Development and Regeneration Strategy

Executive Summary

Our last Development strategy was approved in 2021 with development ambitions to deliver 860 homes by 2025. 

By March 25 we have: Constructed 1,255 homes

• Provided 351 Market Rent homes
• Delivered 187 Shared Ownership homes
• Provided 352 Right to Buy homes
• Delivered 255 Affordable Rented homes
• Provided 110 Social Rented homes
• Sold 187 Shared Ownership homes
• Enhanced procurement processes
• Demolished 30 homes as part of the GML regeneration project
• Received £32.3 million in grant funding from Homes England
• Received £1.5 million in Brownfield Funding
• Received £1 million in grant funding from GMCA
• Secured £3.1 million in funding from BEIS
• Obtained £0.33 million in funding from LAD

Introduction and context 

Given the current challenging macro environment, Covid legacy, reduced rental income, rising construction costs, falling house prices, there have been significant demands on our finances due to increased investment required to ensure homes are safe and continue to meet decency standards.

 In addition, there has been a notable increase of new legislation impacting the management and maintenance of housing stock by registered providers. Alongside these changes, the introduction of the Building Safety Act and ongoing revisions to building regulations, culminating in the Future Homes standard due for full implementation by 2025. 

These developments present significant challenges for the housing sector with further research being needed to establish the impact to customers, programme delivery and increased costs associated with the implementation of Future Homes standards and building safety act. The recent Autumn Budget delivered a series of impactful measures that aims at supporting the housing sector's ability to invest in new and existing homes while providing relief to those on the lowest incomes. 

The measures introduced will help in the delivery of 1.5m homes target. As a result, our ambitions for growth remain, but we must balance this with the requirement to invest in existing homes and deliver good landlord services which meet our customer needs. We will continue to develop, but our priorities over the next five years will be the regeneration of Grey May Lane and delivery of a reduced development programme. 

One Manchester is committed to contributing to the government's housing delivery targets with 531 affordable homes planned within our business plan up to March 2030. Our commitment is not just about building homes but the quality of the homes we build, their affordability and ensuring we provide a customer journey that is as seamless as possible. Our approach to housing development will be to prioritise sustainability, with all homes-built meeting Future Homes standards. 

The design of our homes will cater to both the needs of our present and future customers, and they will be built to ensure maintenance is minimised. We will use data intelligence to ensure we build the right homes in the right areas with a mix of tenures and house types to meet the needs of our customers.

Purpose 

To create sustainable, inclusive, and thriving communities by delivering high quality, sustainable affordable housing and excellent support services while maintaining a strong focus on social responsibility and resident engagement.

Market Trends and External Context 

We completed a comprehensive examination of the Housing Strategies across the ten Local Authorities in Greater Manchester. The results revealed shared objectives in expanding affordable housing, modernising existing stock, and catering to diverse life stages, with a particular focus on the elderly and sustainability. 

Where do we want to be by March 2030

 One Manchester’s Corporate Plan 2022-2027 states the need to help people succeed by providing quality, affordable, secure homes to rent, buy and build more to meet future needs. It commits to building homes and investing in places, growing through partnerships and joint ventures, and reducing the carbon impact of new developments. The new Growth Development Strategy revolves around five pivotal themes that underpin the corporate plan's vision. This approach will not only enhance our ability to meet regulatory standards but also position us as key partners for any emerging development opportunities and will assist with providing the services our customers want and need. The strategy actively contributes to the delivery of sustainable, long-term housing solutions for our customers. This strategic alignment not only complements the Asset Management Strategy but also the Sustainability Strategy: 

The 5 key themes are:

• Quality and Customer Experience
• Homes for the Future
• Strategic Partner
• Regeneration
• Strategic Growth

Theme 1: Quality and Customer Experience 

We will provide good quality homes that are affordable with technology that is easy to use and maintainable. Our customer journey will be robust meeting their needs. 

What we will do 

• Introduction of a new quality strategy for new build homes
• Improved the customer journey through efficient processes and procedures
• Improve our customer satisfaction rate and provide good aftercare
• Work with developer partners that share the vision and values of OM. 

Theme 2: Homes for the Future

We will provide homes that are fit for the future, meeting the changing needs of our customers. 

What we will do

• Build homes that are sustainable and affordable for customers to run and maintain.
• Investigate the benefits of MMC and their innovative construction methods
• Deliver social value as part of our procurement process.
• Providing a diverse range of mixed tenure options to accommodate the varied needs and capabilities of our customers now and in the future.
• Construct homes that meet Future Homes Standards
• Review existing housing stock, regenerate neighbourhood to provide mixed tenure sustainable communities
• Review OM land ownership 

Theme 3: Strategic partner 

We will aim to be a developer partner of choice 

What we will do. 

• Build a portfolio of developer partners
• JV Partnerships – Equal investment to maximise outputs and diversify risk 

Theme 4: Regeneration – GML

Deliver our ambitions for the Grey Mare Lane estate and seek out further opportunities for regeneration where viable. 

