Leeds Planning Network Master Class:

What is the future for affordable housing?

17th March 2016

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Chair Introduction

Jane Kettle

Housing Consultant & Researcher

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Geraldine Howley

Chief Executive, Incommunities

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The Changing

Landscape for Housing

AssociationsGeraldine Howley, Chief

Executive, Incommunities

Improving lives Incommunities

History of incommunities

Housing stock transferred from

Bradford Council in 2003

36,000 homes

How Bradford Compares

England Bradford

Mean house prices

in 2014

£265,888 £146,613

Mean annual

earnings in 2014

£26,499 £22,641

Unemployment

rate in 2015/16

7.4% 8.9%

Deprivation in Bradford

Almost 40,000 children and young people aged 0-18 are living

in poverty.

61% of children in the district live in low income households,

compared with 44% nationally.

Roughly equal proportions of children in poverty live in families

headed by a couple as headed by a lone parent. In Tong ward

a higher proportion of children live in lone parent families.

Average household incomes of Incommunities tenants: £14,000

Most (over 90%) Incommunities customers sit in the lowest 10%

band for household income levels nationally

Improving lives Incommunities

Our Customer Profile

Improving lives Incommunities

The majority of customers are aged over 66+

Recent Challenges Facing

Affordable Housing

Bedroom tax

Universal Credit

Budget 2015 – rent cut

Latest: LHA rates

Coalition Government

Spare Room Subsidy

Universal Credit

Queen’s speech

Summer Budget

Comprehensive Spending Review

Housing And Planning Bill Proposal

Spring 2016 Budget Update

On Thursday 16 March 2016 George Osborne announced his latest budget. Quite

a few of the initiatives were trailed in the media. In contrast to last October, there

were very little housing related announcements. In summary the key elements are:

Housing:

There is a starter homes land fund giving local authorities access to £1.26m to

remediate brownfield land for at least 30,000 starter homes.

13,000 affordable homes 2 years early, bringing forward Capital spending.

Capital spending:

Lifetime ISA used by under 40s to purchase their first home.

Joint working for unlocking land around railway stations to provide sites for new

development.

Spring 2016 Budget Update

Planning reform – further efforts to streamline the planning system.

Garden towns/cities – locally determined smaller settlements on the outskirts of towns.

Stamp Duty Land Tax – some release of funds for development of new homes.

PRS Sector Committee – to stimulate institutional involvement.

Rough sleeping – additional funding of £100m to provide low cost ‘second stage’

accommodation.

Welfare:

Additional support to self-employed Working

Tax Credit claimants.

Changes to benefits for the disabled.

Business Rates - some reduction in Business

Rates for commercial property depending on

the Rateable Value.

Response By The Sector

Surviving the short term

threats in order to exist and

hope to thrive later?

Organisational Change

Non-core services being cut

Staffing

Diversification

Service delivery

Commercial activity

Mergers

Asset Management Appraisal

Asset Management Strategy

LSVTs – legacy

Right property, right location, right type

Looking at demand patterns – reliable

evidence/research essential

Development – social housing vs for sale

What Does This Mean For Our

Customers?

Housing Demand

What else is changing?

Demographic change

Changing household formation patters

Rising health costs

Affordability crisis

Perspective Of Incommunities

Development

Since 2006 we have developed 591new

homes in the district for rent, shared-ownership

and sale

Development Today

Challenges

Sustainability of business plan

Rental income and revenue reduction

Sustaining social purpose and values

Low demand in Bradford

Delivering development programme and funding

projects

Impact on viability – downgrades

Merger code/Consolidation

Nationalise/Privatise?

Opportunities

Working differently: digitalisation

Meaningful partnerships (collaboration with Councils, other HAs, third sector, health, etc.)

Different forms of construction

Diversification of product

Commercialisation

Devolution

Northern Powerhouse/

H4n

What does the future look like?

Global Challenges

- Increasing social mobility –

diverse communities

- Population growth

- Global inequality

- Lack of stability in

government as government

and organisations come

under greater scrutiny

- Climate change and

resource depletion

Resilient Leadership in a

changing world

Values Based Organisations

Technological advances

Good Governance

Talent Management and Succession

Jenny Wood

Harrogate Borough Council

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The demise of the council house

(and why kidnapping a Housing Minister is never the answer)

Housebuilders extraordinaire(s)

Local Ward Member with council houses

The problems

2000 households on our waiting list

60 families in bed and breakfast and homeless hostels

Affordable housing shortfall of 313 per annum

Highest average house prices in Yorkshire and the Humber

Highest market rents north of Watford Gap

Ex-council house (with conservatory) for sale at £300,000

Housing and Planning Bill ( the best bits)

• Enforced sale of high value council houses• Pay to stay • Starter Homes • Voluntary Right to Buy of HA stock

Stock and valuations as at

31/03/15

Total Stock

Suggested "High

Value" Cap

Properties valued at or above "High Value" cap

% Note

Bedsits/1 beds 1496 £85,000 1442 96%

2 beds1253 £130,000 410 33%

Includes87% of 2 bed houses

3 beds 1023 £165,000 522 51%4 beds 69 £265,000 1 1%5 beds 4 £375,000 0 0%

3845 2375 62%

Spotlight on Enforced Sale

The cumulative effect

• Spare room subsidy

• Rent reduction

• Local Housing Allowance Cap (2018)

• Reduction in benefit cap to £20,000 (families) and £13,400 single people

• NPPF Affordable Housing Definition

• HCA Grant (shared ownership)

• Reduction in HB for 18 – 21 year olds (2017)

• Pay to Stay ..........

Starter Homes - Affordable Housing

I cant keep up......

• £250,000 – 80% market value

• £70,000 income

• FTB under 40

• 5 years

The big question - how much real affordable housing will they displace?

Location, location, location

Martyn Broadest

Connect Housing

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Q & A

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Key Points & Conclusion

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Our next events:-

Workshop 16th April 2016

‘Writing Neighbourhood Planning Policy’

Master Class 12th May 2016

‘Future of Retail’

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