“Government housing benefit cut is making [unaffordable rent] homelessness worse, councils warn”

“The vast majority of councils believe the freeze on Local Housing Allowance rates for private renters will lead to a rise in homelessness, a survey by the LGA reveals.

It is calling on the Chancellor to lift the freeze in the Autumn Budget.

Cllr Judith Blake, LGA Housing spokesperson, said: “Without addressing the gap between private rents and LHA, the number of homeless families and children that councils will need to house in temporary accommodation will continue to increase, and our hopes to make a success of the Homelessness Reduction Bill will fade. …

The Independent revealed late last year that private renters being evicted at the end of their tenancy is now the most common cause of homelessness, and that the number of private tenants being declared homeless has trebled since 2010. “

http://www.independent.co.uk/news/uk/politics/government-housing-benefit-local-housing-allowance-renting-properties-homes-homelessness-lga-a8034786.html

“How a city is tackling poverty by giving a voice to its poorest citizens”

Can’t see this catching on in East Devon, more’s the pity!

“It’s time to change politics,” says the Mayor of Salford, at a packed meeting of the Truth ­Poverty Commission in his home city. “Either politics is done to us, or we shape it.”

Since being elected a year ago, Mayor Paul Dennett has been radically reshaping the way things are done in Salford.

Last month he gave care workers a 10.7% pay rise. His town hall has given the go-ahead for seven new library sites at a time when many councils are closing them.

As other parts of the UK face ­maternity unit closures, the council has stepped in to ‘Keep Babies Born in Salford’ by opening a new midwife-led unit where 300 babies may now be delivered each year.

Salford has also invested £2million into a development company – in order to kickstart building of social housing that won’t fall under the government’s new Right To Buy policy. The company is called Derive – named after a joke involving ­revolutionary Italian situationists.

All of which looks like a blueprint for a Labour government, or what unashamedly interventionist Dennett calls “sensible socialism”.

The 36-year-old mayor is passionate about using his £200million budget to end poverty , partly because he has never forgotten what it feels like to come up the hard way, through a childhood he describes as at times “horrific” and something “I wouldn’t wish on anyone”.

Scarred by domestic abuse and his younger brother’s fight against leukaemia, he failed his GCSEs and A-levels and by 18 was working in a “sweat shop” call centre.

“I had an interesting journey,” he says wryly, at his offices in Swinton. “I grew up in a family where there was traumatic violence and abuse. My dad became an alcoholic and I struggled at school in my early teens.”

A power station fitter by trade, Paul’s dad went on to manage The Engine pub in Liverpool’s Prescot area, where his alcoholism began. Paul’s mum, a cleaner, ran the pub as her marriage disintegrated.

Later in life, Paul won a place to study International Business at the University of Ulster, where he achieved a first-class honours degree. He went on to Manchester ­Business school before doing a PhD at Manchester Met, working as a civil servant and then for a utilities company.

Now living in Salford – where he became a tenants’ leader and then a local councillor – as council leader he sees the Truth Poverty Commission as part of a new way of doing politics, with people’s consent.

Based on a model that has been used in Glasgow and Leeds, the Commissioners include people with experience of poverty.

“Consultation usually means organisations telling you about their plans,” says community worker Jayne Gosnall, 54, who is recovering from alcohol addiction. “This is about really listening to people with experience.”

The Commission is independent but supported by Salford City Council, the Mayor and the Bishop of Salford, and facilitated by Church Action on Poverty and Community Pride. It has led to the council bringing in a raft of measures that will transform lives – from waiving birth certificate fees for homeless people to changing the way the council chases debt.

Debbie Brown, transformation director at Salford City Council, says: “We come into these meetings and we hug each other – that’s not what normally happens in council meetings,” she says. “But the other thing that stopped me in my tracks was the City Council being identified as a cause of poverty.

“We heard stories about what it was like for people hiding from council tax collection agents, people being afraid, and that’s not a city I recognise.

“We’re changing a lot already. We’re going back to the personal, identifying people who are struggling to pay and looking again at what we can do.

“We won’t be using bailiffs for those in receipt of council tax reduction and young care leavers are exempt.”

Laura Kendall, 33, a mum of two and a youth worker, suffered undiagnosed mental health problems as a teenager and was placed in care.

“Sharing my story for this project was difficult but very powerful for me,” she says. “I want people to know their voices will be heard, that a child growing up in the care system can have a better chance.

