Memorandum by The Pathfinder Chairs (EMP
20)
EXECUTIVE SUMMARY
1. This is evidence is submitted corporately
by the Pathfinder Chairs.
2. It is still very early days in the life
of this 10-15 year programme. However, we believe that rapid progress
has been made. This applies not only to the way in which the policy
has been developed but also to the achievements on the ground.
Two of the key elements in this rapid progress have been the early
provision by Government of the £25 million available for
planning individual Pathfinder programmes and funding early projects
as well as the considerable local discretion allowed by Government
married with the rigour imposed by the Audit Commission.
3. This evidence responds to the issues
raised by the Committee. Some of the main points are:
— Generally the powers available to
the Pathfinders and our partners are sufficient for the task.
Of greater concern is the shortage of skills at all levels.
— The scale of resources implied in
the two most recent Spending Reviews are sufficient to make a
major difference to our areas. Although more money would always
be welcome, and could be well spent, we accept that we have to
prove first that we can put to good use the resources already
earmarked.
— However, a longer term financial
commitment from Government, reflecting the long lead times in
housing redevelopment, would be valuable.
— The scale and nature of the task
requires greater revenue support than currently seems likely to
be available. Large scale housing renewal requires considerable
preparation, planning and consultation. We believe that projects
such as neighbourhood management during the period of transition
should be fundable from the Pathfinder budgets.
— Demolition rates will have to increase,
as foreshadowed in The Northern Way. At current rates of demolition
every house built now will have to last for at least one thousand
years and the quality of the housing stock in the Pathfinders
is holding back economic revival. Demolition is a means to an
end, usually to providing sites for modern houses of all prices
and tenures. However, whether to demolish or improve needs to
be assessed in each case, taking into account the quality of the
dwelling and of the neighbourhood, in order to ensure best value
for money.
— Low demand occurs because housing
supply in the north as a whole and in parts of the midlands has
exceeded demand. Because of journeys to work this balance between
supply and demand cannot be dealt with solely at a local or even
a sub-regional level. It is therefore incumbent on the new Regional
Spatial Strategies to ensure that the two elements are brought
into balance. This is not to suggest that there should be no new
development in areas of low demand. But, if overall demand is
not increasing, new build needs to be broadly matched by the demolition
of poor quality and unwanted stock in order significantly to improve
the quality of the housing "offer" in such areas without
exacerbating the problem of market weakness.
— There has been some recent increase
in house prices in the Pathfinders but the evidence suggests that
the gap in prices compared with the rest of the relevant regions
has not narrowed and, in many cases, has widened.
— The private sector will provide the
bulk of the investment in the Pathfinders, often levered in by
public money. The recent decision by Government to allow the Pathfinders
to retain their capital receipts for HMRF purposes will assist
this process. The private sector is represented at various levels
in the programme.
1. INTRODUCTION
1.1 This evidence is being submitted corporately
by the Chairs of the nine Housing Market Renewal Pathfinders.
All of us are experienced in various aspects of housing and/or
regeneration and we come from a variety of private and public
sector backgrounds.
1.2 Individual Pathfinders will, no doubt,
be submitting evidence on their own account. This document complements
that by providing an overview of progress and issues. The Chairs
will be publishing, at the forthcoming Urban Summit, a progress
report which covers a number of the points made in this evidence.
We will ensure that copies are made available to the Committee.
1.3 The evidence below reports our view
of the progress of the policy overall before dealing individually
with the issues, highlighted by the Committee, which are particularly
relevant to us.
2. GENERAL PROGRESS
2.1 It is still very early days. As Professors
Cole and Nevin state, in their report on the Pathfinders, "The
HMRF programme has been the outcome of one of the fastest moving
agendas in urban policy over the last three decades." The
Select Committee report supporting the creation of an HMRF programme
was published only three years ago and the policy has been worked
up and funded since then.
