Analysis of the National Housing Federation 1999 directory shows that for the first time in years, total housing association development pipelines have fallen below 100 000, to 95 600.
But there is evidence of concentration among the largest developers. The top 50 have pipelines of 54 000, slightly up on last year. Now 23 associations are building more than 1000 homes - up from 20 last year - while 54 exceed 500 homes - up from 48 in 1998.
The cash is coming increasingly from sources other than the Housing Corporation - although the Corporation’s approved development programme has stabilised, the relationship between large programmes and successful bids for that cash has weakened considerably. Peabody and Sanctuary have less than £5m between them for 1999/2000 from the ADP.
Instead, programmes are being boosted by funding for regeneration work coming direct from local authorities from the release of capital receipts and from the DETR through special initiatives such as Estates Renewal Challenge Funding and the Single Regeneration Budget. More than half of the top 50 developing associations are involved with improving council estates.
Another source of funds is health and further education trusts, often using the private finance initiative.
There are eight new associations in the top 50 this year (down from 11 in 1998). Of these five have returned after a gap of a year or so. Newlon, Salvation Army and Poplar HARCA appear for the first time.
The slowdown in growth is confirmed by the figures for overall growth of the sector. Although total housing association stock rose by 80 000 to 1 442 000, growth slowed from 114 000 extra a year earlier, partly due to fewer council stock transfers.
The government has made it clear councils should consider transfer as housing associations can raise private finance to upgrade the stock.
The coming year will see total housing association stock exceed 1.5 million, while development pipelines are likely to be back over the 100 000 mark.
* National Housing Federation Directory of Members 1999, price £77.50 (including p&p), tel 0171-278 6571.
Snapshots of the 10 most developing developers
Focus After a torrid time in the early 1990s coping within internal difficulties, Focus ‘reinvented’ itself as a social investment agency. It is now actively involved in several West Midlands regeneration projects. Peabody Trust Peabody has taken over the slot as the top London developer. It is involved in 10 SRB partnerships and major council transfer projects and has a key role in West Silvertown Urban Village in Docklands. Ujima The country’s largest black-led association has a development pipeline of more than 1000 homes for the first time. It is involved in the Greenwich Millennium village. Anchor The country’s largest sheltered housing and extra care provider for elderly people has begun a £29m refurbishment of 800 Surrey County Council extra care homes under the biggest PFI scheme of its kind. Waterloo West Midlands based Waterloo has a huge programme for its size. Its work involves partnerships with councils across the region. Newlon Newlon’s position as highest newcomer is down to a major partnership to rehabilitate an Islington council estate. The scheme involves ERCF and SRB cash. Lovell won the tender and will operate on a partnering basis. Flagship Merger between two large scale transfer associations - Peddars Way and Suffolk Heritage - has pushed it into the 1000-plus development category. Acton Local authority partnerships and substantial Housing Corporation funding have helped maintain growth at Acton, one of the fastest growing London associations. Servite Back in the top 50 with most funds coming from sources other than the Housing Corporation. Major projects include PFI scheme for University of Westminster student accommodation and health trust staff homes in Bedfordshire. Also active in council estate partnerships in the Midlands. Poplar HARCA The first urban-based stand alone local housing company just makes the top 50. Now starting a £250m refurbishment and new-build programme.Source
Building Homes
