Homes England missed four of its six home construction targets through March 2021, despite the targets being revised downwards sharply to reflect the impact of the coronavirus pandemic.
Recently released accounts for the government’s housing quango show it has directly supported the construction of 35,183 homes, 7% fewer homes than its revised target, and the number of affordable homes that have been completed has fallen to just 24,245 and missed their adjusted target by 12%.
The agency, which manages the Ministry of Housing’s spending of more than $ 5 billion
The government had originally intended that the board, which unexpectedly left its CEO Nick Walkley (pictured left) in January, should oversee a significant ramp-up in FY 2020/21, but it quickly lowered expectations in the light of the Covid-19 crisis, which has temporarily closed the vast majority of housing construction sites.
The agency missed its original overall construction target of 53,540 by a little more than a third, while it missed its original target of 40,760 affordable housing by 41%.
In addition, the agency missed both the original and the revised targets for the production of directly supported new housing that came onto the market and for the amount of housing capacity freed up by its actions.
However, with the recovery in the private sales market from June onwards, Homes England managed to beat both the original and revised launch targets, posting 37,224 launches. In addition, the revised target for the total number of home ownership subsidies was exceeded by 44%.
In the first three months of the fiscal year, it was said that “many partners requested postponements and renewals” as the store was temporarily closed, which resulted in expectations being re-set at the end of the first quarter. This reduced the body’s initial “stretch goals” by 18-32%.
The balance sheets said the decline in both total completions and affordable housing completions were due to the affordable housing sector benefiting less from the post-Covid shutdown recovery than the private sales market.
The report said: “While home deals have recovered, a significant portion of our completions will be delivered through the Affordable Homes program, which is less impacted by consumer demand and has seen a significant drop in home completions affecting overall results affects. “
The board, which announced the appointment of Peter Denton as the next chairman of the board in June, recorded net spending of £ 5.7 billion for the year, up from £ 5.4 billion spent the previous year.
The accounts also show that Homes England paid former boss Nick Walkley £ 55-60,000 in notice plus £ 20-25,000 for unused vacation entitlement following his sudden departure in January. Walkley’s base salary was between £ 310 and £ 315,000, and he took home between £ 375 and £ 380,000 for the fiscal year.
A Homes England spokesman said: “Homes England’s performance was in line with market trends, which are down 13% year over year. While completions were down overall, private sector deliveries were strong due to a buoyant market.
“However, most of our planned completions will come from the affordable housing sector, which is still challenging in a post-pandemic world. We will continue to support home builders in overcoming these hurdles in order to build the new homes the country needs. “