RSLs and empty properties
Can anyone shed some light please on the funding RSLs receive apart from TSHG to help bring empty properties back into use? In areas where the local authority is "land locked" and opportunities to build new social housing on green field sites is becoming limited, can RSLs use brown field sites and the development / refurbishment of empty properties to provide more social housing?? What sort of funding is available for RSLs to achieve this and what are the pros and cons to the RSL to go down this route?
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RSLs and empty properties
I don't think there's any reason why RSLs can't use SHG (their standard funding) to develop brownfield/ empty homes - other than they just can't make it stack up financially under the current grant system. (Someone correct me if I'm wrong I'm a bit rusty on RSL finance these days!)
I used to develop a lot of existing residential units including single houses back in north London when i worked in RSL development - but that was 20 years ago and the grant rate for refurbishments was over 70% (and newbuild was a bit less). Over they years the grant rates for new build and refurb have become more equal and also reduced significantly putting pressure on RSLs to go for lower risk / higher capacity options of new build. Plus property prices were a lot lower back then of course!
The recent experiences of Plymouth (as presented at the last SWEHF) showed that even where the properties were acquired by CPO (still market value of course!) it was difficult to make it stack up - and that was doing a three for the price of 2 arrangement with the RSl to try and spread the costs!
Empty homes seem to be coming back onto the RSL horizon at the moment but this funding gap will have to be addressed if they are to become more involved.