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www.apse.org.uk
www.apse.org.uk
www.apse.org.uk
• An examination of the current context
• Case study analysis
• Survey of Council Leaders, Portfolio holders in Planning and
Housing & Heads of Planning Services’/Chief Planning
officers or equivalent
• Roundtable discussion
www.apse.org.uk
LandLand
Political
Leadership
Planning Housing
Management
Funding Construction
Sector
www.apse.org.uk
• Many authorities have a strong commitment to meeting the
housing challenge.
• All 3 governments – UK, Scottish & Welsh need to prioritise
provision of affordable and social housing.
• Survey identified a potential lack of skills in developing
business cases & attracting relevant funding streams such
as through the LEP/ Pension funds and other investors to
develop and build new housing.
Political Leadership
www.apse.org.uk
• Recommendation 1: The Government should forge a lasting cross-party
consensus that local authorities are a key part of the solution to the housing crisis,
providing clear leadership to encourage councillors and their authorities to think
boldly and in the long term.
• Recommendation 2: To enable local government to develop innovative,
financially sustainable models of facilitating and delivering new housing – of all
types and tenures – the Government needs to invest in local authority leadership
and business skills and resources.
• Recommendation 3: To engender a new debate about meeting local housing
need, councillors must provide strong political support and leadership, with a clear
vision and firm commitment to providing social and affordable housing. This
commitment should be expressed in corporate planning and as early as possible
in the Local Plan process to provide reassurance and certainty for all parties
involved, even though development may not commence for some time.
Political Leadership
www.apse.org.uk
• Councils play a vital role in coordinating land assembly and
planning.
• If a council owns land, there is a specific opportunity to
deliver across various objectives through a joint venture
with a developer
• Problems understanding the availability of land and land
ownership.c
Land
www.apse.org.uk
• Recommendation 4: Councils should play a stronger role in co-ordinating land
assembly and planning acting as lead developer to drive delivery. Where councils
own land they should explore creative opportunities to bring it forward. As the
Oxford City Council case study illustrates, joint ventures on council-owned land
provide the opportunity to share assets, skills and resources between the public
and private sectors.
• Recommendation 5: When releasing public sector land, Government should
coordinate between Government departments and agencies and empower
councils to decide how best to facilitate development in their area. Local
authorities should also be given the responsibility and support for collecting details
of unused or under-used land which can be combined into a nationwide database
of potential housing sites based upon the recently announced London Land
Commission.
Land
www.apse.org.uk
• Local Plans
• Cross-border coordination
• Viability
• Section 106 & small scale developers
• Vacant Building Credit/Permitted development
Planning
Yes No Don't know
Do you currently have an up-to-date plan
with a five year land supply?
helped hindered Don't know
Has the viability test, as set out in the
NPPF, helped or hindered…?
www.apse.org.uk
• Recommendation 6: The key opportunity for the coordinated delivery of high
quality social and affordable housing in inclusive communities is an effective and
up to date Local Plan. However, with around half the respondents not having a
plan in place with an adopted 5-year land supply, measures to properly support
plan preparation should be a key priority area for action for the new UK
Government. As such, the UK Government should produce clearer and more
comprehensive guidance on key issues such as Strategic Housing Market
Assessments.
• Recommendation 7: The expansion of combined authorities in England is a major
opportunity to recreate effective strategic planning for housing. Government
should play a role in this process by ensuring combined authorities can adopt
strategic spatial plans with statutory weight and that the scope, timescales and
content of such plans allows them to best support local planning and coordinate
cross border relationships with other city regions and combined authorities.
Planning
www.apse.org.uk
• Recommendation 8: The UK Government should introduce a national spatial
framework, looking at other models such as the approach in Scotland, in order to
re-address regional imbalances and provide a coordinated approach to housing
and infrastructure. Such a strategy should include a comprehensive laboratory of
data on population and demographic trends.