2.2 To date, we have been pleased with the
rapid progress made. This applies not only to the way in which
the policy has been developed but also to the achievements on
the ground.
2.3 A policy which, necessarily, operates
at a sub-regional level with each Pathfinder straddling several
Local Authorities, was never going to be the easiest to launch
successfully. However, the initial allocation from Government
of £25 million for preparatory work and early wins not only
allowed the Pathfinders to register their presence and thus to
gain local credibility but also provided funding for gathering
evidence on which local preparation and planning could be based.
2.4 Similarly, the approach adopted by Government,
especially ODPM, in allowing considerable local discretion as
to the priorities and approaches to be adopted, coupled with the
challenge by the Department and the Audit Commission as to the
quality of the proposals and progress on the ground, provides
the balance between local freedom on the one hand and maintaining
rigour and pressure for delivery on the other. We agree with Cole
and Nevin that the varying sub-regional circumstances "tends
to validate the decision to allow local strategies to develop
without an overly prescriptive framework."
2.5 As far as progress on the ground is
concerned all the Pathfinders have published their Prospectuses
and, with the exception of Gateway (Hull and East Riding), have
received their financial allocation up to 2005-06. Work now is
concentrated on implementing the proposals in the Prospectuses
and in developing in each Pathfinder the programme for the remainder
of the 10-15 year programme. Invariably, this involves a great
deal of local consultation. Examples of work in progress will
be contained in the Chairs progress report.
3. THE SCOPE
AND SCALE
OF THE
INITIATIVES PROPOSED
AND UNDERWAY
IN THE
HMRF AREAS AND
IN OTHER
AREAS WITH
PROBLEMS OF
EMPTY HOMES
3.1 We are not in a position to comment
on the overall coverage of the programme, "though it is worth
pointing out that the Pathfinders cover about half of the stock
subject to low demand (850,000 of the 1.5 million homes in the
three northern regions estimated by the Centre for Urban and Regional
Studies (CURS as being at risk of low demand). Moreover the Pathfinders
would be happy to pass on their experience to any other areas
dealing with low demand.
3.2 On the question of scope we make the
following comments:
— The sub-regional scale of the initiative
is necessary given the fact that people do not restrict their
choice of housing to a local authority area. Thus there is always
a risk, where there is a surplus of housing, that improving one
neighbourhood can lead to population loss from another. As a result
Pathfinders are attempting to assess the impact of their decisions
on neighbouring areas. In some cases this assessment goes beyond
the boundary of the Pathfinder.
— The Regulatory Reform Order, which
both simplified and freed up the approach to improving private
housing, has made it considerably easier to deal with many of
the issues arising, such as providing alternative accommodation
for those whose house is being acquired for demolition, or introducing
new approaches to renovation which seek to draw in private sector
funding. The Pathfinders are pioneering various approaches and
no doubt others will be developed over the next few years. There
could be role here for Government in supporting innovation and
helping to remove any further administrative or legislative obstacles
which emerge.
— The scale of the resources made available
to the Pathfinders is sufficient to make a difference to their
areas. Everyone would like more money. The Pathfinders are no
exception and we believe that we could make good use of additional
resources. We accept, however, that we have to prove that we can
put to good use the resources which we have already received and
which have been implied in the recent Spending Review. Moreover,
it is worth bearing in mind that the majority of any investment
in the areas concerned will be from the private sector, often
levered in by public money. The recent decision by the Government
to allow the Pathfinders to retain their capital receipts for
HMRF purposes will greatly assist in this respect.
— One area of funding where we would
like to see greater freedom is in the provision of revenue. The
HMRF is a capital programme and revenue funding is difficult to
provide. However, major housing improvement needs considerable
planning, preparation and consultation as well as neighbourhood
management. The process can, unless carefully managed, be traumatic
for the families in the area. Some of the necessary revenue support
is available for the preparation of individual projects but other
support, for example for neighbourhood management, is not. We
do not want to enter into long term neighbourhood management as
that is not our responsibility—but we do believe that revenue
support is necessary to ensure the smooth transition from the
old to the new. Cole and Nevin, in an alternative approach to
the problem, have suggested that central government should consider
reviewing its revenue support to those local authorities experiencing
large scale restructuring.