“I’d spent my whole life trying to get people to listen to me and got used to being rejected. This area has been written off so many times but it’s full of people with something to add.”

Salford’s mayor is determined to listen. “This is about working-class communities coming together and a spirit of solidarity,” Dennett says. “It’s the spirit of Salford in action.”

http://www.mirror.co.uk/news/politics/how-city-tackling-poverty-giving-11457050

Knowle Pegasus inquiry details

The Inquiry will commence at

10.00am on
Tuesday 28 November 2017
in the Council Chamber, Council Offices,
Knowle, Sidmouth EX10 8HL

The Inquiry is expected to be heard for the duration of five days.

“Majority of affordable homes lost due to legal loophole exploited by developers, show figures”

Well, we all know about this in East Devon where one of the UK’s mega-rich developers – Bovis – say they are too poor to provide “affordable housing in Axminster:

https://eastdevonwatch.org/2017/08/14/developer-bovis-too-poor-to-finish-axminster-estate-and-steep-slopes-came-as-a-surprise-and-owl-says-i-told-you/

and Seaton:

https://eastdevonwatch.org/2016/08/15/bovis-too-poor-to-buld-affordable-homes-in-seaton-yet/

“Property developers are dodging their commitment to building thousands of affordable homes each year due to a legal loophole, new research has revealed.

Figures obtained through Freedom of Information requests show developers have sidestepped local planning policy to avoid building 79 per cent of social homes they had initially committed to, due to a legal loophole called a “viability assessment”.

A sample of 11 local authorities across nine cities in England shows developers were able to first win planning permission by promising to build a required number of affordable homes, but later go back to the council to say they can no longer honour the pledge because it would reduce their profit margin. …”

… The research, carried out by the housing charity Shelter, reveals that viability is used most frequently on larger developments, which are generally managed by the country’s biggest developers.

It shows that the worst affected areas were Manchester, Birmingham and parts of London, where viability was used to reduce the affordable housing to less than 1 per cent of homes being built.” …

http://www.independent.co.uk/news/uk/home-news/affordable-homes-majority-lost-legal-loophole-developers-shelter-a8029601.html

Former Prime Minister Blair’s property empire avoids tax

“Former Prime Minister Tony Blair has set up a company to manage his £33 million property empire, joining a growing number of landlords who are opting for incorporation to beat tax rises on buy-to-let operations.

Blair, along with wife Cherie and eldest son Euan, are believed to own a total of 38 properties. The families’ property portfolio includes flats in north-west England which Mrs Blair and their son let out via an existing company, Oldbury Residential Ltd, which holds investments worth £2.4m in the year ending April 2016.

The family has reportedly banked at least £1.7m in profits from buying and selling nine properties, and they also have an extensive portfolio of private homes, including a £9m five-storey Georgian townhouse which they purchased in 2004 and a £10m Grade I-listed Buckinghamshire manor house.

Now Mr and Mrs Blair have set up another company, Harcourt Ventures Ltd, to let and manage properties, with Tony Blair owning half of the shares and his wife named as the sole director.

Setting up a limited company is one of several ways in which private landlords have responded to recent tax changes within the private rented sector. These changes include increases in stamp duty and cuts to mortgage tax relief introduced in April which no longer allow landlords to offset mortgage interest from their rental income. …

… Buy-to-let landlords are now incorporating their lettings operations as limited companies to avoid the tax changes and to secure additional finances to buy more properties according to industry statistics.

The proportion of homes available for rent in the UK, owned by a company landlord, reached 20 per cent in the first quarter of 2017 – the highest number since records began in 2010. …”

https://www.nationalrentersalliance.co.uk/news/landlord/tony-blair-sets-buy-let-property-company-avoid-tax-rises/

That extra £50bn promised by Javid for housing? Forget it, says Hammond

“Hammond has dismissed suggestions that it is now government policy to borrow £50bn to invest in housing. Sajid Javid, the communities secretary, has suggested borrowing more to invest in housing, with some reports claiming that Javid has been pushing the Treasury for an investment of £50bn.

