Market Renewal PROSPECTUS March 2004 2 RENEW North Staffordshire • Prospectus • March 2004 Foreword
This Market Renewal Prospectus has been assembled through a highly distinctive approach, which has combined an integrated research programme with the experience of local people. This has led to a thorough understanding of how the urban form in North Staffordshire has developed and how the system currently works. The response to this intelligence gathering exercise has resulted in the development of policies and programmes as the findings from the research have become available over the last twelve months.
The research programme was aided by a Consortium of Consultants incorporating housing specialists, urban designers, planners, economic development specialists, transport specialists and demographers. The Consortium worked in collaboration with the Renew North Staffordshire Team to produce the body of evidence which demonstrates how the urban form in North Staffordshire is developing and crucially, where the Housing Market Renewal programme fits within the wider public policy framework.
The research programme has produced a hierarchy of strategic responses to: reshape the urban form, develop a Central Business District, enhance the environment, suggest the preferred location of new housing developments and shape the Housing Market Renewal Investment Programme. This Prospectus summarises detailed findings and policy proposals highlighted in 18 technical appendices submitted to the Office of the Deputy Prime Minister to support Renew North Staffordshire’s bid for Housing Market Renewal Fund Resources. Ideally, the reader will have examined these appendices and digested their socio-economic and policy implications before reading this Prospectus which integrates their implications and develops a strategy to address the identified drivers of change.
The major benefit of Renew North Staffordshire’s distinctive approach is that by integrating the analysis of a multi-disciplinary group, we have been able to identify the highly distinctive features of the urban environment in North Staffordshire such as:
• a highly fractured urban form; • relatively low sub-regional population loss; • a coalescence of ground instability and poor stock condition; • very low average incomes; and • a history of very short-range residential moves which have suburbanised a polycentric conurbation.
Despite the difficulties inherent in making North Staffordshire’s urban form competitive within a 21st century knowledge based economy, the area does have many advantages which will enable it to revive and reconnect with the vibrant economic and social life surrounding the conurbation. This will be a long term process and is thus reflected in the Strategy and the Business Plan accompanying the Prospectus. However the social and economic benefits of having a healthy, stable and prosperous North Staffordshire will be significant to the regional economic and public sector finances generally by the end of this project.
RENEW North Staffordshire • Prospectus • March 2004 3 4 RENEW North Staffordshire • Prospectus • March 2004 Executive Summary
The Development of North Staffordshire
The North Staffordshire conurbation grew up from the towns and villages which were built around its natural resources of clay, coal and iron ore. The six towns of Stoke-on-Trent gradually spread into neighbouring Newcastle-under-Lyme and continued expanding without an obvious single centre during the 19th and 20th centuries. The opening of large coal mines on the edges of the conurbation later in the 20th century continued the spread of industry and housing.
Closure and reclamation of former industrial land has been a constant feature of the past 250 years, but this process has sped up considerably over the past 25 years. Nearly 80 pottery factories are recorded as having closed since 1975, together with the last remaining mines and Shelton steel works, while the Michelin tyre factory has contracted greatly. This has left more than 900 acres of land capable of development. But reclamation of individual sites is difficult because they are scattered across the sub-region and served mainly by an outworn, Victorian road network.
The building of large council estates in the 1950s and increasing suburban development over the past 50 years has caused further urban spread and a marked decline in population in the central areas. While the population of North Staffordshire as a whole has remained broadly static over the past 20 years, the population of Stoke- on-Trent has fallen by 9,200 over the past 20 years and is predicted to fall by 8,600 over the next 20 years.
New Regeneration Opportunities
The decline of North Staffordshire’s traditional industries and the lack of significant regeneration activity between 1968 and 1995 now means the area faces a significant challenge to become competitive. In particular the housing stock is a barrier to encouraging new inward investment and growth.
Nonetheless, North Staffordshire has significant assets to work with including its central location, large quantities of urban green space, two universities, a medical technologies cluster, highly competitive land and labour costs, a significant ceramics and tourism industry and a large catchment area. It is also benefiting from major investment from other agencies in economic renewal, health care, education and the environment.
We aim to link housing renewal to broader economic renewal by ensuring policies for housing are supported by complementary strategies for transport, economic development and planning.
The North Staffordshire Housing Market
Average house prices in North Staffordshire in 2002 were 60 percent of the West Midlands average, but in Stoke-on-Trent average price were 47 percent of the regional average. House prices are also rising more slowly in North Staffordshire compared to the West Midlands, and more slowly in Stoke-on-Trent than elsewhere in North Staffordshire.
Yet there is a vibrant new build market in and around North Staffordshire. Detailed research with people buying new property in market towns surrounding the conurbation shows they have generally poor perceptions of Stoke-on-Trent and Newcastle-under-Lyme, although they use the area for shopping and leisure. Further research with people buying property in the conurbation shows strong loyalty to the area, a strong desire for better housing and concern at crime and a poor environment in Stoke-on-Trent.
RENEW North Staffordshire • Prospectus • March 2004 5 The Pathfinder Area
The pathfinder area contains around 67,000 properties. It includes the majority of the old six towns of Stoke-on- Trent, the large social housing estates to the south and east of Stoke-on-Trent, the social housing estates to the west of Newcastle-under-Lyme, together with the former Coal Board estates of Parksite, Crackley, Galleys Bank and Biddulph East.
There are a number of generic issues which affect the housing market in the pathfinder area. These include:
• Obsolescence: Thousands of older properties are now technically obsolete because they have not been upgraded and because demand for this housing has changed with people’s aspirations and shifting populations. Poor stock condition and unstable ground conditions makes improvement unviable given the social and economic returns.
• Surplus housing: There is a crude numerical surplus now of 2,500-3,000 properties, but this figure would grow significantly over the next 20 years without action.
• Unpopular neighbourhoods: These are caused by deprivation, stigma, crime, unpopular property and design, location and poor environment.
The Social Makeup of the Pathfinder Area
Relatively few people in the pathfinder area own their own homes, while more people rent from social landlords, compared to all North Staffordshire.
The area is home to larger proportions of people who are single, lone parents or from ethnic communities than the rest of North Staffordshire.
Terraced housing particularly houses people from ethnic minorities, students and working people on low incomes, while social housing houses people who are: disproportionately prone to unemployment; the elderly; lone parents; and those without qualifications. Average annual household income in the pathfinder area is £15,669.
Performance of the Local Economy
Residents’ ability to pay for affordable, well-maintained housing is affected by job opportunities. Economic activity rates, skill levels and wages are all relatively low, although education achievement is improving.
Job losses over the past 20 years have been offset by the creation of new employment. However, new businesses such as distribution centres and Keele Science Park, have tended to be located on the edges of the conurbation.
With further closure of older industry likely there is a danger the economic weakness of the older town centres will be worsened. Commercial vacancy rates in the five main towns of Stoke-on-Trent vary between 12 and 18 percent, but Newcastle is faring substantially better at just five percent.
Despite its large catchment area, North Staffordshire does not have a recognisable Central Business District. Stoke-on-Trent supports around 22,000 city centre jobs, whereas similar sized Derby has 32,000, Wolverhampton has 35,000, Leicester has 47,000 and Nottingham has 59,000.
It is critical that housing market renewal is linked to the creation of higher value employment, retraining, a more diverse and aspirational housing stock, a radical improvement in the urban environment and infrastructure, and the creation of a central business district.
6 RENEW North Staffordshire • Prospectus • March 2004 The Goals of Housing Market Renewal
We will work towards creating a conurbation where new housing is built around existing centres at densities which support local facilities within easy walking distance. Industrial sites will generally be discouraged close to residential neighbourhoods. The quality of green space will be greatly improved and people should have a real choice between private and public transport. We aim to:
1. Balance the supply and demand for housing by removing surplus properties and providing a better choice of homes in appropriate locations.
2. Provide sustainable neighbourhoods through better management and increasing population by building at higher densities.
3. Reduce outward migration from Stoke-on-Trent and retain and attract new population to the pathfinder area.
4. Improve the environment radically by removing housing from heavily polluted roads, from areas of polluting industry and from areas with no long-term residential future. Quality open space will be provided on former housing land which is no longer needed.
5. Promote social cohesion by ensuring ethnic minorities can access new build housing and by reducing overcrowding.
6. Link to wealth creation by supporting the new commercial core, town centres and by providing construction training to local people.
7. Reduce crime and the fear of crime in order to promote safe neighbourhoods.
Major Intervention Areas and General Renewal Areas
Consultation has begun on draft action plans for four Areas of Major Intervention areas in neighbourhoods to the south of Hanley, at Middleport, Meir and at Knutton/Cross Heath (including Lower Milehouse).
Four more major intervention areas are proposed at Hanley East, Hanley North West, Stoke and South Shelton.
Activity in these eight areas will concentrate on reducing poor stock condition, disrepair, vacancy and turnover rates.
Six general renewal areas are proposed for smaller neighbourhoods which are generally next to the major intervention areas but which are in better condition. The focus here will be on retaining housing, environmental regeneration and providing alternative homes to people who have to move from major intervention areas. These areas are Burslem Park, Birches Head, Normacot, Tunstall, Smallthorne and Dresden.
Town centre living will be supported in Newcastle-under-Lyme, where some high quality development is taking place but where some housing conditions are poor; Burslem, where the town's masterplan has already identified capacity for 800 new homes; and Hanley, through the Hanley South major intervention area.
The Etruria Valley, on the site of the former Shelton steel works, combined with other sites in Burslem and Hanley City Centre, presents the opportunity to create up to 9,000 new homes and to support up to 25,000 new jobs, but a successful plan will depend on co-ordinated investment by all of Renew North Staffordshire's partners.
Work on the former Coal Board estates will bring the defective housing into mortgageable condition and seek local solutions to other issues.
RENEW North Staffordshire • Prospectus • March 2004 7 The Scale of the Programme
For the period 2004-06 we are seeking funding from the following sources:
ODPM Housing Market Renewal Fund £30m
English Partnerships £10m
Social housing providers and councils £14m
Housing Corporation £6m
Total £60m
In this period we aim to acquire 1,300 properties, improve 800 properties, carry out environmental improvements to benefit 1,800 homes and build 350 new homes.
Over an 18-year period we are seeking funding from the following sources:
ODPM Housing Market Renewal Fund £860m
Other public sector £568m
Private sector £879m
Total £2.3bn
During this period we aim to clear 14,500 properties, refurbish 36,000 properties and build 12,500 new homes.
This in itself is a major task, but it is equally important that investment from partner agencies in economic development, planning and transport is directed to support the goals of housing Market Renewal.
Support of Our Partners
Each set of key partners will have a specific role.
The registered social landlords will align their spending to support area initiatives, they will work with communities in areas of change and they will assist with clearance and rehousing by providing refurbished properties and administering grant schemes.
Funds from the Housing Corporation will be targeted at renewal areas.
Advantage West Midlands has already worked closely with Renew North Staffordshire to develop a case for an Urban Development Corporation to deliver spending from both funding sources. Further work will ensure delivery of spending on economic development, transport, construction training and the new commercial core supports the aims of housing market renewal.
English Partnerships has already supported Renew North Staffordshire in buying key sites and will continue to play a lead role in land acquisition.
The local councils will provide strategic leadership through directing complementary policies to support housing renewal areas through education, planning, transport, community engagement and environmental regeneration.
8 RENEW North Staffordshire • Prospectus • March 2004 Support for Residents and Communities
Significant effort has gone into communication with residents through open days, presentations, meetings, a website and leaflets. This is being followed by further work with community groups, the mailing of newsletters, distribution of a video and the planned appointment of residents' friends and community architects.
A series of options has been drawn up to offer financial support to residents who may have to move but cannot afford to buy a similar property. These include shared ownership, part purchase, grants, and home swaps. A variety of grants, loans or manual help with improvement work will also be available to owners whose homes are to be renovated. Grants will also be made available to private landlords who join an accreditation scheme.
A range of local management initiatives will give communities a voice in the planning of changes to their areas.
Governance and Risk Management
A programme of work has been developed which will be monitored closely over its lifetime. A risk management system has also been established which will be used to monitor changes to the programme and external factors which may require the programme to change its emphasis.
The Renew North Staffordshire Board is made up of senior representatives from the partner bodies. It is now considering the best way oversee delivery of the programme and integration with other regeneration activity. It will appoint a team of 25 staff by September to continue consulting with communities, develop detailed plans and deliver the programme.
