Agenda item

The Committee was provided with an update on the Brownfield Housing Fund. It noted that:

·   The MCA had been allocated £53.3m from Government in Summer

·   2020 to support the development of housing schemes on brownfield land, and to unlock a minimum of 3,300 homes in the region,

·   This total had to be spent by March 2025, and could be used across resourcing and staffing needs for housing development, including survey fees and administrative staffing needs,

·   In phase 1 of the programme, 5 schemes had been approved which would provide 794 homes,

·   In phase 2, 7 schemes had been approved which would provide another740 homes.

·   Two Phase 3 schemes had recently been approved which would provide a further 136 homes

Following the award of a further £13m of funding in early 2022, an open call for schemes had been instigated by the Housing and Infrastructure Board. As a result:

·   Over 8 weeks, the MCA engaged with Local Authorities, Housing Associations and developers to promote the Open Call and Fund,

·   39 schemes were submitted, asking for £82m funding in total,

·   Successful schemes were scored and prioritised according to how well they would meet the Fund’s criteria including environmental standards and how likely they would be to deliver  by the end of March 2025 Programme deadline.

There remained a risk that some schemes would not deliver on time due to issues with rising labour and material costs, so the MCA had maintained a list of reserve schemes which may be funded instead if there is any funding headroom.

Questions were raised by members regarding the lower number of schemes being funded in Barnsley, noting specific brownfield sites in the area which were not being progressed by developers.

A response was given that every scheme brought forward by Barnsley MBC and the other Local Authorities in the region which meet the Fund’s criteria and can be delivered within the Programme timescale, are being progressed in liaison with the Local Authorities. It was noted that the MCA also continues to work with developers to address issues and opportunities as much as possible. However, due to the complexity larger sites can take several years to develop and deliver.

It was noted that brownfield sites are more expensive to develop, and it was asked therefore how this fund could be used to enhance sites and encourage development on them. A response was given that the MCAs Assurance Process is applied to all scheme applications and allowed the MCA to work with applicants to enhance their proposals to better meet energy efficiency or affordability, for example.

Questions were raised regarding how well successful schemes met carbon neutral targets, and how many homes had been built to date under the programme. It was noted that all proposals must meet at least an Energy Performance Certificate C energy efficiency rating, but many would be delivering higher efficiency than that. To date there were 27 homes that have been completed with a further 52 homes that have started on-site and are currently being built.

It was asked whether schemes could deliver beyond 2025. It was noted that the MCA had an ongoing dialogue with Government, and was working closely with local authorities, housing associations and developers to support scheme delivery, such as supporting business case development and recognising the impacts of inflationary pressures on development costs.

It was noted that the programme had been a success so far, and that all schemes approved would not have been viable without receipt of this funding, but there remains challenges in this current economic climate to ensuring schemes are developed and delivery on time.

RESOLVED that the Brownfield Housing Update be noted.