham Court also provides 46 flats for outright sale and a retail unit. It highlights the continuing role that housing associations have in meeting the needs of vulnerable people and the innovative use of cross subsidy from sales. The homes are built on a technically difficult site close to Stockwell Station. Positive features include: No external difference between the two tenures. All flats for frail elders are accessible for all types of disability. Private flats served by lifts, meet most standards of Lifetime Homes. Finance and risk The scheme was entirely funded by Metropolitan Housing Trust in combination with Metropolitan Living Ltd, its commercial vehicle, which provided proceeds from sales to fund the care scheme. Scheme analysis Lingham Court Density Number of homes 77 Housing mix by type Housing mix by tenure 183 dwellings/hectare 27 x 1B 1P 17 x 1B 2P 32 x 2B 1 x 3B 31 flats frail/elderly rented 46 flats outright sale Commercial use ground floor retail unit to Clapham Road frontage

11 Hermitage Road, Haringey A former industrial site, with easy access to shopping in Green Lanes, excellent public transport links and access to Finsbury Park, this scheme, by Mosaic Homes, offers a good example of the re-use of brown land combined with modern methods of construction. It demonstrates tenure integration and it is also a mixed-use development. It provides a five-storey commercial block and a four-storey residential block of 66 homes for affordable rent, shared ownership and private sale. The scheme has evolved as the result of a partnership between a private investor/developer and Mosaic Homes which has been involved from the very beginning. The project includes a separate building containing 14 business units in order to continue an employment use on the site. Entrances serve a mixture of rent, private sale and shared ownership flats, a challenging approach to tenure integration. The residential block is to be constructed using off site timber frame panel construction. This combines low embodied energy, less waste and a shorter overall construction time. Hermitage Road Scheme analysis Hermitage Road Density Number of homes 66 Housing mix by type Housing mix by tenure Commercial use 107 dwellings/hectare 8 x 3B 5P flats with private gardens 1 x 3B 6P wheelchair flat with private garden & covered car port 33 x 2B 4P flats with private balconies 21 x 1B 2P flats with private balconies 3 x 1B 2P flats with private gardens 18 affordable rent 15 shared ownership 33 for private sale a separate five storey block offering 1,643m 2 of commercial space

12 Braintree House, Barking and Dagenham In a key town centre location, close to the tube and train station and local amenities, this highly innovative, mixed tenure and mixed use scheme includes ground floor commercial space to be leased back to L&Q Group s developer partner. 79 homes are being provided, 26 homes for intermediate rent, 30 homes for conventional shared ownership and 23 homes for outright sale; the latter marking L&Q s move into housing for sale. Key features include: Modern methods of construction (modular construction). Eco Homes Excellent. High density/zero car parking/100% cycle storage. Raised first floor private gardens. Every apartment has private external amenity space. The scheme will be completed in summer Queens Park Phase 1, Brent This mixed use, mixed tenure scheme, being developed by Genesis Housing Group, is a prime example of an association taking the lead in development and being able and willing to take on the risk of developing a difficult site to higher density, while building to exacting standards. 128 homes will be provided. Obsolete buildings will be replaced by tall buildings, at podium level above commercial and retail uses which cover ground and first floor level. Public car parking spaces will be re-provided at basement level and will include a car club. The project includes 50% private sale (with marketing risk taken by Genesis). The remaining dwellings include 70% homes for rent and 30% for intermediate housing for key workers. Space standards exceed Parker Morris by 15%. Fact file G15: Development spend by tenure (%) 2003/04 G15: Development spend by tenure % (estimated) 2007/08 Shared Ownership 34% G15: Case study homes mix by tenure (all homes) % Rent 36% Shared Ownership 22% Rent 69% Sale 2% Other 1% Shared Ownership 28% Rent 52% Other 2% Sale 12% Other 8% Sale 34% Commercial space case study schemes (NB: Other refers to market, intermediate, key worker rent and live-work) Scheme Commercial (mixed) use of site G15: Development spend M (actual and estimated) sale only 2003/ / / / /08 Adastral Estate Pimlico Village Hermitage Road one retail unit community building one supermarket seven retail outlets a separate five storey block offering 1,643m 2 of commercial space Barkway Court one retail unit (180m 2 ) Bermondsey Spa E-U 392 Uxbridge Road none GP Health centre (1,269m 2 ) supermarket (1,000m 2 ) shops (500m 2 ) New River Green 7 retail units (each approx 200m 2 ) Nile Street Lingham Court community Centre ground floor frontage to Clapham road for retail use Abbotts Wharf commercial space (780m 2 )