RENEW North Staffordshire • Prospectus • March 2004 9 10 RENEW North Staffordshire • Prospectus • March 2004 Table of Contents
Foreword Page 3 Executive Summary Page 5 Table of Contents Page 11 Table of Figures, Tables, Boxes Page 14
Section 1 Market Renewal in North Staffordshire Page 17 1.1 The Strategic Context Page 17 1.2 The Scale of the Task Page 22 1.3 The Building Blocks of the Market Renewal Strategy Page 24 1.4 The Structure of the Document Page 26
Section 2 Housing and the Local Economy Page 27 2.1 Introduction Page 27 2.2 Housing Characteristics Page 27 2.3 The Performance of the Local Economy Page 35 2.4 Summary Page 37
Section 3 Reconstructing the Urban Form Page 39 3.1 Introduction Page 39 3.2 Strategic Spatial Assumptions Page 39 3.3 Area Development Frameworks Page 40 3.3.1 Stoke North Page 40 3.3.2 Stoke Central Page 43 3.3.3 Stoke South West Page 44 3.3.4 Stoke South East Page 44 3.3.5 Newcastle-under-Lyme Page 45 3.4 Summary Page 46
Section 4 The Local Housing Market Page 47 4.1 Introduction Page 47 4.2 Neighbourhood Typologies Page 49 4.3 The Local Housing Market - The Socio Economic Context Page 55 4.4 The New Build Market Page 56 4.4.1 Market Towns New Buyers Survey Page 56 4.4.2 Conurbation New Buyers Survey Page 57 4.5 Planning for Change Page 59 4.5.1 Statutory Planning the Current Situation Page 60 4.5.2 Population and Household Forecasts Page 60 4.5.3 New Build and Household Change Assumptions and Their Impact on Market Renewal Page 61 4.6 Summary Page 62
RENEW North Staffordshire • Prospectus • March 2004 11 Section 5 The Market Renewal Startegy Page 63 5.1 Introduction Page 63 5.2 Factors Driving Housing Market Change Page 63 5.3 Aims and Objectives Page 64 5.4 The Shape of the Programme Page 66 5.4.1 Areas of Major Intervention Page 66 5.4.2 General Renewal Areas Page 67 5.4.3 Environmentally Driven programmes Page 67 5.4.4 Town Centre Living Page 67 5.4.5 Ex-National Coal Board Estates Page 67 5.4.6 Chesterton Western Urban Village Page 68 5.4.7 A New Etruria Valley Page 68 5.4.8 Local Authority Main Programmes Page 69 5.5 The Scale of Change Proposed by the Programme Page 69 5.5.1 Cost of the programme Page 69 5.6 Community Consultation and Stakeholder Engagement Page 70 5.6.1 Community Consultation Page 70 5.6.2 Stakeholder Engagement Page 71 5.6.3 Registered Social Landlords Page 71 5.6.4 The Housing Corporation Page 72 5.6.5 Advantage West Midlands Page 72 5.6.6 English Partnerships Page 73 5.6.7 Urban Design Page 74 5.7 Adjacency and Displacement Page 75 5.8 Summary Page 76
Section 6 The Housing Market Restructuring Programme Page 77 6.1 Introduction Page 77 6.2 The Balance of the Investment Programme in the First Two Years Page 77 6.3 Changing Places Page 78 6.3.1 Etruria Valley: Description of the Area Page 81 6.3.1.1 Strategic Responses Page 82 6.3.2 Area of Major Intervention: Hanley South - Description of the Neighbourhood Page 84 6.3.2.1 Strategic Responses Page 85 6.3.3 Area of major Intervention: Middleport - Description of the Neighbourhood Page 86 6.3.3.1 Strategic Responses Page 87 6.3.4 Area of Major Intervention: Meir - Description of the Neighbourhood Page 88 6.3.4.1 Strategic Responses Page 89 6.3.5 Area of Major Intervention: Knutton and Cross Heath - Description of the Neighbourhood Page 89 6.3.5.1 Knutton Page 90 6.3.5.2 Cross Heath Page 90 6.3.5.3 Strategic Responses Page 91 6.3.6 General Renewal Areas: Description of the Neighbourhoods Page 92 6.3.6.1 Strategic Responses Page 92 6.3.7 Town Centre Living Page 93 6.3.7.1 Newcastle Town Centre: Description of the Area and Strategic Responses Page 93 6.3.7.2 Burslem: Description of the Area and Strategic Responses Page 94 6.3.7.3 Hanley City Centre: Description of the Area and Strategic Responses Page 95 6.3.8 Ex- Coal Board Estates Page 95
12 RENEW North Staffordshire • Prospectus • March 2004 6.3.8.1 Galleys Bank and Biddulph East: Description of the Neighbourhoods and Strategic Responses Page 96 6.3.8.2 Coalville: Description of the Neighbourhood and Strategic Responses Page 97 6.3.9 Chesterton Western Urban Village: Description of the Neighbourhood Page 98 6.3.9.1 Strategic Responses Page 98 6.4 Support for People Page 99 6.4.1 Assistance to Residents in the Market Renewal Area Page 99 6.4.2 Neighbourhood Management Page 103 6.4.3 Improved Housing Management for Private Sector Tenants Page 105 6.4.4 Community Safety Page 106 6.4.5 Energy Efficiency and Health Page 107 6.5 The Market Renewal Programme 2003/04 - 2005/06: The Two Year Spending Programme Page 107 6.5.1 The Market Restructuring Programme 2004/05 - 2005/06 Page 109 6.6 Summary Page 112
Section 7 Overall Programme and Business Plan Page 113 7.1 Introduction Page 113 7.2 Funding to Support the Proposed Investment Programme Page 113 7.3 Investment by AMIs Page 114 7.3.1 Summary of Outputs Page 115 7.4 Business Plan Methodology Page 115 7.4.1 Key Business Planning Assumptions Page 116 7.4.2 Sensitivity Analysis Page 116 7.5 Value for Money Page 116 7.6 Leverage Page 117 7.7 Partner Agencies Page 117 7.8 Summary Page 120
Section 8 Outputs and Performance Targets Page 121 8.1 Introduction Page 121 8.2 Evaluation Page 122 8.3 Summary Page 129
Section 9 Delivery and Key Implementation Issues Page 131 9.1 Introduction Page 131 9.2 Renew North Staffordshire Development Team Page 131 9.2.1 The Local Authority Offer Page 132 9.2.2 A New Urban Renewal Team for Stoke-on-Trent Page 133 9.3 A Special Purpose Vehicle Page 134 9.4 Summary Page 136
Section 10 Risk Management Page 137 10.1 Introduction - The Development Context Page 137 10.2 Key Issues and Approach Page 137 10.3 Summary Page 141
Section 11 Governance Page 143 11.1 Introduction Page 143 11.2 Terms of Reference for the Partnership Board Page 143 11.3 Next Steps Page 143 11.3.1 Board Structure and Membership Page 143 11.3.2 Relationship with the Accountable Body Page 144 11.4 Summary Page 145
RENEW North Staffordshire • Prospectus • March 2004 13 Table of Figures and Tables
Figure 1 North Staffordshire in it’s Wider Regional Context Page 18 Figure 2 Location of Industry Closures in North Staffordshire Page 20 Figure 3 Distribution of Large Development Sites in Stoke-on-Trent Page 21 Figure 4 Pathfinder Intervention Areas Page 31 Figure 5 Location of the Area Development Frameworks Page 41 Figure 6 North Staffordshire Conurbation Neighbourhoods and Current ADFs Page 48 Figure 7 Neighbourhood Typologies - All Neighbourhoods Page 50 Figure 8 Location of Neighbourhood Based Activity Page 79 Figure 9 Etruria Valley in the Core of the North Staffordshire Conurbation Page 80 Figure 10 Etruria Valley and Middleport Page 83 Figure 11 Proposed Renew Team Structure Page 135 Figure 12 Levels of Risk Page 137
Table 1 Overall House Prices: The Gap with the West Midlands Region Page 28 Table 2 Growth in House Prices 1995-2002 Page 28 Table 3 Change in Prices of Terraced Houses 1995-2002 Page 29 Table 4 Price Performance by Type 2002-2003 Page 30 Table 5 Tenure in the Market Renewal Area Page 33 Table 6 Property in the Market Renewal Area Page 33 Table 7 Vacancies in the Market Renewal Area Page 34 Table 8 Selected Demographics in the Market Renewal Area Page 34 Table 9 City Centre Employment 2003 Page 36 Table 10 North Staffordshire Conurbation Housing Sub-Market Typologies Key Characteristics Page 51 Table 11 Housing Types - Key Demographic Statistics Page 55 Table 12 The New Build Housing Market in the North Staffordshire Conurbation and Surrounding Market Towns Page 58 Table 13 Annual Average Rate of Housing Provision Page 59 Table 14 Population Projections to 2026 Page 61 Table 15 Rehousing and Related Assistance in the Private Sector Page 101 Table 16 Assistance for Private Sector Home Repair and Improvement Page 102 Table 17 Public Sector Investment Contributions Page 107 Table 18 Market Renewal Early Action Projects 2003/04 Page 108 Table 19 Housing Market Restructuring: Total Outputs 2003/04 Page 108 Table 20 Renew Investment Programme Year 1 Page 110 Table 21 Renew Investment Programme Year 2 Page 111 Table 22 Renew Total Funding by Source Page 114 Table 23 Renew Programme Outputs Page 115 Table 24 North Staffordshire Market Renewal Area - Programme Cost Estimate - Summary Page 118 Table 25 Renew Outcome Measures and Targets Page 123 Table 26 ODPM Outcome Measures Page 128 Table 27 Risk Assessment - Prospectus Level Page 139 Table 28 Risk Assessment - Project Level Page 141 Table 29 Renew Board Membership Page 144
Box 1 Risk Register Table - Sample Contents Page Page 138
14 RENEW North Staffordshire • Prospectus • March 2004 List of Abbreviations
ADF Area Development Framework AIT Area Implementation Teams AMI Areas of Major Intervention AWM Advantage West Midlands BEST Behaviour and Education Support Teams BME Black and Minority Ethnic CABE Commission for Architecture and the Built Environment CBD Central Business District CPTED Crime Prevention Through Environmental Design CURS Centre for Urban and Regional Studies DLG Derelict Land Grant EAP Estate Action Programme FABRIC Framework for Performance Information FIRE Finance, Insurance, Real Estate GRA General Renewal Area HIAs Home Improvement Agencies HMA Housing Market Assessment HMRF Housing Market Renewal Fund ITS Integrated Transport Strategy JVC Joint Venture Company LAD Local Authority District LDF Local Development Framework LIFT Local Investment Finance Trust LLTI Longterm Limiting Illness LSP Local Strategic Partnership NAP Neighbourhood Action Plan NCB National Coal Board NDC New Deal for Communities NRA Neighbourhood Renewal Assessment NSRZ North Staffordshire Regeneration Zone ODPM Office of the Deputy Prime Minister PFI Private Finance Initiative PSA Public Service Agreement RES Regional Economic Strategy RPG Regional Planning Guidance RSS Regional Spatial Strategy RTB Right To Buy SCP Sustainable Community Plan SLA Service Level Agreements SPD Secured by Design SPV Special Purpose Vehicle SRB Single Regeneration Budget SSA Strategic Spatial Assumptions UDC Urban Development Corporation VFM Value For Money
RENEW North Staffordshire • Prospectus • March 2004 15 16 RENEW North Staffordshire • Prospectus • March 2004 1 Market Renewal in North Staffordshire
1.1 The Strategic Context
The North Staffordshire conurbation is one of the oldest industrial areas in the world. Its contribution to the Industrial Revolution was based upon iron, coal, steel and the pottery industry, all of which were dependent upon the extraction of local clay, iron ore and coal deposits. The form of the North Staffordshire area was critically influenced by the spatial location of these natural resources and, overtime, six towns emerged along a shallow valley forming a City which is 11 miles in length. The linear City of Stoke-on-Trent slowly merged during the 20th Century with the adjacent market town of Newcastle-under-Lyme, which situated on higher ground to the west, had traditionally been home to more affluent residents who enjoyed the cleaner environment which this location afforded.
The North Staffordshire area is home to a population of 457,000 people who live in the three areas of Staffordshire Moorlands, Newcastle-under-Lyme and the City of Stoke-on-Trent (see Figure 1). The urban conurbation has a population of around 336,000 of which 240,000 residents live in Stoke-on-Trent and a further 80,000 in urban Newcastle-under-Lyme and Kidsgrove to the west and Biddulph to the north. Despite the recent history of industrial decline the North Staffordshire area as a whole has only experienced a one percent fall in population since 1981.
This modest recent fall in population for the sub-region masks a slow but persistent change in the distribution of population over the last 80 years; the City of Stoke-on-Trent lost ten percent of its population while the suburban and rural hinterland has increased by 21 percent. The decline has been most severe in the six towns of Tunstall, Burslem, Hanley, Stoke, Fenton and Longton, which collectively make up the older core of the city of Stoke-on-Trent. In 1921 the population of the six towns represented 78.7 percent of the Stoke-on-Trent total, but today the figure is down to 55 percent (around 39 percent of the wider conurbation). As a consequence of this localised decentralisation process the six towns that make up the older core of the City of Stoke-on-Trent have lost almost half their population base since 1921, a rate of decrease nearly five times the average for the whole of the City.