3.3 Finally, the price of houses in the
Pathfinder areas has increased recently. It is not clear how long
this will continue. However, research by CURS in the North West
Region found that the price rises within the four Pathfinder were
far less than in the rest of the region (in the case of South
Yorkshire they were about the same as the Regional increase).
Thus the attractiveness of the Pathfinders relative to the region
is at least not improving and in many cases may be deteriorating.
As might be expected the worst affected properties continue to
be the poorer houses, especially the older terraces.
4. THE COMMITMENT
AND CONTRIBUTION
OF ALL
GOVERNMENT DEPARTMENTS
AND OTHER
AGENCIES TO
TACKLING THE
UNDERLYING CAUSES
OF LOW
DEMAND
4.1 It is an integral part of HMRF philosophy
that it is necessary to align other programmes and HMRF spend
to ensure that neighbourhoods are improved overall. There is no
point in improving the housing stock if the schools remain poor,
crime and vandalism high, health services inadequate and job prospects
limited. Similarly HMRF renewal must take place within the context
of the development of the sub-regional economy: it is not sensible
to produce new housing without compensating clearance if there
is unlikely to be a demand for it.
4.2 Much of the responsibility for aligning
programmes rests with the local authorities, who control many
of the services, such as education and environmental services.
The involvement of other agencies such as the police, health authority,
the Housing Corporation, English Partnerships and the Regional
Development Agencies is also essential. For this reason many of
these, as well as the Local Strategic Partnerships, are represented
on Pathfinder Boards.
4.3 The extent to which main programmes
are aligned varies from agency to agency and from Pathfinder to
Pathfinder. Some RDAs, for example, had difficulties in the early
days in taking account of the plans of the Pathfinders. This was
largely because of the high level of forward commitment in their
programmes. Recent experience has been far more encouraging.
4.4 The initial Prospectuses needed further
development in the alignment of programmes. All of the Pathfinders,
in working up their revised Prospectuses, are paying attention
to this issue. There has been considerable progress over the past
couple of years but there is still room for improvement. No doubt
the Audit Commission will be checking closely the revised Prospectuses
to ensure that the improvements are taking place. Current work
by Regional Assemblies in developing Regional Spatial Strategies
to replace the Regional Planning Guidance provides a unique opportunity
for the alignment of land use and spatial strategies. Support
by Central Government and the Government Offices will be necessary
to ensure that these and other opportunities are grasped.
5. THE DISSEMINATION
OF GOOD
PRACTICE
5.1 There are, in our view, ample opportunities
for the exchange of good practice which have been built into the
programme. These include the York conferences of the Pathfinders
and all the key stakeholders. There have been three to date and
another is planned for next month. Occasional learning events
are also organised by the Audit Commission.
5.2 These are in addition to the normal
conferences, seminars and publications. The forthcoming Chairs
progress report, for example, will include examples of good practice.
In future the national evaluation commissioned by ODPM, from a
consortium led by ECOTEC Research and Consulting, is likely to
throw up further material.
6. HAVE COUNCILS
SUFFICIENT POWERS
TO TACKLE
THE PROBLEM
OF EMPTY
HOMES IN
THEIR AREAS?
6.1 No doubt the LGA and the Chartered Institute
of Housing will have views on this subject. Our impression as
Pathfinder Chairs, however, is that the powers are adequate for
our purposes, especially since the Regulatory Reform Order. The
problems lie more around the availability of suitably qualified
and experienced staff than the powers themselves.
6.2 One exception to this is the difficulty
of applying CPOs. We do not doubt that those affected by CPOs
have every right to make their views known and taken into account.
