Blue Skies Bright Future
To describe the current housing market as
volatile is something of an understatement.
With several major housebuilders weathering
the storm and new developments being frozen out in some areas, you
might well perceive that the outlook is gloomy. But for the
Blue Skies Consortium, the prospects are surprisingly bright.
The consortium was founded by Longhurst Group
and Nottingham Community Housing Association in 2005. The alliance
provided an opportunity to share costs and regional expertise, and
compete with larger organisations for development funding. Three
years on, Blue Skies is out-performing much larger competitors –
having secured the tenth largest affordable housing allocation
nationally. The consortium supports member organisations and,
through their development services company POD, Longhurst and
Nottingham Community provide consultancy to consortium members, as
well as to the local authority, private developer and ALMO
sectors.
How it works
- Consortium members identify and submit potential development
opportunities
- Each potential project is reviewedto check deliverability and
financial and technical viability
- 16 organisations bid for collective funding from the Housing
Corporation
- Bidding programmes and targets are agreed over a three-year
period
- The POD team work up scheme ideas, advise how best to target
funding priorities and submit the final bids
Membership benefits
Blue Skies gives smaller and specialist
organisations the chance to develop homes.
Everyone brings different skills and experience to the table – from
stock transfers, to supported housing or community
specialisms. Opportunities are distributed fairly, based on
needs and business plans – it’s not about bigger members carving
out larger portions of the pie.
As Longhurst Group's Assistant Director of
Development, Nick Worboys, explained: “We’re genuinely
interested in helping clients to develop their business, because it
makes the consortium stronger.” Longhurst and NCHA also have a
consultancy arm, called POD, that works with organisations awarded
separate investment partner status. POD provides services such as
financial appraisals, audit compliance checks and technical
development advice. Nick added: “Through POD, we offer the same
services as many private companies – but our understanding of
housing needs, regulatory requirements and the housing environment
is much deeper. After all, we’ve been developing in this region for
over 20 years, so we know which projects will meet key priorities
and can bring them forward.”
In the current financial climate, the scale
and scope of opportunities handled by the consortium gives added
flexibility to adapt to changing circumstances. So if demand for a
particular house type or location shifts, or a developer threatens
to pull out of a project, the consortium can bring in replacement
schemes. It’s all about managing risk effectively for partners’
mutual benefit.
Please click on the images to enlarge