Dispatches from Birmingham

Preacher Dave

The National Housing Federation’s (NHF) enigmatic chief executive was on fine form as he opened the conference on Wednesday. The housing sector has always been something of a religious order, and David Orr was very much in fired-up preacher mode – firing off some shots at those who say housing associations have lost touch with their social purpose (“they’re talking out of a hole in their hats”) and making a big play of the NHF’s Owning Our Future message to send out a signal of independence to any watching government officials. The big message, though – the NHF is going to push very hard for some flexibility over housing grant in the Autumn Statement. And it is sounding increasingly confident.

‘That’ video

It looks like it was produced by Michael Bay – with epic super-slow-mo shots of pigeons circling tower blocks and a soundtrack that jumped straight out of a Marvel blockbuster. But there is no doubt that the NHF’s promo video for the sector – on display before many of the keynote sessions, is a slick, glossy, impressive and professional piece of marketing. The strapline, “If you want a great home, come to a housing association”, is punchier than most previous attempts and could actually catch on. Still though, some of those chief executives were enjoying the chance to glower intensely at the camera a little too much. David Montague’s blue steel glare surely says a modelling career is an option if he ever gets tired of building affordable housing.

Yes, minister

Gavin Barwell introduced himself to the housing association sector on Thursday, and genuinely went down well with a low-key but sensible speech. “There genuinely wasn’t any politics in it, he is here to do business,” said Mr Montague later. “He’s a lot more impressive in person, he looks about 12 in his Twitter bio,” said another unnamed chief executive. In terms of substance, Mr Barwell continued to soften the edges of the homeownership rhetoric – specifically calling for sub-market rent, and promising to listen to calls for flexibility over grant. We will see come the Autumn Statement whether the Treasury is listening to him.

A new Starter?

The future of Starter Homes dominated conversations in some of the bars and coffee shops around the conference. Those in the know suggested the government is after flexibility – but doesn’t want the political drama of breaking a manifesto pledge. As a result the wording of the manifesto is coming under the microscope – could another product be a home with a 20% discount, available to first-time buyers under 40? If so, there is an easy way out. Any sector figures with ideas: Gavin Barwell said he was in listening mode.

Merger mania

The recent high-profile collapse of several housing association mega-mergers was one of the major talking points. Everybody had a view on what went wrong and were full of speculation about other mergers that might, or might not, be on the horizon. Needless to say, those currently involved in merger preparations were eager to stress all is well with their plans.

Fresh ‘LHA cap’ angst

Darrell Smith, a senior Department for Work and Pensions civil servant, confirmed beyond all doubt that the ‘Local Housing Allowance (LHA) cap’ will apply to existing, as well as new, supported housing tenants from 2019. Although some people had interpreted this to be the case, previous announcements had not been clear. Many delegates were surprised by Mr Smith’s comments, and angry that the policy will affect more schemes than they had thought.

The ‘dark side’

Thinktank Policy Exchange has in the past been seen unfavourably by many in the sector, largely due to its ideas around selling high-value social stock. This conference saw it unveil a new report calling for associations to be allowed to raise rents in return for building more homes. While some audience members said there was a lot to like in the report, others took issue with some of its conclusions. When Cym D’Souza, chief executive of Arawak housing association, said she took “umbrage” with the report’s assertion that there should be fewer housing associations, there was a loud applause in the auditorium. Paul Tennant, chief executive of Orbit, which co-sponsored the report, admitted: “We wanted to work with the dark side.”

Devo delay opportunity

Although many commentators have questioned the future of devolution deals after their main architect, George Osborne, left the government, housing associations see the slight slowdown in pace as a chance for them to pitch for a greater role for housing in the deals that are being shaped. Chief executive of Plus Dane, Barbara Spicer, told the conference it was crucial for housing associations to have their say on devolution deals in their areas rather than get left behind as local authorities take the lead.

Paul Smith, cabinet member for housing at Bristol City Council, said he was disappointed by the lack of housing plans in the South West’s emerging deal but this hasn’t stopped Bristol pushing ahead with ambitious plans to up housing numbers after years of under-delivery.

Other delegates speculated about whether the Homes and Communities Agency’s investment arm has much of a future as money is increasingly devolved to combined authorities.

Social purpose

Social purpose is playing on the minds of housing associations this year. In one session the audience were asked to raise a hand if their board had discussed concerns about losing its social purpose over the past year. Nearly every hand went up. At a time when the 1% rent cut is making a dent in finances and business plans are being re-jigged to meet the government’s demand for more development, board members are clearly keen to not lose their founding values.

One chief executive said associations’ renewed focus on development is leaving the upkeep of existing stock out in the cold. He said many associations are stripping their repairs and maintenance budgets to boost funding for new homes. It’s a tricky balance to strike.