But when Sir Vince Cable, the Lib Dem leader, told Hammond at Treasury questions that he was glad to see the government has agreed to increase borrowing by £50bn, Hammond said this was not government policy. He went on:

That was not what [Javid] said, as he knows. I would, however, agree with him that increasing activity in the construction sector is a very good way of creating jobs.”

https://www.theguardian.com/politics/blog/live/2017/oct/24/barnier-dashes-mays-hopes-of-reaching-quick-deal-on-uk-eu-trade-after-brexit-politics-live

12,000 crowded or unhealthy homes in south-west

“Thousands of households across the South West are on council housing registers because they’re living in unhealthy or overcrowded properties, figures show.

Nearly 12,000 across Cornwall, Devon, Dorset and Somerset are on waiting lists because of poor conditions in their current home.

It was a symptom of an urgent need for more affordable homes for rent, as well as a lack of investment in existing properties, experts said.”

http://www.bbc.co.uk/news/live/uk-england-devon-41636629

And just as interest rates are predicted to rise – Javid says government should borrow to build houses!

Owl says: suddenly when Tories see that lack of suitable housing = losing Tory votes, NOW it’s ok to borrow!

And who will the borrowed money go to – developers!

“The government should borrow money to fund the building of hundreds of thousands of new homes, a cabinet minister says.

Communities Secretary Sajid Javid said taking advantage of record-low interest rates “can be the right thing if done sensibly”.

Housing charity Shelter said his comments suggested the government was “going in the right direction”.

Labour said spending on new affordable homes had been “slashed” since 2010.
It comes as Mr Javid launched an eight-week review of housing, in which he has called on the industry to offer solutions to the home-buying and selling process. …

… Asked about the change in tone from the Tories’ previous approach to borrowing, Mr Javid said a distinction should be drawn between “vitally important” deficit reduction and “investing for the future” in housing and infrastructure.

“So for example… you borrow more to invest in the infrastructure that leads to more housing – take advantage of some of the record-low interest rates that we have. I think we should absolutely be considering that,” he said.” …

business

Old? Sick? Mentally ill? Disabled? Vulnerable? We’re cutting your benefits

“Plans to cap housing benefit for thousands of mentally ill, elderly and other vulnerable people in supported housing are to be re-examined after protests by MPs and charities.

The rethink, expected within weeks, also follows evidence from the National Housing Federation, which found that 85% of schemes to build new supported and sheltered homes for vulnerable people have been shelved by housing associations because of fears that the new funding system will make them unsustainable.

The move comes amid suggestions that ministers may cut the six-week waiting time for universal credit payments after an outcry from Tory MPs.

More than 700,000 people in supported housing usually have the accommodation element of their costs met entirely through housing benefit. But under plans announced by the government in 2015, and due to be introduced from next year, these payments would be capped in the same way as for people renting in the private sector.

As accommodation costs are higher in supported housing, because of the extra services and communal spaces provided, charities and others critics say the proposed system would leave residents facing big potential shortfalls. This is despite ministers saying that they could get help from special funds run by local authorities.

The plans have caused an outcry, with charities warning the system would be bureaucratic, unworkable and would leave people facing uncertainty and worry about whether they could afford to remain.

Supported housing provides a secure, safe place for the most vulnerable, the majority of whom are older people or those with long-term disabilities, as well as the mentally ill, people with disabilities, those at risk of homelessness and women fleeing domestic violence. An inquiry, by the communities and local government and work and pension committees in parliament, called for an urgent rethink, saying: “In particular, we have been concerned by reports of providers choosing to postpone or cancel investment decisions, as well as increased levels of anxiety among vulnerable tenants who fear they may no longer have the guarantee of a home for life.”

The communities secretary, Sajid Javid, told a recent session of the communities and local government committee the report had been “very helpful” and he expected to announce a decision soon that would show ministers had listened. Pressure for a climbdown is mounting before an opposition day debate on supported housing that will take place on Wednesday.

On Monday the charity Rethink Mental Illness will publish a report showing people with the highest needs, and the highest costs, are likely to suffer the biggest shortfalls in rent.

The charity says this will be most evident in parts of the country where rents are cheapest and therefore housing benefit payments will be lowest. Research has shown the cap will mean housing benefit will only cover about two-thirds of accommodation costs in some parts of the country. …”

https://www.theguardian.com/society/2017/oct/21/government-uturn-expected-on-housing-benefit-cap-after-protests

“Help to buy has mostly helped housebuilders boost profitsl

“The chancellor, Philip Hammond, is lining up another £10bn to extend the “help to buy” programme first launched by George Osborne in 2013, which has already sucked up £10bn of taxpayers’ cash. Yet a report from Morgan Stanley – not usually the type to stick the knife into a flagship government policy – lays bare how this colossal sum has been almost entirely wasted.

