Affordable housing rents how is it working in the current housing market? Martin Reid, Brighton & Hove City Council

Size: px

Start display at page:

Download "Affordable housing rents how is it working in the current housing market? Martin Reid, Brighton & Hove City Council"

Abner Welch
5 years ago
Views:

1 Affordable housing rents how is it working in the current housing market? Martin Reid, Brighton & Hove City Council

Brighton and Hove 273,000 people in 124,000 homes High property prices and low incomes Small social rented sector, large private rented sector Non-decent housing across all tenures,

2 Brighton and Hove 273,000 people in 124,000 homes High property prices and low incomes Small social rented sector, large private rented sector Non-decent housing across all tenures, primarily affecting the vulnerable 25% of households in the city contain a member with a long term health problem or disability High levels of mental health, physical disability, drug use

3 Strategic Pressures Housing Supply Affordability Land Supply Developer Viability Economic Downturn Welfare Reform Increased Homelessness Demographics

4 Challenges - Supply outstrips demand 18, ,000 households on the housing register 1,393 of these in high/very high need (bands A & B) of these: 42% need 2 bedrooms or more 52% are social tenants 6% increase in applications (in 2 years) 12 social housing lettings a week 52% studios/one beds 1 2

5 Challenges - Homelessness is rising Brighton & Hove Homeless Decisions & Acceptances 1,200 1, , / / / / / /13 Homelessness Decisions ,108 Homeless Acceptances Source: P1E

6 Challenges - Affordability House prices in Brighton are well above the national average Brighton & Hove Average Property Prices (to end December 2013) 300, , , , ,000 50,000 England & Wales Brighton & Hove Source: HM Land Registry

7 Challenges - Affordability rent Rents are now higher than Local Housing Allowance Brighton & Hove Monthly Private Sector Rents & Housing Benefit (2013 Q4) 1,600 1,400 1,200 1, Average Monthly Rent Average Monthly 30th Percentile Rent Housing Benefit Local Housing Allow ance , , ,424 1, room / LHA shared studio / LHA 1B 1B flat / LHA 1B 2B flat / LHA 2B 2B house / LHA 2B 3B house / LHA 3B Note: The housing benefit local housing allowance is calculated is only based on the number of bedrooms required, as all tenants are entitled to a kitchen and bathroom.

8 How much new housing and where? Housing mix Affordable housing New Homes

Planning - CP1 - Housing delivery housing requirements for the city 16-19,000 new homes housing delivery target 11,300 homes capacity driven: higher densities in

9 Planning - CP1 - Housing delivery housing requirements for the city 16-19,000 new homes housing delivery target 11,300 homes capacity driven: higher densities in Development Areas mixed uses on many sites housing opportunities at Shoreham Harbour re-development of council owned land inclusion of housing at Toads Hole Valley

10 Housing mix type, size and tenure Demand: 53% housing demand for 3+ bed homes 47% for 1-2 bed homes Part 2 of Plan detailed policies to meet specific needs

11 CP20 Affordable housing Sliding scale of targets for affordable housing: 40% on sites of 15+ units; 30% on sites of units; 20% on sites of 5-9 units criteria to guide assessment for sites

12 Housing Investment Framework Local Investment Plan for Housing (HCA, Council, Registered Providers) current AHP & Prospectus HRA Capital Programme HRA self-financing & borrowing capacity estates master-planning New City Plan & Supplementary Planning Guidance Developer Contributions LAs as potential purchasers/lessees of new accommodation explore ways in which we can secure access to private rented stock on longer term leases or outright purchase

641 affordable homes under 11-15 Affordable Housing Development

13 Our RP Partners Multi-million pound investment by our housing delivery partners and the Homes & Communities Agency to deliver 641 affordable homes under Affordable Housing Development Programme 534 new affordable homes expected to complete by end 14/15.

Court 1 st new council homes completed for a generation, providing 15 new homes 3 x 4-bedroom

14 New Affordable Housing supply Since 2009/10 total of 389 homes completed 198 affordable rent 126x 1-bed 58x 2-bed 14x 3-bed 191 shared ownership 87x 1-bed 92x 2-bed 12x 3-bed Balchin Court 1 st new council homes completed for a generation, providing 15 new homes 3 x 4-bedroom houses with gardens 7 x 2-bedroom flats - two that are fully wheelchair accessible 5 x 1 bed flats

15 Estimated monthly cost 1, Brighton & Hove Estimated housing cost and percentage of gross income spent on 1-bed flat % 14% Council socal rent RP social rent % RP affordable rent % Shared ownership % Private sector rent 100% 80% 60% 40% 20% % of income spent on housing based on median gross household income of 28,240 per annum 0% % of gross income spent on housing

16 Estimated monthly cost 1,600 1,400 1,200 1, Brighton & Hove Estimated housing cost and percentage of gross income spent on 3-bed flat % Council socal rent % RP social rent % RP affordable rent 1,216 52% Shared ownership 1,475 63% Private sector rent 100% 80% 60% 40% 20% 0% % of gross income spent on housing % of income spent on housing based on median gross household income of 28,240 per annum

17 1,500 Brighton & Hove Estimated monthly housing cost 1,475 1,250 1,216 1, bed Flat 3-bed Flat Council socal rent RP social rent RP affordable rent Shared ow nership Private sector rent

18 Brighton & Hov e Percentage of gross incom e spent on housing 70% 60% based on median gross household income of 28,240 per annum 63% 52% 50% 40% 30% 26% 31% 35% 26% 34% 20% 13% 14% 15% 10% 0% 1-bed Flat 3-bed Flat Council socal rent RP social rent RP affordable rent Shared ow nership Private sector rent

Earls Barton. Rural Housing Survey. Authors: A Miles & S Butterworth Date: October 2012

Earls Barton. Rural Housing Survey. Authors: A Miles & S Butterworth Date: October 2012 Earls Barton Rural Housing Survey Authors: A Miles & S Butterworth Date: October 2012 Swanspool House, Doddington Road, Wellingborough, Northamptonshire, NN8 1BP Tel: 01933 229777 DX 12865 www.wellingborough.gov.uk