Thus there has to be some independent Inquiry. However, a CPO
can take up to six years which holds up progress and increases
costs and uncertainties for all concerned. We understand that
ODPM is prepared to examine any evidence on this issue which the
Pathfinders provide.
6.3 The time taken to process CPOs and the
long term commitment implied by proceeding, illustrates a more
general issue, namely the nature of the Government's funding commitment.
Housing development, from proposal and consultation stage to final
construction or improvement can take several years. The HMRF is
a 10-15 year programme and Pathfinders can define, through their
Prospectuses, their long term spend for planning purposes. Whilst,
however, they may have entered into commitments locally they have
funding certainty through a budget only for the next three years
(ie the period of the Spending Review). A longer term financial
commitment, possibly a 10-15 year planning figure or a budget
commitment of the type applying to the New Deal for Community
areas, would be valuable.
7. THE PRIORITY
GIVEN TO
DEMOLITION OF
HOMES AND
THE CONSIDERATION
GIVEN TO
EFFECTIVE MEANS
OF REFURBISHMENT
7.1 Nobody enters lightly into demolition.
Demolition, partly because of unhappy experiences in the 1960s
and 1970s, remains a highly emotive issue and is bound to attract
local media attention whenever it is mooted. As a result the options,
including refurbishment, invariably are carefully considered.
7.2 The Northern Way makes the point that
the quality of housing is simply not good enough to support the
North's economic potential. It quotes the CURS estimate that perhaps
400,000 houses should be replaced, though it accepts that others
would provide a lower estimate. As it points out, however, based
on current rates, only 167,000 will be cleared over the next 10
years, well below any reasonable assessment of the rate required.
Looking at privately-owned dwellings, it remains true that, at
current rates of demolition, any house built today will have to
last for at least a thousand years.
7.3 It is worth making the following points
with regard to demolition and improvement.
— Many of the houses proposed for demolition
have been the subject of improvement works in the past, especially
in the 1980s. It was accepted then that improvement would only
provide those houses with a limited life (usually 15-20 years
and many are now time expired.
— In a similar vein it does not provide
good value to improve a house which is structurally of poor quality
and will cost a considerable amount to refurbish, often providing
only a limited extended life. This is not to deny that many houses
can be improved and Pathfinders are proposing to improve many
more than they demolish. Nevertheless, the sums have to be done
in each case and it should not be assumed that improvement always
provides better value for money.
— Demolition has often been presented
as an end in itself whereas it is almost always a means to an
end. In the past, demolition was used mainly to eliminate grossly
unfit dwellings from the stock. There is still a need to demolish
unhealthy or poor quality dwellings but the desire to provide,
through demolition, sites on which high quality modern housing
of all tenures and prices can be constructed figures more prominently.
In a limited number of cases demolition might be needed to rectify
a problem of excess supply and the land can be put to leisure
or other uses.
— Sometimes there will be heritage
arguments for preserving older houses. But these can only apply
in selected areas. If our towns and cities are to remain attractive
places to live we need to meet modern-day aspirations and standards.
7.4 None of this is to deny, as has been
stressed earlier, that demolition has to be carefully and considerately
prepared and implemented with the views of the community taken
into account. However, we agree with the Northern Way that clearance
rates will have to increase if we are to produce the modern housing
stock which both the north and midlands require without the associated
problems of surplus housing and abandonment.
8. THE AVAILABILITY
OF THE
NECESSARY SKILLS
AND TRAINING
TO SUPPORT
STAFF PROMOTING
PROJECTS TO
TACKLE THE
NEEDS OF
AREAS WITH
WEAK HOUSING
MARKETS
8.1 The skills required in Housing Market
Renewal are not, in essence, different from those required by
other regeneration initiatives. There is no doubt, however, that
there is an acute shortage of such skills. This is reflected in
the rapid growth of salaries offered to those experienced in the
field.
