Category Archives: Affordable and Social Housing

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28 Dec 2015

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Affordable and Social Housing, Freedom of Information Act

How big-time developers avoid affordable housing responsibilities

And how it needed a Freedom of Information request to uncover it:

“…Bringing this Freedom of Information request was important to us because this decision made by the council has real and substantial impacts on the shape and sustainability of our future community. Although the decisions have been made on the East Greenwich Peninsula Masterplan the west Greenwich Peninsula Masterplan with around 15,000 homes is currently before the council. We hope that the council has learned lessons from this case and won’t allow the same mistakes to be made again. That we deliver a mixed sustainable community with a fair and even distribution of affordable housing in line with the original peninsula Masterplan and that this is delivered with value for money for the taxpayer.”

https://www.thebureauinvestigates.com/2015/05/27/comment-why-my-landmark-victory-for-transparency-is-so-crucial-for-the-future-of-affordable-homes/

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24 Dec 2015

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Affordable and Social Housing, Austerity cuts

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Housing benefit cuts penalise vulnerable people

” … some providers of supported housing say they rely on higher levels of housing benefit to cover the additional costs of care and support needed to cater for vulnerable adults.

The analysis – carried out by the Placeshapers group of housing associations – warned that the cut represented “a major threat to the financial viability of such schemes”.
“Placeshapers is calling for all supported housing schemes to be exempt from the government’s changes to social housing rent levels,” it added.

The research suggested specific schemes such as one in Middlesbrough which helps vulnerable women, and another one in Norfolk for children with learning difficulties, would be in the firing line if the cap came into force.”

http://www.bbc.co.uk/news/uk-35173650

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23 Dec 2015

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Affordable and Social Housing

Housebuilding boom? Er, no …

Yet more evidence that developers are throttling housing supply to inflate prices.

“A brickworks hailed by David Cameron as “a sign of the improving economy” in a publicity stunt is now slashing jobs.

An MP blamed the housebuilding slowdown for the move at Forterra’s plant in Accrington, Lancashire – whose Nori bricks built the foundations for Blackpool Tower and the Empire State Building.

The PM and George Osborne both trumpeted Tory success during a visit on January 8 in their tour to launch the Northern Powerhouse.

The Chancellor claimed the factory reopening after two years was the “strongest evidence possible that Britain and the north west are coming back”.

… Just 11 months later the firm is looking at axing 15 of the 54 jobs at the site.

One anonymous worker claimed 25 million unsold bricks were lying unused in the yard and 12 out of 24 production staff would be affected.

Hyndburn Labour MP Graham Jones said he was “really concerned”, adding: “Christmas is an awful time to receive notice of redundancy.

“It’s a worry that housebuilding is beginning to slow down and there is a considerable surplus of bricks building up which reflects on the whole economy.”

http://www.mirror.co.uk/news/uk-news/brickworks-hailed-david-cameron-sign-7061664

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23 Dec 2015

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Affordable and Social Housing, National Planning Policy Framework

Consultation on changes to national planning policy extended

The Communities and Local Government Select Committee consultation on some specific changes to National Planning Policy will now be extended until

22 February 2016 11:45pm.

So you have an additional month to get your comments in. See this link for details:

https://www.gov.uk/government/consultations/national-planning-policy-consultation-on-proposed-changes

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21 Dec 2015

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Affordable and Social Housing, Developers/ Development

Garden city boss sacked because he is local and has too many ties to the area!

Kent Messenger article:

“Plans to build a garden city in Kent have been left in disarray after the chief executive of the body set up to build it has left after just five months in the job.

The departure of Robin Cooper as boss of Ebbsfleet Development Corporation was announced at a board meeting this morning. Mr Cooper was hired in July to lead the construction of a new town on brownfield land between Dartford and Gravesend.

It is understood the Department for Communities and Local Government wants to appoint a new chief executive with fewer close connections to the county. Mr Cooper left his job as director of regeneration, community and culture at Medway Council to take up the post at the EDC.

https://andrewlainton.wordpress.com/2015/12/21/dclg-sack-garden-city-head-for-being-a-local/

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20 Dec 2015

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Affordable and Social Housing

24 years to save for a house deposit if you have no family help

” cccResolution’s chief economist, Matt Whittaker, warned that help to buy may simply boost house prices, lifting them further out of the reach of lower-income households.

“To the extent that these schemes have stoked demand and so propped up house prices in recent years, they have served to make homeownership even less attainable for many, while increasing the gains flowing to older homeowners who have been the main beneficiaries of the sustained housing boom,” he said.

Resolution said it is concerned that the rising cost of homeownership is exacerbating a generational divide, which has seen the baby boomer generation accumulate a financial cushion, while younger workers have struggled as wages have been squeezed.

