Businessman Speaks At Housing Conference

The managing director of the Larkfleet Group (www.larkfleetgroup.co.uk), a Bourne (near Peterborough) based private developer of new homes for sale and for affordable rent, was one of the main speakers at the Chartered Institute of Housing’s East Midlands regional conference.

Karl Hick told delegates at the event – called to consider the effects of the credit crunch on housing in the region – that developers, housing associations, councils and government must work together to tackle problems.

The event dealt both with ‘social housing’ – homes provided by housing associations and similar organisations for low-cost rent or purchase – and houses provided for sale on the open market.

Karl pointed out that the government has set a target of three million new homes being built by 2020, which means more homes will need to be built each year than ever before, but that house building in 2008 actually slumped to its lowest level for 84 years.

He suggested that urgent action needs to be taken to prevent a further fall in the number of houses being built.

Karl said: “Housing associations must look creatively at the ‘tenure mix’ – the balance between residents paying affordable rents and those who are buying their homes through low cost joint purchase arrangements. If people cannot get loans even for these mortgages, housing associations must expand their provision of rented housing, perhaps looking to change the balance in future years when tenants move on and the financial situation is easier.

“They must also apply more pressure on councils to secure planning permission, particularly on small sites that might not ordinarily get consent. Such sites in villages and other places can provide homes for local people who are being forced to move away because they cannot afford to buy homes, even at today’s market prices, perhaps because they simply cannot get a mortgage.”

Local councils could assist by responding to those requests from housing associations, Karl said, by releasing council-owned land for development and by being more flexible with their planning policies. In particular, said Karl, it is unrealistic in the present economic climate for councils to expect developers to make huge contributions to paying for local infrastructure such as schools and roads.

Government can play a role – both directly and through its new Homes and Communities Agency – by helping to stimulate lending, ensuring that banks use the money they have been given by government, and by supporting housing associations with higher levels of grant.

Called ‘Homelessness and the Credit Crunch’ the conference was held at the National Space Centre in Leicester on 3 February.

It was designed to encourage a debate about the emerging responses from government and financial institutions and from within the housing sector. It is hoped that the ideas discussed at the conference will help organisations maintain the overall supply of housing.

Other speakers at the event included Martin Lord, manager of Northampton Citizens Advice Bureau, and Nick Sedgewick, specialist advisor (homelessness) at the Tenant Services Authority.