Those billions have not helped buyers. The money has gone almost entirely into the pockets of the giant housebuilding firms, which have raised the price of developments by almost exactly the amount made available by the government. All it has meant for first-time buyers is more misery – by pushing up house prices.

Help to buy works by giving aspiring homeowners an interest-free government loan worth up to 20% of a property’s value – if the buyer opts for new-build. The idea was that it would provoke a wave of new building.

But the Morgan Stanley report, headlined “The help to buy premium – and its unintended consequences”, drily unpicks the data, revealing how the beneficiaries have been the major developers. Researchers compared the price of new-build houses in 2013, when the scheme began, with the price of existing or “second-hand” houses.

There has always been a small premium for new-build; people will pay extra for spanking-new kitchens and bathrooms. But since 2013, that premium has rocketed. “The divergence between new-build and second-hand prices is higher than it’s been since records began,” says the report.

It says that the price of new-build has outstripped second-hand by 15% since the start of help to buy. “We are now around 5% points away from the level at which new-build prices have diverged by the full amount of the government’s equity loan (20% of house price across England).”

Of course, Morgan Stanley didn’t produce this report for the likes of me to make a dig at the government. Its interest is in the share prices of the major housebuilders. It worries that the big builders won’t be able to get away with charging a premium of more than 20% for new-builds, and that the super- profits may be coming to a close.

Make no mistake about just how much help to buy has fuelled developers’ profits. The new-build market is increasingly reliant on help to buy, with the large builders – Barratt, Taylor Wimpey, Persimmon – suggesting that about half of their volumes are help-to-buy purchases. And what a brilliant money-making wheeze it has been. Morgan Stanley says: “Help to buy (and broader house price inflation, among other things) have helped housebuilder earnings triple since its launch.”

The builders will say the scheme has, indeed, provoked some supply, but evidence is thin. Morgan Stanley says: “Though it has helped drive supply, figures provide ammunition for critics who suggest it has pushed up prices, rather than making them more affordable.”

Despite this, Hammond is preparing to bung another £10bn at the developers – perhaps to “give clarity and certainty” about the scheme – which even the rightwing Adam Smith Institute says is “like throwing petrol on to a bonfire”.

But George Osborne didn’t need investment banks or thinktanks to tell him this back in 2013 when he launched this madness. Guardian Money at the time spoke to the people at the sharp end: young people excluded from the property market. Duncan Stott of the PricedOut group was particularly prescient: “Help to buy should really be called ‘help to sell’, as the main winners will be developers and existing homeowners who will find it easier to sell at inflated prices. Pumping more money into a housing market with chronic undersupply has one surefire outcome: house prices will go up.”

But the government chooses to listen to the developers instead. Britain’s housing market is broken, and help to buy is just making it worse.”

https://www.theguardian.com/money/blog/2017/oct/21/help-to-buy-property-new-build-price-rise

Should the East Devon district be split? The People’s Republic of Eastern East Devon?

A recent commentator on this blog wants to see Sidmouth leave EDDC.

This raises an interesting possibility.

There is a case for EDDC being broken up as it is already the largest District Council in Devon, and the fastest growing. Increasingly, our district council concentrates on its western side – the Science Park, Cranbrook – the LEP Growth Area – and aligns itself more and more with “Greater Exeter” with other communities feeling increasingly out on an ignored limb.

It would seem from anecdotal evidence that he vast majority of Sidmouth residents would vote to leave EDDC, especially when EDDC is cutting all its ties with the town and moving physically and increasingly representationally to Honiton/Exeter.

The interesting bit is whether other communities would wish to join with Sidmouth in a ‘breakaway’. Would Newton Poppleford, Otterton, Branscombe and Beer, Ottery, Budleigh, Colyton and Seaton be up for creating a new largely rural and coastal authority? And what to call it? Eastern East Devon? Jurassic Devon?

There would be no problem over viability. Some functions might still be shared. Others, such as street cleaning, could be devolved to town council level where it belongs.

There would be an obvious improvement in democratisation, and representation, and, crucially, a big improvement in the quality of councillors. There is also an interesting opportunity to create from the outset a non-party-political district responsible for its own planning. Far more people would stand for an authority when they had a much greater say in decisions affecting their own community; when they and they alone decided on such things as health care, education and environment without having to kowtow to “Greater Exeter”.

