Summary of Cornwall Housing Partnership Meeting

21 December 2010 at Ocean Housing, St Austell

Attendees

Simon Jones (DCHA)

Anthony Bassett (Ocean)

Ryan Hosken (Guinness)

Neil Clements (Sanctuary)
Will Morris (Cornwall Council)

Ann Burnett – Minute taker (Ocean)

General Points to note

·  This is a period of great uncertainty within the development landscape

·  Consideration to be given to how developments can continue to be delivered

·  Cornwall Council position on new AH landscape needed as soon as possible to help minimise risks

·  Need to identity variables and resolve as many as possible

·  Threat of viability in Cornwall, particularly in this period of uncertainty, and danger of losing developments to commercial developers

·  Opportunity of gaining potential tenants that might otherwise have unsustainably resided in OM rental mkt

Location

·  Belief that RP’s can continue to cover a broad geographical area of Cornwall if we can cross subsidise both within and across schemes

·  If unable to cross subsidise will have to focus on high value areas with high demand on a programme based approach

·  Covering all of Cornwall dependant on fresh planning approach to packages and not just individual schemes

·  Market Intelligence Group will be key to feeding into the ongoing need

Tenure

·  New tenure could dissuade RP’s from continuing to provide Homebuy as a singular income with less risk

·  Clarification of Cornwall’s view, would they like to retain Homebuy

·  By providing this tenure do RP’s increase the risk of voids on the existing stock?

·  Who are the customers for these tenures?

·  Will tenants trade up or down or both?

·  What does this mean for balanced communities?

·  Will there ever be social rent again?

Viability

·  Land value is critical

·  Look to local authority to remain strong on exception site values

·  Move away from preferred land sites to acceptable sites to increase landowner competition and bear down on land values

·  Standards – should RP’s simply develop to building regulations?

·  Should we be trying to ring fence subsidy generated to remain in Cornwall, or might Cornwall benefit more from “open borders” on subsidy?

·  What will the situation be with charging the new “Affordable Rent” on an existing Section 106 Agreement from April 2011?

·  How will Cornwall treat developer s106? Move to grant free fixed price based on social rent values required to lever out subsidy

Risk

·  Borrowing gearing will increase – will require perpetuity of income

·  Increase contingency to reflect risk in line with standard open market margins

·  Contingency retained will be recycled – HCA appear to be eager to ensure no leakage

·  Planning obligations and gain – how will RP’s be viewed – will RP’s have to deliver the same as a commercial developer ie contributions towards play park, education etc, would this be considered leakage?

·  Do RP’s deliver tenure blind or maximise income to maximise affordability, probably at the expense of being tenure blind?

·  It will be very important to dispel the myths and concerns of stakeholders going forwards

·  Perpetuity of tenure – need a cast iron position swiftly to inform finance directors and maximise subsidy

·  Looking for Cornwall Council to publish their position to ensure local authority buy in and support

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