• Recommendation 9: The UK Government must amend the viability test in the
National Planning Policy Framework ensuring it is more balanced and allows for
the consideration of economic data on the cost and benefits to the public sector
and therefore wider economy of policy measures such as the achievement of
social and affordable housing.
• Recommendation 10: The UK Government should reverse the central
deregulation of permitted development. Instead control over permitted
development should be handed to local authorities.
• Recommendation 11: The UK Government should reverse the recent changes
which exempt developments of 10 homes or less from section 106 affordable
housing contributions and cancel the recently introduced Vacant Building Credit.
Planning
www.apse.org.uk
Housing Management
Directly managing RSLs/Housing Providers ALMOs
What is the dominant model of managing social
and affordable housing in your area?
www.apse.org.uk
Housing Management
• What more could be done to improve the
quality of your housing stock?
A council should aim to be the
‘landlord of choice’
www.apse.org.uk
Recommendation 12: Councils have an opportunity to become the ‘landlord of
choice’ rather than necessity by providing a professional service to both landlords
and tenants. They can also provide bespoke packages to meet the needs of certain
demographics, as illustrated by Flintshire County Council’s scheme to enable older
people to downsize.
Recommendation 13: Housing management and maintenance – ‘build, maintain,
improve’ - should be coordinated with other council services such as health,
education and social care, whether the stock is managed by a council, ALMO or
Housing Association/ Registered Provider. Through establishing local authority cross-
departmental working groups, working with housing association and health partners,
there is a greater opportunity for collaboration to support residents’ health and well-
being.
Housing Management
www.apse.org.uk
Funding
• Investment
• Borrowing freedoms and the HRA debt cap
• Right-to-Buy
• New Homes Bonus
www.apse.org.uk
Funding
Recommendation 14: In making the case for new housing – at least 240,000 homes
annually in England alone – the incoming government need to take a view beyond
five-yearly election cycles and work out how an ambitions construction programme
can be funded. The effective capture of increasing land values (betterment) for the
wider benefit of the community must be an essential aspect of such funding. This is a
tried-and-tested approach but requires the political will necessary to make it happen.
Recommendation 15: The UK government should lift the HRA borrowing cap which
would significantly increase local authorities’ ability to deliver new social and
affordable homes. The Government should re-visit the issue of whether investment in
housing is part of the public sector borrowing requirement (PSBR). As APSE has
consistently called for and the Association of Retained Council Housing and the
National Federation of ALMOs highlight, ‘there is a strong case for reforming public
borrowing rules to classify such borrowing separately as is the practise elsewhere in
Europe as well as by the IMF, and exempting it from the deficit reduction strategy’.
www.apse.org.uk
Funding
Recommendation 16: Government should review the overall Right to Buy policy
and immediately reduce the discount so that Right to Buy enables councils, ALMOs
and Registered Providers/Housing Associations to genuinely invest in one to one
replacement of the social housing.
Recommendation 17: UK government should review the New Homes Bonus
scheme immediately to assess whether it is delivering its objectives in a fair and
effective way.
www.apse.org.uk
Construction sector
• Construction sector will need enablement to deliver homes
on the scale required
• Councils can and do make an important contribution to this
through apprenticeship schemes.
www.apse.org.uk
Construction sector
Recommendation 18: The Government needs to support the expansion of the
construction industry, recognising the current capacity constraints on delivery
due to factors such as the availability of skilled and unskilled workers,
equipment and raw materials. Local authorities can also play an important role
in expanding the sector through apprenticeships.
www.apse.org.uk
What next?
• How can councils best meet the needs of younger people and older people?
• How can councils develop new models of delivering housing form local authority owned
housing companies to joint ventures on council owned land?
• What is the impact of the new housing standards in England and how does this compare
to the policy framework elsewhere in the UK?
• What is the impact of the RtB and how can councils ensure one to one replacement?
• How can councils help support smaller and medium size builders and ensure that they
play a role in increasing the capacity of the construction sector?