The conurbation developed in a polycentric form without an obvious Central Business District (CBD). The spatial decentralisation of employment and people was given an added stimulus in the 20th Century when peripheral coalfields were exploited in the Newcastle-under-Lyme and Biddulph area, and on the South and Eastern flank of the City of Stoke-on-Trent. Figure 2 illustrates the location of the 18 collieries which were consolidated by the National Coal Board (NCB) in the late 1940s. These collieries were significantly larger than the early mining operations in the core of the conurbation and tended to use large tracts of land for tipping waste products. The closure of these mines not only removed valuable employment from the locality but also left huge gaps in the urban infrastructure many of which are still partially or entirely vacant.
RENEW North Staffordshire • Prospectus • March 2004 17 Figure 1: North Staffordshire in the Regional Context
18 RENEW North Staffordshire • Prospectus • March 2004 The depletion, abandonment and reclamation of open cast and deep mining has been a constant feature of changes to the urban form for the last 250 years. However, during the last quarter of a Century the speed of change has accelerated with the closure of the steel making facilities at Shelton Bar, the near extinction of the Michelin tyre factory and 77 recorded closures in the Pottery Industry. The spatial distribution of these closures in these four industries in North Staffordshire is shown in Figure 2 and in turn, this pattern of decline is reflected in Figure 3 which shows the distribution of proposed large development sites in the City.
Figures 2 and 3 shows the scale of vacant sites and the extent of the land which is available for development. Just two sites, the former Shelton Bar Steel Works and the reclaimed mining site at Chatterley Valley, which sits astride the boundary of Stoke-on-Trent and Newcastle-under-Lyme, contain more than 900 acres of developable land. The scattered nature of the sites militates against the creation of regeneration ‘quarters’ and makes marketing more difficult. Additionally, the steel and coal industries were dependent upon the railways for the movement of stock, whilst new developments tend to be reliant upon an outworn, partially Victorian/Edwardian road infrastructure to carry additional traffic.
RENEW North Staffordshire • Prospectus • March 2004 19 Figure 2: Location of Industry Closures in North Staffordshire
(NB Production activity has ceased at the Michelin)
20 RENEW North Staffordshire • Prospectus • March 2004 Figure 3. Distribution of Large Development Sites in Stoke-on-Trent
RENEW North Staffordshire • Prospectus • March 2004 21 1.2 The Scale of the Task
During the last 30 years the City of Stoke-on-Trent has attempted to address the issues relating to a failing polycentric form, a shattered inner city infrastructure and a growing surplus of land which is either being marketed or grassed over as public open space. At the same time in Newcastle-under-Lyme and Biddulph new challenges have emerged, characterised by increasing polarisation in labour and housing markets, which have been driven by increasing suburbanisation and the closure of the coal mining industry.
The development of a regeneration framework to address the needs which have arisen from the economic restructuring of North Staffordshire has been slow to emerge. Government sponsored Urban Policy was introduced in 1968 with the formation of the Urban Programme by the Home Office. Between 1968 and 1995 the area benefited from comparatively small inputs from the Urban Programme, and other programmes such as the Derelict Land Grant (DLG) and the Estate Action Programme (EAP). Additionally, the Government funded a Garden Festival on part of the Shelton Bar site in 1986 which has subsequently been developed into Festival Park.
To understand the scale of the task which is now faced by agencies in North Staffordshire, it is necessary to reflect on the initiatives which by-passed the area, leaving it with a significant investment deficit compared to similar areas. Large scale restructuring initiatives deployed within the West Midlands conurbation that were not made available to North Staffordshire include:
i. Enterprise Zone ii. Urban Development Corporations iii. City Challenge Initiatives iv. Spine Roads v. Rapid Transit Systems vi. New Deal for Communities vii. Housing Action Trust
By 1995 North Staffordshire had begun to establish a priority within the region for regeneration funding and progressively resources from the Single Regeneration Budget (SRB), the Objective Two Programme and latterly Advantage West Midlands (AWM), have increased significantly. This resource base has also increased quickly. Given the legacy of low levels of public sector investment in regeneration, there is currently an issue around the capacity of the locality to manage the large scale change necessary to the urban form and additional issues relating to strategic development and co-ordination.
For the Market Renewal Programme to make a real difference to the wealth and quality of life of the sub-region, it was identified very early on that housing programmes needed to be located within a multi-faceted approach to urban renaissance. The housing stock is largely the product of a low wage and poorly performing economy. However the quality of the stock is now, in relative terms, so poor that it is potentially a significant disincentive for inward investors in the local economy.
In addition to the commitment to effectively link housing provision to economic restructuring and wealth creation, it was also recognised that the Market Renewal Programme should build on the significant regeneration opportunities in the North Staffordshire sub-region. These significant strengths include the following:
22 RENEW North Staffordshire • Prospectus • March 2004 • Its central location adjacent to the M6, the East-West A500/A50 link between the M6 and the M1 and the West Coast Mainline;
• The location of two universities within the sub-region;
• The growth of medical technology clusters;
• Highly competitive land and labour costs;
• Comparative advantages in ceramics, logistics and tourism;
• A new medical school;
• A large catchment area for retail and leisure expenditure.
To make the most of the assets listed above, and to integrate the Market Renewal process within a holistic approach to regeneration requires a step change in the way in which urban and economic policy is developed and delivered within the sub-region. At the early stages of developing this Prospectus, a process was designed to increase our collective understanding of the nature of the changes necessary if the public and private sector are to retain confidence in the regenerative process. This understanding emerged from a review involving the following activities:
• Definition of the area of influence for the North Staffordshire housing and labour markets;
• Understanding the dynamics of the urban form;
• Providing an assessment of the area’s economic trajectory;
• Auditing the policy and strategic framework;
• Examining the potential to deliver the current and future regeneration programmes.
The Renew North Staffordshire Board (The Board) commissioned a consortium of consultants which included CSR Partnership, Llewelyn-Davies, ECOTEC, HACAS Chapman Hendy, Invigour and Mott McDonald to produce the analysis to support this review and to assist in the development of the Technical Appendices which support this Prospectus. The outcomes from the activities outlined above are listed below:
• The combined influence of the conurbation’s housing and labour markets and an assessment of their trajectory has helped to scope the impact of a new build housing programme on population retention and persuaded local policy makers to develop a new commercial core to the conurbation. (This is explored in more detail in Section 5 ‘The Market Renewal Strategy’).
• Through a more comprehensive understanding of the dynamics of urban change, a Market Renewal Strategy and Programme has been devised which can distinguish where it is appropriate for housing led regeneration to proceed and where it is more appropriate for economic development or environmental improvement agencies to lead (see Section 5).
• The assessment of the economic trajectory has been completed and this has identified the emergence of new economic drivers and a change in function within the local economy. This analysis has also highlighted the more limited impact that future economic restructuring can have on the urban fabric given the extent of what has already occurred. This assessment has led us towards the conclusion that we are unlikely to experience sharp population loss because of net job losses, but decline may be induced by low wages in the context of rapidly improving educational attainment, as qualified residents may move to competing and higher earning conurbations in the West Midlands and North West.
RENEW North Staffordshire • Prospectus • March 2004 23 • The audit of the Policy and Strategic Framework for the sub-region illustrated the need for a review of key regeneration related strategies, particularly in relation to:
- Transportation: There is a need for a Transportation Strategy that links proposals which have a strategic impact at the sub-regional level with interventions which will facilitate the social and economic regeneration of the inner core of the conurbation. A sub-regional Integrated Transportation Strategy has now been commissioned which will report in September 2004.
- Economic Development: It has been recognised that for the sub-region to move towards a high value added, high wage economy there needs to be a significantly greater input into economic analysis and strategic development. A new Sub-Regional Economic Development Strategy (EDS) has also been commissioned and this will be completed in 2004.
- Planning: The West Midlands Regional Planning Guidance is predicting an increasing housing need within the Major Urban Areas of the region. Therefore in North Staffordshire, there is a need to co-ordinate strategic planning and development control policy and practice to ensure the urban core is protected and the right accommodation is provided in the right place at the right time.
- This is likely to be most challenging in Stoke-on-Trent where there is a surplus of land which can accommodate new housing and previous planning practice has been developer led. A new planning framework is needed to support the Market Renewal Strategy and this will be developed during 2004.
• The Board has been assisted in auditing the capacity of the sub-region to deliver the Market Renewal Agenda by HACAS Chapman Hendy and KPMG who have advised in relation to the form and function of the Renew North Staffordshire (Renew) delivery team and the proposal to develop a Special Purpose Vehicle (SPV) for North Staffordshire. The delivery issues are explored in more detail in Section 7 of this document.
1.3 The Building Blocks of the Market Renewal Strategy
This Prospectus provides a synthesis of information relating to physical, social and economic change which has enabled policy makers to identify the drivers of change for the North Staffordshire housing market. The Strategic Framework for Market Renewal and the scope and scale of interventions which are proposed flow directly from this analysis. The documents which support this Prospectus are appended to the Prospectus and a brief summary of each and their contribution to the development of the Strategy is listed below.
• Appendix 1: Housing Market Assessment (HMA): This document has detailed changes in the local housing market and described the fluctuations in activity in 75 neighbourhoods in the North Staffordshire housing market. The analysis has enabled Renew to prioritise the programme of interventions.
• Appendix 2: Strategic Spatial Assumptions (SSA): This analysis of the urban form has produced a series of principles relating to land use, zoning, and environmental improvements. These principles have been influential at the conurbation level as well as in the neighbourhoods selected for the first phase of the Market Renewal Programme. They have also explored the interactions between infrastructure capacity and Market Renewal.
• Appendices 3 – 7: Area Development Frameworks (ADFs): The Renew area has been divided into five ADFs; Stoke North; Stoke Central, Stoke South East; Stoke South West and Newcastle under Lyme. These ADFs provide a conceptual framework which allows policy makers to examine the function and form of a large section of the conurbation and assess the relationships between neighbourhoods, whilst making policy recommendations to increase the efficiency of public sector intervention.
24 RENEW North Staffordshire • Prospectus • March 2004 • Appendices 8 - 11: Neighbourhood Action Plans (NAPs): The first phase of Market Renewal contains four areas that will be the subject of major intervention over the next ten years. Each of these areas now have a NAP, which has an outline vision based on an urban design audit, housing market information, focus groups and residents surveys. The principles of the NAPs have been informed by the SSA and the ADFs, but it is recognised that a significant amount of work will have to be done with local communities over the next 12 months to determine the detail of the NAPs. The NAPs are therefore, the starting point for discussions with local people and while a firm two year spending plan is included for each area, the outputs (but not outcomes) may vary following the production of a more detailed Community Plan next year.
• Appendix 12: Policy on assistance to residents in the Market Renewal Area: This report describes the types of assistance that Renew will use to support residents affected by market renewal. The policy has been established to inform the development of the wider strategy and delivery plan. It has been informed by surveys and focus group work in the four NAPs, the NAPs themselves and Renew’s broad vision for the area and the outcomes it is seeking.
• Appendix 13: The Business Plan: The Business Plan sets out the financial inputs from the public and private sector to realise the Aims and Objectives of the strategy. It also highlights the phasing of the Programme and the outputs the Market Restructuring Programme will generate.
• Appendix 14: Economic Futures for North Staffordshire and their implications for the Market Renewal Area: This report has provided a baseline for the development of a new EDS for North Staffordshire and informed Renew about the likely impact of economic change upon the Pathfinder in the short to medium term.
• Appendix 15: The Commercial Core Strategic Development Framework: This provides a structure for North Staffordshire’s ‘Commercial Core’ in which all major planning decisions can be made. It is an essential step in securing a sustainable future for a crucial area of the conurbation.
• Appendix 16: Public Sector Corporate Offer: This appendix describes the public sector offer in support of the Market Renewal process. It sets out the strategic vision for the area and the manner in which public sector partners’ plans and strategies will support the process of Market Renewal. It explains the underlying philosophy, principles and building blocks that inform the corporate offer and Market Renewal
• Appendix 17: Economic Regeneration Corporate Offer: Explains how the Local Authorities and AWM will develop Economic Development Strategies linked to the Regional which will support an integrated approach to regeneration in the sub-region.
• Appendix 18: Neighbourhood Management Corporate Offer: This report sets out the proposals for the implementation of Neighbourhood Management as part of the North Staffordshire Market Renewal Programme. It states the policy context within which proposals are brought forward and sets out the progress made in moving towards neighbourhood management through the neighbourhood renewal programme (in Stoke-on-Trent) and the Neighbourhood Management Pathfinder programme (in Newcastle-under-Lyme). The report also outlines intentions for the next steps in delivering neighbourhood management as part of an integrated approach to neighbourhood renewal and market renewal across North Staffordshire.