13 The product 3 Overview The ten case studies, covering over 2,100 homes and independently selected for review, demonstrate that the associations not only find creative methods of funding affordable housing but also can achieve high standards of design and construction at the same time. The private developer s normal motivation is to optimise the financial return on the private component, sometimes at the expense of the affordable. It is therefore less likely that the high quality examples of affordable housing featured in this report would have been produced under section 106 agreements, had they been led by the private sector. Some issues for policy development The case studies also illustrate some issues, mostly associated with funding which the associations are attempting to resolve. They arise from the a desire to achieve, on a regular basis, the high all round standards demanded by the Housing Corporation, ODPM, planning authorities and CABE. These include: Meeting standards of environmental performance in excess of building regulations. Meeting the extra costs of housing management and the provision of caretakers and concierges occasioned by increased densities while attempting to keep service charges affordable. Maintaining high quality design standards when the emphasis is usually on numbers. The G15 create award winning, high quality homes using architect services. They are building at higher densities, including schemes of over 500 homes per hectare, but this has not been to the detriment of quality. The G15 build family homes particularly when they are in the lead, 37% of case study homes, to rent, offer 3 bedrooms or more. Space and other standards are being maintained and diversity is accommodated in design. External private space is generous. Modern methods of construction are utilised. The sustainable development agenda is being addressed. Family homes 37% of the case study homes to rent offer three bedrooms or more. The G15 are therefore already meeting the standard required by the London Housing Board. Although chosen at random in respect to this, they indicate what can be achieved when the G15 are in the lead. Other key features of the case studies include: Design standards that meet or exceed the Housing Corporation s Scheme Development Standards and space standards that often exceed Parker Morris. Most schemes meet Secured by Design certification. Careful thought is given to achieving tenure integration. Diversity is accommodated. Excellent standards of private open space are provided. Most schemes provide only limited parking in response to the desire to reduce car usage. Readiness to innovate through techniques such as lightweight steel frames, timber frames, lightweight steel-framed cladding panels and prefabricated volumetric bathroom and kitchen pods.

14 Case study: Nile Street, Hackney Shared roof terrace for key Private open space for The use of copper cladding Affordable flats for rent The construction of luxury worker housing all flats and timber as a distinctive indistinguishable from penthouse flats to create alternative to brick other tenures additional value

15 Overview Within easy walking distance of the City, the Peabody Trust has provided an excellent example of high quality and modern design. Nile Street is a high-density development providing 175 homes, communal and roof gardens and a youth centre. 128 affordable homes are being developed with 47 flats for private sale though Blue Hut Development Ltd., a subsidiary of the Peabody Group. The site called for a highly inventive solution in order to exploit its full potential. Evaluation There are a number of notable features: The homes themselves have been carefully designed to make the most of the available space. A concierge service and CCTV will be provided for all tenures across the scheme. 62% of homes have access to a roof terrace and 82% have usable balconies. A large, well-designed shared roof terrace above the key worker flats is provided. There is a children s play area and multi-use games area. A youth centre is being incorporated beneath the affordable housing. Designs for very small, triple function, kitchen/living/sleeping flats for key workers have been developed by Peabody with a total internal floor area of just over 30 sq.m. Site area Number of homes hectares Housing mix by type 78 x 1P studios 62 x 1B 2P 25 x 2B 4P 10 x 3B 6P Housing mix by tenure Density Communal spaces Scheme analysis Nile Street 47 sale (Blue Hut) 30 shared ownership 78 key worker rent 20 affordable rent Commercial use youth centre (250m 2 ) Landscaped areas only available to residents Play areas (number of) Per hectare Dwellings 576 Habitable rooms 1,047 Bed spaces 1,196 External space Internal space m 2 Studio 31 1B 48 2B 70 3B 87 Homes with private gardens 6% Homes with balconies / terraces 82% Roof gardens 62% roof garden = 991m 2 (includes courtyard and children s play area) 1 recreational area: multi-use games area (35m x 18m) and children s play area Community hall youth centre (250m 2 ) Net to gross ratio of residential to circulation accommodation Number of dwellings per communal entrance and lift core 82% South block = 71 dwellings West block = 6 dwellings North block = 20 dwellings North block 2 = 78 dwellings Car parking Total car parking spaces none car free zone policy bicycle storage provided

