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

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, 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

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

Challenges - Supply outstrips demand 18,30 0 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

Challenges - Homelessness is rising Brighton & Hove Homeless Decisions & Acceptances 1,200 1,000 800 600 826 809 754 825 978 1,108 400 200 439 393 368 426 496 506 0 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 Homelessness Decisions 826 809 754 825 978 1,108 Homeless Acceptances 439 393 368 426 496 506 Source: P1E

Challenges - Affordability House prices in Brighton are well above the national average Brighton & Hove Average Property Prices (to end December 2013) 300,000 250,000 200,000 150,000 100,000 50,000 England & Wales Brighton & Hove 0 01 02 03 04 05 06 07 08 09 10 11 12 13 Source: HM Land Registry

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 1,000 800 600 400 200 422 388 341 Average Monthly Rent Average Monthly 30th Percentile Rent Housing Benefit Local Housing Allow ance 571 535 650 789 750 650 1,079 950 818 1,129 950 818 1,424 1,200 950 0 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.

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 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

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

CP20 Affordable housing Sliding scale of targets for affordable housing: 40% on sites of 15+ units; 30% on sites of 10-14 units; 20% on sites of 5-9 units criteria to guide assessment for sites

Housing Investment Framework Local Investment Plan for Housing (HCA, Council, Registered Providers) current AHP & 15-18 Prospectus HRA Capital Programme 2014-17 - 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

Our RP Partners Multi-million pound investment by our housing delivery partners and the Homes & Communities Agency to deliver 641 affordable homes under 11-15 Affordable Housing Development Programme 534 new affordable homes expected to complete by end 14/15.

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

Estimated monthly cost 1,000 800 600 400 200 0 Brighton & Hove Estimated housing cost and percentage of gross income spent on 1-bed flat 299 329 13% 14% Council socal rent RP social rent 607 26% RP affordable rent 734 31% Shared ownership 826 35% 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

Estimated monthly cost 1,600 1,400 1,200 1,000 800 600 400 200 0 Brighton & Hove Estimated housing cost and percentage of gross income spent on 3-bed flat 360 15% Council socal rent 611 26% RP social rent 806 34% 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

1,500 Brighton & Hove Estimated monthly housing cost 1,475 1,250 1,216 1,000 750 607 734 826 611 806 500 299 329 360 250 0 1-bed Flat 3-bed Flat Council socal rent RP social rent RP affordable rent Shared ow nership Private sector rent

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