• The context to the production of this Prospectus is one of rapid socio-economic and structural change within the physical environment, twinned with rapid review and development of strategic approaches and delivery mechanisms. This process is being significantly assisted and strengthened by the commitments of the four Local Authorities (Staffordshire Moorlands, Newcastle-under-Lyme, Stoke-on-Trent and Staffordshire County Councils) to work together to develop and implement the Programme. This commitment has been fully reflected in the local political process where the Group Leaders of all major parties have supported the production of this Prospectus.
RENEW North Staffordshire • Prospectus • March 2004 25 1.4 The Structure of the Document
The structure of the remainder of this document is as follows:
• Section 2: details the economic and housing characteristics of the sub-region and illustrates the differences between the Market Renewal intervention area and its hinterland.
• Section 3: illustrates how the urban form has developed and gives a brief précis of each of the five ADFs.
• Section 4: examines the operation of the local housing market.
• Section 5: sets out the Market Renewal Strategy, highlighting the aims and objectives, the sequencing of activity, stakeholder engagement and the contribution of other agencies, and the Pathfinder approach to adjacency and displacement.
• Section 6: is broken into three parts that reflect the initial proposals for Market Renewal. The section covers ‘Places’ - the areas that have been highlighted in the Strategy, ‘People’ - a brief description of the assistance available to support residents, and ‘Expenditure’ - a summary of the next two years Housing Market Renewal Fund (HMRF) Programme.
• Section 7: gives a summary of the overall programme and Business Plan. A more detailed version of which is reproduced as Appendix 13.
• Section 8: outlines the outcomes and performance targets.
• Section 9: focuses on the delivery of Market Renewal and the wider regeneration agenda, with particular reference to the creation of an SPV and the strengthening of institutional capacity in the Renew structure and in Local Government.
• Section 10: details the approach to risk management.
• Section 11: describes the current Governance structures and briefly highlights the review process which will be followed over the next year.
26 RENEW North Staffordshire • Prospectus • March 2004 2 Housing and the Local Economy
2.1 Introduction
This section of the Prospectus is divided into two. The first part briefly outlines the housing issues which have led to North Staffordshire being designated as a Market Renewal Pathfinder. In doing so it highlights the residential and social characteristics of the Market Renewal Area compared to the conurbation as a whole. The second part details the economic characteristics of the area which impact directly on the urban form and the maintenance and provision of housing.
2.2 Housing Characteristics
North Staffordshire was chosen as a Market Renewal Pathfinder because when measured against vacancies, house prices and stock condition, it has the weakest housing market in the West Midlands by a considerable margin. A detailed analysis of the North Staffordshire Housing Market is set out in Appendix 1. This section of the Prospectus summarises the key findings from this piece of research.
Table 1 shows the performance of house prices against the regional average for the three Local Authorities and the sub-region over the period 1995 – 2003. This shows that for Stoke-on-Trent the average was only 46.4 percent of the regional figure rising to 85.5 percent for Newcastle-under-Lyme. Table 2 shows the growth in house prices which was 54.8 percent for the sub-region between 1995 – 2002, compared with 67.4 percent for the region over the same period.
Table 3 highlights the severe disparity between the performance of the terraced market, particularly in Stoke-on- Trent, in comparison to its neighbour and the region as a whole. Table 4 shows a fairly robust increase in price performance over the last 12 months, however, this increase is from a position of a very low base.
RENEW North Staffordshire • Prospectus • March 2004 27 Table 1: Overall House Prices: The Gap with the West Midlands Region
Average price 1995 2000 2002 Jan-Sept 2003 £££ £
Stoke-on-Trent 36,977 42,576 52,420 59,010 Staffordshire Moorlands 52,929 70,238 94,014 96,417 Newcastle-under-Lyme 49,107 64,541 79,517 108,580 North Staffordshire 43,295 54,843 67,010 75,626 West Midlands 59,340 84,294 111,254 127,060
Index (West Midlands = 100) 1995 2000 2002 Jan-Sept 2003
Stoke-on-Trent 62.3 50.5 47.1 46.4 Staffordshire Moorlands 89.2 83.3 84.5 75.9 Newcastle-under-Lyme 82.8 76.6 71.5 85.5 North Staffordshire 73 65.1 60.2 59.5
Source: HM Land Registry
Table 2: Growth in House Prices 1995-2002
1995 1996 1997 1998 1999 2000 2001 2002 % change 95-02 ££££££££ Stoke-on-Trent 36,977 35,925 37,401 38,867 41,432 42,576 46,149 52,420 41.8
Staffordshire Moorlands 52,929 55,096 57,468 61,298 66,172 70,238 80,908 94,014 77.6
Newcastle-under-Lyme 49,107 50,192 57,262 59,111 61,639 64,541 68,007 79,517 61.9
Sub-region 43,295 43,421 46,646 49,112 52,561 54,843 59,008 67,010 54.8
Source: HM Land Registry
28 RENEW North Staffordshire • Prospectus • March 2004 Table 3: Change in Prices of Terraced Houses 1995-2002
Average price % change % change 1995 2000 2002 2000-02 1995-02 £££ Stoke-on-Trent 26,154 25,999 30,877 18.8 18.1
Staffordshire Moorlands 31,792 39,494 52,519 33.0 65.2
Newcastle-under-Lyme 30,276 35,420 44,818 26.5 48.0
North Staffordshire 27,721 30,129 36,409 20.8 31.3
West Midlands 40,490 55,837 74,283 33.0 83.5
Source: HM Land Registry
RENEW North Staffordshire • Prospectus • March 2004 29 Table 4: Price Performance by Type 2002-2003
Detached Semi- Terraced Flat/ Overall Detached Maisonette* £££ ££ Average prices July-September 2003 Stoke-on-Trent 135,489 68,638 37,833 44,070 60,090
Staffordshire Moorlands 177,610 92,851 70,299 57,266 119,681
Newcastle-under-Lyme 161,897 84,711 61,926 93,023 102,396
North Staffordshire 157,223 77,282 44,255 61,859 79,731
West Midlands 226,346 118,488 92,348 96,848 133,538
Detached Semi- Terraced Flat/ Overall Detached Maisonette* Percent price change compared to Q3 2002 Stoke-on-Trent 18.8 23.1 25.3 13.8 17
Staffordshire Moorlands 17.5 25.9 42 52.4 18.5
Newcastle-under-Lyme 13.8 17.1 36.6 168.3 25.3
North Staffordshire 16.3 21.9 25.3 64.4 17.2
West Midlands 14.7 18.7 21.6 12.2 14.2
*small numbers of sales at district level and therefore subject to fluctuation Source: HM Land Registry
In addition to low house prices the City of Stoke-on-Trent, in particular, has a high void rate of 4.6 percent and two studies conducted by the Centre for Urban and Regional Studies (CURS, 2000, 2002) highlighted a large number of properties in Stoke-on-Trent, Newcastle-under-Lyme and Biddulph which were ‘at risk’ of changing demand. Following the announcement that North Staffordshire was to be designated as a Market Renewal Pathfinder, a Pathfinder Intervention Area was designed which built upon the methodology used by CURS to produce the map depicted in Figure 4.
30 RENEW North Staffordshire • Prospectus • March 2004 Figure 4: Pathfinder Intervention Areas
RENEW North Staffordshire • Prospectus • March 2004 31 This target area contains around 67,000 properties and is non-contiguous. It includes the majority of the old six towns area, from Tunstall in the north to Longton in the south where the predominant property type is the pre 1919 terraced house. To the south and east large social housing estates which were built adjacent to collieries are identifiable, to the West the highly polarised urban housing market of Newcastle-under-Lyme is located, and on the western and northern periphery of conurbation, lie the ex-NCB estates of Parksite, Crackley, Galleys Bank and Biddulph East.
There are a number of generic issues which affect the housing market within the Pathfinder and these are briefly described below:
• Obsolescence: There are many thousands of properties within North Staffordshire which are technically obsolete. The legacy of low incomes has prevented significant upgrading of the stock and aspirations and demography have changed the demand for it. Furthermore the combination of poor stock condition and/or unstable ground has made improvement costs unviable given the social and economic returns. The problem of obsolescence of the housing stock is currently the most significant problem faced by Renew.
• Surplus Housing: There is currently a crude numerical surplus of around 2,500 – 3,000 properties in the Market Renewal Area (i.e. vacancies above the 2 percent level). This surplus is heavily skewed towards the owner-occupied and terraced market. The surplus has been partly created by migration and partly by economic change which is supporting a vibrant new build market.
• Unpopular Neighbourhoods: The issues which create vacancies in these areas include concentrated deprivation, unpopular property and design, location, the environment, stigma and crime.
In many of the worst affected areas in North Staffordshire, all three of these issues are present and it will be critical to the success of Renew that a broad programme of intervention is designed to address these different issues; otherwise there is a risk that surplus housing is moved around the conurbation as obsolete housing eventually becomes vacant. This issue is addressed in more detail in Section 3.
The relative weakness of the housing sub-markets contained within the Market Renewal Area is highlighted in Tables 5, 6 and 7. These tables reveal a low rate of owner occupation (52.9 percent) a disproportionate share of terraced properties (44 percent of all houses) and a void rate of 5.7 percent (or 67 percent of the conurbation’s vacancies). This relatively weak structure to the local housing market is compounded by demography. Table 8 demonstrates that the client base is disproportionately single people, lone parents and the Black and the Minority Ethnic (BME) community. Additionally the HMA highlights concentrations of students in the Market Renewal Area and an average household income of £15,669 or 74 percent of the regional average (falling to 69 percent in Stoke-on-Trent). The Market Renewal Area has worse socio-economic scores on almost every indicator when compared to its hinterland, thus confirming the link between economic performance and the structure and local performance of housing markets.
32 RENEW North Staffordshire • Prospectus • March 2004 Table 5: Tenure in the Market Renewal Area
Total Owner Social Private Rented Dwellings Occupied Rented Rented from Other %%%% Market Renewal Area 67,656 52.9 35.1 9.3 4.9
Conurbation 149,587 67.1 23.4 6.1 3.4
Table Source: Appendix 1
Table 6: Property in the Market Renewal Area
Detached Semi-Detached Terraced Flat/ Maisonettes %%%% Market Renewal Area 4.8 39.2 43.6 12.3
Conurbation 15.4 46.4 29.0 9.2
Table Source: Appendix 1
RENEW North Staffordshire • Prospectus • March 2004 33 Table 7: Vacancies in the Market Renewal Area
%%%%% Population Conurbation Households Conurbation Void Rate Conurbation Voids 2001 Conurbation 2001 Market Renewal Area 145,773 43.3 62,366 43.3 5.7 67 56.8
Table Source: Appendix 1
Table 8: Selected Demographics in the Market Renewal Area
%%%%%%%%% Population Single Families Lone White Mixed Asian Black Chinese over 65 Person with Parent and (Non- Children Households Others Pensioner)
Market Renewal Area 16.3 19.1 17.6 9.5 93.3 1.0 4.7 0.5 0.4
Conurbation 16.6 15.4 20.5 7.2 95.9 0.8 2.7 0.4 0.3
Table Source: Appendix 1
34 RENEW North Staffordshire • Prospectus • March 2004 2.3 The Performance of the Local Economy
Appendix 14 ‘The Economic Futures for North Staffordshire and their implications for the Market Renewal Area’ provides a comprehensive baseline and assessment of the strengths and weaknesses of the local economy. There are a number of issues raised by the assessment which effect local residents’ ability to participate in the owner- occupied market. There are also factors which are affecting the urban form and each of these is addressed below.
The issues which affect residents’ ability to secure affordable, well maintained housing, particularly in the owner- occupied sector include earnings, health, economic activity, skills and education and employment opportunities. The following factors are therefore currently impacting on the housing market, particularly in relation to the growing rate of obsolescence. All the statements below relate to Stoke on Trent specifically as the issues here are most acute, but reflect issues in the wider sub-region (Appendix 14 and 17).
• Against a Great Britain (GB) index of 100, gross domestic product per head in Stoke-on-Trent fell from 91 to 86 (1995 - 98).
• Economic activity rates in Stoke-on-Trent are low (60.1 percent compared to 62.7 percent for the West Midlands and 63.2 percent for GB).
• Only 11.6 percent of the workforce in Stoke-on-Trent have higher level skills (NVQ4 or above). This is considerably lower than the regional average (20.2 percent and 23.7 percent for GB). Historically a high proportion of workers in Stoke-on-Trent (25.8 percent) have no formal qualifications. However, there has been a marked improvement in the performance at GCSE attainment, see Appendix 16.
• Manufacturing in Stoke-on-Trent accounted for 26.3 percent of employment in 2001 against 19.9 percent at the regional level, but certain key sections, such as ceramics and engineering, are expected to fall further.
• The commercial sector in Stoke-on-Trent is weak with banking and finance accounting for 10.5 percent of employment compared to a regional average of 16 percent.
