Private developers ‘can become corporation partners’ in 2006/8

Developers and other non-registered organisations will be eligible to become Housing Corporation preferred partners in the 2006/8 bidding round, the quango confirmed last week.

Roger De La Mare, director of regulation performance at the Housing Corporation, made the announcement in response to questions from delegates at a conference on grants for developers.

This could mean the existing 70 partners will miss out on cash, because the total number of development partners is unlikely to increase.

At the conference, which took place at Gatwick airport last Thursday, De La Mare said: “If we are bringing unregistered organisations into the 2006/8 round, we would be intending to bring them in on a preferred partner status rather than as a preferred bidder.

“I think we have [already] said that there may be some organisations within existing groups whose performances and delivery we will be looking at, and some of them will not continue as preferred partners.”

One housing manager, who did not want to be named, said: “I think this will be a concern for every registered social landlord that is a partner. They have already reduced the amount of RSLs that are going to be partners and, if they are bringing other bodies into the operation, that is another argument for reducing them further.

“Is there a bottom figure that the corporation has for the number of RSLs?”

Speakers at the conference also expressed fears that developers would lose interest in social housing if market conditions change in the future – jeopardising the delivery of affordable homes.

Michael Whatford, partner at consultant Calford Seaden, said: “I think the market change could be one of the most significant things that changes developers’ view on going for grants direct. It could be a big problem.”

A summit for developers that have expressed an interest in bidding for grants will be held in Euston, central London, on 14 March. Consultation on the new management accreditation scheme for non-registered bodies will close on 18 May. The corporation will invite detailed bids in the summer and make final allocations in autumn.