Budget gives £600m boost to slump-hit housing sector

The Homes & Communities Agency is drawing up a list of recession-hit housing schemes to bail out as this week’s Budget threw a £600 million lifeline to the beleaguered sector.

This marks a massive boost to architects, who had pinned their hopes on the newly formed super-agency becoming a major catalyst for the profession’s recovery.

The agency has already quietly injected millions of pounds worth of this funding into a host of schemes to ensure they do not grind to a halt because of private sector funding problems.

These include Urban Splash’s Park Hill redevelopment in Sheffield, which received £16 million as part of a total £39 million public funding package, £10 million for the Fruit Market scheme in Hull, and £16 million for Berkeley Homes’ revamp of London’s Woodbury Down estate, part of a larger £93 million which went into five threatened projects in the capital.

Chancellor Alistair Darling’s overall £600 million for house-building included £120 million for local authorities to spend on new energy-efficient homes, with the remaining £480 million for kick-starting stalled schemes.

The moves follow an intense lobbying campaign by major housebuilders which included a personal meeting recently between Taylor Wimpey chief executive Peter Redfern and Darling.

HCA area director for Yorkshire & Humber Rob Pearson told BD: “We have to decide which developments are important enough to keep going forward. It is important for the HCA to be innovative and flexible in working with our partners to maintain momentum and confidence.”

Ben Derbyshire, managing director of housing specialist HTA, applauded the £600 million package. “The stimulus is finding its way through,” he said. “About six months ago, I was thinking that unless the government did something, we would hear that one or two housing associations would be declared insolvent and private housebuilders would go under. That hasn’t happened.”

Christophe Egret, partner at Park Hill architect Studio Egret West, agreed the HCA had moved “very fast” and said that without the funding, the revamp of the estate would certainly have stalled.

“I’m very happy with what [HCA chief] Bob Kerslake has done,” he added. “He’s one of those people able to absorb information quickly and make a decision.”

Projects thrown a lifeline by the HCA

Park Hill, Sheffield
Europe’s largest listed building is being redeveloped in a 974-home scheme by Studio Egret West, Hawkins Brown and Grant Associates.

Fruit market, Hull
The 400-home scheme is being developed for Hull Future by a team featuring Surface Architects, Sarah Wigglesworth, urbanist Jan Gehl, Bauman Lyons and Hodson Architects.

Woodberry down, Hackney, London
The estate is being developed by Berkeley Homes and Circle Anglia. The architects are Rolfe Judd and Wilkinson Eyre.