Supplementary memorandum by Yorkshire
Forward (ERF 16(e))
GENERAL COMMENTS
Yorkshire Forward's strategic property agenda
is focused on economic regeneration.
Yorkshire Forward would not want to use the
proposed scheme on a reactive grant distribution basis—which
was a traditional public sector approach to the property market.
We would see and utilise this new scheme as
another tool to help us deliver our strategic agenda. We would
not see this scheme as a means to an end, but simply as another
option available to us in our property toolkit.
We would not use it in isolation of our wider
urban renaissance agenda.
This scheme would prove useful in allowing RDAs
to deliver a specific residential element within a mixed-use development
scheme.
Such a scheme, if approved would also serve
to ease concerns associated with the new EU approved regeneration
schemes; specifically, that the five existing mechanisms deter
residential development from regeneration programmes.
SPECIFIC COMMENTS
The scheme is not restricted to Assisted Areas
and is not subject to Aid Intensity Ceilings—it appears
that as long as the cost is greater than value we will be able
to fund any projects, assuming the scheme is approved in this
form. It seems that any scheme relating to housing should focus
on the provision of affordable housing rather than housing per
se, although the flexibility that this allows may be welcome.
Eligible costs cover land/property. This is
to be included at market value, or if the site is in the applicant's
ownership, the lower of market value or purchase price. This doesn't
seem flexible enough to cover sites that have been in an applicant's
ownership for some time, or where the site was purchased originally
for an entirely different use.
The construction of new dwellings or refurbishment
of existing buildings is an eligible cost. Presumably the standard
of fit-out would be left to the discretion of individual RDAs,
or would some form of guidelines be produced?
There would be a working assumption that profits
plus finance costs would be capped at 8 per cent in normal circumstances.
We would suggest that this should be flexible enough to accommodate
changes in the cost of borrowing. Maybe use 8 per cent as a guideline,
but leave this to the discretion of RDAs.
The funding relates purely to the cost and value
of the housing. It seems to exclude the provision of open space
etc—this is likely to add cost to any development for little,
if any, monetary return, may arguably make the development more
attractive and, therefore, more saleable. This does appear to
be an omission from a housing scheme of this sort.
ROLE OF
HOUSING IN
THE RES
As mentioned above, Yorkshire Forward's remit
is focused on economic development.
In relation to housing we inherited programmes
with a residential element under SRB and support projects under
Objective Five of the RES: "implement targeted, community-based
regeneration programmes", which contain housing elements.
However, individual projects have not focused solely on housing,
and physical improvements to dwellings and community facilities
have taken place as part of a holistic programme of economic,
social and environmental change.
Yorkshire Forward understands the important
role that the availability of affordable and good quality housing
plays in influencing the image of the region, creating an attractive
environment to attract and retain people and investors.
RES Review: our approach to housing—it
is part of our urban renaissance agenda: providing high quality
mixed use developments that will create sustainable, thriving
urban environments in line with recommendations in the Urban White
Paper. Examples include Holbeck Urban Village, Manningham Mills,
URCs.
The RES Review is likely to strengthen the integration
of economic development and housing issues.
It may be necessary for Yorkshire Forward to
intervene within certain policy areas. There is a concern that
skill shortages in the construction industry may hamper physical
development in the region, and consequently economic development.
In this instance we would look to intervene under RES Objective
Four: "Improve education, learning and skills action".
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