Its analysis of the Bank’s data shows that among households headed by under-45s, 28% of non-homeowners say they do not think they will ever manage to buy. Among the poorest fifth of households, the figure rises to 39%.

Ashley Seager, co-founder of the Intergenerational Foundation thinktank, which campaigns for a better deal for younger households, said: “Today’s wealthy baby boomers found it easy to buy housing a generation or two ago, especially as MIRAS tax relief on mortgages was available to them. But now their children and grandchildren cannot access housing in anything like the same way.”

http://gu.com/p/4f9xg

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17 Dec 2015

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Affordable and Social Housing

Affordable housing: the opposite side of the coin

“The government are planning an attack on the aspirations of thousands of young people and families who simply want a home to call their own.

Should the Conservatives proposed housing and planning bill become law then it risks not only delivering a hugely damaging impact on the amount of affordable housing in our communities, but also takes power away from local people and councils to deliver more in the future.

Around half of all affordable homes built in the last decade were funded through section 106 obligations – approximately 234,000 homes. At its peak under Labour, in 2008-9, this enabled over 32,000 homes to be built. The housing and planning bill is going to put a stop to that.

The government plan to set aside developers obligations under section 106 and instead legislate for the provision of so called ‘starter homes’ – to be sold at 80 per cent of full market rate.

The Conservatives are trying to pass this off as providing affordable homes, but the fact is that in my own town of Dartford you would need to earn a salary of £52,000 to afford one of these misnamed ‘starter’ homes. They will be totally out of reach for many young people and families in the ward I represent and it is a similar story in many others across the country.

Starter homes will do nothing to help people already struggling to get on the housing ladder, and it reveals the truth about this government’s attitude towards people who simply aspire to get on and get on the first rung of the housing ladder – the Tories have nothing to say to you. Thousands of people risk being locked out of housing market.

Understandably, councillors across the country are hugely concerned, not only about the potential impact on the future of affordable housing in their local areas but also the fact that this bill takes power away from councils to act to stop the loss of affordable homes we are going to experience.

The government may talk about localism and devolution but their actions here are in total contradiction to their words. By handing a wide range of powers over planning back to the secretary of state they will weaken local government’s ability to provide the mix of housing local communities need and robs local people of their say in the planning process:

It means that the government can impose starter-home obligations on developers.

It means that the government can direct councils to change their local plan or even suspend it altogether.

It means the government can overrule council planning boards and grant planning permission directly – regardless of whether a new development is going to meet the housing needs of a local area – undermining the ability of local people to have a proper say about what happens in their area. …

.In my own council, the Conservatives used a closure motion to prevent a full debate taking place. When Conservative councils like Dartford are not prepared to defend their own government’s policy it tells you everything about what even the Tories in local government feel about what this bill is going to do to affordable housing provision in our communities. …”

Jonathan Hawkins, Labour, Dartford, Progress Online 17/12/15

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15 Dec 2015

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Affordable and Social Housing, Blackdown Hills, Exmouth, Local Plan, Mark Williams CEO EDDC, Paul Diviani, PegasusLife

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Owl’s alternative Christmas message

New improved ways of working will make us a leaner and more efficient modern council says the Leader of East Devon District Council, Councillor Paul Diviani in his Christmas message

(translation: we know we have always been a bloated and inefficient council but this is the sort of thing our public relations people tell us we have to say)

“A friend of mine recently told me that when she first moved to East Devon to take up a new job, she thought she had died and gone to heaven. Even now, having lived here for 12 years, she says she still wakes up every morning thinking how unbelievably lucky she is to live and work in such a wonderful place.

There is almost NO doubt that this “friend” will be living in the Blackdown Hills where our Leader protects his backyard like no other).

“East Devon inspires this level of passion in people and no more so than in myself, my fellow councillors and the officers of East Devon District Council. We are all passionate about the work that we do and, above all, we want to ensure that East Devon remains a fantastic place for people like us to live in, work, visit and enjoy.

Why wouldn’t you say you are passionate when “people like you” get a lot of money so that you can live, work and enjoy your status whilst people like “us” get a lot less so that we can find our daily commute a nightmare, our work seasonal and low-paid and our enjoyment of council provided services something we remember from the distant past.

“So over the next four years we will be rising to meet the many challenges that reduced funding and increased demands on our services brings. In order to make necessary savings of £2.6m, we will be using new ways of working, involving systems thinking principles and our ‘WorkSmart‘ approach, which together harness the latest technology and modern working practices. Our move from Knowle to new accommodation in Honiton and Exmouth is part of this plan and will help us become a modern day council in every sense of the word.

Over the next four years we are going to have to do the darnedest to make you think that things are getting better whilst we slash services, increase costs for those that are left and hope like hell that we can keep the REAL cost of the move from Knowle under wraps. And presumably, “we” didn’t WorkSmart before but we will gloss over that.

