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The HCA’s affordable home
ownership offer
Jamie Ratcliff
20 July 2011
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Opportunities, challenges and HCA
funding
FirstBuy
Affordable Homes Programme
Looking beyond grant funding
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FirstBuy
£180m funding (2011-13)
Almost 10,500 first time buyers to be assisted
Priority for 2011/12 completions
First contracts signed
First homes already being
marketed
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FirstBuy – how it works
20% maximum loan
– 50:50 HCA:provider
£280k property price maximum
– Up to £300k in exceptional circs
All other terms identical to HomeBuy Direct
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FirstBuy opportunities
If you have a contract:
– Sign it quickly and start marketing
– Greater flexibility to achieve sales
across sites
– Sell allocation as quickly as possible
– Target social tenants and members of
the armed forces for sales
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Affordable Homes Programme
Proposed allocations for 80,000 homes – just under £1.8bn
146 providers– Proposed allocations subject to
contract and detailed agreement
12,721 homes in South and South West– More detailed geographies not
known until contract signing/scheme identification
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AHP – Next steps
Finalising contracts with
providers over the summer
Ongoing flexibility to adapt
to changing circumstances
and need to work co-
operatively with all partners
– HCA brokering role
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Affordable Home Ownership (AHP)
21% of proposed allocations
– 23% in South and South West
– Also significant existing commitments from NAHP
Only standard models (shared ownership or equity loan)
– Both have prescribed forms
– No innovation
– No Rent to HomeBuy
– No Intermediate Rent
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New model/new opportunities
Maximising capacity:
– Increased attention to initial share purchased
– Encouraging RtHB and IMR tenants to purchase
Conversions to shared ownership
– Low volumes expected
– New ways of thinking?
Affordable Rent end of
tenancy options?
– Start thinking now
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Delivering simplicity
Large number of product names
– Now simplified
Continual product innovation
– Commitment to no change 2011/15
Bureaucratic rules
– Devolved value-for-money decision on
cash
incentive schemes to local authorities
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Branding simplicity
Shift to umbrella branding (inside and out of London)
Government support for affordable home ownership
– Shared ownership
– Equity loans (including FirstBuy)
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Simplified prioritisation
Priority groups:1. Existing social tenants and serving
military personnel
2. Local authority priorities
3. All other eligible households
Key workers removed from national priority status moving forward
All RPs should actively be targeting
MOD personnel and Social tenants
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Beyond grant funding
Non-capital funded support from HCA
Providers thinking in new ways (unlocking capacity?)
Developing an offer which covers costs for provider
– Aiming at deposit-constrained?
– Meeting strong aspiration for home
ownership?
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HomeBuy Agents
All HBAs signed up to support non-grant funded
affordable home ownership
Increasing consistency across the network
Looking to extend HBA contracts until
March 2013
– FirstBuy
– Driving cost reductions
– Greater consistency in processes
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Promoting good practice
Provider practice– Shared ownership joint
guidance
– Increasing equity holding
– Resales
Mortgage access– Promoting mortgage access
for affordable housing
– Affordable home ownership
‘toolkit’
Data compendium– Refreshed June
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Engaging lenders
Really positive results from January 2010
Equity loans
– From five lenders up to 18
Shared ownership
– From six lenders up to 22
Affordable home ownership hit
less hard than market as a whole
– Still challenges ahead
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Thoughtful innovation
Lots of activity in this space
– Don’t reinvent the wheel
Low/nil cost options for providers
– Own low share equity loan schemes
• With some coupon?
– Shared ownership with higher rents?
– Own mortgages?
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Further support
The HomeBuy email address – any query relating to
affordable home ownership
South West Homes/your Local HomeBuy Agent –
knowledge and support
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homesandcommunities.co.uk
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http://prezi.com/qhpf3c3fqhwr/swh-
puzzle/?auth_key=d866f246c8706940c2bd55eeebc47dc8a3fcd696