Memorandum by Mid Bedfordshire District
Council (AFH 08)
Thank you for giving Mid Bedfordshire District
Council the opportunity to comment on Affordable Housing and particularly
in the context of the plans for the Elstow New Settlement.
As the issue of Affordable Housing at Elstow
is largely unresolved I do not feel it appropriate to comment
on it at this stage. In addition, the proposal for the new settlement
is split across two authorities, the other authority being Bedford
Borough Council and therefore any submission made regarding Elstow
would have to be produced jointly between the two authorities.
However, an Affordable Housing Development Brief
(AHDB) is being prepared by the local authorities, which provides
further guidance on issues such as:
(i) the distribution of affordable housing
throughout the settlement;
(ii) affordable housing types and dwelling
mix;
(iii) design and layout of the affordable
housing areas within the scheme;
(iv) timing of affordable housing provision;
(v) selection of Registered Social Landlords
(RSL's);
(vi) future management of the affordable
homes.
There have been a number of discussions with
the Joint Venture Partners—JJ Gallagher and Innogy [formerly
National Power], the promoters of the site, on affordable housing
in general and the specific issue of the selection of RSLs. It
has been agreed that the LAs and JV will work together to agree
a process by which the RSLs who will develop affordable housing
at Elstow will be selected.
The JV have agreed to provide 25 per cent Affordable
Housing. This level of provision accords with the Elstow New Settlement
Planning and Development Brief, adopted September 1999, a copy
of which is enclosed for your information. The JV, however, are
critical of the local authorities approach to affordable housing
and expressed a difference of view in relation to the detail of
affordable housing provision. The areas still open for resolution
relate to:
(i) the percentage of social rented properties:
the local authorities have identified a need for 20 per cent social
rent and the JV have offered 12.5 per cent of dwellings on site
for social rented occupation;
(ii) the JV has offered a financial contribution
payable to the Local Authorities equivalent to the cost of the
provision of 2.5 per cent of social rented housing to assist in
the provision of dwellings in areas off site. The local authorities
do not want any off-site provision, but recognise that this position
may be reviewed over the life of the development in order to see
the establishment of a balanced community;
(iii) the JV have offered 10 per cent dwellings
on site under a range of mechanisms (known as "intermediate
tenures") to include shared ownership housing, specifically
aimed at households on moderate incomes (intermediate tenure dwellings
will be provided at a discount of 20 per cent from open market
value), whereas the local authorities only currently see a need
for 5 per cent "other tenures";
(iv) the JV have indicated that in their
view affordable for rent housing should be funded at 87 per cent
of the relevant TCI (2002-03 base table) by dwelling size and
type to be set out in the AHDB. For the sake of clarity this is
the amount that the developer would receive for building and providing
the dwellings in accord with the Housing Corporation Scheme Development
Standards. Subsequent calculations of TCI shall refer to the appropriate
annual TCI tables or such reasonable alternative replacements
thereof.
Issues relating to the split and mix of affordable
housing, design and distribution, phasing, the number and selection
process for RSL's, and the funding for provision and management
of affordable housing, rent levels, property management will be
addressed in the AHDB.
It is agreed that affordable housing will be
integrated throughout the development. Generally this will be
within smaller clusters not exceeding the numbers set out in the
AHDB. For each development phase the specific proportions and
locations of sites, and a mix of dwelling types to provide for
a full range of affordable housing will be determined in accordance
with the AHDB.
The AHDB will be subject to its own process
of consultation and following consultation with the JV, the AHDB
will be reported back to Committee for approval to advertise at
a subsequent meeting. At which stage a copy of this will be sent
to your for your information.
| 