The evidence suggests that the North Staffordshire economy is moving from a position of persistent net contraction in employment, to one where the new economy, characterised most visibly by logistics and distribution, is adding enough jobs to offset the contraction of traditional industries. However, there are spatial implications to the pattern of economic development and deindustrialisation within the conurbation which will have an impact upon the Market Renewal process. In particular:
• The closure of traditional industries will be located in the inner core, adding to an over supply of Brownfield sites.
• High value added business locations are currently located in peripheral locations, such as Keele Science Park.
• Many of the large ex-NCB Brownfield sites which are being made ready for commercial redevelopment are also on the periphery of the conurbation.
RENEW North Staffordshire • Prospectus • March 2004 35 This suburbanisation of economic development would, if unchecked, have a substantial impact on the inner core of the conurbation, where the weaknesses in the commercial and retail sector currently mirror those of the housing market. This weakness is evidenced in the following rates of commercial vacancy:
• Hanley Town – 17 percent.
• Longton Town – 16 percent.
• Tunstall Town – 15 percent.
• Burslem Town – 18 percent.
• Stoke Town– 12 percent.
Only in Newcastle Town, which has benefited from the decentralisation of higher income groups and economic activity is the vacancy rate (5 percent), lower than the national average of 10 percent.
Despite its large population and the ability to dominate the retail and leisure offer within an affluent catchment area of over one million people, the conurbation does not have a recognisable CBD. Hanley Town is the City Centre for Stoke-on-Trent (Hanley City Centre), but it currently has a high vacancy rate and a limited commercial, retail and leisure offer to business and consumers. Table 9 overleaf shows that employment in Hanley City Centre is 36,800 lower than Nottingham City Centre and 25,300 lower than Leicester City Centre. Both of these conurbations are of a similar size to urban North Staffordshire in terms of population.
Table 9: City Centre Employment, 2003
Retail Media Non- Professional Finance, Food Total & Creative Compulsory Services Insurance & Drink Jobs Education and Real Estate (FIRE)
Nottingham 11,190 649 2,877 15,995 3,926 5,053 58,819
Leicester 6,075 377 1,247 8,792 4,537 2,471 47,325
Wolverhampton 5,132 45 1,424 7,620 1,730 1,705 34,892
Derby 4,962 304 561 5,062 2,241 3,006 32,223
Stoke-on-Trent 5,497 159 235 2,201 1,507 1,494 21,971
Source: Renew North Staffordshire Technical Appendix 2: Strategic Spatial Assumptions.
36 RENEW North Staffordshire • Prospectus • March 2004 There are at least three critical linkages between the emerging economic development strategy and the Market Renewal Programme and these are:
• Provision of higher wage employment, linked to a programme of retraining for local residents and the provision of a more diverse housing stock capable of retaining aspirational groups.
• A radical improvement in the environment and infrastructure of the urban core to allow it to compete more effectively for economic activity and residential development.
• The development of a CBD which can generate employment and support niche housing markets.
Much of the second half of this section has concentrated on the inter-relationships between economic change and the urban form, the next section examines in more detail how the urban form currently works, and illustrates some of the challenges which will need to be addressed by the Market Renewal Programme and the budgets of other local, regional and national agencies needed to achieve sustainable regeneration in North Staffordshire.
2.4 Summary
This section has detailed the economic and housing characteristics of the sub-region which have lead to the designation of North Staffordshire as a Market Renewal Pathfinder. This has included an analysis of the sub- regional housing market which has been identified as the weakest in the West Midlands. Generic issues that affect the housing market are identified principally as obsolescence, surplus housing and unpopular neighbourhoods. Wider issues that affect residents’ ability to secure affordable, well maintained housing include earnings, health, economic activity, skills and education and employment opportunities. Whilst the economy is moving towards a position where there are enough jobs to offset the contraction of traditional industries, there are spatial implications to the pattern of economic change which will have an impact on the urban form and the Market Renewal process. The next section illustrates how the urban form has developed and gives a description of each of the five ADFs.
RENEW North Staffordshire • Prospectus • March 2004 37 38 RENEW North Staffordshire • Prospectus • March 2004 3 Reconstructing the Urban Form
3.1 Introduction
The defining characteristics of the North Staffordshire urban environment are its low density, mixed and non- conforming uses, a poor physical environment and a surplus of ex-industrial land often requiring reclamation before it can be brought back into use. Weak housing markets and declining neighbourhoods cannot be addressed in isolation from these issues. Therefore it has been necessary to relate housing market change to the broader urban environment and establish SSAs which can inform the regeneration programme. Llewelyn-Davies has been leading on this work on behalf of Renew and a more detailed analysis of these issues is contained in Appendices 2 and 3 to 7.
3.2 Strategic Spatial Assumptions
Renew is working towards the development of a sustainable conurbation where:
• Neighbourhoods and housing markets are stable, safe and popular;
• Centres complement each other in servicing their neighbourhoods and the wider catchment area;
• Movement patterns make balanced use of all travel modes without undue environmental or social intrusion;
• Assets are used to create rising wealth and opportunity for its people; and
• Resources of land, labour and investment are used intelligently according to an agreed set of strategic priorities.
The objectives of achieving a sustainable conurbation will be guided by the following SSAs:
• Centres and Walkable Neighbourhoods: Given the wide availability of land and the opportunities presented by the Market Renewal Programme to assemble sites, new development should be focused where there is a clear relationship with an existing centre. Achieving sufficient densities to support retail and social facilities is an important component of this approach as is Crime Prevention through Environmental Design.
• Appropriate Land Use Zoning to Encourage Economic Activity: The key themes for this are:
• A focus on the A500/A50 growth corridor and the A34 for sites where high accessibility and large sites are critical;
• Focusing on developing a more robust professional services sector around a new CBD;
• Recognition that sites that are less accessible or juxtaposed with residential areas may not be appropriate for industrial/commercial uses which are incompatible alongside housing. This is not a presumption against mixed use. It is, however, a principle which recognised that not all industrial/commercial uses are ‘good neighbours’.
• Transportation Infrastructure: The remodelling of the urban core should aim to facilitate the development of a transport infrastructure where residents have a real choice between private and public transport.
• Radical Environmental Improvements: The conurbation is located within a landscape of gently rolling hills and waterways. Hanley, Tunstall and Burslem are all hilltop towns with impressive views out to countryside. The conurbation also has a wealth of green space, but there are issues around the quality of this space and the poor quality of connections between the green spaces and the greenways which characterise the locality. The Market Renewal Strategy will seek to integrate with the SRB funded Greening for Growth Strategy to produce high quality solutions on decommissioned land and ensure that the restructuring of the urban form produces a landscape which enhances the area’s natural assets.
RENEW North Staffordshire • Prospectus • March 2004 39 3.3 Area Development Frameworks (ADFs)
The ADFs (Appendices 3 – 7) are designed to cluster neighbourhoods which traditionally have social and economic relationships. The trajectories, strengths and weaknesses of each area were plotted. Through this process the likelihood of regeneration policies and programmes operating in the area to deliver sustainable regeneration were tested. There are five ADFs covering the Market Renewal Area (Figure 6) and a short summary of the issues in each is covered below.
3.3.1 Stoke North
The Stoke North ADF covers Burslem and Tunstall and an area to the East which includes Smallthorne, Norton, Chell Heath and Fegg Hayes. This ADF has been historically severely affected by economic change, with approximately 50 percent of the land use currently vacant or designated for public open space. The process of change of land use is likely to continue for some time as the older industrial base continues to rationalise or close. The area is characterised by large swathes of ex Coal Board land to the East, which has often been grassed and (partially) developed for housing over the last 50 years. The urban environment to the west is often more degraded as smaller industrial closures have fractured the urban form.
40 RENEW North Staffordshire • Prospectus • March 2004 Figure 5: Location of the Area Development Frameworks
RENEW North Staffordshire • Prospectus • March 2004 41 Most of the neighbourhoods in the Stoke North ADF are experiencing some form of difficulty, often through a combination of stock condition, subsidence or disconnection from the new economy. However, the town experiencing the most profound difficulties is Burslem. This town has similarities with Stoke Town to the South which shares the following issues:
• Burslem town is surrounded by other declining industrial neighbourhoods, unlike Tunstall or Longton which had vacant land adjacent to suburban areas that allowed the development of a wealthier catchment area.
• Due to the severance caused by the ring of industrial and ex-industrial land, there is a limited walk-in catchment for shops; a factor exacerbated by the spate of industrial closures which has removed the employment generated expenditure from the local centre. The area also contains a paradox in that the highest rates of crime and disorder are found in the neighbourhoods which surround the town whilst Burslem Town itself has the potential for some tourist development due to the historic civic buildings located there. This suggests that only a holistic intervention linking neighbourhood renewal to town centre regeneration will deliver sustainable regeneration in Burslem Town.
In contrast to Burslem, Tunstall is beginning to suburbanise with executive housing around Reginald Mitchell Way and more in the pipeline. The town retains a walk-in catchment and an attractive conurbation district centre, but with a limited representation of national brand retailers. The Tunstall Northern by-pass will relieve congestion in the town centre and improve connectivity into the strategic network.
The HMA found that the North Stoke ADF is experiencing very significant problems.
The analysis of individual Pathfinder area neighbourhoods (Technical Appendix 1 supplementary document 1B) and the evidence from the residents’ surveys in the major intervention area points to comprehensive market failure in Burslem and its adjacent neighbourhoods of Middleport and Hanley North West (the latter in Stoke Central ADF). This part of the inner core is already close to a tipping point which may lead to more widespread abandonment.
The adjacency issues within this northern inner core cluster are recognised and will be addressed in a comprehensive manner. Thus Middleport must be reconnected to Burslem to be viable, while the regeneration of Burslem Town Centre is dependant on stabilising the churn of its residential neighbourhoods. The environmental, crime and and reputational issues of all three have to be tackled together because they are internally and externally perceived to be common to the northern inner core cluster as a whole.
Tunstall’s trajectory from an inner core to inner suburban market is still fragile with specific weakness in its terraced centre. While Stanfield / Smallthorne has low prices, pockets of voids and is disconnected from both the northern old towns and suburban fringe. To the east the council estates are experiencing high turnover with Great Chell the most vulnerable. Piecemeal clearance suggested by locality-specific or environmental grounds would further fracture its urban form and weaken service catchments.
The Stoke North ADF is the weakest of the five. It has the most problematic cluster of market failure and the ingredients in place for market failure to join up across adjacent neighbourhoods in the northern third of the City.
42 RENEW North Staffordshire • Prospectus • March 2004 3.3.2 Stoke Central
Stoke Central ADF is centred on the Hanley area but also includes Bentilee and Abbey Hulton to the east. The inner core housing in Hanley East, Hanley South, Cliffe Vale and Shelton forms the most coherent cluster of terraced housing still remaining in the inner core. It is, however, the area of the City most likely to experience continuing widespread change. The area has significant potential to drive the regeneration of the local economy if the following assets can be developed:
• Hanley City Centre is currently under-developed with a significant potential to grow.
• The Etruria Valley contains 460 acres of vacant land which is adjacent to the Festival Park business park and within one mile of Hanley City Centre.
• The area contains the campus of Staffordshire University. There are proposals to develop a ‘University Quarter’ which links into Hanley City Centre and the growth of the CBD, creating a new ‘Commercial Core’ to the City. Llewelyn-Davies are currently producing a design and planning framework to take this proposal forward. (See Appendices 15 and 15a)
The Abbey Hulton and Bentilee areas to the east have both received regeneration support over the last few years. Stoke-on-Trent City Council has worked with the William Sutton Trust and Bentilee Community Housing to stabilise these estates.
The HMA noted that the housing stock in Hanley Town is the oldest among the six towns with more than half (54 percent) built before 1880 and three quarters (78 percent) before 1924. Only three percent has been built since 1994.
The wider ADF has low levels of owner occupation (54.4 percent) a significant social sector (31.2 percent) and the largest private rented sector (9.8 percent) among the five ADFs.
Within the Hanley South NAP the two neighbourhoods have similar market failure but perform different neighbourhood functions: Cliff Vale – students, BME, asylum seekers inflow; Botteslow Street – young white inflow, single person households and a core elderly population. To the East the Northwood area (Hanley East) has a better quality for the design of the terraced stock but low prices related to poor ground conditions, with falling voids but lacklustre prices. Across the southern inner core as a whole there are high voids and low prices and a modest and generally stable social rented sector alongside increases in private renting reflecting an increasingly short-term use of the terraced sector.
Whilst the housing market problems are severe, these neighbourhoods are not experiencing the same widespread supply and demand unbalances as their northern inner core counterparts. This is primarily due to the inflow of population (students and BME) and to lower the stigma and more limited problems of social stress.
The recent performance of the eastern estates within the ADF position belies their stigmatised position. They have a stable core population which is socially excluded but where demographic changes underline fragile demand.
Unlike the northern ADF there seems no short-term risk of market failure spreading across the zone. However, the housing market in the inner area of Hanley is becoming unstable. A transitionary market is developing which is, in some instances, being undermined by poor stock condition and / or ground instability.