“All of this will make us leaner, more efficient and better placed to deliver the kind of service that we know you, the residents of East Devon want. We are keen to keep improving and to help us do so, we will be listening to what you have to say in consultations and through our viewpoint surveys.

WE may be getting leaner, but our fat cats (particularly our developers) will be getting fatter and fatter. We’ve covered “more efficient and better” above – the repetition is getting a bit tedious now!

“Great services and great service, first time and every time is the standard that we have set for ourselves. To do that we need to be bold, creative, open and innovative, but above all we must pull together as one council. These are values that set us apart and make the council a place where people want to work – in fact, over 93% of our staff said they would recommend the council as a place to work!

Well, yes, you will get great service and great services if you are a developer. But, frankly, for the rest of us, if you turn out to be timid, hidebound, closed and backwards we will never hear about it from you. And they are NOT “great values that set you apart” – it is how ALL councils are supposed to be! And can we see that survey of the staff please – in its entirety as, so often, your so-called surveys leave a lot to be desired in terms of design.

Focus on four priorities
“To help us deliver these aspirations, we have developed our new council plan, which provides a constant focus on four main priorities:
(ALL councils focus on four or more priorities – this seems to be a public relations rule – but hope that everyone forgets what they were before a local election. East Devon Watch will NOT forget on your behalf.

“We will be encouraging our communities to be outstanding, by helping them to solve their local problems. We also want to encourage people to live healthier, more active lifestyles through sport and exercise and to make the most of the wonderful countryside that surrounds us.

Don’t come to us when you want money or help – do it yourself – and when it all gets too much take a LONG walk in what countryside remains after we have concreted over most of it.

“We will continue to promote East Devon as an outstanding place in which to do business and we will strengthen the local economy by attracting inward investment and supporting businesses.
Developers – we are still your bestest friend. Businesses that we approve of – we are the council that gave you the East Devon Business Forum and its leader Graham Brown and now give you (or rather they give to you via us) the Local Enterprise Partnership. Businesses that we don’t approve of – fend for yourselves.

“It is so important that our natural and built environment is protected and we will be working to reduce levels of waste produced in the district, as well as controlling levels of pollution through education and enforcement of environmental legislation.

Have to say, this one almost renders Owl speechless (or rather hootless) – they are going to reduce pollution by educating US! And “enforcement of environmental legislation” – remember that this government is attempting to water down environmental legislation to almost homeopathic levels and our council is slavishly behind this government in every respect.

“We will be prioritising a culture of openness and transparency by keeping our residents fully informed and we are fully committed to innovative ways of working and commercial thinking, including an improved digital service to give our customers the chance to self serve.

Ah, the culture of openness and transparency where, unless you own a computer, you will be cut off from the majority of council services. The same culture that keeps so many committees and think tanks secret behind closed doors. The culture that allows the majority party to have talks about privatising our services out to the Local Enterprise Partnership and wants to delegate the decision-making and agreement signing to the CEO and Leader without ANY councillor knowing what exactly either or both may be signing. Hmmm.

Pride in our achievements
“But as we draw near to the end of the year, it is only right that I mention with great pride, a few of the many significant achievements that this council has made during 2014/2015.

Quick, someone, gloss over all our omnishambles – look for something, anything that we can boast about!

“Top of the list of our accomplishments is housing. We have delivered a grand total of 388 homes for local people, which is our highest number of new affordable local homes in one year. It is our continuing aim to provide more good quality, local homes for local people.

Those would be the good quality homes that, in Cranbrook, the town with almost no shops.  Homes which, if you get your way, will now be built on much-needed car parks!  And what about all those affordable homes that developers refused to build and you allowed them to strike out (for example, Seaton Tesco land, where Tesco and the developer were “too poor” to provide any affordable homes).  And let’s see how many Pegasuslife can provide at the Knowle!!!

“Homelessness in East Devon is extremely low thanks to our homeless prevention initiatives and we are working hard through our Empty Homes Plan to help owners of neglected empty properties in East Devon to bring their properties back into residential use, which will relieve pressure on the private and public housing sectors.

Homelessness in East Devon is characterised by two homeless people dying in the street in Sidmouth very recently and food banks in all major towns. And just how many “owners of neglected property” will you be working with and how?

“Finally, it gives me enormous pleasure to say that the finalisation of our Local Plan is now within sight and we are anticipating being able to adopt it early next year. This detailed and robust document will help us deliver the aspirations and housing needs of local people, as well as land for employment. It will also help protect our beautiful countryside from unwanted and inappropriate development.

