Tag Archives: housing shortfall

Castle Point’s “Surgeless” Supply of Affordable Housing an Examination concern? Brighton indicate the way with Transparency!

Nearly 5 Years after Castle Point Council were promising a “surge” in the supply of Affordable Homes in the Borough, through the Echo newspaper;

Norman Smith, cabinet member for economic development and business liaison, said: “It is very disappointing that affordable homes are not being built in the borough for those wanting to find a home in the borough.
“But following the approval of recent planning applications, in terms of affordable housing, I do not think it will be long before we start seeing a change.”

This “good news” story came in the wake of; “Castle Point is suffering a major shortfall in housing as no new affordable homes have been built for almost a year.” *

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Disappointingly for those in need of such housing, the latest published cpbc Annual Monitoring Report fails to indicate any such expected / promised “Surge” in Affordable Housing Supply in Castle Point having been forthcoming;

“16 affordable housing units were delivered in Castle Point in 2016/17, representing 14% of total housing provision (114 dwellings). This level of provision is an improvement on the annual average provision for the period 2001 to 2016 of 11.5%, but significantly below the housing market requirement for affordable housing identified in the South Essex Strategic Housing Market Assessment 2016 of between 50% and 57% of new homes per annum.”

“The indicates that provision in line with OAN would require between 50% and 57% of new homes per annum across the housing market area to be affordable in order to meet the need for affordable housing.”

We trust that the Affordable Housing Supply does NOT include that of Caravans, of which the cpbc Annual Monitoring Report states;

“Since April 2011, the number of people living within caravans in Castle Point has continued to increase. Initially, the increase was rapid, with the number of units increasing 16% between 2011 and 2014. This fell in 2015 and 2016, but this increased to 124 additional caravans falling into residential use, according to Council Tax records in 2016/17.”

“The number of people living in caravans is still significant, and presents an issue for the Council. Caravans do not represent high quality living accommodation as there are issues with winter warmth and over-heating in summer associated with such accommodation.”

Developer David Wilson Homes is constructing 150 new homes on land off Kiln Road, a development which will see the provision of 53 affordable homes.

AND YET; castle point council planning portal reveals Kiln Road developer and the Council have signed a S106 Agreement to provide just 14 affordable dwellings in the first phase of 71 new homes!
A supply of just 20% affordable.

The success of development in Kiln Road is unmistakeable and lucrative. Over 2 years ago it was publicised that homes selling for up to £600,000 were being bought off-plan, such was the demand.

The developer claiming that the Government’s Help to Buy scheme meant that purchasers only need a 5% deposit and that the development is suitable for families and first time buyers. **

This when the refused Glebelands developent was offering 30% Affordable Housing Supply and the daft New Local Plan was proposing 25%, as the requisite for the mainland area!

The defenceless castle point council whose planning department and committee agreed that viability was an issue in the supply of the required Affordable Housing at Kiln Road, will face this issue as a major hurdle if and when their Local Plan eventually reaches Examination by an Inspector, their previous historical supply being unsupportable.

In contrast Brighton City Council aim to achieve more. They are now expecting developers to make public their Viability Assessments on Affordable Housing Supply alongside development proposals.

Setting their expectation levels far higher than those of castle point council, Brighton CC admit;  “This lack of transparency has led to public concern on schemes where reduced affordable housing provision has been accepted by the council on grounds of viability.”

The Brighton and Hove City Council statement reads;

“Property developers could be made to publicly disclose detailed financial information in cases where they say they cannot meet affordable housing targets set out in Brighton & Hove’s City Plan.
At present the city council requires developments of over five or more residential units to provide a percentage of affordable housing – unless it would make a scheme financially unviable. All schemes over 15 units should provide 40 per cent affordable housing.
Currently developers submit viability assessments to the council which are then independently assessed by the District Valuer Services (DVS). The viability information and the independent assessment are currently not disclosed to the public in order to protect commercial confidentiality.
This lack of transparency has led to public concern on schemes where reduced affordable housing provision has been accepted by the council on grounds of viability.
Now the authority is proposing to insist that developers show their sums in applications falling short of the affordable housing target. It would require a full Viability Assessment submitted up front with the rest of the application information.
Councillors are being asked to approve the new requirements in a report to the tourism, development and culture committee on 11 January. The proposals set out in the report are in line with the need for more openness sought by the Freedom of Information Act (FOIA) and recently proposed government consultation paper.
A public consultation on the issue was held in the autumn. The majority of respondents felt the measures would lead to greater transparency, understanding and trust in the planning system. Broadly, developers were concerned that commercially sensitive information could be disclosed and this had the potential to hinder development in the city.
Committee chair Cllr Alan Robins said: “In many cases there may be perfectly good reasons why a developer cannot meet 40 per cent. For example a council might want them to pay for other things such as a new leisure centre. But sometimes developers might be trying their luck by raising viability issues. Either way, it could be beneficial for the public to have the same information as councillors on the planning committee, so that everyone understands why a given amount of affordable housing was accepted or rejected.”
If approved, the new requirements would come into force early this year.”

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Castle Point’s choice – Develop Green Belt or Funding for “Vital Services” will be Cut!

We were recently reminded by a senior cabinet member how important the funding revenue received from house building was to Castle Point Council.

He clarified how the scaling down of direct Government funding to local authorities made the necessity of New Homes Bonus payments a vital source of income.

Housing

We heard the CPBC Cabinet member responsible for finances state that;

Currently local authorities receive the New Homes bonus on every new dwelling developed.

The Government will expect a Base Level of Housing Growth.

In Castle Point this Base Level of Housing Growth equates to NOT receiving any New Homes Bonus funding until 120 new dwellings are Developed in the Borough!

The Castle Point  Local Plan2016 seeks to supply 100 new dwellings per annum, some way short of the Base Level of Growth sought by Government.

Previously local authorities received monies against every new dwelling developed!

The New Homes Bonus (‘the Bonus’) was introduced in 2011 to provide a clear incentive for local authorities to encourage housing growth in their areas. It rewards local councils for each additional home added to the council tax base, including newly built properties and conversions as well as long term empty properties brought back into use, after deducting demolitions. 

 The Bonus is an unring-fenced grant paid by central government,  which allows local authorities to decide how to spend it, for example on frontline services or keeping council tax down, as we recognise that local authorities are in the best position to make decisions about local priorities.

Local authorities are expected to engage with their local community to decide how the money is spent, so residents feel the direct benefits of growth.

Starved of Central Government Funding, the council are between a rock and a hard place with the government very cleverly requiring councils to hold a referendum as to whether it would be acceptable to increase council tax in order to maintain societies fundamental requirements.

This equates to an inevitable increase in council tax, or more development, or less “vital services”!

Your choice !

It may also imply that unless the said cpbc cabinet member for finances can balance his budget, in light of the reducing funding streams, the Local Plan2016 Examining Inspector may also be required to include the council’s budget, against the projected Housing Supply of 100  new dwellings per annum contained in the Plan, within his Test of Soundness!