Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Written Evidence


Memorandum by The NewHeartlands Housing Market Renewal (HMR) Pathfinder (EMP 21)

1.  BACKGROUND

  The NewHeartlands area extends across the inner cores of the three local authority areas of Liverpool, Sefton and Wirral. Of the 122,596 properties in the NewHeartlands area, Liverpool accounts for the largest share with 76,209. The NewHeartlands areas in Wirral and Sefton contain 23,882 and 22,505 dwellings respectively. Each of the three NewHeartlands areas has its own social, economic and demographic characteristics. The area as a whole is characterised by a preponderance of low-value terraced and otherwise monolithic housing—typically with limited space and sometimes failing to meet decency standards. There is a low level of owner-occupied housing, with higher levels of social housing and generally high—and in some areas extremely high—levels of privately rented stock. What unites the NewHeartlands area is the presence of housing neighbourhoods in which markets no longer function in a viable way.

  Given the scale of these problems, the vision for NewHeartlands is appropriately bold. It seeks to address not only housing market issues, but to rebuild the community infrastructure—both economic and social—and turn all the constituent neighbourhoods into places where people want to live. The four main goals of NewHeartlands are:

    —  To create the conditions for the revival of housing markets in the NewHeartlands area;

    —  To create attractive and sustainable urban neighbourhoods through the delivery of a more balanced mix of housing, with values and types to meet the needs of the existing population and which help attract new residents;

    —  To build sustainable communities, ensure community cohesion and safeguard investment through the provision of quality public services and through the development of supporting infrastructure; and

    —  To contribute to the competitiveness and prosperity of the wider Merseyside conurbation and the North West region.

  NewHeartlands has developed strategic plans to achieve these goals and restructure the local housing market over a 10-15 year period. This involves investing in the physical infrastructure, environmental improvements and neighbourhood management services with the aim of creating thriving communities and improving Merseyside's economic and competitive position within the UK.

2.  GENERAL PROGRESS

  To date, NewHeartlands has made substantial progress to date in terms of:

    —  Delivery Structure

—  The core Pathfinder and local delivery teams have been established.

—  Preferred developers and lead RSL's have been identified within Liverpool and Sefton with Wirral set to confirm in March 2005.

    —  Investment Profile

—  As of 19 January 2005 NewHeartlands was operating at 107% of forecast spend profile for financial year 2004-05.

—  Analysis of existing programmes and forecast commitments indicates that the full allocation of £34.35 million for the current financial year will be taken up.

—  Contingency arrangements are in place to support rapid virement of resources across projects and local authorities.

    —  Programme Delivery

—  The Early Action Programme resulted in "quick wins" for NewHeartlands in terms of the Living Through Change initiative, environmental investments, strategic research projects and the acquisitions programme.

—  Substantial progress has been made with regard to the allocation of main programme funding to deliver strategic site assembly and acquisitions

—  The demolition programme has commenced across the Pathfinder.

—  Masterplanning/Neighbourhood Renewal Assessments have been completed in the intervention areas earmarked for major investment in the period 2003-06.

3.  THE SCOPE AND SCALE OF THE INITIATIVES PROPOSED AND UNDERWAY IN THE HMRF AREAS AND IN OTHER AREAS WITH PROBLEMS OF EMPTY HOMES

  The NewHeartlands Prospectus sets out the case for major interventions across a significant geographical area on Merseyside. The programme involves the allocation of resources across a number of key themes to bring about the wholesale restructuring of the housing market in terms of property type, tenure mix and value in the intervention areas identified. The key themes are as follows:

Housing clearance

  Acquisition and clearance programmes play a key part in programmed activity. The plans in all three local authority areas are informed by detailed research and focus on identified "hot spots".

Strategic Site Assembly / New Development

  The acquisition of strategic sites for development supplements the NewHeartlands clearance programme. Investment in new housing is achieved from a variety of sources with private developers delivering new opportunities for owner occupation and housing association/Housing Corporation funding delivering affordable housing.

Improvements to retained stock

  In addition to the new build programme, there is a programme of improvements to homes within the private sector across NewHeartlands. This is a vital part of the delivery plan providing temporary accommodation for local people while the HMR programme is delivered and raising the quality of existing properties to meet the Government's Decent Homes Standard.

Living Through Change

  The Living Through Change (LTC) programme supports pathfinder residents during the delivery phase of HMR. The programme includes a range of initiatives to ensure a comfortable and secure transition as neighbourhoods are re-developed. It is anchored around:

    —  neighbourhood management and security measures;

    —  financial and relocation advice; and

    —  assistance with home maintenance and improvements.

Environmental Investments

  The NewHeartlands programme includes action to create high quality environments to complement the property based developments. The key aims of this work are to improve the look, feel and use of open space within neighbourhoods.

4. THE COMMITMENT AND CONTRIBUTION OF ALL GOVERNMENT DEPARTMENTS AND OTHER AGENCIES TO TACKLING THE UNDERLYING CAUSES OF LOW DEMAND

  The inclusion of LSP representatives from each of the local authority areas on the NewHeartlands Board alongside representatives from Government Office North West, English Partnerships, the Regional Development Agency and the Housing Corporation, ensures a broad strategy perspective and awareness of complementary projects and initiatives. This resource provides the Pathfinder with an inbuilt structure that highlights opportunities for engagement, commitment and contribution that can be developed to enhance performance.