RENEW North Staffordshire • Prospectus • March 2004 43 3.3.3 Stoke South West
The main issue that arises from this ADF is the future function and form of Stoke Town. The centre of Stoke Town is effectively isolated to the East from a potential catchment area by the A500/A50 infrastructure, a canal and a railway line. To the west the competition from Newcastle Town centre with its more affluent hinterland is impacting on the performance of the town centre. To the south, the arterial route serviced by Liverpool Road is experiencing a collapse of its commercial environment, with boarded up retail units lining the access into the town.
The area has suffered from the radical downsizing of the Michelin Tyre factory and the relocation of Stoke City Football Club from the Victoria Ground. Regeneration activity has focused on improving the public realm and relocating Stoke-on-Trent Civic Offices to the town. However, the area is still in decline and unlike Burslem Town, which may have a future as a high quality residential and heritage centre, Stoke Town does not yet have a new function which can re-establish it as a viable commercial centre within the conurbation.
The HMA notes that the complicated Stoke Town Centre neighbourhood with its conjunction of a fragmented urban environment, little diversity of housing type and a weak centre is one of the problematic and difficult to solve in the conurbation. Some inner core neighbourhoods have rock bottom prices and higher sales volumes or vice versa. Uniquely, Stoke Town is low for both. Voids are high although not yet accelerating. The student market and BME populations are important in Stoke Town but unlike South Shelton (students) or Cliff Vale (BME) they are not large enough to buttress it. Combined with high levels of unfitness, the trajectory of this area is likely to be negative albeit less susceptible to immediate crisis. The only significant adjacency for Stoke Town Centre is South Shelton and beyond it Hanley South, since it is quintessentially part of the inner core rather the rest of inner suburban Stoke. This is the rationale for Renew to propose that it be included along with South Shelton in a second phase AMI.
Stoke Town does have a number of assets which could be developed further, and these include:
• Its location adjacent to the A500 and close proximity to the M6.
• A substantial land bank.
• It is less exposed to further manufacturing decline as limited employment now remains in ceramics and the Michelin.
• It has an opportunity to develop an outward looking Regeneration Strategy that is relatively unconstrained by its industrial past.
3.3.4 Stoke South East
Although geographically connected to the inner core, the urban form of Longton is recognisably .of a distinctive small town that has suburbanised over time, diversifying in type and tenure with a definable centre. Extensive post-war housing developments have formed a coherent urban entity well beyond the old town confines. The ADF is the only one of the five to show a population gain over the last 20 years. Longton is now easily the largest of the six towns and indeed has a freestanding function within the conurbation with its own inner core, social peripheral estates and affluent suburbs. It is also ringed by countryside on three sides.
The urban form of Stoke East ADF area is relatively cohesive with fewer vacant or degraded sites. Consequently the urban form is unlikely to evolve greatly and there are fewer of the tensions evident in other ADFs where extant planning permissions are at odds with a situation of housing surplus and a presumption in favour of consolidating around sustainable centres and neighbourhoods.
The analysis of individual Pathfinder area neighbourhoods in the HMA (Appendix 1B) points to a number of highly diverse neighbourhoods. For example, Normacot is a cohesive BME locality with significant housing need.
44 RENEW North Staffordshire • Prospectus • March 2004 Problems in South Longton are localised around poor environment and poor quality terraces. The Pathfinder area of Fen Park is a mixed-use terraced area with sluggish prices and private renting gaining ground. Meir and Sandon Road are declining social periphery neighbourhoods within an affluent suburban zone reinforcing social polarisation. They have a highly mobile inflow making short-term use of these estates especially the flats. They are hard to let due to stigma, crime and neighbourhood problems.
The overall housing market in the ADF is the most robust in the Pathfinder area reflecting long-term population gain around a suburbanising town with enhanced transport and economic linkages. It is likely to remain one of the main growth areas in the conurbation, with much of it self-sustaining. There seems no risk of market failure spreading across the zone.
Nevertheless specific interventions are required to address significant localised problems, which left unchecked might undermine this success.
3.3.5 Newcastle-under-Lyme
Newcastle Town centre has a readily discernable market town layout. It forms the hub of an urban form which is linked to urban villages to the west by a series of arterial roads.
These mixed tenure neighbourhoods, which are widely characterised as urban villages, contrast with the more coherent north-south private suburban arc of the rest of urban Newcastle-under-Lyme. Socially, the ADF area and its suburban counterpart are highly polarised.
The HMA notes that the problems are concentrated in ex-NCB estates, notably the small Parksite estate which has high voids, but the focus of the Pathfinder for these estates will be Galleys Bank in Kidsgrove. Like Biddulph East outside the ADF, Galleys Bank has hitherto lacked an adequate policy response to the defective stock. The Knutton social market is very weak and reflects a mix of issues also affecting adjacent Cross Heath, a high churn social neighbourhood including transient and impoverished inflow from a wide hinterland, hence its designation as an Area of Major Intervention (AMI). The urban villages such as Chesterton are not robust and will need to be addressed through the programme.
The Town Centre has complex urban form issues and is Newcastle-under-Lyme’s only inner core neighbourhood with a reasonable private market, but issues of high turnover in its flats.
The trajectory of the economy in this ADF is largely positive. It is less exposed to manufacturing decline and it will benefit from the growth of the local medical technologies cluster. In the short term the priority is to reinforce the linkages between the deprived estates and the western urban villages within the thriving core of Newcastle Town and support the growth of high quality accommodation within the walk-in catchment of the town centre.
RENEW North Staffordshire • Prospectus • March 2004 45 3.4 Summary
The characteristics of the area’s urban form are identified as low density, mixed and non-conforming uses, a poor physical environment and a surplus of ex-industrial land. The SSAs that will be used to address the development of a sustainable conurbation are; to focus new development around town and district centres and walkable neighbourhoods; appropriate land use zoning to encourage economic activity; re-modelling of the transportation infrastructure; and radical environmental changes to produce a landscape which enhances the area’s natural assets.
The ADFs have confirmed the overall weakness in the inner core of the conurbation and highlighted the market driven trends to locate new employment and housing on the periphery of the urban area. Whilst each of the ADFs has unique characteristics and challenges, a broad pattern has emerged of a significant corridor of decline bordered by Fegg Hayes in the north east and Stoke Town in the south west. This corridor, which is around six miles long, poses some of the most significant regeneration challenges in the country. This is considered further in Section 9 which sets out the proposals to deliver the programme. The next section examines the operation of the local housing market.
46 RENEW North Staffordshire • Prospectus • March 2004 4 The Local Housing Market
4.1 Introduction
The analysis contained in Section 2 clearly illustrates the weakness of the Housing Market in North Staffordshire compared to the West Midlands averages and the weakness of the Housing Market in the pathfinder area compared to North Staffordshire as a whole. The HMA and the associated supplementary documents provide the detailed analysis of neighbourhood performance and should be read in conjunction with this Prospectus.
The Market Renewal Area was divided into seventy five neighbourhoods, which were identified by the consultants and officials from Stoke-on-Trent City Council and Newcastle-under-Lyme Borough Council (Figure 7). The areas were defined by the grain of the urban form rather than any notion of communities of interest. It is recognised that there may be several communities which will need to be accommodated within the consultation process concerning renewal or redevelopment of these neighbourhoods.
The HMA has been compiled following considerable empirical and qualitative research, including surveys of:
• 865 buyers of newly built housing in the conurbation and nine surrounding towns;
• 1400 residents surveyed in seven neighbourhoods;
• 265 in booster samples of students, BME groups and specific localities;
• 30 focus groups in areas likely to be affected by the Market Renewal Programme.
The analysis of existing neighbourhoods combined with the data relating to longitudinal studies of the conurbation has identified a number of trends:
• The housing market in the outer core of the conurbation has been slowly undermined by short range moves of residents who have moved to peripheral areas of the City.
• The ‘low demand’ issue is most severe in the owner occupied sector and particularly the older terraced market.
• The neighbourhoods most affected by the shifts from the terraced sector are clustered in the inner core of the conurbation.
RENEW North Staffordshire • Prospectus • March 2004 47 Figure 6: North Staffordshire Conurbation Neighbourhoods & ADF Boundaries
48 RENEW North Staffordshire • Prospectus • March 2004 4.2 Neighbourhood Typologies
The area which is exhibiting the most significant market weakness is located in the inner core of the City of Stoke on Trent stretches in an arc from Burslem in the North to Stoke in the south west (Figure 8). These areas on average contain:
• The households with the lowest incomes.
• The lowest house prices and the highest levels of property sales (churning).
• The highest rates of crime and disorder.
• Disproportionate numbers of private renters, students and asylum seekers.
• The highest levels of statutorily unfit properties.
• A proliferation of non-conforming mixed uses.
The housing market in the centre of the conurbation is exhibiting the classic signs of an area entering a transitionary phase in the absence of a Market Renewal Programme. It is unlikely to be robust enough to be able to compete given the vibrant new build market in North Staffordshire.
The considerable problems of the inner core of the city are compounded by a legacy of poor ground conditions. The issues associated with the history of deep mining have been widely documented and have had a limited impact upon the housing market to date. However, it is becoming clear that the custom and practices relating to shallow excavation of raw materials at the beginning of the Industrial Revolution may have a greater impact on the longevity of some of the Victorian and Edwardian terraced stock. One of the primary reasons for North Staffordshire’s prominence during the Industrial Revolution was the prevalence of seams of coal, iron ore and clay which are in some instances located close to the surface. These seams were frequently exploited to produce materials for the local pottery, steel and iron industries. During the Victorian era many of these were filled using industrial waste and terraced housing was constructed on the made ground. In some cases there is now evidence of subsidence and some neighbourhoods may need to be cleared as a result.
In addition to the inner core of the conurbation the HMA identified a further six sub-markets, (Figure 7). The main characteristics of all seven types of neighbourhood are outlined in Table 10.