16 Case study: Abbotts Wharf, Tower Hamlets Creating a new basin for Tall flats for non-family use Striking use of primary Modern methods of Landscaped courtyards built pleasure craft using the colours to personalise lightweight external above residents car park canal each home cladding built without using conventional scaffolding

17 Overview The Limehouse Cut is in the process of being transformed, through association led redevelopment, from a largely derelict industrial zone into a high quality housing area with canal-side walks and parks. Scheme analysis Abbotts Wharf East Thames and their chosen developer partner, Telford Homes, have shared a common vision for the site. This has resulted in 201 homes in four separate blocks with underground car parking and a new dock for canal boats as a feature at the centre of the principal open space. 30 affordable homes have been provided without grant, in addition to commercial space. Evaluation A number of notable features can be identified: The construction of a new and attractive dock for canal boats is the central feature in the main open space and gives it a sense of place. There is no outward evidence of different tenures across the development, either in terms of the quality of design and materials or in the treatment of the external spaces. A 24 hour concierge with a 24 hour CCTV monitoring system will control overall access to the site, to the various blocks and the two parking areas. There are generous balconies to all dwellings. Overall space standards approximate to those laid down by Parker Morris. Flats are generally wheelchair accessible by lift to all floors. 86 parking spaces are provided. All provision is underground and is controlled by fob keys, monitored by the concierge. Modern methods of construction include a hybrid system combining a concrete frame with light weight steel framed external walls covered with insulated render. Site area Number of homes 201 Housing mix by type Housing mix by tenure Density Communal spaces Commercial use 0.61 ha 77 x 1B 2P flats 110 x 2B 4P flats 8 x 3B 5P flats 6 x 3B 5P maisonettes 44 rent 56 shared ownership flats 101 sale 780m 2 of B1 space Landscaped areas only available to residents 0 Play areas (number of) 0 Community hall Net to gross ratio of circulation to residential accommodation Number of dwellings per communal entrance and lift core Car parking Per hectare Dwellings 330 Habitable rooms 885 External space Bed spaces 1,089 Internal space m 2 none 15% Total car parking spaces No. of car parking spaces per dwelling B 49 2B 69 3B 90 Homes with private gardens 0% Homes with balconies 100% Roof gardens 0% Other 0% % site dedicated to surface parking 0 (basement)

18 Case study: 392 Uxbridge Road, Hammersmith and Fulham High density family housing Short access galleries double Bold use of timber cladding Distinctive addition to the Planting spring bulbs in the around a secure internal as balconies as well Uxbridge Road roof garden courtyard

19 Overview This award-winning scheme provides 45 flats, houses and maisonettes on a site procured on the open market by the Catalyst Housing Group, providing 33 homes for rent and 12 flats for key workers and shared owners. Scheme analysis 392 Uxbridge Road Despite the high density of the scheme, 80% of the units are family sized, with a mix of one, two, three and four bed homes. Evaluation A number of notable features can be identified: The family dwellings have dual frontage facing east or west and therefore receive sunlight at some time each day. Every home has access to a generous balcony that receives direct sunlight. Substantial, well planted, shared open spaces including a small children s playground and at roof level, large shared terraces with benches and planters have been provided. The larger family units have spacious dining/kitchens. Where tested, the standard of airborne sound reduction exceeded Building Regulations by 22% and the standard of impact sound by 31%. The scheme has achieved an Eco Homes Good rating. Site area Number of homes hectares Housing mix by type 9 x 1B 26 x 2B 4 x 3B 6 x 4B Housing mix by tenure Commercial use Density per hectare Communal spaces Dwellings 214 Habitable rooms 680 Bed spaces 847 External space 33 rent 12 shared ownership flats None Landscaped areas only available to residents 1,835m 2 Play areas (number of) 1 Community hall Internal space m 2 1B 46 2B 71 3B 110 4B 128 Homes with private gardens 29% Homes with balconies 66% Roof gardens 11% none Net to gross ratio of circulation to residential accommodation Number of dwellings per communal entrance and lift core 542:3,370 (circulation is 16% of total gross floor area) 9.25 average Car parking Total car parking spaces 10 No. of car parking spaces per dwelling 0.22 Within curtilage all % site dedicated to surface parking 12