Ah, finally – the Local Plan. The plan that was  orchestrated for years by ex-Councillor Graham Brown (he of the front page of the Daily Telegraph sting and where originally all meetings were held in secret and with no minutes until Claire Wright forced publication) and the East Devon Business Forum.  Which then had to be started all over again from scratch, was thrown out by the planning inspector once, thrown out again a second time and which the said planning inspector has now decided to complete himself!   The one that left the whole district open to a development free-for-all.  Omnishambles Number One for the past 5-7 years. Best keep this one for last and hope no-one notices.

“Exciting times lie ahead for us and we are looking forward to working with you all to achieve the greater good for East Devon.

You bet exciting times lie ahead, but not perhaps, exciting happy times. More and more development, not a hint of where the money for the accompanying infrastructure will come from, a vastly increased Cranbrook, small villages being forced to take extra development as their built-up boundaries are being dismantled, developers continuing to build high cost homes in high cost areas

“May I now wish you all a very merry Christmas and a happy new year.”

Enjoy it while you can – it can only get worse but, don’t worry, I will be at the helm ….. with my trusty cabinet …. and officers …. and the Blackdown Hills will be just fine!

Councillor Paul Diviani

Summary: “Just give me 500 Christmassy words of milksop basic council jargon will you please, officers and then I will leave you alone till this time next year.  And, whatever you do, DO NOT MENTION EXMOUTH SPLASH!

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15 Dec 2015

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Affordable and Social Housing

Housing associations cannot be forced to sell under “Right to Buy”

“Regulators won’t be able to force housing associations to sell under the policy

Housing associations cannot be compelled by regulators to sell their homes under the Government’s implementation of its Right To Buy extension, the housing minister has confirmed.

Brandon Lewis told MPs that the voluntary deal would not initially be backed by new regulatory powers to force social landlords to give away their stock at large discounts.

The confirmation means that housing associations who have raised concerns about the policy’s impact on their finances and ability to build homes may be able to resist taking part of the sell-off.

Housing associations borrow against the rental income of their properties to build new homes and the Office for Budget Responsibility, backed by industry figures, has warned that the move would mean fewer homes being built.

Mr Lewis told MPs on Tuesday that though new legislation meant housing associations had a general duty to “promote home ownership” the Housing Ombudsman would not, at least initially, be able to force them to sell homes.”

http://www.independent.co.uk/news/uk/politics/right-to-buy-extension-to-associations-not-backed-by-powers-to-force-sale-of-homes-minister-confirms-a6773801.html

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14 Dec 2015

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Affordable and Social Housing, East Devon economy, Environment (local), Land Supply, Local Plan, Neighbourhood Plans, NPPF, Planning System

More changes to planning policies: will they ever get it right?

10 things you need to know about this week’s consultation on changes to the National Planning Policy Framework (NPPF), including proposals to amend the planning policy definition of affordable housing, plans to require higher density development around commuter hubs, and a new presumption in favour of brownfield housing development.

1. Sanctions for under-delivering on housing targets mooted
Local planning authorities that fail to deliver the homes set out in their local plans could be required to identify ‘additional sustainable sites’, which could include new settlements, according to the consultation. It sets out further details on the operation of the housing delivery test announced in last month’s Spending Review. It says that the government proposes to amend planning policy to make clear that where significant under-delivery is identified over a sustained period, action needs to be taken to address this. “One approach could be to identify additional sustainable sites if the existing approach is demonstrably not delivering the housing required,” the consultation says. MORE.

2. Affordable housing definition broadened
The government proposes to amend the national planning policy definition of affordable housing “so that it encompasses a fuller range of products that can support people to access home ownership. We propose that the definition will continue to include a range of affordable products for rent and for ownership for households whose needs are not met by the market, but without being unnecessarily constrained by the parameters of products that have been used in the past which risk stifling innovation”. MORE.

3. Councils told to plan for needs of those who aspire to home ownership
The consultation says that the government proposes to make clearer in policy the requirement to plan for the housing needs of “those who aspire to home ownership alongside those whose needs are best met through rented homes, subject as now to the overall viability of individual sites”.

4. Push for higher densities around commuter hubs
The consultation proposes a change to national planning policy “that would expect local planning authorities, in both plan-making and in taking planning decisions, to require higher density development around commuter hubs wherever feasible”.

5. Fresh policy backing for new settlements
The government proposes to strengthen national planning policy to “provide a more supportive approach for new settlements, within locally-led plans. We consider that local planning authorities should take a proactive approach to planning for new settlements where they can meet the sustainable development objectives of national policy, including taking account of the need to provide an adequate supply of new homes”.

6. A presumption in favour of brownfield housing development
The consultation says that the government will “make clearer in national policy that substantial weight should be given to the benefits of using brownfield land for housing (in effective, a form of ‘presumption’ in favour of brownfield land). We propose to make it clear that development proposals for housing on brownfield sites should be supported, unless overriding conflicts with the local plan or the National Planning Policy Framework can be demonstrated and cannot be mitigated”. MORE.

