Matthew Pennycook sets out expectations of government agency in letter to chair

The housing minister has written to Homes England telling it to focus the remainder of the 拢11.5bn Affordable Homes Programme on maximising delivery of social rented homes.

In a letter to Peter Freeman, chair of the government agency, Matthew Pennycook re-iterated the new government鈥檚 ambition to deliver 1.5 million new homes in this parliament and set out his 鈥渆xpectations of how the agency can best support our ambitions鈥�.

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Source: MHCLG / Flickr

Matthew Pennycook, minister of state at the Ministry for Housing, Communities and Local Government

Pennycook said that the 鈥渄ifficult fiscal position鈥� of the government and its consequences for the upcoming Budget and Spending Review would 鈥渞equire us to agree an updated set of strategic objectives鈥� for Homes England.

He said that while the details of Labour鈥檚 long-term housing strategy was still being developed, he did not expect the two overarching objectives of Homes England - boosting growth through new housing and place-based regeneration - to change.

However, he said there were changes that the organisation could make to help the government achieve its housing goals.

These included taking steps 鈥渢o ensure that the Agency is maximising the number of social rent homes鈥� delivered through the remaining Affordable Homes Programme.

In July, the government announced that its flagship housebuilding programme, which is overseen by Homes England and the Greater London Authority, could deliver as few as 110,000, significantly lower than its original 180,000 target.

>>See also: 鈥楾he figures on starts are terrifying鈥�. What鈥檚 really happening to the Affordable Homes Programme

>>See also: 鈥楪ood, but not perfect鈥� 鈥� What next for Homes England?

Pennycook said that reversing the dip in housebuilding rates more broadly would require the agency to increase its 鈥渙ffer and role as master developer鈥�, including making greater use of compulsory purchase powers

He added that Homes England should provide support to the New Homes Accelerator and the Ministry for Housing, Communities and Local Government鈥檚 work on new towns.

He also asked the agency to support the 鈥渞eform and diversification of the housing market鈥� by supporting the SME and build-to-rent sectors and the uptake of MMC.

The housing minister said he intended to issue a 鈥渃hair鈥檚 letter鈥�, like this one, annually and 鈥渨ithout fail鈥� to ensure Homes England was clear on its objectives.