20 4 Adding value Context In response to the Gershon Review 3 the social housing sector is committed to achieving efficiency gains through new and more effective approaches to procurement. The targets were set out in The social housing sector must deliver savings of 835 million a year by relating to: Procurement of new supply; Procurement of housing capital works; Delivery of housing management and maintenance services; Procurement of commodity goods and services. Efficiency gains will be ploughed back and 10,000 additional social homes are to be achieved as a result of the savings. The G15 are adopting new approaches to procurement to increase efficiency in terms of both cost and speed. The G15 are capable of funding increasingly large programmes and the trend indicates a capacity to do more. The case study homes show excellent leverage. For every 4 spent on procuring the homes only 1 of capital grant was received. They are willing and able to take measured development risks and have developed a range of innovative financing arrangements. The G15 cross-subsidise from sales or internal resources to make schemes work. Grant is recycled with other surpluses to build more homes. 3 Releasing Resources for the Front-Line: Independent Review of Public Sector Efficiency (HM Treasury July 2004) 4 Social Housing Efficiency, A discussion paper (ODPM February 2005) The G15 add value through a range of activities associated with the development process.

21 The G15 adding value through development related activities New approaches to procurement The G15 are at the forefront of new approaches to procurement. In addition to partnering and the use of PPC2000 illustrated by the case studies, several members are working together to cut the costs of maintenance procurement through the Buy4London initiative. Use of receipts and grant recycling Nationally, in the two years 2003/04 and 2004/05, 233m was reinvested by housing associations from staircasing receipts on sale and grant recycling. 5 During this same period the G15 alone reinvested 71m and this figure is increasing year on year, with 48m earmarked for 2005/06. The G15 plough resources into their additional activities as client bodies and as agents for others. These stem from both regulatory requirements and the associations commitment to the areas in which they operate. These activities are automatic and are activities which the private sector might consider to be beyond their role. They include: Development Producing housing briefs which meet clients needs. Advice on Key Worker issues and work with public sector employers. Facilitating S106 agreements with local authorities and developers. Cash/programme planning to meet Housing Corporation requirements. Design imperatives Working to ensure quality through HQI and other standards. Design specifications and publications. Developing standard house types. Contributing to research on design standards and solutions. Sustainable development Clients Charter. Technical innovation including research and development of modern methods of construction. Sub regional participation in strategy formulation and serving on boards. Participation on formation of Community Plans. Membership of SRB Boards, Local Strategic Partnerships. Serving on Housing Corporation, ODPM and other working or consultation groups. Creating social capital and responding to diversity Community investment including development of community centres and other non-housing capital projects. Community development, working with residents on regeneration schemes. Residents choice. Development with black and minority ethnic and specialist organisations. 5 Source: Recycled Capital Grants Funds and Disposals Proceeds Funds Review: Consultation Paper (Housing Corporation 2005) Efficiency New methods of procurement. Managing the supply chain. Partnerships and stakeholders, neighbourhood management Analysing housing need and demand. Negotiation of scheme specific nominations and local lettings strategies. Post completion Housing Corporation postcompletion housing impact assessment. Self certificated development audit. Advice and support to purchasers on low cost home ownership and sale projects. Review and evaluation to achieve continuous improvement including resident surveys.

