Select Committee on Transport, Local Government and the Regions Memoranda


Memorandum by South Yorkshire Housing Association (AFH 48)

   South Yorkshire Housing Association considers that affordable housing can be defined as:

    "housing in the area of the relevant planning authority which is affordable to those who cannot afford to rent or buy what is available on the open market".

  This definition was central to the case of Wychavon DC vs Westbury Homes and succinctly summarises the concept.

THE SCALE AND LOCATION OF THE DEMAND FOR AFFORDABLE HOUSING

  South Yorkshire Housing Association works in South Yorkshire, North East Derbyshire, Chesterfield and North Yorkshire. Whilst some of the areas we work in are considered "low demand areas", the demand for affordable housing is present in most of these areas in one form or another. In particular, where obsolete and non decent housing is the only source of affordable rented housing there is a need for quality housing at low rents and to meet needs of specific client groups. For example, the provision of lifetime homes for families with members with disabilities/elderly relatives is still required. Affordable housing is required in most rural areas to support rural economies and the desire for extended families to continue to live in proximity to family members. Affordable housing to replace obsolete stock is therefore still in demand, and it is our experience that the demand exists throughout the region.

THE QUALITY OF AFFORDABLE HOUSING

  Registered Social Landlords can provide affordable housing to scheme development standards that are monitored by the Housing Corporation. We can also use Housing Corporation funding and private finance to purchase homes of a non decent standard on the open market, and refurbish them to a very high quality. Our work with our Partner Local Authorities on their Empty Properties Strategies has produced affordable homes to a high specification to meet demand.

THE ADEQUACY OF THE EXISTING SUPPLY AND THE AMOUNT OF RESOURCES AVAILABLE

  At present, the approved Development Programme funded by the Housing Corporation is inadequate to supply the demand for affordable housing in this region. Consequently, many urgent priorities for affordable housing supported by our Local Authority partners cannot be funded. Whilst it is acknowledged that there is a shortage of housing in the South East, affordable and decent housing for the population in the North of England is also a requirement.

THE EXTENT TO WHICH PLANNING GAIN CAN FUND THE LEVEL OF AFFORDABLE HOUSING REQUIRED

  South Yorkshire Housing Association has worked in Partnership with Local Authorities and developers to provide affordable housing under Section 106 agreements using Planning Policy Guidance 3.

  This method of provision is essential to supplement public sector funding and resources from Registered Social Landlords that exist to provide affordable housing. This type of "planning gain" is successfully used by our partner local authorities in all areas we work in. In theory, the negotiation process between private developers and the local authority should epitomise partnership working between public and private sectors, and in some cases it does. However, developers may seek to reduce their contribution where local policies are unclear or negotiations are weak. Clear local policies for the granting of planning permission subject to Section 106 agreements are vital to ensure that private developers contribute to the provision of affordable housing. Without clear policies, and a commitment from the local authority that is supported by strong guidance from central government, developers will always try to avoid providing their contribution towards social housing. The less the developer provides the more Social Housing Grant is required and therefore the greater the impact is on the Approved Development Programme nationally.

  In most cases, Registered Social Landlords are used to provide this housing since our product is of a high quality and since future management of the homes will be carried out to a high standard and monitored by the Housing Corporation. In some cases, Social Housing Grant from the Housing Corporation is required in order to render these schemes viable. In other cases, the contribution from the developer can meet the difference between the cost of developing the affordable homes and the loan which can be raised by the RSL's. Clearly, in areas where land values are high this contribution from developers is critical, since housing demand relates to land and property values. However, new affordable homes built to a high standard can provide an alternative to homes which are obsolete and of a non decent standard.