7. Call for release of unviable employment land
The government intends to amend paragraph 22 of the NPPF “to make clear that unviable or underused employment land should be released unless there is significant and compelling evidence to justify why such land should be retained for employment use”.

8. Scope of Starter Homes initiative widened further
The scope of the current exception site policy for Starter Homes could be widened to incorporate other forms of unviable or underused brownfield land, “such as land which was previously in use for retail, leisure and non-residential institutional uses (such as former health and educational sites)”, according to the consultation document.

9. Neighbourhood planners to identify green belt Starter Home sites
The government proposes to amend national planning policy so that neighbourhood plans can allocate appropriate small-scale sites in the green belt specifically for Starter Homes, with neighbourhood areas having the discretion to determine the scope of a small-scale site.

10. Green belt brownfield policy test faces revision
The consultation says that the government proposes to amend the current policy test in paragraph 89 of the NPPF that prevents development of brownfield land where there is any additional impact on the openness of the green belt to “give more flexibility and enable suitable, sensitively designed redevelopment to come forward”

The consultation closes on 25 January 2016.

Consultation on proposed changes to national planning policy is available here.

http://www.planningresource.co.uk/article/1376060/nppf-consultation-10-things-need-know

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11 Dec 2015

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Affordable and Social Housing, EDDC, Local Plan, Neighbourhood Plans, NPPF, Rural communities

“Government planning reforms threaten to ‘destroy’ urban/rural boundaries”


“Boundaries preventing the spread of development across the South West countryside could be “destroyed” by proposed changes to national planning policy, campaigners have warned.

Members of the Campaign to protect Rural England (CPRE) claim the Government’s reforms would open up land around towns and villages to a “flood” of new planning applications.

They also argue they would make it harder for rural communities to push for the prioritisation of brownfield sites, while undermining local control over the wider planing process.

The criticisms from the campaign group come in response to a new Government consultation on plans to reform to the National Planning Policy Framework. The aim of the changes is to boost house building – thereby addressing the UK’s growing housing crisis – by simplifying and speeding up the planning process.

Policies outlined in the document include increasing development around so-called “commuter hubs”, creating up-to-date registers of brownfield sites for new housing, and freeing up “unviable” commercial land for discount starter homes. Ministers say these proposals will encourage the delivery of high quality new homes “that the country needs”.

However, some measures, including plans to loosen restrictions for development on Green Belt sites, have come under fire from conservation groups. And the CPRE has warned that even areas like Devon and Cornwall, which do not have Green Belts, will still be affected by reforms.

One policy in particular suggests that more consideration could be given to applications for small developments “adjacent” to settlement boundaries, which act as a dividing line between urban and non-urban areas. Matt Thomson, CPRE head of planning, said this could signal the end of clear cut barriers to the development of greenfield sites.

“Those boundaries have been drawn up with good intention, usually with the support of local people, to give them certainty about how development will or will not take place in their areas,” he said.

“While we recognise that there needs to be some development, this changes the established direction of planning policy…It would destroy those boundaries.

“It opens the floodgates to speculative developments because it’s raising the hope for people that they might be able to get a development on the edge of a village.

“We expect small towns and villages will be flooded with applications for these kinds of developments as a result.”

He added that while the charity supports the overall aim to tackle the lack of new housing in the UK, a focus on planning rather than the construction industry “never has the desired impact”. He also suggested that the Government should look to achieve some of its goals by empowering local communities, including through the use of neighbourhood plans.

This is a view shared by some councillors, who have expressed concern about the impact on local control of the planning process. North Devon District Council member Brian Greenslade said the reforms could see ministers “tighten the screws on local democratic decision taking”. This would be with a “very clear drive” to “open goalposts for developers” and render local planning authorities “impotent”, he added.

“With the economic recovery not making the progress the Government wants they will resort to the blunt instrument of housing development at any price to fuel growth,” he said. “They give no consideration whatever to the impact on established communities and the infrastructure provision needed to support large housing developments.

“There are unintended consequences for housing arising from what the Government seem to be proposing.”

Responding to some of the criticisms, a Department for Communities and Local Government spokesman said changes would give communities a bigger say in deciding where developments go.

He said: “No settlement will be imposed on local communities.

“These proposals are about delivering the homes local people have already agreed and have been tested through consultation and public examination.

“Local people now have a bigger say in deciding where developments should and shouldn’t go and what is needed in their area thanks to our planning reforms.”

Councils say the proposals still need “careful consideration” to fully understand their implications. East Devon District Council said it would seek members’ views before drawing up a response to the consultation, which closes on January 25.

The implications for affordable and starter homes

Government proposals to reclassify discount starter homes as affordable housing have been a growing source of concern in recent week, particularly among rural residents.

