Regeneration funding likely to be on similar ‘net additionality’ terms in new programme

The prospectus for the new £39bn programme is expected to be published this “autumn”, but further clarity on the timings is not known.

Ms Ryan said: “We are going to be in a position [on regeneration] that probably it’s going to be very similar to the flexibilities that we were able to introduce in a couple of years ago, which does require a net additionality position to be demonstrated.

“I think ultimately, we are in the position that our whole business case for reinvestment, for investment, into affordable housing delivery is built on the need to deliver new homes, and the value for money arguments around regeneration have been having to be built up over quite a period of time.”

Homes England continues to endeavour to present the case for regeneration to the Treasury, Ms Ryan said, and referred to “active work” going on in the sector to put the case across, too.

“All that evidence helps, but ultimately we do have to provide additional homes through the programme. So… I do not expect there to be an unfettered ability to do replacement homes; there will be a limit on what we’re able to do,” she said.

At the same time, Ms Ryan highlighted the increasing focus of Homes England’s activity on “place-based interventions” and said that other funding pots beyond the SAHP – such as the National Housing Delivery Fund – might also be beneficial for providers looking at regeneration.

All change?

Last week, former environment secretary Steve Reed took over the role of housing secretary, after Angela Rayner resigned. Ms Ryan was asked whether the arrival of the new incumbent spelled any changes to the proposals Homes England was working on.

Ms Ryan said that with Matthew Pennycook remaining in post, the agency’s main point of contact at the department remained unchanged. “So we’re certainly still working to the same timeframes and expecting no really substantial changes. We’re working on the basis that there is a plan in place and we’ll be taking that forward and seeing that through, but continuing to work with government to make sure we’re reflecting the priorities that are asked of us.”

Bidding to open in Q4

On the prospectus launch, Ms Ryan said that the agency was trying to be “more detailed” in its guidance launch than it had been in previous programmes, so that organisations in the middle of business planning could have as much clarity as possible.

The scheme would open for bidding in “Q4”, Ms Ryan said, but she added: “I’m definitely not promising January.” 

The programme will include the same main funding routes as via the current programme, she said, namely continuous market engagement (CME) on a site-by-site basis and strategic partnerships. However, as previously reported, it will also include the ‘portfolio’ approach to CME recently piloted in Wolverhampton. 

Ms Ryan noted that the agency still has some budget remaining out of the £2bn of bridge funding it was granted in March, which forms part of the £39bn total for the new 10-year SAHP and was badged a ‘down-payment’ on it.  

This remaining budget is limited to schemes that will be completed by March 2029, Ms Ryan said, acknowledging that larger schemes would therefore be unlikely to benefit from this earlier funding round. But she encouraged providers to let Homes England know about upcoming projects.

“The more engagement we can be having with our teams around what the priorities are for those early allocations, and once we do launch the new programme, those early bids that are coming through, the more we know about them, the more we can help get them into a position to hit the ground running as those new bids the next calendar year.

“Make sure we know what’s coming forward and make sure you’re talking to us, so as soon as we do open for bidding with that longer time frame, if that’s what you need, then talk to us.”

Speaking on the same session, the chief executive of Sanctuary said the housing association plans to increase the number of homes it delivers annually by around 50 per cent.

Craig Moule said the group is due to enter board discussions later this month, but is “well through” embedding what it thinks it has as development capacity.