Council led joint venture on
council-owned land
Mark Jaggard, Spatial & Economic Development Manager
• Establishing a joint-venture
• A strong policy basis
• Processes to ensure good
design
Barton Park Oxford
Challenges
• Landlocked on the ‘wrong’ side of the A40
Northern By Pass
• Adjacent to an existing post war housing estate
- the main access could not be taken through it
• Contamination
• Substantial infrastructure costs = site unviable
with 50% affordable housing
• Initial discussions with HCA and SEEDA were
positive about investment
• Abolition of SEEDA and changes in HCA
funding regimes post 2010 required the Council
to re-think
Delivering the site - planning
• Core Strategy 2026 allocates the site as a
Strategic Development Site for 800 - 1200 homes
• Barton Area Action Plan sets out greater detail
Delivering the site
Option appraisal – looked at all options
• Developing the site ourselves
• Development Manager
• Investment Partner
Soft market testing of the options – real concern about
the OJEU process
Choosing a JV Partner
• The chosen route to development was a joint
venture with an investment partner
• City Council contributes the land; the partner
provides the capital and expertise
• Competitive process, outside OJEU
• Council objectives were:
Retain control of the site
Attractive financial package
Delivery
Quality
Establishing Barton Oxford LLP
• Grosvenor Development Ltd (GDL) selected as JV
partner, on the basis of the knowledge, financial
package and experience of similar developments
• Shared our vision for the site, in relation to quality
and community cohesion, and similar values and
concerns about reputation
• Long term investment
• Joint 50/50 Board set up
• Special project team of Council officers from
Planning and Corporate Assets to work with GDL
• Our aim was to be an active partner; a genuinely
joint project
GDL Bid Document
March 2011
Vision
Planning Strategy
Uses and delivery
Implementation plan and delivery
strategy
Structure of joint venture and
heads of terms
Funding proposal
Our Vision
A garden suburb designed for the needs
of the 21st century
A perfect blend of high quality urban
living that is in harmony with its
natural surroundings
An integrated and vibrant
neighbourhood, with a strong sense
of place and clear identity
A successful, sustainable, mixed-use
community by delivering high quality
buildings and public spaces
Outline Planning Permission
• Up to 885 homes; 40% for social rent
• Community ‘hub’ including a new primary
school
• Retail provision, potential hotel
• New pavilion, sports fields, MUGA and
LEAPs
• Linear Park, community garden and
greenways
Dutch Study Trip July 2012
Outline Planning Permission
October 2013
Illustrative Master Plan
Strategic Infrastructure
• Reserved matters for strategic infrastructure
granted in February 2015
• Responsibility of the JV
• Spine road and access across the A40
• Foul and surface water / SUDS
• Linear park and greenways
Commenced May 2015
Start on site May 2015
Housing Development process
• The JV is not a housebuilder!
• JV sell serviced plots
• Rigorous selection process; builders
required to demonstrate their commitment
to the design principles
• Hill chosen for the first 237 homes
• Reserved matters for phase 1 submitted
December 2015
• Planning Committee due March 2016
• Hill takes over their plot in Summer 2016
Phase 1 Hill
Barton Park Oxford Phase 1
Healthy New Towns
Barton Park
Grosvenor
February 2016
Healthy New Towns – Barton Park
Healthy New Towns – Barton Park
Barton Park as an NHS Healthy New
Town
How Barton Park can add value as an
NHS Healthy New Town
1. Barton as a pilot scheme to monitor how the built
environment can impact health and well-being
2. Opportunities for surrounding communities to benefit
from NHS partnership at Barton Park
3. Improving healthcare delivery at Barton Park
Questions?
Leading the delivery of new homes for rent
and sale in Birmingham.
Clive Skidmore – Head of Housing Development,
Birmingham City Council
150,000 additional people
89,000 additional households by 2031
Over 100,000 new jobs needed
• New homes completions in Birmingham have fallen
from 4,000 in 2005-6 to 1809 in 2014-15
• Insufficient delivery by partners
• Increasing demand for social and affordable housing
as result of economic conditions
• Housing waiting list at 26,000
The Birmingham Position New council-owned homes at
Loftus Close in Shenley
The Birmingham
Municipal
Housing Trust
• Birmingham Municipal Housing Trust (BMHT) set up in January 2009 to lead the development of the Council’s new build housing programme.