5.  THE DISSEMINATION OF GOOD PRACTICE

  NewHeartlands contributes to the dissemination of good practice within the Pathfinder and across the HMR sector in a number of ways including:

    —  Hosting conferences and briefing sessions for stakeholders on key issues such as Living through Change and Financial support for Homeowners.

    —  Piloting initiatives such as the Landlord Accreditation Scheme prior to roll out at a sub-regional level.

    —  Establishment of an RSL forum to engage and exchange information with our housing association partners.

    —  Publication of key documents such as "Fulfilling The Potential".

    —  Sharing of approaches and odels with colleagues in other Pathfinders through the national Communications and Finance Groups.

  Whilst these initiatives given an indication of how NewHeartlands is actively committed to sharing good practice it is by no means an exhaustive list.

6.  HAVE COUNCILS SUFFICIENT POWERS TO TACKLE THE PROBLEM OF EMPTY HOMES IN THEIR AREAS?

  The consensus view of our local authority partners is that while the powers are generally sufficient there is an issue around the availability of resources. In addition, action to streamline the CPO process, whilst maintaining and protecting the need for fairness, transparency and openness, would be most welcome. This issue impacts on the Pathfinder programme with regard to strategic site assembly and demolition and has the potential to hinder delivery of housing market restructuring on Merseyside.

7.  THE PRIORITY GIVEN TO DEMOLITION OF HOMES AND THE CONSIDERATION GIVEN TO EFFECTIVE MEANS OF REFURBISHMENT

  Demolition has a high priority in the early stages of the NewHeartlands delivery programme as we seek to create the essential development opportunities for our delivery partners. Alongside strategic site acquisition it accounts for a high proportion of resource allocation to date.

  The tactical refurbishment of private sector properties augments the demolition and site assembly process providing decant opportunities and delivering quality improvements to the overall property portfolio.

8.  THE AVAILABILITY OF THE NECESSARY SKILLS AND TRAINING TO SUPPORT STAFF PROMOTING PROJECTS TO TACKLE THE NEEDS OF AREAS WITH WEAK HOUSING MARKETS

  The scarcity of individuals with the appropriate skill set and experience to deliver major regeneration programmes is undoubtedly a challenge for NewHeartlands. Initiatives to address the issue include:

    —  The establishment of a local regeneration academy providing bespoke training and support for personnel within the regeneration sector.

    —  Partner developers committing to a common approach to training and development.

    —  The creation of a range of formal apprenticeships directly related to long term HMR contracts.

    —  The provision of secondment opportunities for graduate trainees employed within partner organisations.

9.  HOW HOUSING MARKET RENEWAL IS ADDRESSED IN OTHER STRATEGIES, INCLUDING LOCAL AND REGIONAL PLANS AND OTHER REGENERATION PROGRAMMES

  Action to achieve strategic alignment between HMR and complementary strategies takes place at both a local and sub-regional level. At a local level NewHeartlands' local authority partners have established structures and mechanisms to integrate HMR with a variety of strategy areas including:

    —  employment;

    —  housing;

    —  community safety;

    —  health;

    —  education;

    —  transport;

    —  economic development;

    —  neighbourhood renewal; and

    —  voluntary sector.

  From an operational perspective strategic alignment is supported by the use of tools such as masterplanning and geographical information systems/mapping and by regular multi-agency meetings at officer level. This approach supports proactive communication and information sharing and promotes joined-up decision making and strategy planning.

  At a sub-regional level, NewHeartlands has engaged with other stakeholders to facilitate strategic alignment. This is evidenced with regard to participation in the Merseyside Housing Forum and Merseyside Planning Officers Group through which joint submissions have been made concerning regional housing strategy, economic strategy, spatial strategy and the Northern Way. These relationships will be developed and cemented as the HMR programme evolves through joint working on a range of sub-regional initiatives such as the ongoing market intelligence/research project.

10.  HOW PATHFINDERS ARE SEEKING TO INVOLVE THE PRIVATE SECTOR IN THEIR LONG TERM PLANNING AND PROGRAMMES

  NewHeartlands has taken a proactive approach to engaging with the private sector at all levels. Preferred developers have been appointed to work with us in all intervention areas across the pathfinder. Our developer partners have been actively involved in the planning, communication and consultation process and are making a valuable contribution to the delivery of housing market renewal.

  At a strategic level, NewHeartlands has appointed two private sector board members with plans to recruit a third in the near future. Their presence and participation on the board delivers a breadth of experience and expertise that complements the skill set of public sector colleagues and ensures a fresh perspective when considering the issues and challenges we face.

  The private (third) sector is also playing a vital role in delivering housing market renewal on the ground. We have appointed a number of preferred housing associations to work in specific intervention areas and they are developing new models of neighbourhood management to complement investment in the physical infrastructure. At a strategic level the associations are represented by an RSL forum. This was set up by NewHeartlands to support engagement across the sector and provides a vehicle for combining operational practice, strategic engagement and coordinated investment.

  Recognising the increasing role of private sector landlords in pathfinder areas, NewHeartlands has piloted a Private Landlord Accreditation scheme to be rolled out across the sub-region in the next two years. In return for signing up to a specific code of practice, the scheme provides incentives and support for landlords enabling them to be part of, and benefit from, housing market renewal.

  NewHeartlands is also exploring ways of engaging with private sector financial institutions to become funding partners for the delivery of financial support for homeowners. This would significantly extend the potential reach of any product and would release public sector resources to support other areas of the housing market renewal programme.


 
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Prepared 8 February 2005