Welsh housing body pledges £100m investment in regeneration

Community Housing Cymru (CHC) has promised £100million extra investment for housing and community regeneration projects, in return for regulatory reform.

Housing Associations across Wales have a total of £3billion in assets, and a more appropriate regulatory reform will allow the organisations to borrow a lot more money against this sum. In effect, associations will have the ability to invest even further in local housing and community schemes and initiatives, over the next four years.

The new Assembly Government has made regeneration of communities one of its top three priorities, and wants to see more investment in the developments of new affordable homes in a way that is sustainable in the long-term.

The limits on the growth in public spending means that both collaboration between providers and the use of housing association assets and resources should be maximised, making best use of every Welsh proud. These are currently being utilised by the constraining regulatory environment in which they operate, currently inhibiting the use of potential capital, slowing down the delivery of the SHG programme and wasting resources in a process dominated by an expensive inspection regime. Therefore, to play a greater part in regeneration, in a way which is consistent with the ambitions set out in ‘Making the Connections’, a fundamental review of their regulatory environment is necessary.

Chief Executive Nick Bennett said “Housing Associations in Wales are ready to play their full part in helping overcome the current housing crisis that is plighting many communities across Wales. By providing associations with a sustainable and appropriate system of regulations, the Assembly government will be able to release £100m worth of investment without taking any resources away from schools or hospitals.”

CHC Chair Chris O’Meara added, “Housing Associations in Wales are financially mature organisations with £3billion in assets, and by using a reform intelligently, we can increase the funds for much needed community services and affordable housing, for both rent and for sale.”

Despite no specific mention for changes to the regulation framework in the recent ‘One Wales’ document, discussion with members of the new Assembly has seemed positive thus far. CHC made yet another push for this at their debate on ‘Housing Associations, Key Community Enterprises’ with representatives from the main political parties, at the National Eisteddfod in Flint on 8 August.

While speaking at the debate, Welsh Conservative Mark Isherwood AM discussed the wide range of services that housing associations offer, specifically in terms of regeneration and homelessness, and commented that: “if organisations were regulated less, they would have more money to invest, and this must be a priority.”

Liberal Democrat Peter Black AM commented that everybody in Wales now recognises the importance of housing, and we should take advantage of this and take measures to improve the situation – “if (housing associations) had more ‘light touch’ regulation, they could use their money more effectively”.

Caernarfon’s MP Hywel Williams of the Plaid Cymru party added, “Increased investment in housing will stimulate the local economy, and good quality housing would be an essential provision. Regulatory reform is the way to accomplish this”.