Making the Housing Ladder Work The Case for more The Case for more Affordable Housing Affordable Housing Paul Langford Paul Langford Chief Housing Officer Chief Housing Officer W hy do w e need affordable housing? • Unaffordable house prices • Reducing social housing stock • Lack of replacement of social housing stock • Reducing access for those on below average incomes Average house prices in Leeds 1995 -2006 £165,000 All properties in Leeds £145,000 3 bedroomed semi- detached houses £125,000 £105,000 £85,000 £65,000 £45,000 £25,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Land Registry House Price Index report 2006 1
Average house price (Regional) 1999 -2006 Average house price Leeds/ National1999 -2006 £185,000 £205,000 Leeds Y&H Region West Yorks Leeds England and Wales Wetherby £185,000 £165,000 £165,000 £145,000 £145,000 £125,000 £125,000 £105,000 £105,000 £85,000 £85,000 £65,000 £65,000 £45,000 £45,000 £25,000 £25,000 1999 2000 2001 2002 2003 2004 2005 2006 1999 2000 2001 2002 2003 2004 2005 2006 Source: Land Registry House Price Index report 2006 Source: Land Registry House Price Index report 2006 Chapel Allerton Through terraced house 1996 £24,000 1984 2000 £19,500 Scale 4 £21,000 £7,000 2006 2006 Holbeck £85,000 £217,000 Scale 4 2 bedroom £17,400 back-to-back terrace Leeds 17 Former Council City Centre 3 bedroom upper Studio Appt maisonette £525 pcm Cottingley £94,000 Former Council Beeston 3 bed house Bedsit £400 pcm £195 pcm 2
Reducing social housing Right to Buy stock 1995 2005 Change 2010 Change Introduced in 1980 2003 – 2006 1995 - 2005 2005 - 2010 Council 77934 60500 - 17434 50000 - 10500 LCC Stock 96,000 6000 homes sold RSL 13000 14413 +1413 15383 + 970 All 90934 74913 -16034 65383 - 9530 1980 – 2006 LCC stock 2010 30,000 homes sold 50,000? Current replacement rate = approx 200 units pa Salaries in Leeds • Senior House Officer (based at LGI) � Starting Salary – £25,324 • Newly qualified teacher � £19,641 – £28,707 • Police Officer � Starting Salary £22,700 (Feb 2006) • Chef Manager Armley � £15,000 -£16,500 Single income of £27,250 / dual • HGV driver income of £32,900 plus a deposit or equity from a previous property to � £7.50 - £10.25ph (£14,430 -£19,721) afford a terraced property The Case for m ore Affordable Housing • Unaffordable Home Ownership The response in The response in • Reducing Social Housing Stock and Lettings • Supporting economic growth and success Leeds so far • Creating and sustaining mixed communities Leeds so far • Improving access to housing • Supporting regeneration • Meeting statutory duties 3
Maintaining existing affordable PUBLI C I NVESTMENT FUNDI NG AND USE housing supply OF LOCAL AUTHORI TY LAND • £400 million of ALMO Housing Corporation funded provision Decency • Declining new build rates • Improvement to the • Changes to funding council housing stock • Release of LCC land at ‘less than best’ • reducing the risk of • Leeds Partnership Homes 1991 -1995 stock loss through � Council and five housing association demolition partners • good quality housing � 4,000 new affordable homes for tenants. EASEL EASEL Type Delivered Housing Outturn Planned Planned Little London Little London 04/05 Strategy 05/06 06/07 07/08 Target PFI PFI Figures 2006/10 Low Cost Rented 112 470 113 110 84 (ADP) Holbeck & Beeston Holbeck & Beeston Shared 36 200 19 0 69 PFI PFI ownership (ADP) Low Cost Rented 49 200 46 60* 75* (S106) Low Cost Sale 36 200 164 180* 200* (S106) Major * Estimates at the moment. All other information from Regeneration HSSA return (excluding housing strategy targets) Schemes Housing Market Housing Market Renewal Renewal Access to private housing • Access to good quality private rented housing What else can What else can • Private housing renewal • The Right to Buy be done? • Golden Triangle Homebuy Scheme be done? • Regional Investment Funding • HMO Licensing & Landlord Accreditation 4
Alternative Routes to Hom e Other considerations ow nership • Land release • More sophisticated ‘evidence based’ approach to delivery Low cost Discount • Integrated Working hom e for sale ow nership Shared Hom eBuy Equity New Approaches Leeds Partnership Possible Possible Partnership Model • Local Housing Ladder Options Options Homes (Leeds LIFT) • “Housing Options” advice service Model • City-wide SPV to facilitate land use • Starter Homes Special � “£60,000 house” Purpose • Integrated relationships with financial Vehicle institutions • Public Private • Strategic Housing Leeds Partnership/ Joint Partnership Partnership Partnership venture � LCC Model Homes • Strategic Partnering � ALMOs (Leeds LIFT) Model Agreement (SPA) � RSLs • LCC Management team • Funded by LCC � Cross Departmental • Management Board working � Commissioning � Delivery 5
• New Initiative Market Housing The old Special • Registered Company Purpose housing • Independent “Arms Vehicle ladder Length” • Fully owned by LCC Low Cost Home • Management Board Ownership Social Housing Priorities to enable significant Market Housing for Sale/rent All prices and types change Assistance ‘ Starter Homes’/ Low Cost Market housing to Home (e.g. Debut, IKEA, BoKlok £60 - £120,000 Consideration of SPV for Enabling m ixed tenure Ownership For 1st time buyers ) land release provision Housing Intermediate Housing – Discounted Options Sale/Shared Ownership Flexible use of S106 Pro-active marketing of Advice Purchaser buys a stake and RSL retains the rest. agreements housing options For those unable to afford market prices Intermediate Housing – sub-market rents Establish closer links with £60 - £100 per week for those unable to afford Monitoring of delivery financial institutions market prices The new housing Affordable housing for rent ladder (up to £60 per week) Executive Board Next Steps • Publication/ Launch of the plan Council Management Team • Establishing Special Purpose All Political Groups Supported/ Vehicle Approved By • Executive Board – Feb 2007 Plans Panels • Identifying sites/ variations Government Office • Implementation May 2007 Housing Partnership 6
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