Housing secretary Matthew Pennycook has written to Peter Freeman, chair of Homes England, outlining how the government expects the quango to support its plans to deliver 1.5m new homes.
Pennycook said the letter was intended to provide “clarity and focus” to Freeman and his board and that he would deliver the letter annually, without fail.
“As chair, you are responsible for ensuring the effective operation of the Homes England board,” wrote Pennycook. “Your primary responsibility is to ensure Homes England delivers the mandate set by the deputy prime minister. We expect you to support the board in bringing expertise, support and challenge to the chief executive and the wider executive team, to ensure the organisation continues to deliver its programmes and overall objectives.”
He added: “We face a difficult fiscal position left to us by the previous administration and will need to use the upcoming Budget and spending review to provide greater long-term clarity. This letter therefore focuses on the immediate priorities for the agency, recognising that these fiscal announcements will require us to agree an updated set of strategic objectives for Homes England, and associated strategic plan.”
Homes England has come under fire over recent months for not delivering on its ambitions.
Starts and completions on homes delivered by Homes England fell last year, with housing programmes delivered by the agency resulting in 11,530 new houses starting on site between 1 April and 30 September 2023 and 11,297 homes completed. For the full year, Homes England said it had beaten its targets, enabling the completion of more than 32,000 homes, versus a target of 29,641 and facilitating the start of construction for an additional 35,000 homes, against a target of 32,967.
Pennycook said that while the two main objectives of Homes England – boosting growth through the delivery of new housing supply and place-based regeneration and placemaking – would not be changed, he would have more expectations of the agency.
He has laid out seven key priorities for the agency, including an acceleration of its delivery of new housing in 2024/25. Pennycook said he expected the agency to do “everything in its power to accelerate development and increase delivery”.
“As part of a renewed drive to lay the foundations for increased housing delivery, I expect the agency to work quickly with the department to implement the Public Bodies Review’s conclusions on streamlining processes, including the securing of required financial flexibilities and increased delegations from HM Treasury,” he said.
Pennycook also wants the agency to provide “appropriate support” to the New Homes Accelerator so it can speed up delivery on large sites that are stalled or building out too slowly.
“This activity will extend to new sites where Homes England is not currently involved, but where Homes England support has been identified as the best lever to accelerate delivery,” said Pennycook.
The agency will also be brought in to support the New Towns Taskforce, be expected to deliver more social homes, support the reform and diversification of the housing market and focus on achieving best value and driving efficiencies.
Pennycook added that there would be regular review and scrutiny of the agency’s delivery and corporate performance and more collaboration with the Ministry of Housing, Communities and Local Government to strengthen the housing delivery programme.
Freeman said: “I welcome the mission the government has entrusted to Homes England to help deliver the government’s commitments to transform housing supply and regeneration outcomes. Our teams based around the country will use every tool at their disposal to realise these ambitions, working as ever, closely with our partners in combined mayoral authorities, local authorities, housing associations, place makers and investors.”
He added: “The minister rightly has high expectations of us and we will continue to work tirelessly to support the delivery of the places and homes that people need.”
Photo from UK Parliament licensed under CC by 3.0
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