8.2 The skills shortage pervades the whole
programme and is not limited to the Pathfinder teams, who often
have problems recruiting suitable staff.
— Local authorities, on whom the Pathfinders
rely for much of the strategic input as well as local consultation
and implementation of projects, find it difficult to man up to
the demands placed upon them. This is especially the case if they
are smaller authorities, for whom the Pathfinder programme represents
a step change in approach.
— Many of the contractors at all levels
have difficulties in providing the necessary skilled workforce.
8.3 The Northern Way records and proposes
various training and employment initiatives, which will undoubtedly
help, as will their suggestion for a National Centre for Sustainable
Community Skills. In addition, many Pathfinders have initiated
local construction skills training schemes and the Learning and
Skills Councils frequently take a lead role in such schemes. These
not only help to relieve the skills shortage but also ensure local
people benefit from the jobs created.
9. HOW HOUSING
MARKET RENEWAL
IS ADDRESSED
IN OTHER
STRATEGIES, INCLUDING
LOCAL AND
REGIONAL PLANS
AND OTHER
REGENERATION PROGRAMMES
9.1 To deal with other agencies first, strategies
from other bodies, such as the RDAs, EP and the Housing Corporation,
are taking on board housing market renewal in their investment
programmes. The Regional Housing Boards have been an important
instrument in ensuring these bodies work in tandem.
9.2 More locally, Local Authorities help
to ensure that regeneration initiatives within their areas work
corporately together. This has been assisted in many cases by
joint Board membership, for example between the Pathfinders and
the New Deal for Communities projects.
9.3 A greater challenge is ensuring that
regional plans take proper account of the supply and demand for
housing. As the Communities Plan pointed out, low demand and abandonment
occurred because, in contrast to the south of England, housing
supply in the north and in parts of the midlands exceeded demand.
Because of journeys to work this balance cannot be dealt with
at a local or even at a sub-regional level. It is incumbent on
the new Regional Spatial Strategies, as emphasised by the Barker
report, to ensure that supply and demand are in balance.
9.4 This is not to suggest that there should
be no new development in areas of low demand. We would not wish
to prevent anyone living in good quality modern accommodation.
Moreover, new build may on occasions need to precede demolition
in order to ensure that communities can stay together. But, if
overall demand is not increasing, new build can only be sensible
if it is matched, over the long term by the demolition of poor
quality and unwanted stock.
10. HOW PATHFINDERS
ARE SEEKING
TO INVOLVE
THE PRIVATE
SECTOR IN
THEIR LONG
TERM PLANNING
AND PROGRAMMES
10.1 As has been mentioned above, this is
an important issue as the private sector will provide the bulk
of the investment in the Pathfinders. Thus all Pathfinders have
ensured that the private sector is involved. There are, however,
several elements to this.
— Involving developers and funders
who are potential investors in the area. All Pathfinders have
some form of developers forum which is consulted at various stages
in the process, including during the preparation of the Prospectus.
Most of the Pathfinders also have a local developer on their Board,
though care has to be taken over conflicts of interest.
— Involving private sector representatives
who are not active in the local development scene. Such representatives
bring important skills and experience to the Board.
— Many Pathfinders are moving down
the preferred developer route. Under this approach a limited number
of developers are selected by competition at an early stage. They
are then able to participate in the detailed planning of an area.
The aim is to provide greater certainty of future income without
removing the competitive element.
REFERENCES
Cole I and Nevin B. "The Road to Renewal: the
early development of the Housing Market Renewal Programme in England."
Joseph Rowntree Foundation 2004.
Transport, Local Government and the Regions Select
Committee (2002). "Empty Homes." The Stationery Office.
Nevin B. "Housing Market Renewal: Submission
to the Comprehensive Spending Review." National Housing Federation:
CURS 2001.
The Northern Way Steering Group. "Moving forward:
the Northern Way." 2004.
ODPM. "Sustainable Communities, Building for
the Future." 2003.
| 