22 Case studies Pimlico Village, Westminster Set in the heart of bustling Pimlico this award winning, village development provides affordable homes for rent and sale in a central London location. Network Housing Group assumed the risk across the scheme taking the lead role, as the previous developer was unable to provide the 50% affordable housing required by the Borough. Pimlico Village An example of an integrated housing and retail development, it is also mixed tenure; consisting of 160 flats built over a 40,000 sq. ft. supermarket and seven small retail units. Completed in 2004, Network worked in partnership with Westminster City Council, J Sainsbury PLC, other commercial tenants and the Grainger Trust. The scheme won the Best Public/ Private Partnership of the Year Award at the 2004 Building Homes Quality Awards. Other key features include: Tenures are indistinguishable externally. Modern methods of construction. Neighbourhood management with a local residents association. J Sainsbury PLC is recruiting staff from the scheme to meet Network s commitment to supporting local people in the community to secure employment. Super-caretakers based on site. Scheme analysis Pimlico Village Density Number of homes Housing mix by type 219 dwellings/hectare 160 (79 leasehold and 81 social housing) 40 x 1B 2P 94 x 2B 3P/4P 26 x 3B 5P/6P Housing mix by tenure Commercial use 79 leasehold housing 59 social housing for rent 4 social wheelchair housing for rent 18 shared equity housing 1 supermarket 7 retail outlets

23 Finance and risk A special purpose vehicle, Pimlico Village Developments (PVDL), was established to enable the Group to provide both social housing and retail accommodation while complying with regulatory guidelines. This project accessed 100% finance from the Royal Bank of Scotland. Network raised 65 million to build a Sainsbury store, 79 sale apartments and 81 affordable homes. The store and private sale apartments generated surpluses of 6 million which were used to reduce the cost of the affordable housing. Durand Close, Sutton A hard to let estate is to be transformed through a further example of added value. Affinity Housing Group is in partnership with the LB Sutton to redevelop this estate of some 300 homes together with several off estate sites. The redevelopment proposal comprises 800 new build dwellings of which some 350 are affordable (mainly social rented larger houses), community facilities and a retail unit. The project is at an early stage with some off estate sites just started and master-planning and consultation of the overall project largely completed. Buy4London Buy4London, formed by ten members of the G15, aims to improve building maintenance and stock investment quality whilst simultaneously reducing costs via collective purchasing power. Buy4London anticipates spending 160m through the new consortium by The consortium will initially focus on the Decent Homes agenda and cyclical/planned repairs, but will move into responsive repairs and new homes in due course. Affinity has full control over the process. Its developer partner will act as main contractor and also build the homes for private sale. Affinity will retain a 50% share of the development profit generated from private house sales thus creating cross subsidy for the affordable housing.

24 5 Investing in neighbourhoods Overview The G15 s development activities should be viewed in the wider context of their long-term commitment to neighbourhoods and the creation of sustainable communities. The role of housing managers, maintenance staff and those working in community development is recognised as part of the development process. They are actively consulted and engaged in the process to attempt to ensure the sustainability of future schemes. These findings reflect those of Social Capital 6, which examined the regeneration and community investment activities of the G15. That research demonstrates that since 1997 the G15 have: Delivered 534 people based projects across London. Invested 2.4 billion in regenerating homes in London and 71 million in linked capital projects such as community halls and works to the environment. Invested a further 99 million in community programmes. The G15 are very effective in levering additional resources and for every pound spent on community investment from their own resources another three pounds are attracted. The G15: Lead or are involved in a range of neighbourhood and stakeholder partnerships. Promote and contribute to diversity. Create social capital through programmes of community investment. Provide on-going management and maintenance services. Offer professional marketing and after sales services. Commit to an area for the long-term. 6 Social Capital: The regeneration activities of the G15 housing associations (G )

25 The G15 provide much more than bricks and mortar. The case studies show active neighbourhood management and investment in community regeneration from employment to health, education and training to neighbourhood management. New River Green Responding to diversity In all functions, housing associations are expected to accommodate diversity. When developing, the G15 accommodates diversity in the following ways: Development with black and minority ethnic and other specialist organisations. Development with vulnerable groups through supported housing. Brokering diversity protocols. Design specifications for diverse needs including disability and cultural requirements. The majority of the case study schemes meet the standards for accommodating diversity set by the National Housing Federation. Most members of the G15 regularly work with London s leading BME associations including ARHAG, ASRA, Presentation, Labo, Ujima, Tamil Community, Kurdish, North London Muslim, Kush, Shian, Ekaya, Black Roof, New World, Innisfree, Cara, Inquilab and Apna Ghar. Case studies New River Green, Islington A notorious estate, located in the heart of Islington, has been transformed by the Southern Housing Group. Re-named New River Green following the demolition of large parts of the former Marquess estate, the project has won a number of awards, including the Affordable Home Ownership Awards 2003 Best Partnership & Contribution to Regeneration Award. Scheme analysis New River Green Density Number of homes 377 Housing mix by type Housing mix by tenure Commercial use 185 dwellings/hectare 310 x 1B & 2B flats and maisonettes 67 x 3B & 4B houses 238 x social rent 79 x shared ownership 60 x outright sale 7 x approx 200m 2 retail units

