Public Sector Land Supporting the NHS Richard Hill Deputy Chief Executive & Executive Director Homes & Communities Agency 24 th May 2013.

Public Sector Land Supporting the NHS

Richard Hill

Deputy Chief Executive & Executive Director

Homes & Communities Agency

24th May 2013

Accelerating the Release of Public Sector LandPlan for Growth

•Government has set a clear commitment to accelerate the release of public sector land, stimulating much needed housing and jobs

– Productive use of surplus land to stimulate economic growth– A key barrier to medium term housing growth is insufficient supply of

viable land– 40% of suitable sites in public land banks

•Ambition to release land by 2015 with capacity to deliver 100,000 homes and support 25,000 jobs

•Prime Minister’s challenge to increase pace of disposals

Public Sector Land

The Government Surplus Estate

– Capacity for c.107,000 homes by 2015

– Over 630 sites / 20 public land owners

– Government Departments, NDPB’s Public Corporations

– Predominately South East, London and East of England

– MoD accounts for almost two thirds of potential housing capacity

– Larger strategic sites – predominantly MoD & HCA

Public Sector Land

The HCA’s Role

•Major land owner

•Implementing series of Government Initiatives (Build to Rent, Help to Buy)

•Working with a broad range of public bodies

•Ensuring transparency and analysis of the future pipeline of surplus sites across the government estate

•Providing technical support & advice & local brokerage to dispose of sites

•Public land acquisitions and investment in surplus land for housing

NHS TrustsThird largest public land contributor after the HCA and the MoD; highest concentration in East of England (23%). Typically former hospital buildings & associated uses; located in/on edge of urban areas

What is the potential?

13,468 homes total capacity on NHS land over SR period

207 sites still to be sold (115 individual Trusts; includes former PCTs)

to date 3,905 homes; remaining 9,563 homes

63% (6,023) of remaining capacity in 19 large sites with potential for 100 + units

Profile & Trajectory

Issues & Remedies

Issues

• Need to maintain services/ ensure buildings are up to standard

• Re-provision of services v. timing of release of surplus land

• Viability issues; planning uncertainty

• Business Case - funding

Remedies

• Acquisition fund £100m

• Investment fund £190m (known as PLIF - recoverable) to de-risk

• Support & advice – planning / S106 (ATLAS)– procurement - DPP2 – appraisal Tools

HCA Support and advice

HCA SPL - first point of contact for the Acquisition & Investment Fund

ATLAS – a part of the HCA that can offer independent planning and delivery advice on large and complex sites.

Delivery Partner Panel – can be used to procure housing led development on land owned by NHS Trusts and other public bodies.

Viability Appraisal Tools – free to download scheme appraisal models such as the DAT, and BNPL which are both supported by the HCA with user guidance and troubleshooting.

Acquisition & Investment FundNeed to achieve a ‘disposal’ by March 2015

Acquisition

•Acquisition by the HCA at Market Value - potential for overage share

•One valuation; duty of care to both the HCA and the Landowner

Investment (PLIF)

•Recoverable loan (interest free) – Capital DEL

•Re-payable with 4 years of spend

•De-risk costs (demolition; infrastructure; planning; marketing & disposal costs)

•Eligibility criteria – capacity and timescales

Establishinga shared

vision

Collaboration &engagement

Integratingdesign &

placemaking

Embeddingproject

management

Finding & brokering solutions

ATLAS providing help though the planning process

HCA Delivery Partner Panel

• An OJEU compliant Framework Panel

• For procurement of housing led development on public sector land

• Currently used by HCA and 109 partners

• Usage so far:

• 150 sites

• 29,000 homes in pipeline

• 11,500 homes underway

• £2.6bn development value

Development Appraisal Tools

• The tool, consisting of an Excel spreadsheet

• Separate PDF user manual, available to download

• Development Appraisal Tool v2.03 - Excel 2010 (1.1KB) (Windows 7 onwards only)

• Development Appraisal Tool v2.03 - Excel 2003 (3.9KB)

• DAT user manual v2.02 - PDF (348KB)

• Mac users should see the relevant user guide appendix.

• Help desk - [email protected]

Acquisition & Investment Fund

Key Dates - 2013

• March to April Dear Colleague letter / Register of Interest

• May/June/July Initial assessment of responses and engagement

• 12th of July Register of Interest extended for acquisition/PLI Fund

• 6th & 12th June Workshops Leeds & London on the support

Public Sector Land Supporting the NHS

Questions