Select Committee on Public Accounts Minutes of Evidence


Supplementary memorandum submitted by the Department for Communities and Local Government

Question 57 (Mr Austin Mitchell):   ow many affordable homes will be built on the Newcastle brewery site

  Bridging Newcastle Gateshead acquired part of the brewery site to provide family housing as part of a wider mixed use scheme of development with Science City at its heart. Following acquisition of the remainder of the site by the Regional Development Agency, Newcastle City Council and Newcastle University, it was agreed that a comprehensive masterplan would be needed to provide the framework for this area of major change and subsequent regeneration. The masterplan would effectively achieve mixed use development, building on the strength of the City Centre (to the east) and providing social and economic benefits for the residents of neighbouring areas (to the west) receiving housing investment from BNG and the Arms Length Management Organisation (ALMO).

  The masterplanning work began in early 2007 and will be completed in February/March 2008.

  The latest proposals emerging from the masterplanning work suggest that there will be approximately 450-500 homes included in the redevelopment. The mix and level of affordability has yet to be set, but will be determined by Newcastle City Council's Housing Strategy, its emerging Core Strategy and the funding plan for the overall scheme.

Question 109 (Angela Browning):   What cost savings might be realised from changes in structure with the creation of the Homes and Communities Agency

  Details about the future role of the Homes and Communities Agency (HCA) in relation to the housing market renewal programme have yet to be finalised.

  However, the option appraisal by the department into the creation of the HCA sets out the costs and benefits of both modernising existing structures and of moving delivery functions into the new body.

  In terms of the work in relation to mixed use regeneration, which includes Housing Market Renewal, the largest benefits would come from allowing all the programmes within the workstream to invest in the early stages of a project, allowing a single project appraisal approach.

  Other benefits would include bringing together land and grant streams more efficiently, and creating a single point of contact for partners. This would also enable better information sharing.

  At present, it is not possible, however, to quantify the level of savings these efficiencies might bring.

Question 111 (Mr Mitchell):   What data is available about either (i) speculative activity and its contribution to high turnover, or (ii) immigration, particularly from EU Accession states

  All pathfinders are aware of some speculative activity in their areas, but believe this to be of a fairly limited extent. Some speculation may have traditionally taken place in these areas before the housing market renewal programme began, because of the low price of the houses, and particularly when properties were exchanging hands for a few hundred pounds. Equally, any area earmarked for regeneration—whether through Government programmes or not—might be expected to see some speculative activity.

  However, although there is some anecdotal evidence of speculation, it is not possible to provide detailed, validated data to show categorically what the level of speculation has been, chiefly because of the difficulty in defining what is pure speculation and what is longer-term investment.

  Similarly, it is difficult to provide any consistent or validated data about the amount of immigration into market renewal areas or the number of migrants from EU Accession states. All the pathfinders are aware of some, although it is often on different scales, depending on the size of the pathfinder area and the economic opportunities available—some are estimating the levels to be around 1-2,000 over the last two to three years. Many of the newer EU migrants stay for a very short time, move around within the private sector and are therefore not picked up in local authority data collection. The pathfinders are continuing to make efforts to monitor this, but at present information is very sketchy.





 
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