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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