Examination of Witnesses (Questions 380
- 386)
MONDAY 5 FEBRUARY 2007
MR JOHN
WALKER, MR
PETER DIXON
AND MR
RICHARD HILL
Q380 Mr Betts:
On the distribution of support from the Housing Corporation for
affordable housing, there is no doubt at all that probably 10
years ago, rightly so, the perceived pressures would be in London
and the South East, but since then there are considerable pressures
developing in parts of the North, yet the Housing Corporation
seems, at the very time that is happening, to have shifted more
resources to the South. Certainly we had evidence earlier that
the three northern regions have nearly 30% of the population but
get only just over 10% of the Housing Corporation's funds. Is
that something that you think is right and that you might want
to correct in the future?
Mr Dixon: It is not something
which I control which is probably the easy cop-out. Our money
comes out of the single housing pot which is allocated on a regional
basis by CLG and the mainstream pot is made up according to their
priorities. We then get a slug of money depending upon that split.
My own personal view is that it is quite difficult to shift away
from the present London and South East bias because when you do
start disaggregating the various aspects of need, whatever you
come up with anywhere else London can usually match it. That is
the reality check for me. I would like to see more money across
the country but I do not think this is something that we can greatly
influence.
Mr Hill: If I might add to that.
The current formula is based on need indicators, as Peter said,
in terms of temporary accommodation and overcrowding. We have
had a concern about deliverability in terms of it is important
to understand where housing needs are but it is also important
that we can deliver housing and generate supply. The Corporation
is currently running a competition in the North, the Northern
Housing Challenge, across those three regions partly in recognition
of the fact that housing issues and problems are different in
the North and trying to find an effective way to respond to those.
Q381 Mr Betts:
I am a bit concerned about your comments about something you cannot
influence. I accept that you cannot probably determine in the
end how money is going to be allocated in the regions but, surely,
all the information you have as an organisation and the experience
and expertise ought to at least allow you to influence in some
way the thinking inside the Department about how money is allocated.
Mr Dixon: I would like to think
it did but I am not always sure that it does. Certainly we would
like to see more money for housing everywhere. As Richard said,
we accept that there are different challenges and different approaches
in the North and we have run into some problems with some of the
schemes in the North being very expensive and surprisingly expensive.
One of our problems in terms of deliverability is that we probably
do not have enough good deliverers of affordable housing in some
parts of the North. Expanding the market is something we can do,
then we can spend our money more effectively. Yes, we can influence
it, but I am cautious, as ever.
Q382 Mr Betts:
I cannot think of a single scheme in my constituency where there
is any Housing Corporation money going in at present despite the
fact that property prices in many parts have gone up three times
in the last seven years. Of course, there is the Northern Housing
Challenge Scheme which we are in for at present—
Mr Dixon: We are looking forward
to the evaluation.
Q383 Chair: Finally,
can I ask about Community Land Trust and Regeneration Trusts.
Do you think they have got a potential to improve development?
Mr Walker: Yes. We are assisting
in a pilot scheme at the minute in Gloucester and we are in the
final processes of assessing how it moves forward. I think this
is an opportunity for the future in taking it forward and we are
quite interested. I do not think there is a one-model-fits-all
circumstance, we are looking at one which is on an old hospital
site that we have taken from the NHS to develop. I am a bit hesitant
because we are in the middle of assessing the process and how
we go forward, but I think for the future this is something that
we can certainly build on. Also we are supporting the one in Salford
where we have one of our members of staff who is sitting on the
Community Land Trust to try and take that forward and develop
it. I do think that this is an opportunity for the future.
Mr Dixon: We would agree, we think
it is well worthwhile exploring. The slight danger is that if
one is not careful, they become very inward looking and it is
important that they do not turn into vehicles which support the
generation of gated communities. There is a risk that is the way
they could go and we need to make sure that they remain outward
looking and engaged, not inward looking and defensive.
Q384 Mr Betts:
I will just pick up the point that Peter Dixon made about looking
for other agents or organisations who may get into the business
of development where there is a shortage. I understand so far
that not a single ALMO has been successful in getting Housing
Corporation funding for the building of new homes, though quite
a few of them are interested and one or two of them have made
an application. Is that an area which you think is worthy of exploring
and why has it not taken off so far?
Mr Hill: That is right; we are
not funding any ALMOs at the moment, we have the power as you
know in the 2004 Housing Act in the same way that we funded private
developers for the first time in 2006. We have had some bids from
ALMOs to the Northern Housing Challenge Programme that I mentioned
before and certainly we will be taking some of those through to
the second stage. We are very keen in terms of our next bid round
in 2008 to encourage competition and certainly I think the best
performing ALMOs should feature in that.
Mr Dixon: We would love to see
them. To the extent that they probably have access to land which
they can put in relatively cheaply I would expect it to be possible
for ALMOs to put in some very competitive bids.
Q385 Mr Betts:
Are you talking to the various ALMOs now about how they can approach
that in a way that will lead to positive results?
Mr Hill: Yes, we have had a number
of meetings with ALMOs across the country, including ALMOs in
the North.
Q386 Chair: Excellent.
We will await good news. Thank you very much indeed.
Mr Dixon: Could I finish by saying
that we obviously welcome this inquiry but could I ask you to
beware of the snake oil salesman. There are an awful lot of people
telling us this is all very easy and that you can do it terribly
simply. We think it is done by doing an awful lot of small things
better and concentrating on the detail, there is not a big single
solution in our judgment.
Chair: Thank you very much.
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