Jurassic Devon would have a population of about 50,000, which many would say would be close to the ideal.

Time to consider the break away?

Hammond threatens to “hire builders” to build on green belt to speed housing construction

“MINISTERS could hire builders to erect thousands of homes under Budget plans being pondered by the Chancellor.

The Government would free up public land and get construction firms to use it.

Homes could then hit the market right away rather than wait for firms to release them when prices rise, Sun columnist James Forsyth reveals today.

Philip Hammond is also said to be ready to take on Tory backbenchers by loosening curbs on green belt development in a bid to solve the housing crisis.

One insider indicated No10 may back the move despite the likely fury of Tories across the South East.

The insider said: “The PM has moved on this issue but is not entirely there yet.”

Theresa May pledged to take “personal ownership” of the drive to speed up housebuilding during No10 talks with the industry earlier this week.

Before the 2015 election, Tories pledged one million new English homes by 2020 and 500,000 more in the following two years.

Ministers accept they face defeat at the next election in 2022 unless they sort out the housing crisis. Experts warn that an entire generation cannot get on the property ladder.

And charity Shelter said resulting rent rises were seeing poorer Brits cut back on food, clothes and kids’ toys.”

https://www.thesun.co.uk/news/4733588/philip-hammond-considers-freeing-up-sites-and-hiring-builders-for-thousands-of-new-homes/

Pembrokeshire: empty home council tax to rise from 50% to 125% in year 3, 150% in year 4 and 200% in year 5

“Owners of hundreds of empty homes in Pembrokeshire are to be hit by a 125% council tax bill.

Empty homes in the county are allowed a 50% discount to the levy under current arrangements. But from April 2019 this discount will be scrapped, with owners of homes which have stood empty for more than three years being charged 125% of normal council tax.

Pembrokeshire council voted the plans through at a meeting on Thursday.
The council introduced a 50% premium for owners of second homes back in April and voted to extend it into the 2018-19 financial year. It will now look at giving the cash to local communities for projects.

Currently, there are 1,206 empty homes in Pembrokeshire, which are subject to a council tax discount. However, this will be scrapped under the changes and all properties which have been empty for three years from 1 April 2016 will be subject to a 25% council tax premium.

Homes which have been empty for four years will be taxed an extra 50%, or 150% tax, and five years or more will pay double or 200% council tax.
The council also voted in an amendment for an appeals process for homeowners trying to sell or refurbish their properties.”

http://www.bbc.co.uk/news/uk-wales-south-west-wales-41696113

Public land sell off with no affordable homes built – map

Knowle site identified [correction – identified as Stowford Lodge site]

http://neweconomics.org/save-public-land/

Rental repossessions increase in Devon

Concerns have been raised following an increase this year in the number of people in Devon having their homes repossessed.

Figures from Citizens Advice Exeter show an overall 3.8 per cent increase in the number of housing repossession cases listed at Exeter County Court in the six month period ending September 30. This is in comparison to the same period in 2016.

Steve Barriball, Citizens Advice Exeter chief executive, said: “In the last six months there were 296 cases listed for repossession, an overall 3.8 per cent increase, or 11 cases, on the previous year. However, there was a small reduction in mortgage repossessions, which were down by four cases.

“The biggest increase was in housing association repossessions, up by 12.7 per cent. There were further increases of 2.7 per cent in private rented sector cases and 1.8 per cent in local authority actions.

“For the last few years we have seen the headline number of cases listed for repossession level out. Therefore, these latest figures are concerning. …

http://www.devonlive.com/news/devon-news/spike-devon-home-repossession-cases-645768

Many councils fail to replace social housing lost to right to buy

Dozens of councils have failed to replace a single home sold off under the Tories ’ Right to Buy in the last year.

Shock figures show at least 32 town halls lost homes under the controversial scheme without starting a single direct replacement.

A further 15 councils didn’t record a single new home but had some data missing in government figures.

The analysis said 12,383 council homes were sold overall under Right to Buy between July 2016 and June 2017 – but just 4,813 (38%) were replaced in the same period.

The figures are an embarrassment for Theresa May after she summoned housebuilding giants to Downing Street to “fix the broken housing market.”

