The size and role of many UK housing associations is changing and many face a range of challenges in delivering more and better housing. A recent report commissioned by Network Homes, L&Q and Clarion, calls for better collaboration and adopting increased levels of offsite delivery.
The first Future Shape of the Sector Commission report in 2006 encouraged a number of housing associations to undertake significant changes in the way they operated to meet coming social challenges. While the focus of the 2006 Commission was squarely on the largest associations, this second Commission broadened its remit across the whole sector. There was a recognition from the start that the nature of the issues at stake were as pertinent to the smallest as to the largest housing associations.
The 2018 Future Shape of the Sector Commission was created by Network Homes, L&Q and Clarion Housing Group to examine how housing associations should evolve to tackle England's significant social and economic challenges for the 2020s. The aim is to ensure the sector grows and changes in the best interests of customers, stakeholders and society at large.
The final report - Building Homes, Building Trust - highlighted that offsite construction should be considered an essential element in the drive to scale up production whilst keeping costs down, as the sector requires "major upscaling in output." The commission says housing associations need a step change in financial innovation, risk management, strategic use of assets, new technology and greater collaboration and partnerships with others.
The report also calls on housing associations and Homes England to make offsite construction a priority through the promotion of joint ventures. Housing associations have substantial financial clout turning over approx. £20 billion a year and if housing needs are to be met, they need to double their development outputs to 80,000-100,000 new homes a year in the 2020s,
Chaired by former cabinet secretary Lord Turnbull, the commission took in evidence from more than 60 key organisations within the residential sector exploring how housing associations should evolve over the next 10-15 years. The project was led and managed by a secretariat from Network Homes, L&Q and Clarion HG, working with Lord Turnbull and leading figures from Henley Homes, Resolution Foundation, Aspire Group, Riverside Housing and The Housing Finance Corporation. The report also calls on Homes England, in its 'active investor' guise, to invest in the right offsite construction vehicle to rally housing associations behind a unified solution and generate increased order volumes.
"Offsite construction has huge untapped potential," says Helen Evans, Chief Executive of Network Homes. "If we are to deliver the homes that we need, the sector needs to get behind this kind of innovation. As well as its potential speed and environmental benefits, offsite construction can overcome construction skills shortages onsite, particularly if more migrant workers choose to return to their homelands following Brexit. Better collaboration and joint working is key, and the Commission's report clearly shows that concerted action is needed from all the main players in the market, including Homes England."
Housing associations can deliver a value added, differentiated offer for the burgeoning private rented sector, delivering better security of tenure, better terms and conditions, and better management services than many existing landlords, particularly in the lower to middle end of the market. As the report clearly states: "A prime example of opportunity for better joint working is around offsite construction. This will be an essential ingredient in trying to scale up production in the 2020s without simply growing costs at the same rate. Better collaboration, co-operation and partnership will be essential to manage the greatest housing association challenges of the 2020s. Prime examples may be offsite construction, where individual initiatives have generally struggled, and joint bidding for land."
Numerous attempts have been made by individual housing associations to make offsite construction work and the private sector is now also investing in possible solutions. This is an area where Homes England, in its new active investor guise, could make a vital difference. Investment in the right offsite construction vehicle could rally housing associations behind a more unified solution and provoke the order volumes this developing industry needs to 'finally fly'.
A copy of the report' Building Homes, Building Trust' is available from Network Homes at: https://bit.ly/2LnnSy0
Images: Swan Housing Association
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