There are fears that the prioritisation of these properties over rented accommodation could see even more low income families priced out of the countryside.

These have been re-enforced by the Government’s new planning consultation, which suggests rural sites set aside for affordable housing should be used to deliver its home ownership strategy.

Critics have been quick to point out that with caps for starter homes set at £250,000, these properties will remain out of reach for many residents of rural Devon and Cornwall.

“The proposal for starter homes with a 20% discount is fool’s gold and will not assist many young local people to buy a home,” says North Devon councillor Brian Greenslade. “The very real need is for homes for rent because of the large gap between average incomes and average house prices.

“As a survey in the Western Morning News recently shows, people on average incomes in our area would need a pay increase of some 130% to get them to the point where they may get a mortgage.

“The Government’s ideas of selling off social housing just simply will make a difficult situation worse … Local young people are facing an appalling outlook for their housing needs.”

The consultation indicates that some councils could be granted powers to introduce a local connection test when allocating affordable homes in rural areas. This would allow local authorities to prioritise the needs of local residents in “exceptional” circumstances.

Matt Thomson of the Campaign to Protect Rural England is sceptical about whether this policy will make a significant difference.

“It’s a good idea in principle but they can be difficult to manage in practice,” he said. “These local connection tests are already used in other areas with patchy result – it is often difficult to prove local connection.

“Starter homes have a role where there is a large amount of young people who would like to own a home but can’t quite afford it,” he added. “But the problem is, once they’re bought and occupied, they’re no longer a starter home – there’s no affordability in perpetuity.”

http://www.westernmorningnews.co.uk/Government-planning-reforms-threaten-destroy/story-28348092-detail/story.html

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10 Dec 2015

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Affordable and Social Housing

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“Government consults on wider definition of affordable housing”

“The Department for Communities and Local Government has launched a consultation on changes to national planning policy, including a proposed broadening of the definition of affordable housing.

The DCLG said it wanted to “expand the range of low cost housing opportunities for those aspiring to own their new home”.

In the consultation paper the Department said the current definition included some low cost home ownership models, such as shared ownership and shared equity, provided that they were subject to ‘in perpetuity’ restrictions or the subsidy was recycled for alternative affordable housing provision.

“This limits the current availability of home ownership options for households whose needs are not met by the market,” it said.

“We propose to amend the national planning policy definition of affordable housing so that it encompasses a fuller range of products that can support people to access home ownership. We propose that the definition will continue to include a range of affordable products for rent and for ownership for households whose needs are not met by the market, but without being unnecessarily constrained by the parameters of products that have been used in the past which risk stifling innovation.”

The DCLG said this would include products that were analogous to low cost market housing or intermediate rent, such as discount market sales or rent to buy housing. Some of these products might not be subject to ‘in perpetuity’ restrictions or have recycled subsidy.

“We also propose to make clearer in policy the requirement to plan for the housing needs of those who aspire to home ownership alongside those whose needs are best met through rented homes, subject as now to the overall viability of individual sites,” the paper added.

“By adopting the approach proposed, we are broadening the range of housing types that are taken into account by local authorities in addressing local housing needs to increase affordable home ownership opportunities. This includes allowing local planning authorities to secure starter homes as part of their negotiations on sites.”

The DCLG noted how, in parallel, the Housing and Planning Bill is introducing a statutory duty on local authorities to promote the delivery of starter homes, and a requirement for a proportion of starter homes to be delivered on all suitable reasonably-sized housing developments.

The Department said it would consult separately on the level at which this requirement should be set. “The Bill defines starter homes as new dwellings for first time buyers under 40, sold at a discount of at least 20% of market value and at less than the price cap of £250,000 (or £450,000 in London). Support is available through the Help to buy ISA to help purchasers save for a deposit.”

The consultation also covers:

increasing residential density around commuter hubs, “to make more efficient use of land in suitable locations”;

supporting sustainable new settlements, development on brownfield land and small sites, and delivery of housing allocated in plans; and

supporting delivery of starter homes.

The paper can be viewed here.
It runs until 25 January 2016.

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=25422:government-consults-on-wider-definition-of-affordable-housing&catid=63&Itemid=31

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10 Dec 2015

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Affordable and Social Housing, Exmouth

Rolle College, Exmouth: plans filed for 85 homes

” … The application states there was ‘overwhelming support’ at the consultation for community, education, employment and other uses, and that of the two options, the one with more community use was ‘largely preferred’, but says permission is being sought for both in case the second scheme ‘cannot be successfully implemented’. …

… The filing of the planning application follows the site being put up for sale last week – a move the university said was designed to establish market value, adding that it would run separately to the planning process.

REL is continuing its efforts to secure some or all of the site for community use, possibly in consortium with a developer.