RENEW North Staffordshire • Prospectus • March 2004 49 Figure 7: Neighbourhood Typologies – All Neighbourhoods
50 RENEW North Staffordshire • Prospectus • March 2004 Table 10: North Staffordshire Conurbation Housing Sub-Markets Typologies: Key Characteristics Detached suburban Southern and northern edge of conurbation 10 neighbourhoods Population gain Late 20th Century detached often encompassing historic settlements on edge of conurbation and beyond Continued new build in Stoke-on- Trent Low density on fringe Mixed semi and detached suburban Southern and northern urban Newcastle 9 neighbourhoods Population gain Mainly postwar detached and semis New build activity density Variable Private Suburban Zone Adjacent neighbourhoods Semi-detached suburban Concentrated in easternKidsgrove, Newcastle and eastern Stoke 22 neighbourhoods Population gain Largely interwar suburban semis New build activity density Variable Mixed tenure suburban Mainly characterising Newcastle Pathfinder area 11 neighbourhoods Stable population Mainly semis but mixed with terraced around Victorian villages alongside 20th Century housing, Limited amenities Isolation and streets Narrow cul-de-sacs Defective non- traditional stock in ex-NCB estates density Variable Outer Pathfinder Zone Social periphery and Stoke-on-Trent urban Newcastle 7 neighbourhoods Population loss Large interwar and postwar housing estates, with some flats, dispersed along edge of conurbation Minimal new build Limited link to six towns Functionless open space & monotonous layout Parking problems Good stock condition density Variable Pathfinder area neighbourhoods Inner suburban and Stoke Tunstall parts of Towns, Longton 9 neighbourhoods Population loss in north stable in south Ribbons of early 20th Century terraced and interwar housing Higher density, fragmentation and disconnection in north Inner Pathfinder Zone Inner core Burslem, Hanley and Fenton Towns 10 neighbourhoods Long-term population loss now stabilising Mainly Victorian terraced, flats Some new build Fragmentation and low density given archetypes Mixed use and poor environment Arterial route pollution and severance Poor amenities, some assets Subsidence Limited area-based regeneration Urban form
RENEW North Staffordshire • Prospectus • March 2004 51 Table 10: North Staffordshire conurbation Housing Sub-Markets Typologies: Key Characteristics Detached suburban Minimal social housing Mobility variable and tends to be localised Families with children Lowest elderly but pockets in Newcastle and Biddulph Fewest lone parents Good health middle Growing class BME population in Seabridge and Meir Heath High employment and incomes distance Variable jobs and from highest car ownership Mixed semi and detached suburban Private housing Mobility variable Highest elderly population Average of proportion families Lowest single people Low unemployment reflecting qualifications Health levels mixed – link with elderly population Limited public transport access to employment but high car ownership High incomes Private Suburban Zone Adjacent neighbourhoods Semi-detached suburban Mainly private housing Mobility variable Elderly population in Newcastle- Under-Lyme of High proportion families Generally low unemployment skills reflecting base and better health Pathfinder Fen localities affect Park (inner core) Mixed access to employment Mixed tenure suburban Mixed tenure large reflecting council estates Generally low mobility Some overcrowding Ageing population Unemployment and Limited qualifications on the ex-NCB estates Poor health on these estates and poor access to employment in Newcastle Outer Pathfinder Zone Social periphery Large amounts of Social housing High mobility in south and east Moves highly localised Some overcrowding Lowest number of single people except in south (flats) White Ageing population Highest numbers of single parents Highest numbers of unemployment / Low skills level Health poor especially in south Pathfinder area neighbourhoods Inner suburban Mainly private housing Students in south BME in Growing south, north mixed Limited asylum seekers High numbers of single people in south linked to flats Pockets of lone parents Pockets of elderly Fewer families Mobile population Lower car ownership in north Low qualifications in the north health Average indicators Inner Pathfinder Zone Inner core Mixed tenure Overcrowding Students in south High BME and asylum seekers except Fenton Single people Lone parents average Few families Younger population Mobile population Inflow of young people from suburbs/periphery local BME areas moves High unemployment Low economic activity in BME areas Low car ownership but high access to jobs Qualifications and health mixed reflecting student/BME balance Function and housing need
52 RENEW North Staffordshire • Prospectus • March 2004 Table 10: North Staffordshire Conurbation Housing Sub-Markets Typologies: Key Characteristics Detached suburban Low and falling void rate. Standstill private rented. Price gain with typical prices around Mids average. West Mixed semi and detached suburban Low and stable void rate. Standstill private rented. Price gain although average prices below Mids average West except Clayton and Hanford. Private Suburban Zone Adjacent neighbourhoods Semi-detached suburban Low and falling void rate. Price gains although average prices below Mids average. West Only localised problems: Fen Park low and stagnant prices, voids Mixed tenure suburban High private rented legacy of disposals policy in NCB estates but low and static elsewhere. higher than Voids social periphery especially NCB estates of Parksite, Biddulph (also terraced housing) and Coalville. Rising voids in Knutton, Biddulph and Dresden. Mixed levels of sales but buoyant in Chesterton and Crackley Bank. Prices typical for North Staffs. Defective stock in Biddulph and Crackley Bank (prices £20,000 compared to £75,000 for and reinstated) management issues multiple remote from landlords. Outer Pathfinder Zone Social periphery sector Private rented not taking hold in ex- Buys(RTBs) Right To except Meir. static Transactions and below 5 percent in ODPM threshold southern and eastern estates. High voids in Meir especially terraced. generally rising Voids especially in south Chell, and Great down in Bentilee and Heath. Cross Prices below 40 regional percent average in Bentilee (but rising fast) and Meir (terraced prices falling). Price gain across zone in line with conurbation average. Pathfinder area neighbourhoods Private rented high Private rented and rising fast in northern Pathfinder (especially area and also in Tunstall) south. In the voids above in ODPM threshold north (notably and rising Tunstall) overall especially Smallthorne (from low base). Lower voids (including terraced) but except Florence, also rising. Diverging prices between low north (Smallthorne/Stanfiel d and south (Penkhull). Similar stock profile in north and south including unfitness. High and rising transactions rate in north, average and stable in south. Inner suburban Inner Pathfinder Zone Inner core highest Private rented especially in southern student neighbourhoods. Student market driving private rented growth. Sales high across zone. consistently Volumes high (<10 percent 2000) in Middleport and Hanley NW. Highest voids – 7.7 concentrated percent in terraced stock. Largest rises in vacancies leading to voids above 9 in percent Middleport-Burslem- Hanley NW and Cliff Vale. Some void falls (Hanley East, Fenton). Generally prices <33 of regional percent average with <15 growth percent 1995-02. Lowest prices for unmodernised terraces. Bubble in terraced values in north. Oldest and most unfit stock in Hanley South. Private market
RENEW North Staffordshire • Prospectus • March 2004 53 Table 10: North Staffordshire Conurbation Housing Sub-Markets Typologies: Key Characteristics Detached suburban Social stock generally insignificant Crime low Mixed semi and detached suburban generally Turnover low but rising in eastern Newcastle- and under-Lyme mixed in Kidsgrove, Stoke-on-Trent low and falling Voids waiting lists Strong High RTB sales Crime low Private Suburban Zone Adjacent neighbourhoods Semi-detached suburban generally Turnover low but rising in eastern Newcastle- and under-Lyme falling in Kidsgrove, Stoke-on-Trent low and falling Voids Wolstanton: high/rising turnover; churnproperty Bucknall: rising voids, low RTB offers, Berry Hill: rising rising voids, turnover, offers Crime low to average Mixed tenure suburban in Above 30 percent urban Newcastle- (but not under-Lyme with Kidsgrove) of mixed profile flats/maisonettes mainly Turnover average (high in Knutton and Crackley Bank) and generally falling RTB sales low in Newcastle-under- Lyme. crime levels – Varied high in Fegg Hayes, Knutton and Biddulph Outer Pathfinder Zone Social periphery Flats/maisonettes concentrated in south and east (Bentilee) of Potteries, and Cross Heath. Stock turnover – generally high including houses especially Meir and Heath, average Cross Abbey Hulton. high turnover of Very flats/maisonettes in Heath and Meir. Cross generally Turnover falling except Cross Heath. High turnover of specific units except in eastern estates. highest in south, Voids lowest in north and zone. falling across Waiting low list/offers/relets zone. across RTB sales variable (high in Bentilee, low Chell) in Great Crime high, especially Bentilee, Great Meir, Chell and Cross Heath. in Abbey Average Hulton. Pathfinder area neighbourhoods Social housing <30 in north, percent mainly houses and in south, 20 percent mainly flats. North: overall turnover average (houses high, 10-15 and mostly percent) falling; voids average and falling. Low RTB sales. South: overall turnover low and falling; voids low/falling. Waiting list/offers/relets zone. average across High RTB sales. Burglary and disorder higher in northern than south. area Inner suburban Inner Pathfinder Zone Inner core Stock limited boosting demand. Overall turnover – high mixed picture and rising in Burslem, Botteslow Hanley NW, and Newcastle Street Centre. Town Houses turnover high in north and Newcastle, lower in Hanley South and East. Low voids and falling Waiting list/offers/relets reasonable. Low RTB sales. Crime high zone throughout except Hanley East. in Particular problems Middleport-Burslem- Hanley NW for and robbery burglary, - major disorder factor in unpopularity. Social market Social stress
54 RENEW North Staffordshire • Prospectus • March 2004 4.3 The Local Housing Market - The Socio-Economic Context
Analysis of who uses the different housing segments in the conurbation puts the decline of different property types and tenures into a social context. Table 11 gives key demographic statistics for the terraced sector and neighbourhoods where the social rented sector predominates. This table demonstrates that the terraced sector disproportionately houses:
• The BME community;
• Students; and
• Working people on a low income.
The social sector tends to house people who are:
• Unemployed;
• Without qualifications;
• Lone parents; and
• The elderly.
The social housing estates in Stoke-on-Trent have tended to perform better in respect of vacancies and turnover than would be expected given the size of the estates, the tendency for them to be located on the periphery of the conurbation and the fact that owner occupation and private renting are affordable alternatives within the conurbation. Age cohorts may partially explain the relative stability of the sector. For example, the age profile of the population living in council housing or right to buy stock is significantly older and at this stage of the life cycle people are less likely to move. This profile suggests that in time the estates will become more unstable as demography creates vacancies.
Table 11: Housing Types: Key Demographic Statistics
Terraced Social Periphery Social Core HMR Conurbation
Lone Parents 7.8 12.3 11.8 9.5 7.2
Elderly 13.8 17.6 19.9 16.3 16.6
BME 9.1 1.3 5.1 6.7 4.2
Students 11.1 4.8 10.3 9.4 7.2
Employed percent 16-74s 55.6 40.3 40.7 48.0 56.2
Unemployed 3.9 6.6 5.8 4.9 3.7
No Qualifications 39.2 58.5 51.1 47.8 41.1
Lifelong Limiting Illness (LLTI) Persons 21.1 30.1 30.3 25.9 23.2
Vacancy Rate 6.7 3.5 3.2 5.7 3.9
Surplus above 2 percent 2,044 220 161 2503 2847 (Stoke-on-Trent 2703)
Table Source: 2001 Census
RENEW North Staffordshire • Prospectus • March 2004 55 The structure of the lower income housing market in Stoke-on-Trent also provides an explanation for the relative stability of council housing and the Right To Buy (RTB) market. In respect of the environment, stock condition and property size an ex-RTB property is generally of superior quality to the pre 1919 terraced house. For example in Stoke-on-Trent 67 percent of terraced houses have two bedrooms or less, unlike in the social housing sector where 57 percent of houses have three or more bedrooms.
The continuing market for the terraced sector in Stoke-on-Trent is dependant upon the sub-regions low wage economy. The Inland Revenue data base records the average income as the third lowest of the 354 local authorities on their records. Evidence from the household surveys highlights average mortgage repayments of between £36 to £55 per week in areas in the first phase of the Market Renewal Programme. By way of comparison, in Meir council house rents are £49 and private rented accommodation £63 per week. Therefore, the cheapest accommodation for a low wage employee in Stoke-on-Trent is the pre 1919 terraced property.
4.4 The New Build Market
A key issue for the Market Renewal Programme is the geographical market established as a result of the location of new build within the conurbation. In North Staffordshire the rate of new build is robust, especially in Stoke- on-Trent where the rate has averaged around 600 units per annum over the last five years. Two key research questions were posed by the healthy rate of new build within the sub-region:
• Who forms the customer base for new build properties in urban North Staffordshire?
• How does the new build development in the nine towns surrounding the conurbation accelerate the process of decentralisation?
Each of these questions is addressed in turn below.
4.4.1 Market Towns New Buyers Survey
The significance of new build housing development on the Market Renewal Area has been explored in a research process which has sought to explore the adjacency and displacement issues which may exist within a radius of approximately 15 miles surrounding the conurbation. This area encompasses towns such as Sandbach, Nantwich and Leek. The consultants have completed 440 household questionnaires giving a maximum statistical error of + or - 4.7 percent at the 95 percent confidence level. The main findings of the research are listed below:
• The survey confirmed a pattern of short-range moves which characterise the North Staffordshire Housing Market. Around 30 percent of new households in Stone, Biddulph and Cheadle originate from the conurbation. This figure reduces the further you move away from Stoke-on-Trent and Newcastle-under-Lyme.
• 20 percent of the sample had lived in the conurbation at some time.
• Only 16 percent of respondents worked in the conurbation
• Environmental factors appear to be the key driver for people moving house.
• The perception of the City was poor, while for Newcastle-under-Lyme it was fair to good. However, these perceptions did not appear to affect people’s willingness to consider moving into the conurbation (7 percent Stoke-on-Trent, 8 percent Newcastle-under-Lyme). Many respondents regarded city living as inappropriate for families.
• 59 percent of the respondents use Hanley City Centre for shopping and 48 percent for leisure. The conurbation does, therefore, provide an economic and social function for a region of one million people.
• Stoke-on-Trent was rated positively for shopping, convenience, leisure, cultural facilities and schools. Negative perceptions included crime, environment and housing. Newcastle-under-Lyme only scored negatively in relation to crime.
56 RENEW North Staffordshire • Prospectus • March 2004 • Generally, the qualitative responses indicated that for people who live in the broader sub-region, Newcastle- under-Lyme and Stoke-on-Trent are inextricably linked – they tend to view the area as one conurbation.
The major policy issues which arise from this study include:
• Marketing the potential to have a high quality of life in the conurbation will require a long term strategy.
• The City Centre has major potential for growth – based on current usage and external perceptions.
• The quality of the environment will be one of the key drivers of regeneration in North Staffordshire.
• The study tends to confirm that the local housing market is geographically very tightly drawn. Therefore, there is significant displacement from the conurbation when new build occurs on its periphery. However, within a relatively short distance this declines dramatically, as higher prices driven by the Greater Manchester and West Midlands economies place property out of the reach of workers in the North Staffordshire area.
4.4.2 Conurbation New Build Buyers Survey
A radically different result emerges from the survey of 425 new purchasers in Stoke-on-Trent and Newcastle- under-Lyme. The market for new build housing within the conurbation is highly localised. Key findings include:
• Three out of four previous addresses of people moving had been in the districts of Stoke-on-Trent (47 percent) or Newcastle-under-Lyme (26 percent).
• Only 16 percent of those living in Stoke-on-Trent or Newcastle-under-Lyme at their last address had considered leaving the conurbation.
• 8 percent said they would have left the conurbation if the new development had not been available.
• Including those who have moved into the City, 12 percent of the overall sample would not now be living in the conurbation had their housing site not been available.
• Overall the new build attracted a 34 percent inflow attracted to the conurbation, however the level of additionality is much lower than this figure as many inward movers were influenced by social and economic factors, rather than the quality of the new build market.