• BMHT is part of the Council – not arms length
• “Birmingham Municipal Housing Trust” is a brand name for the Council’s new build programme
• HRA subsidy reform made it viable for the Council to build new homes for the first time since the 1970s.
• The Council can bid for HCA grant in the same way as a Housing Association
Transforming Neighbourhoods-
Newtown, Aston – Summer
2014
• Over 1000 new rented homes completed
since 2009; 317 rented homes completed
2014 -15; 300 completed 2015-16 so far;
• All on City Council owned sites, mostly
clearance sites;
• Mainly family houses, small number of
apartments;
• Now building a new archetype – 2 bedroom
bungalows for older downsizers
incentivizing release of larger family homes
Building rented
homes
BMHT dormer bungalows; incentivising the release
of larger houses using AHP grant
Rents, costs, funding
Rent Setting
Social Rent levels – in accordance with Government “Target rent” formula. Typical level for 2015/16 is £105 per
week (varies by property size)
Affordable Rent levels (up to 80% of market rent) – BCC approach is to charge social rent + £2.74 per week, which
is around 71% of market rents. This is to ensure genuine affordability.
Construction / Ongoing Costs
Typical build costs - £120k per unit (more for smaller / more constrained sites). Assumes Council already owns
cleared site.
Funding Sources
HCA grant – approx.. £25,000 per property – properties are rented at affordable rent
1-4-1 RTB receipts – up to 30% of build costs (say £35,000)
s106 – subject to any specific requirements
Borrowing (subject to HRA borrowing headroom)
Other existing HRA resources (DRF / land sales etc)
Cross – subsidy from market sale new build – typical £20,000 per unit sold
Building Homes for Sale
•No land purchase up front;
•Planning already secured by the Council and design risk and costs already met by the Council; developer uses house types developed by the Council’s own architects;
•Contractor can modify the specification for the sale houses to include ensuites, fitted wardrobes, designer kitchens, etc;
•Using the expertise of the private sector in sales
and marketing;
•Ensuring design excellence;
•Most sales have been to first time buyers; Help to Buy has been critical to successful selling;
•Over 750 homes sold under this programme.
Being in control
Direct delivery means the Council is in control-
The Council is no longer entirely reliant on partners to drive housing supply – the Council now builds over 25% of
all new homes in the City;
The Council can control timing/phasing of developments which otherwise are subject to other partners’ Business
Plans;
The Council can directly control rents and customer service standards;
The Council can cross subsidize sites to achieve viability;
The Council can control design standards and quality on new developments in detail to achieve overall design
quality excellence;
The Council can offer a range of tenures to suit local housing markets.
Design Quality
Design quality a key theme for BMHT;
Our objective is to set high standards for
Others to emulate;
Higher space standards than Housing
Associations or private sector
Modern, not quirky; traditional, not boring;
Design of most sites has been bespoke;
Now developing palette of standard house
types;
All homes are built to Code 4, Lifetime
Homes, Building for Life, Secured by Design, Secure by Design.
• We carry out customer feedback surveys every year;
• This has helped improve design –
• Sound insulation;
• Storage space;
• Room shapes;
• Height of fencing;
• Width of car ports.
• 95% of respondents are satisfied with their new
home
• 41% of all respondents gave their new home a
score of ten out of ten
• 72% gave a score of eight or more.
• Higher satisfaction rate from tenants than owner
occupiers
Customer Feedback
• Since Councils stopped building in the 1980s the UK has failed to meet its house building targets;
• 1% rent reduction and debt cap prevent us stepping up our delivery of social rented homes;
• We are building more homes for sale and driving surpluses, without compromising on standards;
• UK will only meet its house building targets through public sector intervention.
The Future