Mutually beneficial

The challenges to deliver housing growth are significant. The lead-in time for many programmes is years; every step in the process takes time and requires numerous agencies to act in a coordinated fashion to overcome barriers. Many communities are still concerned over the adverse impact that housing development can have on their local communities. But there are some emerging great examples of partnerships that are delivering great outcomes, at a scale that can, if reproduced across the country, make a real positive impact to address our housing need.

“The construction of new houses can often be a struggle for developers and house builders alike.”

The government’s Housing and Planning Act, following on from the National Planning and Policy Framework, reflects a commitment and strategy to deliver a step change in housing delivery in building new homes in the UK and alleviating the housing crisis. However, a reduction in resources and barriers to growth at local authorities and taking funding out of the housing association sector, alongside added bureaucracy in the process means that the construction of new houses can often be a struggle for developers and house builders alike.

But the reality is that not all house builders and councils are struggling to implement their plans for new housing. Some are developing a new approach to partnerships, showing how collaboration, transparency and investment in the right areas can create homes and neighbourhoods people really want. 

Earlier this year, I was invited to the Housing & Finance Institute (HFI) event at the Guildhall in London to showcase how Keepmoat’s partnership approach with a local authority was transforming parts of a major city from unpopular and neglected locations into attractive and desired neighbourhoods.

We explained how this was being achieved by working with the local authority and community in a transparent and authentic partnership.  Costs are transparent and financial gains are shared with the council; engagement with the local community housing happened very early on in the improvement plans, work opportunities for local people and supply opportunities for local business; and the designs for buildings and public spaces were very creative, transforming the area. This ‘one team’ approach delivers place-shaping at speed and to outstanding quality standards – just what local residents are looking for.

The project presented was about the Sheffield Housing Company (SHC), a £295m joint venture with a difference, and an example of the type of public private sector partnership that the HFI wants to facilitate.

Established by Sheffield City Council and Keepmoat in 2012, it is creating 2,300 new homes across the city over 10 years.  We have already delivered over 250 houses which are sold or rented and work starts soon on another 500 homes. 

How does it work? The council invests land and Keepmoat invests capital, opens up its supply chain and provides the design, build and sales skills. Unlike traditional house builders/developers, Keepmoat works as a true partner, sharing profits with its partners and allowing ongoing involvement in the housing that is built.

Sheffield City Council wanted the homes to be of the highest quality, to help regenerate neighbourhoods, and we are meeting that brief. Tenures are varied to reflect the local needs of the community. All homes will exceed current design standards and the quality of design is exemplary – the shared vision between the council and Keepmoat – to build the very best housing in Sheffield has been fundamental to driving the success of the venture in bringing regeneration to what were previously struggling housing areas. 

The quality of design has in turn increased the pace of delivery of the regeneration programme.  What was originally envisaged to be a 20-year partnership programme is now looking as if it might be delivered in just over 10 years.  This is good for housing output, good for the local communities and good for the nation’s economic growth.

The key to the success of this partnership was an understanding of the local authority’s needs and challenges and by allowing that to form the dialogue between all parties early on, we were able to set out a robust plan.

Our work with in partnership with Sheffield City Council and the SHC has led us to believe that with a progressive local authority, and can-do providers, you can build and sell high quality homes in a short period of time – even in places where people previously didn’t want to live, with little or no public subsidy.

Ultimately, our partnership is a success because it has a transparent and long-term working relationship based on a shared vision. By combining skills, sharing risk and profits, houses are being built of a higher quality than seen before, creating homes and neighbourhoods people really want.

Ben Denton, strategy and business development director, Keepmoat group