60% of housing association’s new development for private sector

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

As much as 60% of a housing association’s new development will be for the private sector in a bid to cross subsidise affordable housing, its chief executive has announced.

Speaking at the Older People’s Housing & Support Conference in Stratford-upon-Avon last week, Bruce Moore, CEO of retirement housing association Hanover, said social housing providers are at a “crossroads facing challenges that have not been experienced in the past 50 years”.

Hanover manages nearly 19,000 mixed-tenure retirement and extra care properties on more than 600 estates.

Mr Moore said spending cuts in adult social care and an uncertain future over reduced grant funding are asking “a whole new set of questions of the sector”.

He said: “One of those is: are we willing and able to move into the area of risk and compete with the private sector for both land and market share?

“At Hanover, and I know this to be true of a number of other large specialist providers, the answer is yes.   But we’ll need to be a lot more creative, brave and agile.  

“I believe cross subsidising to provide affordable housing will become the norm for housing associations over the next few years. We have taken the decision to cross subsidise a larger proportion of our new affordable housing offers by building as much as 60% of our new developments for the private sector. Rather than being a reaction of despair this presents us all with exciting opportunities. We will need to be equipped and of a mind-set to enter and compete in commercial markets.

“Private developers find it harder to compete with us is in design and build specifications.   All of our new housing will be built to the HAPPI (Housing for an Ageing Population: Panel for Innovation) standards and principles with larger space standards imaginative designs and quality fixtures, fittings and finishes.”