Appendix 1 Overview and Scrutiny Committee: Ambition 2020 review Key Line of Enquiry four: a sustainable place to live
1. Introduction
Ambition 2020 review In autumn 2019, Overview and Scrutiny committee agreed to begin a review of the fourth key line of enquiry: people want to live? Growth approach our strategy to ensure that growth in Barking & Dagenham leaves no one behind.
This Key Line of Enquiry has a dual focus In reviewing this KLoE, the committee have a dual focus on housing and environmental sustainability. Specifically, Members are reviewing: The extent to which the new housing and infrastructure supply being delivered through Be First is providing a balanced range of high-quality and affordable housing, together with the right infrastructure and opportunities for business growth; and How our strategy is promoting the environmental sustainability of the borough, as it grows, to ensure it is a place where people want to live
The committee set some more specific questions to help to unpack this further: 1. What are the outcomes of the recent developments in terms of inclusive growth and supporting people to remain in the borough? and what is the housing supply pipeline currently planned through Be First? 2. Is the housing balance right between 1- and 2-bed, and larger properties, and is there sufficient capacity that supports people to grow their family life in the borough as circumstances change we know there are vacancies in some schools, does this suggest people are moving away from the borough as their families grow? 3. Are we providing truly affordable housing options, that promote community cohesion in the long term 4. How is environmental sustainability being incorporated into the infrastructure of the borough is as these developments come on stream?
Task and Finish Groups feedback To support this review, two task and finish groups were established, one to consider housing and one covering sustainability. This enabled members to have a more in depth, data-led discussion about the lines of enquiry The Purpose of this presentation is to share some of the outcomes from these discussions, and the data that underpins them, as the basis for the committee to decide on some recommendations which will go in the final report of the wider review which will be published in April.
Task and finish group 1: Housing
Assessed housing need Need is measured in different ways, by a multitude of national and regional methodologies. Taken together, we get a broad picture of our overall need. 1,790 new dwellings per year based on Objectively demographics, assessed need employment trends and market signals Taken together, the borough needs 1.8k to 2k new homes 2,089 new dwellings Government per year based on per year, or 36k to 40k new housing England-wide NPPF supply target homes over the next 20 years methodology 1,944 new dwellings a year based on land GLA London Plan availability and Target capacity, rather than just housing need
Since 2010, the number of new homes completed by the 600 500 477 400 300 261 228 200 85 108 100 104 38 31 0 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
significantly 1400 1216 1200 1000 875 800 600 3000 homes 477 866 homes 245% increase 400 327 259 228 252 261 104 200 85 108 92 38 31 0 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
This means that over the next five years, we are increasing our completion rate by 245% New homes completed by the Council 2013/14 2017/18 866 New homes to be delivered within the Be First Business Plan 2019 - 24 c.3000
New build programme: tenure mix Of these nearly 3,000 new homes, almost three-quarters will be affordable, meaning they will be at sub-market rents, or sold at significantly less then market prices through shared ownership. This is well above the GLA requirement for 50 per cent affordable homes on public land (and the 35% required on privately owned land). Tenure Type Total Overall Percentage Market Sale and Market Rent 759 26% Intermediate rent (65-80%) 833 28% Council equivalent: London 650 22% Affordable Rent and Target Rent Shared Ownership 515 17% Temporary Accommodation 189 6% Total 2946
Affordable housing completions projected to 2022/23
Performance compared to other London Boroughs The GLA Annual Monitoring Report published October 2019 showed: LBBD had the highest % of affordable homes as a proportion of all new homes completed in 17/18 LBBD had the second highest % of affordable homes as a proportion of all new homes completed between 2015/16 and 2017/18 LBBD is the borough with the highest proportion of affordable units in the pipeline, with 4,353 affordable homes with planning consent
New build programme: size mix supply and demand The breakdown of homes by number of bedrooms in our new build programme has been designed, as far as viability allows, to meet our assessed need. We commissioned a strategic housing market assessment (table below) which tell us that across all tenures we mostly need homes of one, two, and three bedrooms. We also have a not insignificant need for larger homes of 4 or more bedrooms. New build programme: units by bedroom size All tenure projected need by bedroom size % needed 2% Bedrooms 20% 35% One bedroom 39% Two bedrooms required 27% 43% Three bedrooms required 25% Four or more bedrooms required 10% 1 Bed 2 Bed 3 Bed 4 Bed
New build programme: size mix supply and demand for affordable homes We have 4,929 households on our waiting list, and has remained around this level since 2018. The table below shows number of bedrooms need for households on the register as of January 2020. As the chart on the right shows, the bedroom number breakdown has been designed to reflect this. London Affordable Rent units to be delivered Housing Register Bedrooms required % 9% 15% 1 19% 2 34% 38% 37% 3 36% 4 10% 5 1% 1 Bed 2 Bed 3 Bed 4 Bed
We are building homes to rent for those on a range of Council Comparative Rent / Intermediate Rent (less than Private Rent London Affordable Rent 20% of market prices) Around 650 Homes Around 700 homes at affordable Around 260 Homes rents Designed for Local Households on Designed for local households who Designed for local working can afford full market rents, but can households on lower incomes benefit from more secure tenures £155 a week for a 1 bed From £170 a week for a 1 bed £158 a week for a 2 bed From £219 a week for a 1 bed From £200 a week for a 2 bed £173 a week for a 3 bed From £277 a week for a 2 bed From £240 a week for a 3 bed From £323 a week for a 3 bed Needs an income of £22k a year for Can be fully covered by housing Around £30k a year for a one bed; a one bed; £28k for a two bed benefit £36k for a 2 bed Rent can partly be covered A bus driver and classroom through housing benefit housing register can afford this assistant together can afford a 2 bed An office assistant and retail worker together can afford a 2 bed
Shared Ownership Private Sales Around 600 Homes Around 620 Homes Designed for Local Households who Designed for local households who can want to get on the housing register, but afford to buy a new home outright An initial deposit then around £250 a From £300k for a 2 bed week in rent and mortgage payments Households who have been able to Households who have a deposit of save up around £10k, then needs an around £30k, and a household income income of £35k per year of around £70k a year A train driver and office worker A teacher who has been able to save together who have been able to save up for a deposit can afford this up for a deposit can afford this
Allocations and letting Figures show we allocated 850 properties in 2018-19. With nearly 5,000 households on the waiting list, this is nowhere near enough to meet demand. Accommodation solution Voids allocated in 2018 - 19 General needs housing 565 Sheltered housing 83 Adapted voids 147 Housing association 55 Total 850 Demand comes from four main sources: Regeneration Decants, Referral Groups (households in priority need referred to Community Solutions from another service, for example cases of vulnerable people), Homelessness cases and the general Housing Register.
How we allocate homes Our allocations policy works on the basis of priority need. Given intense pressures on available housing, our policy prioritises the following groups: regeneration decants, homeless people, and vulnerable groups referred from the Council joint assessment panels (such as care leavers or those with disabilities). This means that the amount of Council voids which can be advertised for demand. Therefore we know that only way we can begin to tackle this problem and provide homes for local people is by building them. This is why we have setup Be First, a wholly-owned council company with an ambitious house building programme.
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