Our regular policy and practice update
03/07/09
Michelle Chivunga, South East Policy and Practice Officer (right), gives an update on the region's policy work over the last few months, and national plans for the year ahead.
Changes in national and regional structures
The housing market is experiencing major challenges as the industry welcomes another new housing minister (John Healey), has two new regulatory bodies, and new economic reforms are starting to take shape following the Review of Sub-National Economic Development and Regeneration (SNR).
The Review focused on finding ways to strengthen regional, sub-regional and local economic performance by strategically integrating the economic regeneration agenda with other key areas of service delivery and partnerships. Regional development agencies (RDAs) will be responsible for driving economic growth and regeneration through a Single Integrated Regional Strategy.
The new Local Democracy, Economic Development and Construction Bill aims to extend power to local authorities as they deliver on economic objectives. It will be important to keep up with changes until the SNR legislation is passed. These key changes will have a profound impact on housing activity at both national and regional level, but especially challenging given the present difficult economic circumstances.
The emergence of the Homes and Communities Agency (HCA) and the Tenant Services Authority (TSA) are other key developments influencing regional policy agendas.
Key impact for the South East:
- TSA recently released a discussion paper with results of its national conversation and consultation on its proposed regulatory process for affordable housing. It sets out 14 core national standards for social landlords.
- Catalyst Housing Group, the newly-appointed HomeBuy agent for the South East region, received £154.5 million from HCA's recent £2.8 million of grant funds. This funding stream should help to boost the supply of social home building. Catalyst is expected to produce 995 rental properties and 726 low-cost ownership properties.
Governance structure in the South East:
- The governance arrangements in the South East region have changed as working arrangements are streamlined to fit in new regional structural changes. A proposed new regional structure reflects the changes in the South East:
- Governance by local government: South East England Councils and the South East England Development Agency (SEEDA). A joint body will be responsible for preparing a Single Regional Strategy (replacing the South East Plan and Regional Economic Strategy). Since April these two bodies began working together with delivery agencies.
- Two decision-making boards: South East England Partnership Board (made up of members of SEEDA and the region's council leaders) and the Strategy Board. The first will be the regional planning body until the SNR legislation is passed and will be responsible for signing off the Single Regional Strategy, the regional delivery plan and the annual monitoring report. The latter will be responsible for steering various elements of the Regional Strategy including allocating Strategy funding.
- Delivery boards (eg Housing, Transport Board), together with a small number of working groups to help steer specific aspects of the Regional Strategy and support the Strategy Board. Stakeholders will continue to play an important role in the new regional strategy process at both the member and technical levels, but won't be part of the formal decision-making process.
The CIH South East region policy focus
Regional structures
The policy group has been working closely with other regional partners to deliver on the regional agenda. There has been direct involvement with the Regional Housing Forum (RHF) and Regional Housing Board (RHB) through CIH South East representative, Sharon Smith, and CIH South East Policy and Practice Officer, Michelle Chivunga.
Sharon has chaired the RHF for the last three years and also been part of the advisory team for the RHB. Given the changes in regional structures, there will be a review into the contribution that CIH South East members will make towards supporting new arrangements once they are in place.
In the meantime, representation at the South East Housing Forum will continue with Michelle attending meetings. Sharon will step down as Chair of the Forum in September, becoming the CIH South East representative on the South East Housing Coalition which incorporates members from Shelter and the National Housing Federation.
Housing and the economy
The CIH South East policy team aims to drive debate around housing and the economy with our new coalition partners. This coalition aims to represent the region by raising its profile, focusing on issues that are of major significance in the region.
Prior to the coalition, CIH South East policy group produced a report into the impact of the credit crunch on the South East housing market which outlined some of the problems experienced as a result of the economic downturn. Here is a snapshot of this report and other recent key statistics on our region.
The economic crisis: The housing market has been hit hard following the economic crisis. More details about the impact for the South East region can be found in our report about the credit crunch.
Download the report: Impact of the credit crunch for the South East housing market (pdf - 972kb)
The region has faced high price inflation, rising unemployment, high repossession levels and high levels of waiting lists for social housing. Below are some statistics showing the impact of the credit crunch:
- Statistics from Nomis show an unemployment rate of 5.3% in the period January to March 2009. In the same time period in 2008, unemployment rate was just 3.9%, a 1.4% difference.
- Jobseeker's Allowance claimants continue to increase with a total of 153,608 claimants in April 2009, a shocking 122.3% since April 2008.
- House price inflation is steeper in the South East (7.9%) compared to the UK average (5.1%).
- House repossession orders have increased by 10% during the last quarter of 2008 (4,855 orders).
- Despite an average annual house price fall in the South East approaching £38,000, the region continues to be faced by challenges of housing affordability.
- The South East region had over 200,000 people on the social housing waiting list in 2008.
Future policy work
Policy work will help to support and inform various South East events in the year including Homelessness and Economy, Home Ownership conference and our House of Commons event.
If there is any area that you would like to see covered, we urge you to send your views to Michelle.
Michelle Chivunga, South East Policy and Practice Officer
Chartered Institute of Housing, 9 White Lion Street, London, N1 9JX
t: 020 7520 3389
e: michelle.chivunga@cih.org