Bosses of Barratt, Redrow and Taylor Wimpey were among more than 20 developers who met the Prime Minister ahead of measures expected in next month’s budget.

The official government statistics, compiled by the Lib Dems, show Leicester City Council sold off 398 homes under the scheme from July 2016 to June 2017.

Yet the council did not make a single ‘start on site’ of replacement homes in the same period, the figures show.

Hull, Wigan and Doncaster all also sold more than 170 homes in the 12-month period without starting any direct replacements.

Councils had warned they were too cash-strapped to replace homes like-for-like when the Tories announced they would extend Right to Buy to housing associations in 2015.

Local Government Association housing spokesman Martin Tett said: “Councils only keep a third of all receipts from homes sold under Right to Buy.

“Further complex rules and restrictions mean councils are struggling to rapidly replace them.

“It is vital that councils are able to retain 100% of receipts from any council homes they sell.”

Leicester City Council assistant mayor Andy Connelly said Right to Buy had cut the city’s housing stock from 1,500 to 1,200 in just two years – and cost £1.6m in lost rent last year.”

http://www.mirror.co.uk/news/politics/dozens-councils-fail-sell-single-11359877

Exmouth “has too many retirement flats” – what, only Exmouth!

“The number of elderly people moving into new retirement developments in Exmouth is becoming unsustainable, town councillors have warned

Developer McCarthy and Stone is proposing 59 retirement flats on land to the south of Redgate, next to Tesco in Salterton Road.

Members of Exmouth Town Council’s planning committee were asked this week to reconsider plans for the scheme, which they had previously opposed, after additional information was submitted by the developer about why permission should be granted, on subjects including flood risk and land use policy.

However, councillors voted to continue their previous objections, which were on the grounds that site had been allocated as employment land in the East Devon Local Plan, and they felt Exmouth had reached ‘saturation point’ with developments of this type.

Councillor Brenda Taylor said: “All of that land up from Tesco is allocated as employment land.

“We need jobs here. I think we should again refuse it on those grounds.

“Years of work went into the local plan, and for what?

“They have got five or six properties in Exmouth already, and it’s a huge overload on our services.

“We can’t sustain these older people.”

Councillor Maddy Chapman said that an argument by McCarthy and Stone that employment would be provided by the development was not satisfactory.

She said: “When they say they are supplying jobs, and it’s going to be a care home sort of thing, the qualifications of people they employ, you cannot say it is a care home.

“For those number of flats, to say they are going to employ 15 people, you put them on a rota basis, and it’s absolute rubbish.

“Also we’ve got the other retirement flats being built up Drakes Avenue, so we’ve got two lots of flats going up. Who is going to look after all these people?”

Councillor Fred Caygill said: “If it’s not going to be employment land I would rather see affordable housing on the site, rather than I think probably the fifth McCarthy and Stone development in the town, which we cannot sustain.”

EDDC will rule on planning permission.”

http://www.exmouthjournal.co.uk/news/exmouth-can-t-sustain-more-retirement-flats-1-5235760

“Sainsbury’s faces anger over London plot with just 4% affordable homes”

683 homes on a prime London site and Sainsbury’s says it can afford for only 27 of them to be affordable … beggars belief. PLEASE, PLEASE get this government – which not only allows this sort of thing but encourages it – OUT!

“Sainsbury’s is facing housing campaigners’ anger over a proposed high-rise development surrounding an east London superstore that includes just 4% affordable homes.

Local opponents have described the supermarket’s proposal that just 27 of the 683 homes in the Ilford project will be available for affordable rent as “insulting”.

Planning experts for the mayor of London, Sadiq Khan, have said the offer “falls substantially short” of City Hall’s plan to deliver 17,000 affordable homes per year – equivalent to 40% of the strategic housebuilding target.

It also falls well short of the London Borough of Redbridge’s target of 50% affordable housing across all new developments. There are currently over 8,000 households on the waiting list for affordable housing in the area, and more than 2,400 living in temporary accommodation.

The borough estimates it needs an extra 15,000 affordable homes by 2033. The case is set to go before a public inquiry starting on Tuesday, but the project appears likely to go ahead after the council withdrew its opposition on Saturday.

Sainsbury’s says the “maximum reasonable” amount of affordable housing it can include is 14 one- and two-bedroom flats, a dozen three-bedroom units and a single four-bedroom property. It estimates making a 20% profit selling off the private flats, according to planning documents. At current local prices that could exceed £40m.

