6 The role of local authorities
59. Local authorities are playing an increasing role
in enabling housing developments generally through housing associations.
The Government requires them to draw up annual housing strategies
to cover all issues of housing need and provision in the district.
Most authorities are also drawing up affordable housing strategies
as part of their district or unitary development plans which set
out their planning gain requirements from housebuilders in terms
of contributions towards affordable housing as part of mixed tenure
housing estates.
60. The local authority housing strategy statements
are expected, according to the ODPM, "to be an over-arching
document that reviews housing-related issues in a local authority's
area, sets out its housing objectives, establishes priorities
for action both by the local authority and by other service providers
and stakeholders, and sets out a clear Action Plan in agreement
with the council's local partners."[44]
61. Social housing funding should be better coordinated
with local authority plans and resources. The Local Government
Association suggested:
"The LGA believes that the Housing Corporation
should build closer working relationships with local authorities.
The LGA is concerned at the development of the Corporation's new
national partnering arrangements which appear to be detached from
the role of the local authority strategic enabling function. Local
authorities are developing increased knowledge of the housing
markets that sit within their boundaries and also the Housing
Associations capable of meeting the needs. Local housing authorities
must be involved in the determination of the types of partnership
best suited to the needs of the housing markets that are found
within local authority areas."[45]
62. Planning Policy Guidance Note 3 on Housing allows
local authorities to require contributions from developers towards
affordable housing. The social housing elements of the scheme
often require a public subsidy.[46]
Public funds for social housing need to be better integrated with
contributions from housebuilders. David Cowans from the Places
for People Group urged greater flexibility with the use of grant
funds.
"We are saying in our submission that the Corporation
ought to have, in the future, a piece of work to identify what
is the film script of a mixed tenure community and grant monies
ought to be funded to create these places that we are trying to
achieve rather than just making the numbers look the right way
round."[47]
Derek Martin, the head of housing strategy at Manchester
city council, urged that funding packages need to look at the
whole financial package in a scheme.
"I think you need to look at the totality of
the funding over a longer period. If we are producing mixed tenure
estates where you can work with the private developers to build
homes and have a flexible approach with the Housing Corporation
putting the funding in to allow the communities to access those
homes, it may need a lot of funding for some of the homes in the
beginning. It could even take the form of an equity stake rather
than a straight forward grant, which could then be recycled further
down the line."[48]
63. The Committee's report on affordable housing
noted that "some housing associations secure social housing
grant but have no sites on which to build. In contrast local authorities
negotiate sites for social housing as part of a planning permission
but have no funds to build."[49]
64. The Housing Corporation needs to review how
it works with local authorities to ensure that its funding and
partnering arrangements help to implement their local housing
strategies. Public funders need to consider better how they contribute
to achieving mixed tenure development.
44 Housing strategies: guidance ODPM creating sustainable
communities http://www.odpm.gov.uk/stellent/groups/odpm_housing/documents/page/odpm_house_602006.hcsp Back
45
THC 13 Back
46
A study of planning gain and affordable housing by the Universities
of Cambridge and Sheffield suggested that 70 per cent of the sites
where private sector contributions towards affordable housing
were secured also needed Social Housing Grant. Planning gain and
affordable housing Tony Crook, Jennie Currie, Alastair Jackson,
Sarah Monk, Steven Rowley, Kerry Smith and Christine Whitehead
October 2002 Back
47
Q33 Back
48
Q101 Back
49
Affordable Housing ODPM: Housing, Planning, Local Government
and the Regions Committee Third Report of Session 2002-03 HC
75-1 para 39 Back
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