EMHG Background Formed 65 years ago

EMHG – Background • Formed 65 years ago • Includes - 5 Associations, 17, 000 homes across 35 LA districts in the East Midlands - Enable Care &Support 350 customers/£ 20 m turnover - 2 DLO’s + landscape contractor - MRHA – rural specialisation - Lead investment partner for Quantum Consortium - Help-to-Buy agent for East Midlands region - MRS delivery across 3 counties - Provides 200 -300 new homes per year - Apprenticeship academy • Amalgamation of associations/ fundraising underway

EMHG - Development • Annual capital spend c. £ 30 m • Internal capital subsidy support for new homes £ 4 m/year • Positive reputation with HCA for delivery and strong partnering ethos • Experience of all affordable homes but few commercial projects Main St, Fleckney Manor Farm.

Westleigh Developments (WDL) • Private Developer based in Whetstone, Blaby • Operates throughout East Midlands, South Yorkshire, West Midlands and Cambridgeshire; 30 + Local Authorities • Build homes for sale, commercial property for sale and affordable homes for Registered Providers and Local Authorities • Seen as an affordable housing specialist; build 500 plus affordable homes a year

Westleigh Developments (WDL) • Work with 16 RP’s, 7 main partners • Development scale from 10 unit affordable schemes up to 250 unit mixed tenure sites • HCA registered partner; have delivered grant programmes in 2008/11 and 2011/15 • All our homes built in OMS panelised construction form (Timberframe) • Understand affordable housing, strategic context, funding, standards and RP issues

Partnership WDL and EMHA Worked together over 20 years Delivered circa 1, 000 affordable homes Successful delivery record Innovative and adaptable Partnership founded on optimisation of respective skills and expertise • Pragmatic and flexible approach to delivery • • •

Partnership WDL and EMHA • Adopt the key principles of partnering as envisaged by Rethinking Construction Report • Partnering Team responsible for scheme delivery • Places the client at the heart of the scheme and processes • Open book approach to costing • Risk and reward assessed and agreed as joint partners

EMHG / WDL Partnership with optimum skills Westleigh - Site identification and purchase - Construction; labour and materials supply, construction management - Planning specialists - Timber Frame System Together East Midlands Development expertise - Asset mgmt - HCA investment partners - Tenancy mgmt - IMS - Long-term funding - Training/apprenticeships - Mixed tenure housing solutions

Challenges Ahead • Land Access – Increasing interest in site purchases from main housebuilders – Increased prices and difficulty competing • Reducing Government Investment – Grant available (AHG funding £ 15 k per unit) means increased borrowing for EMH/fewer houses (26 th June Spending Review? ) – Impact on lending covenants constraint RP capacity

Challenges (cont. ) • Welfare Benefit changes – Universal Credit/ benefit cap/ under-occupanncy Rising rent losses threaten subsidy and limit development ( 30% - 1500 have £ 14/week) – Drive short-term demand for 1 -bed homes • Political Backdrop – National Housing Strategy is really just about numbers – Not based on needs nor regional priorities – no regional agenda! – Economic impacts /employment/training is priority and inadequate recognition of housing’s contribution

Challenges (cont. ) • East Midlands Region – Affordable rents @ 80/market rent do not increase borrowing significantly – London/SE model which requires a higher proportion of grant investment in this region • Regulatory Consultation – Retrenchment following Cosmopolitan HA (ring fencing of social housing assets) – Commercial/cross subsidy authority limited to under 5% of turnover

Current example – Winchester Rd • Site acquired by WDL for mixed tenure development, spec lead • Site has a planning permission for 76 homes • WDL have contracted with EMHA to deliver 33 affordable homes, mix affordable rent and shared ownership • Approached by EMHA to consider varying scheme proposal to provide a 50 unit extra care scheme on part of the spec homes land • Proposal worked up between WDL and EMHA to support funding bids submitted to HCA. Awaiting outcome • Blaby DC and Leicestershire CC funding support in place

Current example – Winchester Rd • Second approach by EMHA and BDC to vary proposal to provide 10 bungalows for the elderly • Third option / scheme prepared and ready to go • Trigger - funding for the extra care scheme will determine the revised scheme to progress through planning • Key issue has been flexibility between the partners and consideration of the partners respective of objectives and targets

Current example – Winchester Rd Outcomes • Housing scheme which will meet a range of priority housing needs • Could be a scheme with all affordable tenures; likely to be a mixed tenure scheme including much reduced spec housing input from WDL • Either way a scheme which maintains a commercial return for WDL and delivers a viable affordable proposal which meets our partnerships broader objectives • A flagship scheme for our partnership • Demonstration of the effectiveness of the WDL and EMHA partnership

Going Forward: Partnership • Local Authorities – Grounded data on housing needs to steer scheme design – Clear housing strategy – Strong political backing for the strategy and its corporate priority; resolve inter-departmental wrangling! – Effective political links/strategic infrastructure across the region with other councils/LIPs/agencies

Going Forward: Partnership • Positive solution finding and commitment to principles of partnership • Financial support/NHB/Land Commuted sums • Positive planning • Pre-app guidance

Partnership Westleigh EMHA L. A. County Council /CCG?