Homes & Communities Agency unveiled December 4, 2008

In a rather low-key announcement, a new government quango, to be known as the Housing and Communities Agency (HCA), has just been unveiled. With a budget of over £5 billion a year, for the next three years, this body will replace a few existing housing agencies, including English Partnerships, and is an attempt by the government to give a much needed boost to the flagging housing market.

The government’s goal of 3 million new homes by 2020 has taken a real knock recently as mortgage lending has collapsed with house prices not far behind. The two principal methods of affordable housing provision has been to require a proportion of affordable housing in new, private developments or by Housing Associations, the latter of which has seen funding dry up as the credit crunch takes its toll.

With large developers, feeling the squeeze, it’s believed that the HCA may go on a spending spree, buying up land that has been earmarked for development but where the buildings haven’t been forthcoming.

Four particular areas, known as “growth areas”, should be of particular interest to the HCA. This includes the Thames Gateway area, which has been hit hard by the recent downturn and it is expected that this will receive the lions share of investment, at around £5bn between 2008 – 2011. The HCA’s current activities include the London-Wide Initiative (LWI) which is a £1bn programme to deliver low-cost homes for key workers.

Key partners will mainly involve local government bodies and housing associations, however, there will also be consultations with private sector builders, developers and the voluntary sector.

Details of the procurement of services are still murky but it is clear that they will be administered on a regional basis.