Agenda item

Report of the Corporate Director of Regeneration and Economic Development.

The Chairman thanked the Senior Housing Development and Delivery Officer, Regeneration and Economic Development, Angela Stephenson who was in attendance to give an update to Members in relation to Affordable Housing Delivery (for copy see file of minutes).

The Senior Housing Development and Delivery Officer reminded Members of a Government definition of affordable housing: “affordable housing includes social rented and intermediate housing, provided to specified eligible households whose needs are not met by the market” and noted the different types of affordable homes.  It was explained that “Affordable Rent” referred to properties developed by House Builders or Registered Providers at affordable rent, 80% of the market rent for that particular area.  Councillors noted that “Social Rent” was an alternative to “Affordable Rent” and was worked out via a Government formula.  It was explained that there was little difference between the two types of rent in the North East, however, in areas of the South East of the country there was a considerable difference.  Members noted that “Discount Market Sale” was where eligible purchasers were able to purchase a property with a discount, generally 30%, and the discount remains as a charge against the property in perpetuity.  It was noted this meant it can only ever be sold at a discount, for example 70% of market value if a discount of 30% was given, and remained an affordable property.  Councillors understood that there was also the option of “Shared Ownership” where a prospective purchaser owns a proportion of the property and a Registered Provider would own the remainder, with the purchaser having the option to purchase more equity over time.  Members were reminded of other national schemes to assist first-time buyers, although many of those were designed to stimulate the housing market rather than to give additional affordable housing provision.

The Senior Housing Development and Delivery Officer explained that the Strategic Housing Market Assessment (SHMA) had identified a shortfall of 674 affordable housing units and it was explained that it was projected that approximately 400 affordable units would be delivered in 2014/15 through a combination of the Homes and Communities Agency (HCA) Affordable Homes Programme, Section 106 developer obligations, and through affordable housing schemes delivered by Registered Providers using their own resources.  Councillors noted that Registered Providers within County Durham had been awarded £5.2 million in grant assistance in respect of “firm schemes”, equating to an average of £22,000 per unit, equivalent to delivery of 235 units. 

Members were reminded that the emerging County Durham Plan (CDP) set out the percentages of affordable housing across the county, being: North – 15%; South – 10%; West – 15%; Central – 20%; East – 10%.  It was noted that DCC would work with Registered Providers to Developers to try and get the correct mix of housing and tenure type.

The Chairman thanked the Senior Housing Development and Delivery Officer and asked Members for their questions on the report.

Councillors asked questions relating to: fixed percentages of affordable housing and if they were subject to exceptions depending upon the size or location of a development; at what point the type and tenure of affordable housing would be agreed and how Members would know what the correct mix was; and whether public and private sector rent levels were converging or diverging.

The Senior Housing Development and Delivery Officer explained that the fixed percentages currently applied to developments of 15 or more houses, although recent changes in legislation may have an effect.  It was added that there was a “rural exception” in cases of 5 properties or more and also issues where development could affect an Area of Outstanding Natural Beauty (ANOB).  Members noted that the Development and Delivery Team would speak with Developers before the planning stage to discuss the site and the types of affordable housing that may be appropriate, together with supporting in any applications to access HCA funding.  It was added that the Development and Delivery Team would be consulted by the Planning Section in their process of developing recommendations.  The Senior Housing Development and Delivery Officer noted that further information as regards rent levels would be obtained.

Resolved:

That the report be noted.