The chief executive of the Homes and Communities Agency has insisted the new delivery agreements under the £1.8 billion affordable homes programme are flexible, following concerns from landlords.
Under the agreements landlords wishing to alter their development programme must issue a ‘programme change notice’ and discuss the proposed change at a meeting with the HCA. If the HCA does not agree the change, landlords risk losing grant on schemes which have not started.
This has led to concerns that the contracts are inflexible and give the HCA too much power.
But Pat Ritchie, chief executive of the HCA, told Inside Housing that the programme offers ‘considerable flexibility’ as there is a ‘clear process of review.’
She said: ‘The process perhaps seems more formal and onerous in the contract than it will actually be in practice.’
Ms Ritchie added that only major changes would have to be discussed with the HCA.
She said: ‘The idea that you have to have a meeting every time the programme is changed is slightly misleading.’
Ms Ritchie said the response from the sector to the new programme has been positive, and the HCA has had to work with some providers to scale their bids back as the programme was oversubscribed.