The application – an outline application with all matters reserved except access – will be discussed by Exmouth Town Council’s planning committee on Monday. East Devon District Council will then make the final decision on planning permission.”

http://www.midweekherald.co.uk/news/rolle_college_housing_plan_filed_with_council_1_4342201

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6 Dec 2015

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Affordable and Social Housing

Local Government Association Housing Commission calls for submissions

Evidence should be no more than 3,000 words, which should concentrate minds. Though the press release below is somewhat misleading. It is true that more council housing was built between 2010 and 2015 than the previous five years but it neglects to say that many, many more council houses were built each year in the 20th century. For example, 11,740 council houses were built during the time of the coalition government, yet it was not unusual to see 100,000 – 180,000 council homes being built each year in the latter half of the twentieth century – only 15-20 years ago.

One also must note that right-to-buy took many of those homes out of social renting.

“The Local Government Association is today launching a Housing Commission to explore new routes to housebuilding so councils can enable the building of more desperately-needed homes.

Councils built nine times more homes between 2010 and 2015 than between 2000 and 2005 and are desperate to dramatically increase the availability of new homes in their local areas.

The LGA said this is vital to building the 230,000 new homes the country needs each year as private developers have not built more than 150,000 homes a year for more than three decades.

The Housing Commission will also explore the importance of effective housing in boosting jobs and growth, helping meeting needs of an ageing population, saving social care and the NHS money, and helping people into work. It will focus on four themes:

Housebuilding – new ways that councils can enable investment in new homes;

Place making, community and infrastructure – the role of councils in shaping homes within prosperous places and communities;

Employment, welfare reform and social mobility – the role of housing in supporting tenants to find and progress in sustained employment;

Health and quality of life for an ageing population – the role of housing in adapting to an ageing population and preventing onward costs onto social care and health services.

Evidence is sought on the key issues for communities, partners and councils, on good practice that has successfully addressed those issues, and what is needed to build on those successes. Councils, partners, organisations and individuals to contribute their issues, evidence, and examples of effective housing and ideas to the Commission’s Advisory Panel, made up of experts and academics.

The Commission will take a medium-term view incorporating current housing reforms but will look beyond them in making the case for councils to be able to deliver the homes our communities and places need. Findings will be brought together in a report in Spring 2016 and presented at the LGA Annual Conference in June 2016.

http://www.local.gov.uk/web/guest/housing/-/journal_content/56/10180/7594397/NEWS

Submissions to:
LGAhousingcommission@local.gov.uk

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4 Dec 2015

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Affordable and Social Housing

Low supply will keep house prices high

“House prices in the UK are set to increase by between 4% and 6% in 2016, as increasing affordability problems and the prospects of an interest rate rise put the brakes on the property market, the country’s biggest mortgage lender has forecast.

Demand for property has increased in recent months, but the number of homes coming on to the market has remained at a record low. Surveyors and property websites have reported a shortage of properties for sale which is driving up prices, and described a vicious circle as potential sellers wait until there are more homes available before putting theirs on the market.”

http://gu.com/p/4en7d

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4 Dec 2015

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“350 renters a week in danger of losing their homes in the South West”

“More than 350 people a week renting a house in the South West are at risk of losing their home.

Approximately 19,000 renters were put at risk of being evicted from their home last year.

The research, conducted by housing and homeless charity Shelter, found that one in every 86 rented households across the Westcountry were at risk.

Using figures received from the Ministry of Justice, Shelter identified hotspots in the region where renters are most likely to face losing their home.”

The article goes on to say that 197 renters were given official evictions last year which was 1 in 89 of all the renters in the area.

http://www.westernmorningnews.co.uk/350-renters-week-South-West-risk-losing-home/story-28293015-detail/story.html

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2 Dec 2015

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Affordable and Social Housing

Too many cooks in the housing market

How much tinkering at the edges can the housing market take? Every aspect of it is changed, adjusted, regulated, deregulated incessantly and the unintended consequence is chaos. Now it is the turn of buy-to-let mortgages – once flavour of the month and now with warning bells.

Boom and bust, boom and bust and only the lower-waged who desperately need the security of their own homes seem to lose out each time things change.

“… The Bank has already said it is concerned that any loss of confidence in the buy-to-let sector could exacerbate house price falls as 15% of buy-to-let customers would sell their properties if they could not meet their loan commitments through rental payments.

While the Bank is not yet taking action on the buy-to-let sector despite a number of warnings, it is also assessing the impact that George Osborne’s extra 3% stamp duty on buy-to-let homes, announced in last week’s autumn statement, will have on the sector.

