Regional devolution will drive institutional investment in placemaking, sector expert says

Mr Partridge said the role of the combined authority was “really critical”, as it can offer confidence to investors. “So I do think that that is something we’ll see more often. These are really complex things… brownfield sites are amongst the most complex things to redevelop that you can possibly imagine.

“But people want to do it. I’ve mentioned Legal & General, others want to invest in that… a few years ago we used to call it ‘levelling up’, didn’t we? But we call it something else now, I think. But it is that kind of mindset,” he said.

Metro mayors have been allocated £7bn under the new Social and Affordable Homes Programme, and the chancellor recently announced £2.3bn of investment in mayors to kickstart regeneration projections.

On supported housing, Charlie Norman, chief executive of MSV Housing, suggested that devolution can unlock development opportunities where housing associations are struggling with viability.

She said development of specialist housing required “higher grant rates, better land deals, better commissioning, and long-term commissioning with health and social care professionals”.

Ms Norman continued: “We are building a model for that in Greater Manchester, and we’re having quite a breakthrough, working with directors of adult social care to look at what we can do differently, and within that, looking at the [private rented sector] and looking at temporary accommodation solutions and that kind of thing.

“So I think devolution has got a real chance of stepping into the breach there.”

A survey by the National Housing Federation last year found that over half of supported housing providers had schemes which were likely to close unless there was an urgent funding increase.

Mr Partridge told attendees at the conference that Savills was seeing a “real trend” of housing associations exiting specialist areas.

He said: “We find with our portfolio trading and transactions between housing associations that a very substantial proportion of the stuff coming to the market, coming to us to sell to other housing associations, is supported housing – boards taking that decision to exit some of the more specialist areas, and that is a real trend.

“And the number of associations that are in a position to purchase or to acquire that supported housing is diminishing. So I think it is a real challenge.”

Liam Robinson, the leader of Liverpool City Council, suggested that local authorities in the city region were keen to support specialist housing.

He said Liverpool City Region was looking at becoming a direct housing provider by opening its own Housing Revenue Account, as suggested by Steve Rotheram, its mayor, in 2024.

Mr Robinson said: “One of the things we’re quite keen to look at, which we don’t believe has been done before, is could we do combined authority council housing?

“So [there is] the potential for us all to pool those numbers, and, frankly, pool a bit of the risk across the conurbation. 

“And particularly look at some of the specialist housing that often other providers struggle to deliver, but actually could provide a lot of respite for the sector in terms of specialist-type properties.”