INNOVATION IN HOUSING & PLANNING Levvel About Us Private Sector Public Sector Case Studies Testimonials News & Views FAQs Contact Seminars International CURRENT NEWS V Non housing land - new viability study by Levvel ... more     V David Cameron announces plan to end lifetime council tenancies ... more     V Social housing waiting lists could swell by half a million ... more     V Raynsford appointed Olympics homes company chairman ... more     V Anxiety over government's housing revolution ... more     V Further Viability Study Secured by Levvel in Stafford ... more     V Scottish private sector housebuilding at 30-year low ... more     V Cuts threaten housing with arrested development ... more     V Impact of Government spending review on the HCA ... more     V Boris warns Conservatives to maintain affordable housing investment ... more     V Gaining ground - Planning article Levvel's response ... more V Darlington Borough Council appoints Levvel to provide viability appraisal ... more V January Housing Update ... more V Levvel commences work on new sub regional viability study! ... more V Pre Budget Report ... more V Levvel really enjoyed the Cobham half-day seminar ... more V Levvel's approach in Wokingham gets approval from The Planning Inspectorate ... more V Levvel seminar - a big hit with developers and land owners ... more V Levvel launches a series of seminars ... more V Levvel completes study for Fareham Borough Council ... more V Levvel completes study for Waveney District Council ... more V Levvel speak at international housing conference ... more V Funding concerns for affordable housing ... more V Robust viability assessment upheld at recent appeals ... more V Levvel secures major international contract ... more V Levvel selected to advise on viability in Stafford ... more V Levvel appointed for viability study in Manchester ... more V Success for Levvel at Poole core strategy examination in public ... more V Affordable housing planning conditions ... more V Appeal court outlines need for viability assessments ... more V Levvel completes Wokingham affordable housing viability study... more V Local Spatial Planning and PPS12 ... more V Lifetimes homes ... more V CIL ... more V Withdrawal of paper on valuation of affordable housing land in Scotland ... more V Ecotowns ... more V Intermediate Housing and the downturn ... more V Levvel wins Wokingham affordable housing viability study ... more V Levvel opens new London Office ... more     Funding concerns for affordable housing March 2009 In a report "Housing and the Credit Crunch" by the Communities and Local Government Committee (published on 24 February 2009, TSO Ltd) significant concerns are raised over the funding of future affordable housing. The Committee gathered evidence from a variety of sources and overall concluded that the national need for social rented housing was growing, however whilst the pulling forward of £975m funding from 2010-2011 announced in the housing rescue package (28 September 2008) and 2008 Pre-Budget Report was "understandable and ... right", the inability of the Minister to identify how the shortfalls in funding need, which will still be present in that year, would be made good "is worrying." The CLG committee also heard evidence that lenders were applying the conditions of loan agreements rigidly at the expense of housing associations making efficiency savings. It noted that the TSA was seeking to "avoid banks applying such aggressive pressure that it becomes a disincentive for rational behaviour" and that the position would be reviewed by the Committee later in 2009 to assess the progress made. Further problems with the funding of affordable housing are identified, particularly where the business model of Housing Associations relies heavily on the cross subsidy from shared ownership sales and contributions either in the form of land or units from Developer's Section 106 agreements. The pace of these additional contributions has rapidly slowed in recent months, compounded also by Housing Associations having to now face writing down of asset values through impairment charges in their annual accounts. Indeed Inside Housing (6 March 2009) reports that as many as 50 Housing Associations face this potential, particularly in London and the South East. It is clear therefore that many housing associations face significant challenges to their business models brought about by the availability of funding, both for their day to day activities and also for the potential occupants of low cost home ownership programmes. The opportunity to cross subsidise across a development programme has been severely hampered and will, in the short term, lead to more public subsidy per affordable housing unit being required and, in the longer term, innovation in the affordable housing products being offered. Levvel's experience in progressing negotiations with funding bodies and Local Authorities using viability based information to demonstrate the requirement for and benefit gained from the use of public subsidy, together with the ability to structure workable cascade arrangements to deal with changing circumstances, offers our clients the opportunity to progress development which otherwise may stall. Please contact Richard Bailey to discuss your requirements on 01202 639444.

CONTACT HEAD OFFICE Tel:+44 (0)1202 639444 Email: click here NEWS & VIEWS V Non housing land - new viability study by Levvel ... more >> V David Cameron announces plan to end lifetime council tenancies ... more >> LEVVEL IN THE FUTURE Levvel will be expanding and evolving their services as a response to the economic climate and as a consequence of the changed political situation. We will launch the new services and updated website in the summer. As new housing and planning policies emerge, we will be hosting more regional seminars, starting in the South West. pre-register for seminars >> CAREERS We are always looking for new talent to join our team of consultants ... more >>

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