‘There really does need to be a seismic shift’: Place North East speaks to Stephen McCoy
The managing director of Newcastle’s Adderstone Living gives his predictions on the affordable housing market for the North East in 2025.
Following on from the clarity given by the new Affordable Housing Programme, McCoy believes that there will be an increased growth for the sector throughout the year.
He noted that 2024 was a difficult year for getting new schemes off the ground, with the change of government and the wait for budget announcements on grants meaning that many sites that could have come forward were stalled.
Added to this, planning continued to be “frustratingly slow” with environmental complexities and under-resourced local authorities.
“With £5bn of housing investment promised over the next five years and the government’s target of 1.5m new homes within this parliament, there really does need to be a seismic shift to get anywhere near these numbers.
“Adderstone Living has a strong pipeline of potential developments that will come forward in the coming months, especially if the Government’s Budget promise to plan for thousands of new affordable homes unfolds.
“This aims to ensure social housing is available for those who need it the most, helping to meet the ongoing housing shortage and slow the decline in the affordability of home ownership.”
Plans for a new five-year social housing rent settlement should deliver more certainty around funding, driving investment in new schemes, continued McCoy – and he believes it would be a game changer if there was a 10-year settlement.
He added: “The sector is keenly anticipating the new Housing Strategy, which is expected in the spring.
“We expect the sector to grasp the development and growth opportunities that will flow from this with more SHP investment coming forward. Hopefully, this will build on the successes to date and deliver the scale and type of affordable housing in the North East that meets regional needs.”
He sees local authorities and housing associations continue shifting closer towards land-led solutions, as they bring forward their own plans to tackle housing shortages and provide quality, sustainable homes.
It’s a model that facilitates quicker, cheaper delivery compared to traditional routes of procurement.
“This will involve the sourcing of suitable land, scheme design and securing of planning permissions from sector operators such as Adderstone Living, contributing to further growth for sector companies like us, who are investing in developing new staff and increasing our reach.”
