leeds planning network masterclass - what is the future for affordable housing?
DESCRIPTION
Slideshow from Leeds Planinng Network masterclass held on Thursday 17th March 2016. Speakers included; Jane Kettle - Housing Consultant and Researcher Panel; Geraldine Howley - President of Chartered Institute of Housing, Chief Executive of Incommunities Jenny Wood - Principal Housing Development Officer, Harrogate Borough Council Martyn Broadest - Director of Regeneration, Connect HousingTRANSCRIPT
Leeds Planning Network Master Class:
What is the future for affordable housing?
17th March 2016
#LPNLEEDS
The Changing
Landscape for Housing
AssociationsGeraldine Howley, Chief
Executive, Incommunities
Improving lives Incommunities
How Bradford Compares
England Bradford
Mean house prices
in 2014
£265,888 £146,613
Mean annual
earnings in 2014
£26,499 £22,641
Unemployment
rate in 2015/16
7.4% 8.9%
Deprivation in Bradford
Almost 40,000 children and young people aged 0-18 are living
in poverty.
61% of children in the district live in low income households,
compared with 44% nationally.
Roughly equal proportions of children in poverty live in families
headed by a couple as headed by a lone parent. In Tong ward
a higher proportion of children live in lone parent families.
Average household incomes of Incommunities tenants: £14,000
Most (over 90%) Incommunities customers sit in the lowest 10%
band for household income levels nationally
Improving lives Incommunities
Recent Challenges Facing
Affordable Housing
Bedroom tax
Universal Credit
Budget 2015 – rent cut
Latest: LHA rates
Spring 2016 Budget Update
On Thursday 16 March 2016 George Osborne announced his latest budget. Quite
a few of the initiatives were trailed in the media. In contrast to last October, there
were very little housing related announcements. In summary the key elements are:
Housing:
There is a starter homes land fund giving local authorities access to £1.26m to
remediate brownfield land for at least 30,000 starter homes.
13,000 affordable homes 2 years early, bringing forward Capital spending.
Capital spending:
Lifetime ISA used by under 40s to purchase their first home.
Joint working for unlocking land around railway stations to provide sites for new
development.
Spring 2016 Budget Update
Planning reform – further efforts to streamline the planning system.
Garden towns/cities – locally determined smaller settlements on the outskirts of towns.
Stamp Duty Land Tax – some release of funds for development of new homes.
PRS Sector Committee – to stimulate institutional involvement.
Rough sleeping – additional funding of £100m to provide low cost ‘second stage’
accommodation.
Welfare:
Additional support to self-employed Working
Tax Credit claimants.
Changes to benefits for the disabled.
Business Rates - some reduction in Business
Rates for commercial property depending on
the Rateable Value.
Organisational Change
Non-core services being cut
Staffing
Diversification
Service delivery
Commercial activity
Mergers
Asset Management Appraisal
Asset Management Strategy
LSVTs – legacy
Right property, right location, right type
Looking at demand patterns – reliable
evidence/research essential
Development – social housing vs for sale
Housing Demand
What else is changing?
Demographic change
Changing household formation patters
Rising health costs
Affordability crisis
Development
Since 2006 we have developed 591new
homes in the district for rent, shared-ownership
and sale
Challenges
Sustainability of business plan
Rental income and revenue reduction
Sustaining social purpose and values
Low demand in Bradford
Delivering development programme and funding
projects
Impact on viability – downgrades
Merger code/Consolidation
Nationalise/Privatise?
Opportunities
Working differently: digitalisation
Meaningful partnerships (collaboration with Councils, other HAs, third sector, health, etc.)
Different forms of construction
Diversification of product
Commercialisation
Devolution
Northern Powerhouse/
H4n
What does the future look like?
Global Challenges
- Increasing social mobility –
diverse communities
- Population growth
- Global inequality
- Lack of stability in
government as government
and organisations come
under greater scrutiny
- Climate change and
resource depletion
Resilient Leadership in a
changing world
Values Based Organisations
Technological advances
Good Governance
Talent Management and Succession
The problems
2000 households on our waiting list
60 families in bed and breakfast and homeless hostels
Affordable housing shortfall of 313 per annum
Highest average house prices in Yorkshire and the Humber
Highest market rents north of Watford Gap
Ex-council house (with conservatory) for sale at £300,000
Housing and Planning Bill ( the best bits)
• Enforced sale of high value council houses• Pay to stay • Starter Homes • Voluntary Right to Buy of HA stock
Stock and valuations as at
31/03/15
Total Stock
Suggested "High
Value" Cap
Properties valued at or above "High Value" cap
% Note
Bedsits/1 beds 1496 £85,000 1442 96%
2 beds1253 £130,000 410 33%
Includes87% of 2 bed houses
3 beds 1023 £165,000 522 51%4 beds 69 £265,000 1 1%5 beds 4 £375,000 0 0%
3845 2375 62%
Spotlight on Enforced Sale
The cumulative effect
• Spare room subsidy
• Rent reduction
• Local Housing Allowance Cap (2018)
• Reduction in benefit cap to £20,000 (families) and £13,400 single people
• NPPF Affordable Housing Definition
• HCA Grant (shared ownership)
• Reduction in HB for 18 – 21 year olds (2017)
• Pay to Stay ..........
Starter Homes - Affordable Housing
I cant keep up......
• £250,000 – 80% market value
• £70,000 income
• FTB under 40
• 5 years
The big question - how much real affordable housing will they displace?