The Cabinet Member for Regeneration and Housing to attend and respond to questions within this portfolio.
Minutes:
7.1 The Cabinet member for Housing and Regeneration attended to respond to questions within this portfolio. Prior to this, the Cabinet member highlighted a number national developments which would have a significant impact on local housing and regeneration policies and the way the Council is able to support those in housing need. Highlights of the panel’s discussion with the cabinet member of these issues are presented below.
7.2 The panel noted that there were a number of provisions within the Housing & Planning Bill which, if implemented, would have a detrimental impact on the supply of affordable housing. The continuation of the Right to Buy discount would see a further reduction in the Council housing stock and the extension of Right to Buy to tenants of housing associations would further reduce the totality of affordable homes available in the borough.
7.3 The forced sale of high value council properties would result in a loss of housing stock, particularly in the west of the borough where property values were higher. It was suggested that this would inhibit the council’s ability to provide affordable housing in such areas and curtail the ability of the Council to deliver mixed housing communities. Discussion noted that of the 560 properties that became vacant each last year about 30 could be liable for forced sale.
7.4 The introduction of Pay to Stay, where social tenants on an income of over £40k would be required to pay the market rental value of the property, would be difficult to administer and possibly incentivise Right to Buy. In addition, it was also noted that any surplus rent accrued through this process would be payable to central government and not retained by the Council.
7.5 Acute demand within the housing sector together with changes to Housing Benefit rules has made it difficult for the council to agree and retain contracts with private landlords in the provision of affordable housing with the private rented sector. This was having an impact on the cost of supporting homeless people through temporary accommodation.
7.6 Provisions with the Housing and Planning Bill require developers to provide Starter Homes, private unit sales at 20% discount. This requirement will inevitably reduce the amount of money available to provide affordable homes for rent which comes from the same source. It was also questionable how affordable homes for sale at a 20% discount would be to local residents, considering that average house prices (£450-500K) and wages (£26k) were for the borough.
7.7 In addition to provisions in the Housing & Planning Bill, the panel noted that there would be significant changes to welfare support in this parliament that could exacerbate the impact of limited affordable housing. It was noted that over £12billion of savings needed to be found from the welfare budget over the next five years.
7.8 The panel noted that an engagement exercise was being undertaken with local Registered Housing Providers to ascertain how they planned to respond to provisions within the Housing & Planning Bill, in particular the Right to Buy proposals. It was noted that the council would continue to seek to work in partnership with those organisations that prioritise affordable housing and work with the council to extend such provision.
7.9 The panel discussed the use of ‘modern construction’ methods in the delivery of local affordable housing (modular build). There were concerns around the quality of such construction and the need to avoid recreating housing and other related social problems. The panel were reassured that ‘estates’ of modern construction units would not be created (e.g. not have 100’s on the same site) and thus avoid any perpetuation of spatial deprivation. The panel were also reassured that considerable effort was being taken to ensure high design quality was being used so that such units would exceed the current temporary accommodation offer.
7.10 Further discussions noted that modern construction units would be of high quality and that a mortgage would be able to be obtained upon them. Although provision would be not be widespread, the use of modern construction methods could help to improve the speed at which affordable homes are provided within the borough.
Agreed: Further details of prospective modular build units to be circulated to the panel.
7.11 The panel also raised the issue of the decanting of tenants from regeneration estates. It was noted that those tenants vacating estates earmarked for regeneration would be placed in the top priority group of the housing register to facilitate decanting processes. It was noted that many of those residents which had been decanted from the Love Lane Estate were very happy with the new accommodation (part of the High Road West regeneration scheme).
7.12 The panel noted that decanting of estate residents risked a loss of community cohesion as due to the open bidding process, neighbouring tenants may not always be relocated to the same site or neighbourhood. It was noted that tenants decanted from existing estates are always presented with the option of returning though it was acknowledged that this could be some years later.
7.13 As regeneration projects matured, the volume of new housing development available would increase, providing greater opportunity for communities to move collectively together. It was however reported that as many as 1/3 of existing tenants do not want to return to the area from which they have been decanted.
7.14 The requirement to reduce rents on the councils housing stock by 1% each year to 2020 was discussed by the panel. It was noted that this requirement would limit the council’s ambitions to build new homes and its ability to meet Decent Homes standards of its housing stock as this would reduce income available for such capital investments. It was noted that limited capital spending had also reduced the council’s ability to use Right to Buy receipts which required an element of local matched funding.
7.15 The panel also discussed the possible ending of life tenancies and how these would be replaced by 5 year short hold tenancies. Although this was only under discussion at the national level, it was noted that this could be inserted as an amendment within the Housing and Planning Bill. Such a move if approved would substantially alter the nature of the allocation of affordable housing. The panel noted that the new tenancy strategy is due to be considered by cabinet in 2016 and is earmarked to come to scrutiny.
7.16 The Chair thanked the Cabinet member for attending and responding to questions from panel members.