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Draft London Housing Strategy. Jamie Ratcliff, Assistant Director – Programme , Policy & Services 22 January 2014. Homes for London. Increasing housing delivery of all tenures - more than 42,000 homes a year Increased focus on working
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Draft London Housing Strategy Jamie Ratcliff, Assistant Director – Programme, Policy & Services 22 January 2014
Homes for London • Increasing housing delivery of all tenures - more than 42,000 homes a year • Increased focus on working Londoners – “who work hard to make this city a success”
£1.25bn – 42,000 homes Bid by 10 March 2014 Most completions expected by March 2018, some flexibility for ‘trusted delivery partners’ dependent on bids Tenure mix expected to follow London Plan (60:40) Solely affordable housing (strategy wider) The Mayor’s Housing Covenant
Planning context • ‘FALP’ published 15 January – consultation until 10 April • Increases London Plan target to 42,000pa homes (delivery identified in SHLAA) • Identifies potential for increased delivery in town centres to get to requirement found by SHMA of c.49,000pa
increasing supply • At least 42,000 new homes a year • with 15,000 affordable & 5,000 long-term PRS • double intermediate by 2020 and double again by 2025 • The 2015-18 programme • 40 per cent low cost home ownership • 30 per cent at “capped” rents • 30 per cent at “discounted” rents
Discounted rent • Expected to be set at 80% or LHA level • Nominations by Boroughs – not intermediate rent • Nominations must be to households not affected by household benefit cap (£350/500pw) • Borough can use own resources to reduce • In the absence of own resources rents can only be lower if balanced with increased capped rent • 50% of all providers rented programmes
Capped Rent • Capped at 50% of market rent (inc. s/c) but can’t be less than Target Rent (+ s/c). • Expect most homes to be at or close to 50% (in reality low-value areas and schemes with high s/c will be Target Rent) • In exceptionally high value areas can be 50% of LQ rents • Boroughs can use own resources to reduce rents • Rents could increase to balance discounted reduction • 50% of all providers rented programmes
borough frameworks • Agreement of principles: • Any desired balancing adjustment to capped & discounted rent levels • Distribution of flexible home ownership and Affordable Rent (both capped and discounted) • Confirmation of noms approach to discounted rent • The approach to Flexible homeownership, including in relation to marketing cascades and income restrictions.
land • Exit strategy by 2016 on all GLA land • Continue to encourage use of London Development Panel – optimal procurement • A wider role for GLA on public land across the capital
Development capacity • Some short-term constraints • Materials & labour • Need existing players to maximise delivery • Not the time to sit on your hands • Need new players • Large & small • Different models • ‘Modern’ construction methods?
improving quality • All homes to meet LHDG standards & bespoke PRS design • Retrofit every poorly insulated home by 2030 • By 2016 All council landlords to be able to independently meet decent homes standard - £145m fund
Long-term funding • Relaxation of Local Authority borrowing for housing • Some movement in Autumn Statement • Devolution of full suite of property taxes • Certainty for investment and freedom to use optimally
Hard-working londoners • Improving the intermediate market • Supporting home ownership • Massively expanding shared ownership • Rethinking allocations and mobility
Private rented sector • London Rental Standard – accreditation and significant public campaign • Encouraging longer tenancies and increased professionalisation • Optimising enforcement against criminal landlords • New supply – encouraged through land release and planning
The most vulnerable • Increase provision of purpose built homes for older people • Halve the level of severe overcrowding in the social rented sector • No second night out and no living on the streets
Housing zones • Laterally applying concept of Enterprise Zones • Focusing attention & resources in areas where housing can rapidly delivered, at scale • What mix of incentives can achieve this? • Further thinking being developed
London housing bank • Up to £200 million for the London Housing Bank to deliver up to 3,000 homes • Soft/equity-linked loans repayable in c.10yrs • Increased capital support cf. grant • Flexibility on exit route for providers • Focus on large-phased sites • Further details in due course – no opportunity to bid yet
summary • Concerted effort required by all to deliver homes London needs • Significant resources available to London in 2015-18 • Longer-term certainty would enable much, much more to be done