HOW RESOURCES SHOULD BE BALANCED BETWEEN SOCIAL HOUSING AND OPTIONS FOR OWNER OCCUPATION FOR THOSE WHO CANNOT AFFORD TO BUY (INCLUDING SHARED OWNERSHIP) AND WHETHER ANY ADDITIONAL MECHANISMS ARE REQUIRED TO BRING FORWARD SHARED OWNERSHIP-TYPE SCHEMES

  Property prices in most of the areas in this sub-region we work in (mainly South Yorkshire) are sufficiently low for most would-be owner occupiers to purchase on the open market. In most areas therefore, shared ownership is not a viable alternative where property values are low. However, schemes such as the Leasehold Scheme for the Elderly, which allows equity staircasing for elderly purchasers of (mainly) bungalows can assist older owner-occupiers presently living in unsuitable under-occupied homes to be rehoused and to release equity to help them improve their quality of life. In some cases, LSE type schemes can be linked to local authority anti-poverty strategies and can also help with private sector strategies in tackling disrepair amongst elderly owner occupiers. For those of us working in the North on the new Housing Market Renewal Fund proposals, the issue of mixed tenure developments and shared ownership may become even more strategic, since the cross tenure proposals being developed around the Housing Market Renewal fund may involve the relocation of owner occupiers and the willing participation of private developers in partnership working. In these locations, and within individual HMRF strategies, the creative use of Section 106 agreements to provide mixed communities will support the aspirations of policy development in this area.

WHETHER TARGETS IN REGIONAL PLANNING GUIDANCE ARE APPROPRIATE

  In most cases, our local authority partners have contributed to the Regional Planning Guidance through their housing needs surveys, which determine need and demand for affordable housing in each area. The RPG targets appear, therefore, to be appropriate.

WHETHER TARGETS OF DECENT AND AFFORDABLE HOUSING WILL BE MET BY CENTRAL AND LOCAL GOVERNMENT

  The reduction in Housing Corporation funding for the Region in favour of the South East has reduced the ability to provide for affordable housing demand. Additionally, the constraints placed upon RSL's through rent restructuring/rent convergence has reduced our ability to subsidise future developments of affordable housing through our own reserves. The impact of the "NO" vote on stock transfer in Birmingham has left many of our partner local authorities reflecting on the future for their own tenants. it is difficult to see how local authorities will be able to improve the standards of their housing in line with the decency standard by 2010. For South Yorkshire Housing Association, we can confirm that we will be able to meet these targets but it is doubtful whether targets on decent and affordable housing can indeed be met by all social landlords given the existing limited investment in public sector housing.

WHETHER CURRENT POLICIES AND PRACTICES ARE LEADING TO THE CREATION OF MIXED COMMUNITIES

  Planning legislation and guidance in the shape of Section 106 agreements and Planning Policy Guidance 3 can help to provide affordable housing on sites developed privately for market sale or rent. This provision amounts to some 15 per cent of the total housing on privately developed sites in the South Yorkshire sub-region. Mixed tenure developments work well in our experience, particularly where there is no distinction between the style of housing for each tenure. negotiations over Section 106 agreements are perhaps the main existing method for incorporating affordable housing into high value areas. The recent announcement that local authorities may require affordable housing to be included in proposed commercial development is also welcomed since this will increase the mix within communities. The funding of shared ownership schemes including Leasehold Schemes for the Elderly must be given priority since this too will encourage mixed communities. Any barriers to the viability of such shared-ownership these products more attractive.

WHETHER MORE GREENFIELD DEVELOPMENT IS NEEDED TO MEET HOUSING NEED

  Availability of land is not an issue in most of the local authority areas where we work (South Yorkshire, North East Derbyshire).

THE COST TO INDIVIDUALS BUSINESSES AND THE ECONOMY RESULTING FROM ANY SHORTFALL IN THE PROVISION OF DECENT, AFFORDABLE HOUSING

  Whilst this would appear to be predominantly an issue for all in the South East, it must be stressed that the provision of affordable housing in areas where people wish to remain will support the sustainability of communities. providing new high quality accommodation to re-house those from non-decent rented homes must be a priority for local authorities where homes are obsolete due to disrepair. In Housing Market Renewal fund areas, wholesale demolition may be an option for some neighbourhoods. Nevertheless, new affordable housing to a high standard will still be needed in these areas and the role of Registered Social Landlords in providing affordable housing and supporting local economies cannot be overemphasised.


 
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