It has described it as “a financially challenging project”, partly because of lost revenues to its retail operation when it closes its existing store for construction. It has also agreed to pay Redbridge £11.4m in community infrastructure levy, although this cannot be used to fund affordable housing.

But Meenakshi Sharma, co-founder of Ilford NOISE, a local residents group, said the amount of affordable housing being offered was “ridiculous and insulting”.

“People can’t believe it is 4% especially with all the publicity about the need for affordable housing,” she said. “And yet this still carries on. They don’t take any notice whatsoever. There’s a big housing need in the area. There are lots of people in temporary accommodation and lots of overcrowding.”

It is the latest in a series of high-profile battles over the financial viability of private housing schemes in the capital with councils seeking to maximise the number of cheaper homes in developments and developers seeking to minimise them. Previous disputes have centred on central London sites where developers have argued that the high cost of land limits their ability to subsidise affordable housing, but the row over the Ilford site suggests the issue is spreading to the outer London suburbs.

Affordable in this case means rents capped at 60% of market rates. Sainsbury’s is increasingly moving into housebuilding, using the space above its stores for housing. The Ilford project is its largest yet, but it has also built 650 homes around a store in Nine Elms and 500 homes above a store in Fulham, both in London.

Redbridge had originally rejected the application because of the lack of affordable housing and was planning to oppose it at the public inquiry, but it has now reversed its position and accepted the 4% offer.

On Friday, a spokeswoman for Redbridge told the Guardian: “We declined the application because of the huge gap between the borough’s expectations on affordable housing in new developments, and the proposals we were given. The capital is critically short of housing, especially affordable housing and we need to increase the stock in the borough.”

But on Saturday it told the planning inspector it was withdrawing its opposition and would not resist Sainsbury’s appeal against its original refusal.

In a letter to the planning inspectorate, the head of planning, Joanne Woodward, said it had agreed common ground on the financial viability of the project and a planning deal, although without any increase in the affordable housing included in the development.

“The council will attend on the first day of the inquiry to explain how the position it has now adopted has been reached,” she said.

Sainsbury’s said: “Our plans will help kick-start Ilford’s future regeneration by driving growth and job creation, as well as provide a broad mix of housing for local people. We look forward to the outcome of the appeal. We have agreed with the council to review the provision at certain points throughout the development, and if we can increase the number of affordable homes we will.”

https://www.theguardian.com/society/2017/oct/15/sainsburys-faces-anger-over-london-plot-with-just-4-affordable-homes

Telegraph: “There are more than 200,000 homes sitting empty in England – worth a total of £43bn”

“In England there are 200,000 homes that have been sitting empty for more than six months, according to new Government figures. This is equivalent to £43bn worth of housing stock.

In London alone there were 19,845 homes sitting vacant for over six months last year, property that is worth £9.4bn, taking into account average prices.

Kensington and Chelsea has the capital’s highest number of homes which are vacant for more than six months with 1,399 empty, up 8.5pc on last year, and 22.7pc higher than 10 years ago.

This is likely due to the buy-to-leave phenomenon, where wealthy buyers snap up homes as an investment, and leave them empty while waiting for its value to increase.

Communities secretary Sajid Javid downplayed the role of such foreign buyers in exacerbating the housing crisis, saying the problem “isn’t as bad as some people think”. A Savills’ report found that the majority of homes bought by people based overseas were being rented out, rather than left empty. …”

http://www.telegraph.co.uk/property/house-prices/200000-homes-sitting-empty-england-worth-total-43bn/

Is there an election coming up? Neil Parish suddenly gets interested in new house design

Suddenly, as a bolt from the ( Tory bright) blue, Parish rediscovers his inner planning officer! Is there a new housing estate planned near his gaffe in Somerset? Or is he desperately seeking pre-election brownie points, aware that he has perhaps spent too much time on farmers and dualling the A303?

“ … when Parliament returns in September, I will be holding a debate on New Housing Design.

As a former Planning Officer at District Council level, I know just how terrified some communities are of new development. Not because they are NIMBYs. But because they have seen how previous developments in the last 50 years have left communities with homes totally unsuitable for their area.

The 2017 Conservative manifesto, for all its controversy, pledged to build “better homes which match the quality of those we have inherited from previous generations”. This is a must.”

http://www.devonlive.com/news/property/homebuilders-must-held-account-independent-322281