Understanding the need for regeneration in the North – member research

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To better understand the issues related to the North’s ageing homes and the need for future regeneration funding streams, we surveyed a group of housing association members. The findings have been shared directly with the Ministry of Housing Communities and Local Government (MHCLG), and they also formed part of our Spending Review submission to the HM Treasury.

Responses to the survey came from housing associations that collectively own and manage approximately 340,000 Low-Cost Rental Accommodation homes with representation from each of the three northern regions. The size of landlord respondents ranged from 9,000 to 49,000 homes, with the largest provider having some operations outside of the North.

Executive Director of Policy and Public Affairs Patrick Murray said: “We know regeneration is a real need for communities across the North and that members face some big challenges around homes coming to the end of their life and places in need of renewal. It’s vital we understand the scale of this so we can put forward a strong case to Government for housing-led neighbourhood regeneration.

“We have met with MHCLG officials several times to discuss the survey results and are providing further information to support their Spending Review work. The Housing Minister Matthew Pennycook raised these issues at a recent event, so we know it’s gaining prominence with Government.”

Key findings are below, or you can read a summary report here.

Key takeaways:

  • Of the c.340,000 homes owned and managed by respondents, it is believed that around 6,450 (1.9%) will be unable to remain compliant with emerging regulatory requirements between now and 2030 due to physical or structural constraints, so will need to be replaced. Applied to the North of England more widely, an estimated 25,500 social homes would fall into this category.
  • Certain property archetypes are more likely to fall into this category. This includes pre-1919 housing, listed buildings, non-traditionally built stock and twentieth century high-rise blocks of flats, including those built using Large Panel System (LPS) construction, that will struggle to achieve EPC Band C.
  • Of the c.340,000 homes owned and managed by respondents, around 11,900 (3.5%) will meet one or more of three ‘end of life categories’ in the next five years. Applied to the North of England more widely, this would be 46,952 social homes in total. This rises to 7.6% or 101,757 homes when the timeframe is extended to the next 10 years. End of life categories include homes that would not meet regulatory requirements, are not finically viable or homes located in an area in need of regeneration.
  • Of the 11,900 homes identified as approaching ‘end of life’ in the next five years, 4,507 (38%) were identified as being in sites where densification would be possible. However, densification was not always a desirable outcome, for example, where providers wish to replace low-demand, outdated bedsits or other small properties with family homes in an area with high demand for larger homes. To address this there will need to be flexibility with net additionality requirements of grant programmes to enable housing providers to meet the needs of the community in their area.
  • A relatively small number of homes, especially twentieth century high rise blocks of flats, are causing significant financial issues for housing providers due to exceptionally high repairs and maintenance costs. It is likely that these homes will be impossible for the landlord to maintain into the future.
  • Of the c.340,000 homes owned and managed by respondents, 9.4% were deemed to be in an area in need of physical regeneration. Applied across the North of England, this would be 126,012 homes in total.
  • The social housing sector needs long term certainty about future funding and policy to plan. As part of our Spending Review response the NHC called for a £1.37 billion fund over 5 years for housing-led neighbourhood regeneration in the North. For the sector to be able to deliver good quality homes and be financially stable this must sit alongside, flexibility in the Affordable Homes Programme to support regeneration, confirmation of the new Decent Homes Standard and the right financial support to improve quality and energy efficiency of homes.