Meeting Affordable Housing Meeting Affordable Housing Need in the City & County of Need in the City & County of

SwanseaSwansea

Stronger Safer Communities Stronger Safer Communities Scrutiny BoardScrutiny Board

2424thth September 2012 September 2012

Presentation ContentsPresentation Contents

The presentation will cover:-The presentation will cover:-

LA Duties & Powers in relation to affordable housingLA Duties & Powers in relation to affordable housing Policies and Strategies used to address affordable Policies and Strategies used to address affordable

housing so farhousing so far Impact of policies so far Impact of policies so far Constraints on providing affordable housingConstraints on providing affordable housing Future ChallengesFuture Challenges New Council House BuildingNew Council House Building New innovative solutions New innovative solutions

Local Authority DutiesLocal Authority Duties To review housing needs and conditions (Housing To review housing needs and conditions (Housing

Act 1985)Act 1985)

To produce housing strategies to address housing To produce housing strategies to address housing issues in the area (Local Government Act 2003)issues in the area (Local Government Act 2003)

Make appropriate provision for affordable housing Make appropriate provision for affordable housing in Development Plan policies. Identify in Development Plan policies. Identify requirements, viable targets and site thresholds requirements, viable targets and site thresholds and monitor provision (PPW 2011 and TAN 2 and monitor provision (PPW 2011 and TAN 2 2006)2006)

Local Authority PowersLocal Authority Powers

Section 106 AgreementsSection 106 Agreements Strategically direct RSL spend via SHGStrategically direct RSL spend via SHG Compulsory Purchase OrdersCompulsory Purchase Orders Disposal or leasing of land to RSLs for Disposal or leasing of land to RSLs for

affordable housing constructionaffordable housing construction Suspension of the Right to BuySuspension of the Right to Buy Local Authority MortgagesLocal Authority Mortgages Bring back Empty Properties e.g. via loans Bring back Empty Properties e.g. via loans

scheme, etcscheme, etc

Council Policies and Strategies to Council Policies and Strategies to Deliver Affordable HousingDeliver Affordable Housing

Maximising SHG Allocation from WGMaximising SHG Allocation from WG Utilising Section 106 Agreements/ Utilising Section 106 Agreements/

Percentage Affordable Housing Percentage Affordable Housing dictated by the Housing Market dictated by the Housing Market AssessmentAssessment

Use of Commuted SumsUse of Commuted Sums UDP – ThresholdsUDP – Thresholds Empty Property Strategy Empty Property Strategy

Impact of Current Policies so Impact of Current Policies so farfar

Limited – due to recession and housing Limited – due to recession and housing market downturnmarket downturn

Adopted policy reflects latest national Adopted policy reflects latest national guidanceguidance

SPG provides strong basis for SPG provides strong basis for negotiationnegotiation

No significant change to numbers No significant change to numbers delivereddelivered

Very little success in rural areas Very little success in rural areas

Constraints on Affordable Constraints on Affordable Housing Supply Housing Supply

Declining Social Housing Grant from Declining Social Housing Grant from Welsh GovernmentWelsh Government

Depressed housing market results in Depressed housing market results in fewer Planning Applications / Section fewer Planning Applications / Section 106 Agreements /viability issues106 Agreements /viability issues

Complexity of planning application Complexity of planning application processprocess

Land acquisition – unrealistic Land acquisition – unrealistic expectations of landownersexpectations of landowners

Access to financeAccess to finance

Declining Social Housing Declining Social Housing GrantGrant

2007/08 - £6.9m2007/08 - £6.9m 2008/09 - £3.9m2008/09 - £3.9m 2009/10 - £6.2m2009/10 - £6.2m 2010/11 - £3.1m2010/11 - £3.1m 2011/12 - £3.22011/12 - £3.2 2012/13 - £3.1m2012/13 - £3.1m 2013/14 - £2.7m2013/14 - £2.7m

Delivery through Section Delivery through Section 106 Agreements106 Agreements

2009 – 11 Units2009 – 11 Units 2010 – 21 Units2010 – 21 Units 2011 – 9 Units2011 – 9 Units 2012 – None as yet2012 – None as yet

Future ChallengesFuture Challenges

Welfare Reform Proposals Welfare Reform Proposals Those over occupying a property will get less Those over occupying a property will get less

benefitbenefit Single room rent increased to people up to 35Single room rent increased to people up to 35 The affect of Universal CreditThe affect of Universal Credit Big reduction in benefit payments big increase Big reduction in benefit payments big increase

in demand for 1 bedroom propertiesin demand for 1 bedroom properties Viability of sites to deliver affordable housingViability of sites to deliver affordable housing

Building New Council HomesBuilding New Council Homes

Legally this is allowedLegally this is allowed

Conflict with using finances to achieve Conflict with using finances to achieve Welsh Housing Quality Standard Welsh Housing Quality Standard

RSLs could deliver more properties RSLs could deliver more properties with same money than Council due to with same money than Council due to financial rulesfinancial rules

Increasing Affordable Housing – Increasing Affordable Housing – Current OptionsCurrent Options

Reducing SHG funding to RSLs for particular Reducing SHG funding to RSLs for particular schemesschemes

Local Authority MortgagesLocal Authority Mortgages Maximising affordable housing via Section 106 Maximising affordable housing via Section 106

AgreementsAgreements Leasing of Council land for affordable housingLeasing of Council land for affordable housing Promotion of Exceptions Policy in UDPPromotion of Exceptions Policy in UDP Bringing back Empty properties into use Bringing back Empty properties into use Review thresholds through LDP/include site specific Review thresholds through LDP/include site specific

indicative targetsindicative targets Welsh Housing PartnershipWelsh Housing Partnership

ConclusionsConclusions

Difficult to increase affordable housing Difficult to increase affordable housing levels due to economic climatelevels due to economic climate

New initiatives being developed by the New initiatives being developed by the Welsh Government that could be utilised Welsh Government that could be utilised

Housing Market Assessment will give Housing Market Assessment will give more detail regarding the level of A.H. more detail regarding the level of A.H. needneed