What we will do 

• Complete all approved customer decants and demolitions at GML
• Work with developer partners to assess joint venture opportunities for the GML estate Consider disposal of the opportunity sites
• Review existing housing stock and opportunities for further regeneration 

Theme 5: Strategic Growth 

Achieve our start on site and completion targets as set out in the approved business plan.

What we will do 

• Focus on growth, considering opportunities within our new larger GM arena* where appropriate
• Deliver schemes that meet the needs of our business and customer, know our market and areas of biggest opportunity
• Know our limits! Build to our risk appetite.
• Investigate the benefits of ORS to recycle capital through financial model

Maximise funding opportunities 

Our Financials – As part of the latest business plan April 25 to March 30, One Manchester has capacity to develop 438 new affordable homes. The plan is based on a reduced Development programme with cost of £98.44m, Grant income of £17.2m and Sales income of £6.06m. 

Our Partner and Funders: 

• Local authorities - Manchester, Tameside, Rochdale, Oldham
• Developers, Registered Providers, Homes England, GMCA, 

Risks and Mitigation – Development activity can be influenced by macro-economic change and government policy decisions. Below highlights some of the challenges now and in the future. 

Funding uncertainty – Securing funding from various sources can be challenging and unpredictable Reliance on government grants is subject to timescales or subsidies that may be subject to budget cuts or changes in priorities. Private sector investment may be limited during economic downturns or uncertain market conditions. 

We will:

Continue to monitor the governments commitments to additional funding to support the delivery target of 1.5m homes. We will work collaboratively with our developer partners sharing risk and reward. Our home designs will meet or exceed the Future Homes standards, increasing the likelihood of grant opportunities. 

Land Availability – Identifying suitable land for affordable housing development may prove challenging. Competing interests in land use restrictive planning policies, or community opposition could delay or hinder the acquisition of suitable sites. 

We will:

Utilise land already in our ownership and work with land finding specialists who normally bring opportunities forward as a land inclusive package deal. This reduces costs relating to bidding for sites and remediation as these are already in place prior to entering into contract. 

Strategic Growth Areas – Geographic Growth into new operating areas such as Tameside, Rochdale and Oldham will require to prioritisation to ensure service efficiency.

 We will:

Work with internal stakeholders (Neighbourhood, Commercial & Assets) to produce a Development Heat Map that will identify and prioritise at ward level our areas of operation. This will be based on serviceability and efficiency to ensure new growth areas compliment out existing stock portfolio. 

Planning Process – Despite efforts to streamline the planning process, there is still a risk of delays due to bureaucratic procedures, objections from residents, local councillors, or legal challenges. These delays can increase costs and impact the timely delivery of homes. 

We will:

 Prioritise developer partner package deals. Utilizing the developer’s skill set, experience and capacity to deal with complex planning challenges, reducing pre contract cost risk and delay. 

The new labour government have confirmed that they intend to streamline the planning process Construction costs – The price of construction materials and labour can fluctuate, impacting the affordability of projects. The use of innovative construction techniques, such modular or prefabrication, may require additional investment in training and infrastructure. 

We will:

 Procure contracts through approved frameworks or robust partnerships. Contracts will be fixed priced. Our contractor due diligence will be robust. We will utilise consultant experts to help deliver the contracts to the agreed specification and cost, minimising risks to contract increases, contract delays or claims. 

Social Stigmatisation – The creation of mixed income communities may face opposition from residents who hold negative stereotypes or prejudices about affordable housing. This can lead to social tension and resistance to integration, potentially undermining the goal of inclusive communities. 

We will:

 Work with our local authority partners to engage with customers regarding the design and development of our new proposed developments and regeneration projects. We will seek feedback on newly build homes to improve our home design and specification in the future. 

Market Demand – There is a risk that the supply of affordable homes may not meet demand which could lead to continued housing crisis in Greater Manchester. 

We will: 

Regularly assess market demand and actively monitor housing needs to ensure that the strategy remains responsive and effective. 

Carbon Zero 2050 – Transitioning housing to carbon zero or building to newbuild homes to meet standard comes with several challenges, Energy efficiency upgrades, Affordability, Customer/Stakeholder education, Infrastructure and energy supply. 

We will: 

Educate our customers in the benefits of new technology and provide an after-care service that is reflective of the needs of our customers. 

Build all homes to a minimum of Future Homes standards reducing the need for retro fit in the future. 

Test new technologies and building methods to reduce costs and ensure VFM Building 

Safety – The introduction of Building Safety legislation is complex and not only has the potential to increase build costs but also delay build times due to the introduction of approval gateways. 

We will:

Utilise our frameworks to source suitably qualified consultants who specialise in building safety, 

Use contractors that are experienced in building safety and fully understand the needs and timescales required to fulfill the building regulator gateway process.