ROOF Blog

Housing Minister John Healey and the Local Government Association (LGA) today announced they are launching joint work to look at how councils can deliver new homes to tackle the shortage of affordable housing and help drive economic growth. A new Commission chaired by Lord Richard Best and made up of council chief executives, housing association chief executives and academics, will assess what councils are already achieving and advise on ways councils could play an even greater part helping to build the homes of all types the country needs, as well as extending their strategic housing role to better meet local needs and aspirations. The Commission will report to Government and the LGA in summer 2010.

John Healey has published the Government’s response to the Mayor of London’s plans for affordable housing in the capital. He warns that the housing strategy will not sufficiently address the capital’s needs, and outlines areas of particular concern, including plans to reduce the number of new social rented homes provided by councils and housing associations by an equivalent 2,755 homes a year compared to current plans.

Housing statistics for the final quarter of 2008 show a record low for the number of new homes being built. Housing starts (the number of private new homes under construction) were down 58 per cent from Q4 of 2007. Private enterprise housing starts were 64 per cent lower than the December quarter of 2007, with annual housing starts figures for England continuing to decline, totaling 105,000 in 2008, down some 37 per cent compared with 2007 and 43 per cent below their 2005-06 peak. Chairman of the Local Government Association housing board, Cllr Paul Bettison, said: ‘The slowdown in private sector house building will eventually affect the amount of affordable housing that is being built. This will mean fewer new social homes at a time when there will be more demand for them.’

Boris Johnson’s key election pledge to build 50,000 affordable homes in London in his first three years in office will not be delivered, City Hall has admitted.

The Mayor’s deputy for planning Sir Simon Milton said the target must be pushed to 2012 due to the downturn.

The number of affordable homes started since Mr Johnson was elected is 6,500, with 9,080 completions. At that rate the number built by May 2011 would be between 13,000 and 21,000.

Nicky Gavron, Labour’s housing representative on the London Assembly, said: ‘This is yet another broken promise’.

However, the government has confirmed it has dropped its affordable house building target from 70,000 to 55,000 a year in the next two years, despite the additional funding, as it is now paying ‘more of the cost per house’ due to the huge reduction in section 106 agreements and other forms of private investment. The government expects to complete 55,500 affordable homes this year and 56,450 in 2010/11, but only 13,500 a year will be for social rent rather than the 45,000 out of 70,000 homes originally planned. Communities and Local Government refused to provide a regional breakdown of the reduced targets.

The number of council and housing association homes for rent is at its lowest in 50 years, a Shelter Scotland report has found. Building pressure warns of a ‘growing chasm between the number of homes needed and the number available’. It estimated there were 142,000 households on the waiting list for council homes, and said the right-to-buy scheme was partly to blame for the shortage as more than 135,000 homes had been sold under the scheme in the previous decade.

The Chartered Institute of Housing (CIH) has said private developers, local councils and housing associations must work better together to manage land supply more efficiently to boost the supply of affordable housing. It argues that a poor grasp of land economics, an over reliance on section 106 agreements and an aversion to risk is hindering the provision of land, and added that housing organisations must invest in skills to value land, assess a project’s viability and negotiate better.

Shelter has published a report promoting different ways to increase the development of affordable housing. A range of contributors cover a number of subjects including how to attract development finance to the industry, flexible tenure and the private rented sector.

The Homes and Communities Agency says it is ready to begin delivering the significantly enlarged programme of public house building when it takes responsibility of the additional £1.5 billion promised on Monday by Gordon Brown. The HCA will allocate the funds through its National Affordable Housing Programme, and via the existing bidding process which it says will kickstart stalled schemes and help local authorities directly.

Mayor of London Boris Johnson has approved plans to redevelop one of the capital’s largest and most deprived estates. The Ferrier estate in Kidbrooke will be replaced with 4,000 new homes, of which 38 per cent will be affordable housing.