Barclays is one lender that has already begun to make changes, altering the rental income criteria from 125% to 135% for all new applications.

http://www.theguardian.com/business/2015/dec/01/bank-of-england-scrutinises-vulnerable-buy-to-let-mortgages

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30 Nov 2015

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Affordable and Social Housing, Development Management Committee, EDDC, Local Plan

Price of land cannot be used as excuse to cut down on affordable housing

Alas this comes too late for several sites in East Devon, and in any case we have no Local Plan – a state of affairs that is therefore costing us affordeable housing as developers escape their responsibilities.

“The government has confirmed that developers cannot use site purchase price to argue that local affordability requirements would make a housing scheme unviable.

Responding to a London borough’s move to seek a judicial review of a planning inspector’s decision to accept a reduced affordable housing contribution, a letter from the Government Legal Department says it is the Secretary of State’s ‘unambiguous policy position’ that ‘land or site value… should reflect policy requirements’.
In other words, developers should have regard to local affordable housing requirements when agreeing a site purchase price and cannot then turn around and use viability arguments to challenge existing local policy.
The government’s statement was sent to Islington Council after a recent planning appeal decision on the Parkhurst Road ‘Territorial Army’ site.

The inspector had refused planning permission on amenity grounds, but had accepted the developer’s argument that only 14% affordable housing was viable because of factors including the price paid for the land, even though the developer could not demonstrate that it had taken Islington’s affordable housing policies into account when bidding for the site.

Unhappy with the inspector’s decision and the signal it sent on viability negotiations, Islington set out on the first step towards a judicial review by issuing a ‘letter before claim’ to the Secretary of State.
Islington said it received support for its stance from Brent, Hackney, Merton, Southwark and Tower Hamlets as well as a public statement of support from London Mayor Boris Johnson.

In the event, the government said it was not appropriate for Islington to pursue a judicial review in the light of the inspector’s refusal, directing it instead to argue its government-confirmed position on viability in future applications.

“Londoners desperately need more affordable housing, and we need to make sure developers are making a fair contribution. However we, and many other councils across London, are concerned that developers are using the viability process to argue they can’t afford to provide much or any affordable housing because they paid too much for land,” says James Murray, Islington’s executive member for housing.

“We are therefore pleased to have a clear confirmation from the Government’s legal department that the value of land should reflect policy requirements, which of course includes affordable housing.”
Islington says it is making copies of its legal advice, the appeal decision, its letter before claim and the government’s response available.”

https://www.architecture.com/RIBA/Contactus/NewsAndPress/Membernews/PracticeNews/2015/November2015/26November2015/Sitevaluemustreflectlocalpolicy,saysgovernment.aspx

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27 Nov 2015

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Australians say Osborne has abandoned UK renters

“A host of big property companies have “serious concerns” about his plans, which many think will benefit the already well-off while hitting the country’s poorest. One property agent says the Chancellor is “abandoning the millions of people who rent in this country.”

Rocketing house prices, caused in part by a shortage of supply, have led to the level of home ownership in the UK falling to its lowest level in almost 3 decades.

You might think Osborne’s idea to build more cheap houses is the obvious solution. Home ownership is a classic Tory policy. But observers say what’s needed is a holistic approach to address the systemic problems in the market — a lack of supply of both private and rental properties where they’re needed.

Not only has Osborne done nothing to encourage growth in the rental sector, another one of Osborne’s policies could actually make the problem of spiralling rents even worse.

Alongside the pledge to build 400,000 new homes affordable homes for purchase, Osborne also hiked Stamp Duty — the tax charged on completed property transactions — for buy-to-let properties and second homes. The tax was hiked by a huge 3%.

There are concerns that the tax hike could lead to a restriction of supply for rental properties, as the price rise puts off potential would-be buyers. That in turn could drive up rents, as supply fails to keep pace with demand.”

http://www.businessinsider.com.au/george-osborne-autumn-statement-2015-buy-to-let-affordable-homes-rent-2015-11

Of course, it is the institutional and property-heavy buy-to-let landlords who are shouting, but the problem hits all renters.

What of those people who have to rent – not only those who cannot afford a mortgage even with all the schemes coming out every day to encourage them? The renters whose jobs mean they move often and can’t wait to sell a house. Those who cannot get a deposit together? Most end up paying more in rent than they would for a mortgage. Now rents will rise even further to reflect increased costs of purchasing buy-to-let mortgages. …”

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27 Nov 2015

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Affordable and Social Housing, Austerity cuts, EDDC

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East Devon eighth least-affordable place in the country

Page 99 of current cabinet papers:

“In East Devon:

Unemployment = 546 people as at September 2015. This is 0.7% of total population and represents a reduction of 136 since May 2014.

Working age population = 63.6%

Median full-time salary = £22,700

Earnings are 7% lower compared to the English average.

Average house prices to salary ratio are 11:1, which is the highest in Devon.

East Devon is the 8th least affordable district in England

(The Joseph Rowntree Foundation)”

Click to access 021215-combined-cab-agenda.pdf