Seeking solutions with Government

Housebuilding delivery rates are at historically low levels and at 50% of the rate required to meet the rate of household formation. Exceptional measures have been required to sustain even this level of production.

Making projects viable

To support viable delivery of housing during 2009, Crest Nicholson was able to:

• Re-plan higher density schemes into more deliverable intermediate density developments
• Secure additional National Affordable Housing Grants to support an increase in affordable housing delivery from 300 dwellings in FY2010 to 500 in 2011
• Renegotiate the level and/or timing of Section 106 contributions

Recognising that the viability of housebuilding was fundamentally challenged, and that first time buyers required specific assistance, the Government, through the Homes and Communities Agency (HCA), introduced two initiatives which Crest Nicholson has embraced:

• Homebuy Direct (HBD) – a form of shared equity under which the HCA and Crest Nicholson each commit to provide up to 15% of the equity required for a first time buyer purchase. Crest Nicholson secured funding under this scheme to support 881 dwellings on 37 projects. Find out more.
• Kickstart – an investment programme administered by the HCA to support delivery of housing. In 2009 Crest Nicholson secured funding for three developments which are now in production, and is in the process of securing funding for a further ten developments under Kickstart 2 which will support delivery in 2011 and 2012.

Shaping future regulation

The rapidly evolving policy and regulatory framework for housing sets an uncertain context for business planning. To both shape and anticipate the future of housing policy, Crest Nicholson has become pro-actively involved to support Government in three key parts of the agenda:

• Environmental agenda

  A Crest Nicholson board director sits on the Government's Code Advisory Group, and we contribute strongly to associated working groups of the Zero Carbon Hub (ZCH) and UK Green Building Council (UKGBC):

  • UKGBC: Definition Of Zero Carbon for both domestic and non-domestic buildings
  • The ZCH: 2016 Timeline workgroup, the Minimum Energy Standards, Consumer Engagement, and Skills & Training workgroups
  • The Technology Strategy Board and the Energy Saving Trust on the ZCH Post-Occupancy Evaluation workgroup

• Quality and Space Standards

  Various bodies (CABE, HCA and CLG) have been critical of the volume housebuilding model and in particular the monolithic design response offered nationwide. The result is to try to legislate for minimum standards. Crest Nicholson has accepted an industry representative role on the working groups, and will help ensure that quality and sustainability ambitions work in synergy with delivering reward for innovation and diversity in developments.

• Development economics

  Crest Nicholson continues to provide leadership to the HBF team which works with CLG, HM Treasury and other regulatory bodies with a view to restoring viability to 80% of development schemes – rather than 20% as at present. This remains a significant task, particularly at a time when the public sector finances are coming under intense pressure.

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Find out how we are Managing Sustainability at Crest Nicholson.