Transcript welcome [www.westlondonhousing.org.uk]

DRAFT
LONDON HOUSING
S T R AT E G Y
Jamie Ratcliff, Assistant Director – Programme, Policy & Services
22 January 2014
HOMES FOR LONDON
• Increasing housing delivery
of all tenures - more than
42,000 homes a year
• Increased focus on working
Londoners – “who work hard
to make this city a success”
T H E M AY O R ’ S H O U S I N G
COVENANT
• £1.25bn – 42,000 homes
• Bid by 10 March 2014
• Most completions expected
by March 2018, some
flexibility for ‘trusted
delivery partners’
dependent on bids
• Tenure mix expected to
follow London Plan (60:40)
• Solely affordable housing
(strategy wider)
PLANNING CONTEXT
• ‘FALP’ published 15
January – consultation
until 10 April
• Increases London Plan
target to 42,000pa
homes (delivery
identified in SHLAA)
• Identifies potential for
increased delivery in
town centres to get to
requirement found by
SHMA of c.49,000pa
S U P P LY C H A L L E N G E
I N C R E A S I N G S U P P LY
• At least 42,000 new homes a year
– with 15,000 affordable & 5,000 long-term
PRS
– double intermediate by 2020 and double
again by 2025
• The 2015-18 programme
– 40 per cent low cost home ownership
– 30 per cent at “capped” rents
– 30 per cent at “discounted” rents
DISCOUNTED RENT
• Expected to be set at 80% or LHA level
• Nominations by Boroughs – not intermediate
rent
• Nominations must be to households not
affected by household benefit cap
(£350/500pw)
• Borough can use own resources to reduce
• In the absence of own resources rents can
only be lower if balanced with increased
capped rent
• 50% of all providers rented programmes
CAPPED RENT
• Capped at 50% of market rent (inc. s/c) but
can’t be less than Target Rent (+ s/c).
• Expect most homes to be at or close to 50% (in
reality low-value areas and schemes with high
s/c will be Target Rent)
• In exceptionally high value areas can be 50%
of LQ rents
• Boroughs can use own resources to reduce
rents
• Rents could increase to balance discounted
reduction
• 50% of all providers rented programmes
BOROUGH FRAMEWORKS
• Agreement of
principles:
• Any desired balancing
adjustment to capped &
discounted rent levels
• Distribution of flexible
home ow nership and
Affordable Rent (both
capped and discounted)
• Confirmation of noms
approach to discounted
rent
• The approach to Flexible
homeownership, including
in relation to marketing
cascades and income
restrictions.
LAND
• Exit strategy by 2016 on all GLA land
• Continue to encourage use of London
Development Panel – optimal procurement
• A wider role for GLA on public land across the
capital
D E V E L O P M E N T C A PA C I T Y
• Some short-term constraints
– Materials & labour
• Need existing players to maximise delivery
– Not the time to sit on your hands
• Need new players
– Large & small
– Different models
– ‘Modern’ construction
methods?
IMPROVING QUALITY
• All homes to meet
LHDG standards &
bespoke PRS design
• Retrofit every poorly
insulated home by
2030
• By 2016 All council
landlords to be able
to independently
meet decent homes
standard - £145m
fund
LONG-TERM FUNDING
• Relaxation of Local Authority borrowing for
housing
– Some movement in Autumn Statement
• Devolution of full suite of property taxes
– Certainty for investment and freedom to use
optimally
HARD-WORKING LONDONERS
•
•
•
•
Improving the intermediate market
Supporting home ownership
Massively expanding shared ownership
Rethinking allocations and mobility
P R I VAT E R E N T E D S E C T O R
• London Rental Standard – accreditation and
significant public campaign
• Encouraging longer tenancies and increased
professionalisation
• Optimising enforcement against criminal
landlords
• New supply – encouraged through land release
and planning
THE MOST VULNERABLE
• Increase provision of purpose built homes
for older people
• Halve the level of severe overcrowding in
the social rented sector
• No second night out and no living on the
streets
HOUSING ZONES
• Laterally applying concept of Enterprise Zones
– Focusing attention & resources in areas where
housing can rapidly delivered, at scale
– What mix of incentives can achieve this?
– Further thinking being developed
LONDON HOUSING BANK
• Up to £200 million for the London Housing Bank
to deliver up to 3,000 homes
–
–
–
–
Soft/equity-linked loans repayable in c.10yrs
Increased capital support cf. grant
Flexibility on exit route for providers
Focus on large-phased sites
• Further details in due course – no opportunity to
bid yet
T I M E TA B L E
Publication of draft strategy
End of consultation period
Review responses/revise strategy
25 November 2013
17 February 2014
February - March 2014
Submission to London Assembly
Mid March 2014
Submission to Secretary of State
End April 2014
Publication of final strategy
Late June 2014
S U M M A RY
• Concerted effort
required by all to
deliver homes
London needs
• Significant
resources available
to London in 201518
• Longer-term
certainty would
enable much, much
more to be done