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Understanding the need for regeneration in the North
We cannot ignore there are social homes reaching the end of their life. There needs to be a strategy to address this, writes Tracy Harrison, chief executive of the Northern Housing Consortium
Understanding the need for regeneration in the North #UKhousingWe cannot ignore there are social homes reaching the end of their life. There needs to be a strategy to address this, writes Tracy Harrison of the Northern Housing Consortium #UKhousingRegeneration has been a longstanding priority for the Northern Housing Consortium (NHC). I see from our members how housing-led regeneration offers the opportunity to revitalise and transform communities, making them great places to live.
This improves the local housing offer so that a wider range of households can live in higher-quality, more energy-efficient homes, with better local connections. Residents experience these benefits and more, including new employment opportunities and better health.
There is a strong case – particularly in the North – for the government to provide support for place-based physical regeneration. This would focus on areas with a concentration of poor-quality or ageing housing in need of renewal, as well as the wider regeneration of some housing estates.
Our recent State of the region report, the Northern Housing Monitor, found that there are 1.2 million homes in the North that do not meet Decent Homes Standard. The situation is most acute in the private rented sector where around 27% of homes are non-decent.
Renewing and improving these homes should be a key aim for any government regeneration programme.
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In addition, while levels of non-decent homes are significantly higher in other tenures, we cannot ignore the fact that there is a significant number of social housing homes that are reaching the end of their life. If the government wants to see the “the biggest growth in social and affordable housebuilding in a generation”, there must be a strategy to address this issue.
To better understand the issues related to ageing homes in the North and the need for future regeneration funding streams, we surveyed a group of NHC’s housing association members and discussed the findings directly with the Ministry of Housing, Communities and Local Government. These formed part of our Spending Review submission to the Treasury.
We’ve recently published our findings in our Understanding the need for regeneration in the North report, which is available on our website.
Key findings included:
- 9.4% of respondents’ homes are in areas in need of regeneration. Applied across the North, this equates to more than 126,000 homes.
- 1.9% of homes will be unable to remain compliant with emerging regulatory requirements between now and 2030 due to physical or structural constraints. Applied to the North of England more widely, this is an estimated 25,500 social homes.
- Certain property archetypes are more likely to fall into this category. This includes pre-1919 housing, listed buildings, non-traditionally built stock and 20th century high-rise blocks of flats, including those built using large-panel system construction, that will struggle to achieve Energy Performance Certificate Band C.
- Housing providers flagged that a relatively small number of homes, including some 20th century high-rise blocks of flats, are causing significant financial issues due to exceptionally high repairs and maintenance costs. It is likely that these homes will be impossible for landlords to maintain in the future.
The NHC welcomed the new flexibility within the Affordable Homes Programme that was introduced in 2023, so funding could be used to develop replacement homes. However, our members have consistently reported that it has been difficult or impossible to access grant funding for schemes that look to provide a wider range of homes on a site, by replacing lower-demand, smaller properties. As a consequence, this does not result in a net addition of homes.
Due to the inability to access grant funding, these schemes are not progressing where they are needed. At a time when 197,000 homes in the North are overcrowded, this must be addressed urgently.
By providing new funding specifically for regeneration and existing stock improvements, the government can also free up additional financial capacity in housing providers’ business plans, putting them in a greater position to increase development of new affordable housing.
We’re pleased the recently announced Plan for Neighbourhoods includes a stronger focus on housing than we saw in the previous Plan for Towns. This funding will support a wide range of interventions across housing, health and education in neighbourhoods in need of regeneration.
“Our members have consistently reported that it has been difficult or impossible to access grant funding for schemes that look to provide a wider range of homes on a site”
It is especially pleasing to see that this new funding is looking back to New Labour’s New Deal for Communities – a funding programme that made a real difference in the North – for inspiration. However, where the last Labour government’s regeneration efforts had the greatest and most enduring success was where funding for economic, social and community regeneration was twinned with physical, housing-led regeneration through the Housing Market Renewal Initiative.
History shows that this has been done successfully, and it can be done again if the government provides the necessary funding to deliver housing-led renewal where it is needed. In our Spending Review submission, we made the case for a dedicated funding stream of at least £1.37bn over five years to support housing-led regeneration, which would match with the level of ambition previously shown through Housing Market Renewal Initiative.
Recently, housing minister Matthew Pennycook raised the issue of end-of-life stock and regeneration at a major summit on the future of council housing hosted by Sheffield City Council and Southwark Council. This felt like a step forward, as it’s not been on the government’s agenda for many years. It is hugely welcome that these issues are now being considered at the highest level – something the NHC has campaigned on for many years.
We now look forward to the outcome of the Spending Review, which is where we will find out how seriously this issue has actually been taken.
Tracy Harrison, chief executive, Northern Housing Consortium
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