The HCA will be
known as Homes England from October 2017 and the rebranded body plans a more
activist approach to meet the government’s challenges of building 250,000 homes
a year that will open up the housebuilding market, reports Glenigan,
At this year’s HMI
conference in October 2017 at the Barbican Centre in London, Homes England
chief executive Nick Walkley pledged to do more to help small-to-medium-sized
housebuilders and bring forward large publicly owned sites such as former
hospitals or military sites.
Citing the HCA’s
joint venture with the English Cities Fund and a 10% stake taken in May this
year in a real estate investment trust aimed at developing private rented
sector schemes, Walkley said: “We will be doing more innovative things. Homes
England will be more of an activist in the market.
He added: “We will
seek to a more proactive and meaningful relationship. The launch of Homes
England creates an opportunity to renew relationships. Infrastructure is a
major challenge.”
Mr Walkley also
promised a more “proactive stance on modern methods of construction (MMC)”.
Evidenced recently by Legal & General's commitment to modular housing, by
opening a factory near York specifically to build modular homes, on the body’s
third generation Delivery Partner Panel to bring forward an £8 billion
residential-led development programme on public land.
The third DPP
includes 70 companies ranging from major contractors such as Interserve, Kier,
Laing O’Rourke and Wates to medium-sized outfits such as Esh, Seddon and
Tolent, and housebuilders including Barratt and Keepmoat.
Registered social
landlords such as Clarion and London & Quadrant Housing Trust have also
been appointed and signs of Homes England’s renewed commitment are evident in
Glenigan’s data, which shows that the value of contracts awarded by the body
has spiralled this year as bigger projects are tackled.
In Glenigan’s latest
ranking of the industry’s top 50 clients, the HCA is ranked seventh after
letting £765.2 million-worth of contracts in the 12 months to Q3 2017. At the
same stage in 2016, the then HCA was ranked in 25th position after letting
£199.4 million-worth of work. The increase has come partly through awarding
bigger contracts.
Glenigan’s research,
which only covers contracts valued at £250,000 or more, shows that the average
Homes England award in the 12 months to Q3 2017 was valued at £40.7 million. At
Q3 2016, the average award was £14.2 million. This illustrates that the agency’s
quest to bring forward larger projects is already making an impact at a time
when housing is at the heart of government policy.
“The focus on housing supply is rising across Whitehall,” concluded
Mr Walkley. “Now is the opportunity to win the argument but it will need some
compromise. We are absolutely committed to diversification of suppliers and the
forms of housing. That will mean new entrants and competition. A process that
starts with protectionism is doomed to fail.”
