Neil Hadden reveals plans for promotion and relegation of RSLs in £2.64bn 'partner club'
The 71 associations named as Housing Corporation "partners" under its new funding regime face "relegation" after two years if they fail to deliver on their promises.

The 71 are set to spend £2.64bn of the quango's cash under a £3.32bn programme to build 67,642 homes between 2004 and 2006, unveiled last week.

But if they do not meet their targets, they will be replaced by registered social landlords that missed out on partner status.

Neil Hadden, the corporation's assistant chief executive for investment and regeneration, said: "I want to establish the partner associations as a partner club. I know this will be controversial but it will be the best developers – the elite.

"We will bring them in every quarter to discuss how things are going. There will scope for people to drop out of the club and for others to enter.

"If some don't meet their targets they get relegated to the traditional route and some associations – once they have sorted out their little local difficulties – might want to join our club," he added.

Hadden said the relegation plan was part of a five-step programme for the 71 development partners:

  • to finalise contracts by the end of April
  • to revisit some allocation across England to see if "more fat can be squeezed out"
  • to establish the principles of the "partner club", such as how and when RSLs could be promoted or relegated, in the next few months
  • to move towards a "rolling development programme and away from the present big splash process" over the next 18 months
  • to take the initiative – "instead of waiting to see what associations can do, we'll tell them what we want to do, and where, and invite them to put forward proposals. In due course, I would envisage this forming the bulk of the programme", said Hadden.

He added that the corporation's ultimate aim was to work in tandem with the land brought forward by regeneration quango English Partnerships and to fund housebuilding on that land with public money. This would expand on the fledgling arrangement between the two bodies – known as the Housing Partnership – that has so far yielded 56 sites across London and the South-east.

If some partners don’t meet their targets, they get relegated to the traditional route and other RSLs might join our club

Neil Hadden, Housing Corporation

Bedfordshire Pilgrims and Genesis housing associations are building 500 and 1100 homes respectively on those sites.

The most high-profile absentees from the corporation's list of partners were Notting Hill Housing Group (see below), Places for People and the Peabody Trust, which received £72.76m between them in 2003/4.

Notting Hill was one of the top five developing RSLs in that year; Places for People and Peabody came 24th and 36th respectively. But this year they will compete with 192 other RSLs for a share of the £673m pot that will be allotted through the traditional route, where RSLs bid for funding for individual schemes.

Hadden also revealed that the corporation had exceeded its 2003/4 construction target of 22,200 homes by 744 units.

It spent £1.585bn – £102m more than it had planned.

The extra funds came from underspend on rough sleepers, safer communities and local authority social housing grant.

Source

Housing Today