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Pressured Area Status

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Pressured Area Status THIS REPORT RELATES TO STIRLING COUNCIL ITEM 30 ON THE AGENDA STIRLING COUNCIL ENVIRONMENT SERVICES 13 MARCH 2008 NOT EXEMPT PRESSURED AREA STATUS 1. SUMMARY 1.1 Demand for social rented housing across Stirling significantly outstrips supply. This is, in part, the result of the impact of the right to buy. There is a strong case for the Council to consider making an application to the Scottish Government for “pressured area status” to suspend the modernised right to buy for some communities. 1.2 This will not, however, resolve the housing crisis that many people now face. There is pressing need to take early action to increase the number of new properties available to let. This can only be achieved by increasing the number of new social rented properties being built. The current rate of new construction is 62 properties per annum. 1.3 The paper sets out the options for making an application for “pressured area status”. 2 RECOMMENDATION(S) 2.1 To agree that the Council should make an application for pressured areas status covering the whole of the rural area west of the M9/A9 including Cambusbarron. 2.2 To agree that the Council should make three further applications covering the following high pressure urban areas:- • Dunblane, Bridge of Allan and Causewayhead/Logie • Stirling town, Riverside, Broomridge, Braehead and the Newhouse/lower St. Ninians area • Bannockburn, Whins and Hillpark/Firs 2.3 To agree the strategic priorities set out in the report and instruct the Director of Environment to ensure that they are reflected in the Council’s Strategic Housing Investment Plan. N:\DEMSUPP\NEWDECISIONS\SCOUNCIL\REPORTS\SC20080313ITEM30PRESSURISEDAREA.DOC 2.4 To agree that the strategic priorities set out in the report should be reflected in reviewing the Council's Structure Plan and Local Plan policies and Supplementary Planning Guidance on Affordable Housing. 3 CONSIDERATIONS Housing demand and need 3.1 In December 2006 the Council in consultation with its partners, commissioned a comprehensive analysis of housing need to provide an up-to-date and robust picture of existing and projected housing need in the Stirling Council area. The outputs of the study will be used to inform strategic planning, in particular, in updating the Local Housing Strategy and to inform housing requirements for the preparation of the Structure Plan, National Park Local Plan and the Local Plan. 3.2 The study included a survey of 1,096 households and a detailed analysis of supply and demand information up to 2011. The final report was published in September 2007. Two copies have been left in the Members’ lounge. 3.3 The study was carried out using a Scottish Government approved analytical framework. The consultant was also instructed to include in the calculation of need an assessment of the impact of the abolition of the housing legislation’s priority need test by 2012 on the demand for affordable housing. 3.4 The results have been broken down to three geographical areas corresponding to those used in the Structure Plan. Overall the report concludes that there is a backlog of unmet housing need at present. Based on current supply projections this will increase significantly over the next five years in all areas and for all housing types except in the very broadly drawn category of “supported housing”. The following tables illustrate the disaggregated results for the three Structure Plan areas at year five:- Table 1 - Cumulative Shortfall Summary, Core Area at Year 5 Year 5 Net Shortfall/Surplus of Affordable Housing Core Size 1 Size 2 Size 3 Size 4 Size 5 General Needs -1,622 -217 -55 -121 -80 Special Needs Accommodation - Wheelchair -46 -47 -33 -28 -12 Accommodation - Without Stairs -88 -84 -55 -45 -16 Sheltered 1900000 Supported 75 56 0 0 0 Total Special Needs 131 -74 -88 -73 -28 Total -1,490 -291 -142 -194 -107 Table 2 - Cumulative Shortfall Summary, Rural Area at Year 5 Year 5 Net Shortfall/Surplus of Affordable Housing Rural Size 1 Size 2 Size 3 Size 4 Size 5 General Needs -326 -154 -53 -86 -31 Special Needs Accommodation - Wheelchair -4 -5 14 -2 -1 Accommodation - Without Stairs -23 -36 -9 -19 -9 Sheltered 0 0 0 0 0 Supported 26 15 -1 -2 -1 Total Special Needs -0 -26 3 -24 -10 Total -326 -181 -50 -110 -41 Table 3 - Cumulative Shortfall Summary, National Park Area at Year 5 Year 5 Net Shortfall/Surplus of National Affordable Housing Park Size 1 Size 2 Size 3 Size 4 Size 5 General Needs -191 -60 -53 -22 -16 Special Needs Accommodation - Wheelchair -26 -32 -13 -9 -5 Accommodation - Without Stairs -20 -28 -10 -7 -4 Sheltered -2 -3 -1 -1 -0 Supported 6-6-2-1-1 Total Special Needs -42 -69 -27 -18 -10 Total -234 -130 -80 -40 -26 3.5 The total cumulative shortfall reported by the study at year five is:- Table 4 - Cumulative shortfall by year 5 Core Area 2,224 Rural 708 National Park 510 Total 3,442 3.6 The consultant has estimated that this cumulative shortfall will continue to rise and reach 4,996 by year 10. 