26 The estate has been re-integrated into the surrounding neighbourhood in partnership with the LB Islington and provides 377 new homes, 238 homes for affordable rent (including supported housing), 79 shared ownership homes and 60 homes for outright sale. Finance and risk Income receipts from the sale and shared ownership units were used to cross-subsidise the scheme and reduce the grant on rented units. The Borough s land receipts contributed to the cost of refurbishing their retained units. Key features include: Mixed-uses which provide facilities right on the doorstep including a surgery, a church, retail units including new Sainsbury s Local store and an art gallery selling affordable art. 12 homes provided for supported housing specialist associations for people with mental health problems and those who are AIDS/ HIV positive. A substantial programme of community investment. Local Neighbourhood Agreement established. Leading consultation on the local community development strategy. Training for residents to participate in the design, development and management of community activity. Union Road, West Stockwell This innovative mixed-use scheme combines housing, health and community facilities. Building on Family Housing Group s established track record for active neighbourhood management and community investment, Family is developing the scheme in conjunction with Lambeth Primary Care Trust and Lambeth Council. 32 rented homes and seven shared ownership homes will be provided. The contract has been let and construction is underway. Key features serving the local community too include: A community hall A community flat A one stop shop A neighbourhood management facility A Surestart nursery An IT centre A pharmacy A general practice surgery A health centre. There has been extensive local community consultation concerning the provision of these facilities. 10 of the homes will be transferred to Ekaya HA, a BME association, and are being developed for the local Portuguese community. Fact file G15: Overall community investment programme types % Social exclusion 24% Other 11% Jobs 14% Neighbourhood 10% Education 14% Health 11% Crime 16% Source: Social Capital (G )

27 Contacts 6 Mark Rogers Chief Executive Circle Anglia 1/7 Corsica Street London N5 1JG Don Wood Chief Executive The L&Q Group Osborn House Osborn Terrace London SE3 9DR David Eastgate Acting Group Chief Executive The Hyde Group Leegate House Burnt Ash Road London SE12 8RR Steve Howlett Chief Executive Peabody Trust 45 Westminster Bridge Rd London SE1 7JB Tony Shoults Chief Executive Metropolitan Housing Trust Cambridge House Mayes Road London N22 6UR Rod Cahill Chief Executive Catalyst Housing Group Ealing Gateway, Uxbridge Road, London, W5 2AU Tom Dacey Chief Executive Southern Housing Group Fleet House 59/61 Clerkenwell Road London EC1M 5LA Anu Vedi Chief Executive Genesis Group Capital House 25 Chapel Street London NW1 5DT Kate Davies Chief Executive Notting Hill Housing Group 27 Hammersmith Grove London W6 0JL Brendan Sarsfield Chief Executive Mosaic Homes Globe House 8 Curtain Road London EC2A 3NX Carol Radmore Chief Executive Family Housing Group Albion House 20 Queen Elizabeth Street London SE1 2RJ Nick Wood Chief Executive Network Housing Group 10/12 Neald Parade Wembley Hill Road Middx HA9 6QU June Barnes Chief Executive East Thames Group 3 Tramway Avenue Stratford London E15 4PN Ben Wilson Chief Executive Horizon Housing Group Grosvenor House 125 High Street Croydon CR0 9XP Keith Exford Chief Executive Affinity Group 37/9 Perrymount Road Haywards Heath RH16 3BN Researched and written by Helen Cope and David Levitt. Designed and produced by The Grand Design, Architects of the case study schemes are: BPTW Jestico and Whiles Levitt Bernstein Levitt Bernstein Monahan Blythen Munkenbeck and Marshall Pollard Thomas Edwards Architects Pollard Thomas Edwards Architects PRP Architects PRP Architects Hermitage Road Abbotts Wharf Bermondsey Spa Pimlico Village Uxbridge Road Nile Street Adastral Village Lingham Court New River Green Barkway Court

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