Localism and the future of affordable home ownership. Cornwall Council. Louise Dwelly Strategic Affordable Housing Manager
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1 Localism and the future of affordable home ownership Cornwall Council Louise Dwelly Strategic Affordable Housing Manager
2 Service context in Cornwall Team based within Planning Service 18 staff including 3 affordable housing planners Limited capital programme 3.5 million Delivery 1500 homes 12x elected members, 213 parishes
3 Localism can be an opportunity to change service delivery, work collaboratively and innovate
4 A new relationship with 213 parishes - Cornwall had to get it right early
5 The new relationship Localism Service 19 community network areas and officer resources Strengthened relationship with Cornwall Association of Local Councils Local Council Planning Forum Protocols with local councils (pre-app and applications) Friendly planning parish link officers Local Development Order Feock/ Carnon Downs Cornwall Design Guide Town frameworks
6 The new relationship with the affordable housing service Locally responsive policies departure sites policy market homes on rural exceptions sites to deliver affordable housing hamlets policy self build second homes areas increase in community land trust activity
7 Priority Parishes Project Mixed tenure development (including market homes on rural exceptions sites to deliver affordable housing) Project focuses at community network area level Toolkit prepared for local communities to understand the process Call for land carried out early to identify and create competition between land owners Parishes lead consultation and site appraisal Affordable housing planners are provided as a resource
8 Cornwall Departure Sites Policy Mixed tenure development (including market homes on rural exceptions sites to deliver affordable housing) 787 homes delivered or negotiated since April are affordable No public subsidy Only where there is local support Parishes have influenced the outcomes (eg fewer affordable homes but at a lower price)
9 Cornwall s Community Land Trust activity 6 well developed trusts, many others in the pipeline Successful in Delivering affordable home ownership Working alongside RPs Combining with grant and social rented homes Supporting self build Council 1 million revolving loan fund, due to be expanded
10 But the Localism Bill will also present key challenges for those trying to deliver
11 Planning Neighbourhood plans allow town and parish councils to produce their on local plans which will then become a key part of the planning decision making process BUT are permissive and must conform with the Core Strategy. Onerous process including public examination Neighbourhood Development Orders and the Community Right to Build potential for more significant impact. Local areas can produce any number. They can in effect grant permission for any type of development. But may prescribe a parish s requirements for a specific site eg tenure mix Mandatory pre-application consultation. Developers must undertake consultation on their proposals, and to have regard to comments received, prior to submitting a planning application. Thresholds may limit impact No strategic housing targets gives areas some freedom to plan in a locally informed manner although this needs to be evidenced based and subject to independent evaluation. In addition, the need to cooperate is important to ensure that some form of strategic overview is maintained. Community Infrastructure Levy proposals will give local communities funds for specific community proposals. But have an impact on the viability of affordable housing delivery
12 Housing New flexibilities and freedoms some affordable housing ideas - eg to hold a referendum on additional tax from second homes Fixed term tenancies concern they will be costly and less scope to run in rural areas. Local landlords proposing 5 years. How will this impact upon demand? Changes to housing register possible conflict between housing and planning objectives in review of the allocations policy. Loss of open register could reduce the use of the register as a strategic housing tool, less information about other tenures Tenancy strategies and affordable rent scope to increase conflicts with housing providers and local communities Private renting for homeless households will ease pressure on social housing stock but requires good quality private homes. Changes to Housing Benefit may affect landlords willingness to take referrals. Self financing HRA will bring additional investment but the cap on borrowing means the headroom in Cornwall is limited. A new business plan for council housing is in development to determine the scope for investment in our properties and an element of new council housing. National Homeswap scheme has been tried before. Key issues for Cornwall are around local connection and potential conflicts in local communities.
13 Housing need in Cornwall home ownership is still an important part of the local market... Housing register data (19,000) rented housing potential purchasers
14 Challenges for Affordable Home Ownership Community support and understanding Based on market values is it affordable? Percentage of equity charged as rent Protected areas and waivers/ staircasing out in towns Rural local connection cascades can create conflict What the customer wants? Complex Mortgage finance only 3 lenders in Cornwall) Strategic data and market intelligence may be more limited Economic prospects force households back to rent
15 The Complicators Affordable housing has become confusing Social rent (ended) Affordable rent per week Housing for sale Homebuy Shared equity Low cost sale Self build Community land trusts
16 Cornwall equity loans pilot Partnership with the HCA Mirrors Firstbuy Market housing outside the 106 with controls through nominations and restrictions on title Maximise mortgageability and reduce deposit Self financing through planning gain
17 Future options Enhanced market intelligence New strategic information sources Understanding the new customer profile (size and mix of dwellings houses with gardens!!) An end to shared ownership as the cross subsidy panacea Not a product for rural schemes? Limited demand High values Local community conflicts around cascades and affordability Time to innovate? Other products Deposits Rent to buy schemes
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