3.7 In order to better understand the detail of the spread of demand for affordable housing the Council also commissioned the consultant to carry out an analysis of areas of pressure on the existing social rented stock. This is expressed as a ratio of the number of applicants for each let available. 3.8 The research shows that the overall ratio of lets to applicants for Stirling as a whole is 1:8. This includes Stirling Council and housing association waiting lists and lets. However this varies widely across allocations areas. Thirty-six of the Council’s 47 allocation areas have a lets to applicants ratio of over 1:6. Thirteen areas have a ratio of over 1:20 six of which are in the urban area and 7 in the rural area. The full results can be seen in the housing needs study which is available in the Members' lounge. 3.9 The evidence from both the housing needs study and the pressured area assessment clearly demonstrates significant levels of housing shortage at present and growing demand for new affordable housing over the next ten years. Responding to the growing demand for affordable housing 3.10 As the strategic housing authority the Council has a number of options for responding to this situation. These include both operational and strategic planning tools. The main ones are:- • strengthening provision for affordable housing in local planning policies; • applying for pressured area status to limit the number of right to buy sales from the existing social rented stock; • reflecting the need for new affordable housing in its Strategic Housing Investment Plan including: ¾ working with local housing associations and the Scottish Government to deliver new affordable housing; and ¾ building and managing new houses directly through the Housing Service. 3.11 The remainder of this report sets out the issues and options for each of the above and makes specific recommendations for action by the Council. Affordable housing policies 3.12 Currently, affordable housing can be delivered through the Structure Plan and the Local Plan in a number of ways. • Local Plan sites - affordable housing generally contributes to 25% of the development, regardless of the number of dwellings to be provided (although higher % are identified for some sites). Most of the local plan sites are now almost all developed and have provided some levels of affordable housing. However, until a review of the Structure and Local Plans is brought forward, and further land is identified, few local plan opportunities will be available in the short-term. • Windfall sites (non-Local Plan sites) - affordable housing generally contributes to 25% of the development where the development is 20 dwellings or more. Windfall sites have historically and will continue to make up a significant amount of the available land supply and will therefore be relied upon to contribute a considerable amount of affordable housing in the future. The location of future windfall sites are however not always known and the timescales for coming forward uncertain. It can be difficult therefore to predict the levels of affordable housing that may be provided. • Rural village sites - affordable housing contributes to 100% of the development where the development is 4 dwellings or more. It is increasingly becoming more difficult to achieve affordable housing through rural village sites as few sites are coming forward. 3.13 The delivery of affordable housing can be secured by the use of Section 75 Agreements with developers. However, this in itself can cause delays as the developer can choose to build the affordable housing at any stage of the development and this is rarely at the start. It can also take up to 5 years from planning agreement to the provision of houses on the site. In an attempt to deliver affordable housing through Section 75 Agreements regular meetings are held with all appropriate stakeholders to discuss issues such as site availability/viability, funding packages, location of affordable housing within the site and deliverability of affordable housing. 3.14 Our target for the provision of affordable housing is 62 per year. However, due to issues outlined above it is increasingly becoming more difficult to achieve this. During the years 2006/07 and 2007/08 the number of new affordable rented houses built was 2 and 170 respectively. The latter were mainly a result of regeneration at Cultenhove. 3.15 It is recognised that the need for affordable housing in Stirling is complex. It is not simply a matter of the number of houses required, but more of the distribution and quality of supply of house types and sizes to suit demand.
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