The report of the Strategic Director, Place (Document “V”) is provided for information in order to update members on progress in relation to delivery of the Council’s Affordable Housing programme and recent developments influencing the governance of the housing stock.

Recommended –

Members are requested to consider the content of the report and comment as appropriate.

(Lorraine Wright – 01274 432516)

The report of the Strategic Director, Place (Document “V”) provided an update on progress in relation to the delivery of the Council’s Affordable Housing programme, and recent developments influencing the governance of the housing stock.

Officers explained that in 2010, a time when the housing delivery in the district was relatively low in terms of affordable housing, the Council started delivering new Council housing and was demonstrating leadership in the sector by taking a role in increasing the supply.  The table at paragraph 2.6 of the report summarised the affordable housing delivery to date.

In March of this year the Ministry of Housing, Communities and Local Government published guidance that placed a requirement on Local Authorities to open Housing Revenue accounts (HRAs) where their stock exceeds 200 units.  Bradford Council will be setting up an HRA in the next financial year.

The HRA is a ring fenced account. Rental payments are ring fenced to pay for services that are of benefit to tenants such as repairs, maintenance of the properties and also providing new housing stock.

Questions were asked in relation to the affordable housing targets. Officers replied that the targets were Core Strategy targets and were minimum targets.  At present the Council is struggling to meet these targets, although this is a problem experienced by many other local authorities.

A member raised concerns that he was aware of a number of major developments where the developers have come back with a deed of variation often asking for the affordable housing element to be moved or reduced in number.  They questioned if this was a growing problem, and what policies are in place to address this?

Officers responded that the s106 standard position is that developers should deliver the affordable housing units at the percentage agreed.  The default position is that they provide the housing within the development itself.  However, this is subject to viability.  If developers can demonstrate (through a lengthy process) that it is not viable to deliver that percentage of affordable housing, then the target can be reviewed. If the developer is not delivering s106 on site they can be required to provide a commuted sum to the Council so that monies can be used to pay for the affordable housing at an alternative site. 

The Housing team are part of the consultation team with regard to planning applications, using documentation such as the Strategic Housing Need Assessment to show what the level of need is across the district.

A member asked if the figure shown in paragraph 3.3 was a net figure, and does that also include Right to Buy figures?

Officers explained that the figure was a net figure.  Returns are submitted to Government each year. A variety of statistics are reported including, net new homes figures, net new affordable homes figure and also figures for demolitions.  The figures are only net new for affordable housing, although the team also report to government of homes lost through the right to buy scheme.  Currently, the Authority has not sold any properties through the Right to Buy scheme.

I relation to paragraph 2.10 a member asked for further clarity.  Were officers still having difficulty in identifying a suitable site, and was the Homes England funding still available.

It was explained that the Council had received an allocation of funding through the 2016-21 programme on the basis that sites were to be determined.  At the time the allocation was secured there was no affordable housing for rent, so it was not part of the funding regime.  This has now changed and affordable housing for rent is “back on the table”.

There is still funding available, the current funded programme is to 2021 and this will either be extended, or a new programme will be launched.  The Council can still submit bids to Home England on a site by site basis, when an opportunity arises.

A query was raised regarding the delivery of market sale houses, why had this proved to be challenging, why didn’t people want to buy them?

Officers responded that the initial schemes had seen a great deal of demand.  Part of the issue was around layout of the properties, which were built accessible standards and as homes for life. The layout was different from private sector homes, and was slightly more open plan, which made the properties were less attractive on the purchase market.  The upside to this was that the Council has been able to secure additional grant from Homes England, to convert them into rental units and let them as affordable housing to local people.

A member queried whether the revised target of 400 properties was enough.  It was felt that Bradford may have a higher need for social housing allocation.

The response was that this is the proposed figure arrived at as part of the Core Strategy partial review where there was a strategic housing market assessment looking at social and affordable housing.  It is a minimum figure, but not necessarily the final figure, as part of this process planning have been consulting with local teams who will take feedback from them.

Resolved –

That a further report be presented in 12 months to include details of how the Housing Revenue Account is operating.

ACTION: Strategic Director, Place