The main characteristics of the two surveys are listed in Table 12. The survey within the conurbation reveals a highly mobile and aspirational group of consumers who are favourably disposed to staying within the conurbation, given their positive views about the areas’ trajectory. However, there is evidence that this customer loyalty is conditional and particularly vulnerable to negative shifts in the quality of the local environment and rates of crime.
RENEW North Staffordshire • Prospectus • March 2004 57 Table 12: The New Build Housing Market in the North Staffordshire Conurbation and Surrounding Market Towns Common Features and Distinctions Common Features 67-73% aged 25-44 54-57% couples with children 56-64% professionals/managers BME only 3-4% travel to of Stoke-on-Trent/Newcastle-under-Lyme tight nature Reinforces work area and better housing specification both area Price gap reflects 78-82% owner occupied last home Both trading up Loyalty within conurbation but the in turn has limited influence on migration within market towns except for Biddulph Being right type/size also important Neighbourhood property. decision to buy current 92-96% believes correct satisfaction higher than national average (50% very satisfied) but limited employment role and leisure retail provides Stoke-on-Trent function for wider region years 14-18% expect to move within three within housing market and further progression Market towns reflects emphasis last time on area some jobs) within leisure, of conurbation (retail, Reflects limited role as well observed negatives region – not schools. Significant that housing not an issue in retention decisive. Market to image, are and crime – which relate Environment appeal on these issues. towns clear-cut Market Towns New Buyers Market Towns Peak age 35-44 suggesting one move on in the life cycle 16% work in the conurbation 80% detached, 9% semi 61% 4 bedrooms price £123,000 average purchase Last home: 43% detached, 34% semi, 13% terraced conurbation 10% moved from housing history in conurbation 80% no previous Most migrated into market town is key to decision buy Area to 22% house most important compared Also 34% say area 76% very satisfied with home, 73% neighbourhood and a in all aspects except shopping, leisure Critical of Stoke-on-Trent place to work for main shopping, 48% use Hanley City 59% use Hanley City Centre for leisure/entertainment Centre to move is likely job (28%) Main reason or neighbourhood area Most (51%) expect to stay in current 83% in future, Only 7% definitely consider living in Stoke-on-Trent key factor would not with poor environment would consider returning conurbation residents 17% of previous The New Build Housing Market in the North Staffordshire Conurbation and Surrounding Market Towns The New Build Housing Market in the North Staffordshire Conurbation New Buyers Peak age 25-34 62% work in the conurbation 68% detached, 22% semi currently 45% 3 bedrooms price £97,000 average purchase Last home: 30% detached, 36% semi, 24% terraced 66% moved within conurbation (19% lived in Pathfinder area) social housing Only 4% from housing history in conurbation Only 10% no previous New house key to decision buy to 20% area Also 28% say house most important compared 65% very satisfied with home, 56% neighbourhood and rate Stoke-on- Positive about choice of housing in Stoke-on-Trent except for appearance and crime. for range of features Trent getting better than worse (+6% margin) say Stoke-on-Trent More 12 continued: Table for larger house (29%) to move is desire Main reason important than house, by 23% to 10% will be more Next move area or neighbourhood area Only a quarter (28%) expect to stay in current Although only 16% contemplated leaving last time, 54% expect know). to stay in conurbation at next move (18% don’t 41% of in-movers plan to stay crime and jobs all needed to retain Action on appearance of city, with crime single most important factor. people in Stoke-on-Trent, 23% would not be swayed to stay by city regeneration Half still want to stay in the conurbation 10 years time New Buyers’ Surveys, CSR Conurbation and Market Towns Source: Partnership, 2003
58 RENEW North Staffordshire • Prospectus • March 2004 4.5 Planning for Change
Given the surplus of land, the pattern of migration and the healthy internally generated demand for new accommodation, a robust sub-regional planning framework is needed to ensure that new accommodation reinforces rather than undermines an already fragile urban form. This section briefly describes the current assumptions for new housing contained in the local plans of the three North Staffordshire Local Authorities. It specifically relates to the quantity of new build which will be allowed in the North Staffordshire Authorities over the relevant planning periods. These assumptions are placed within the context of household change projections and an assessment is made on the new build impact upon the Market Renewal Programme.
Future housing provision set out in the Regional Planning Guidance, (RPG, 2003) is based on assumed demolition and replacement rates of dwellings. However, reference is made to the possibility of changing these assumptions in future reviews. There is also reference to a further assumption that the dwelling replacement rate may be lower in the City than elsewhere in the County (0.6:1 as compared to 1:1). It is clear, therefore, that the figures currently in the RPG should be reviewed in the context of the level of needs being generated by the Market Renewal Programme. Further details on housing figures in the period to 2021 are set out below. Detailed figures are only given at the level of the City and the County. This means that further disaggregation is needed to determine guidelines for the other two Pathfinder districts. It is also important to establish guidelines for distribution of housing development between the North Staffordshire conurbation (which lies in two/three districts) and the surrounding areas. This is vital in terms of the need to ensure that the right decisions are made outside the intervention areas as well as within it.
Table 13: Annual Average Rate of Housing Provision
To 2006 2007-2010 2011-2021
Staffordshire 2,900 2,500 1,600
Stoke-on-Trent 600 600 600
It is envisaged that the Regional Planning Body (RPB) will be undertaking this work, but will involve the County Council, City Council and relevant districts. The provisions of the Planning and Compulsory Purchase Bill may ultimately make these arrangements more formal.
The RPB has yet to define the sub-regions that will be used as the basis for disaggregation, but there is little doubt that the North Staffordshire conurbation is the centre of one such sub-region. The County and City Councils are proposed as agents of the RPB in the preparation of the RPG/Regional Spatial Strategy (RSS) and its monitoring. This involvement is likely to extend to matters of development plan conformity issues.
RENEW North Staffordshire • Prospectus • March 2004 59 4.5.1 Statutory Planning: The Current situation
The Development Plan currently comprises the adopted Staffordshire and Stoke-on-Trent Structure Plan 1996- 2011 (adopted in May 2001), and the adopted local plans for the three Pathfinder districts. The adopted Local Plans for Staffordshire Moorlands and the City of Stoke-on-Trent cover a plan period up to 2001 only, whereas the Newcastle-under-Lyme Local Plan was adopted in October 2003 and covers the period up to 2011.
Reviews of the Stoke-on-Trent and Stafordshire Moorlands Plans have commenced. Further progress on both Plans has been delayed by the proposed changes to the planning system incorporated in the Planning and Compulsory Purchase Bill, and particularly in the case of the City, to enable the Draft Plan to take full account of Market Renewal.
The adopted Structure Plan provides a clear context for the regeneration of North Staffordshire through its aims and objectives, strategy and individual polices and proposals. In common with adopted local plans, it can only be ‘saved’ for three years pending replacement by the new Local Development Framework (LDF).
4.5.2 Population and Household Forecasts
In order to explore the effects of household growth a set of population and household forecasts has been carried out by consortium member, Mott McDonald, using Anglia University’s ‘CHELMER’ model. The model is a cohort survival model based on five-year age bands of population defined by sex, age and marital status. It allows controls to be imposed on the projection allowing ‘what if' scenarios to be carried out. The standard projection assumes continuing levels of migration resulting in a future population (having calculated births and deaths) to which household ‘headship’ rates are applied. This in turn produces a projected number of households (by detailed household type) that need to be accommodated within the target area.
A projection for Stoke-on-Trent shows that with a continuing net outward migration of 860 persons per annum (less than the average recent migration level) the resulting change in population between 2001 and 2026 is a loss of 17,344 persons (Table 14). The change in households is a loss of nearly a thousand households over the period and a requirement for 1,041 fewer dwellings. Translated into a numerical requirement for new housing this would imply that Stoke-on-Trent, in strict numerical terms, already has sufficient housing for present and future households and that any further housing development can only result in higher vacancies in existing stock unless migration trends can be significantly reduced.
A second CHELMER projection, assuming the completion of the remaining pipeline of housing land and making no allowance for future RPG allocations and demolitions, shows that in order for vacancy rates to stay at the already high rate of 4.5 percent net migration for Stoke-on-Trent would have to decrease to an average of almost zero over the entire period (Table 14). Increases in the new housing stock of this order together with a continuing level of current migration would imply higher vacancies and/or significant clearance.
60 RENEW North Staffordshire • Prospectus • March 2004 Table 14: Population Projections to 2026
Change 2001-2026 with continuing levels of outward migration
Net migration Change Dwellings in population change
Stoke-on-Trent -21,500 -17,344 -1,041
Newcastle-under-Lyme 1,650 -2,874 3,549
Staffordshire Moorlands 50 -6,420 1,747
Total North Staffordshire -19,800 -26,638 4,255
This absence of future household growth for Stoke-on-Trent combined with the continuing robust new build rate implies an effective 1:1 addition to the surplus of housing in the core of the conurbation unless significant clearance of the existing stock is undertaken.
4.5.3 New Build and Household Change Assumptions and their Impact on Market Renewal
Projecting forward, the combined housing new build allocation and the population migration assumptions, provide an estimate of the ‘Policy Off’ position in respect of the vacancy rate in the absence of a Market Renewal Programme. The projection is based upon the following assumptions:
• The dwelling changes in Newcastle-under-Lyme and Staffordshire Moorlands are not inclusive of demolition, which will be replaced on a one for one basis.
• The new build figure for Stoke-on-Trent is projected forward over a fifteen year timespan, adding an additional 9,000 houses to the City’s stock. The net household growth in Newcastle-under-Lyme and Staffordshire Moorlands over this period is equal to the household growth figures 2001 – 2026 projected by the CHELMER modelling conducted by Mott McDonald
Given these broad assumptions and the projections illustrated in paragraph 4.18 – 4.27, the surplus of property in Stoke-on-Trent would grow from around 2,500 units to 11,500, giving a vacancy rate of 11.8 per cent. A vacancy rate at this level would mean that the City of Stoke-on-Trent would have the highest void rate of any British City given the current performance of urban areas.
This vacancy projection highlights two different issues. Firstly the process of housing market change is in its formative stages in North Staffordshire. Even assuming limited population loss from the sub-region the current demand for new property implies that voids would increase by more than 100 per cent over the duration of the next fifteen years, if North Staffordshire did not have access to the Market Renewal Programme. Secondly, the basic assumptions for Newcastle-under-Lyme and Staffordshire Moorlands may be too optimistic, given the potential to allocate a greater new build figure within the West Midlands RPG. Developing an effective planning framework to protect the urban core and facilitate market renewal is likely to be a major challenge for local policy makers. A review of the Planning Strategy is currently being undertaken.
RENEW North Staffordshire • Prospectus • March 2004 61 4.6 Summary
The research and analysis contained in the HMA identifies that the housing market in the outer core of the conurbation has been undermined by short range moves to peripheral areas. Low demand is most severe in the owner occupied sector, and particularly the older terraced market. The neighbourhoods most affected by moves from the terraced sector are those in the inner core of the conurbation. The HMA identifies seven sub-markets or typologies operating in the Market Renewal area, which describes the main characteristics of each and puts them into their socio-economic context. This section has also examined the customer base for new build properties in North Staffordshire, how new build development in the areas surrounding the conurbation is accelerating the process of decentralisation and the need to establish guidelines for distribution of housing development given household change assumptions and projections.
The next section sets out the Market Renewal Strategy including the aims and objectives, sequencing of activity, stakeholder engagement, the contribution of other agencies and the Renew approach to adjacency and displacement.
62 RENEW North Staffordshire • Prospectus • March 2004 5 The Market Renewal Strategy
5.1 Introduction
In June 2003 The Board agreed to a Policy matrix which was designed as a response to information emerging from the Interim HMA. This decision allowed officers to develop proposals in four Areas of Major Intervention (AMIs) while simultaneously assembling the broader evidence base and policy framework required to develop a Market Renewal Strategy.
The evidence base to support this prospectus has now been completed and is appended to this document. This section of the Prospectus sets out: the aims and objectives of the Market Renewal Strategy; the spatial priorities for investment; the scale of the physical change proposed by the programme; stakeholder engagement; linkages with other regeneration strategies and agencies which operate within the area and Renew’s approach to issues of adjacency and displacement.
5.2 Factors Driving Housing Market Change
The aims and objectives that underpin this programme are evidence based and respond to the factors that are creating a dysfunctional housing market. The following issues have been identified though the HMA and analysis of the urban form as having a direct impact upon the housing market. The evidence base has therefore, identified where the Market Renewal Programme can have a positive and direct impact:
• Aspirations and Choice: North Staffordshire has had a relatively high rate of new build for the last 30 years, which has signified a shift in the structure of owner occupation away from the older terraced market and the inner city.
• Environment: One of the key factors which has led to the decline of the core of the conurbation has been its poor environment. A particular focus of the Market Renewal Strategy is the extent of housing juxtaposed with industrial uses and the proliferation of poor quality housing along congested arterial roads.
• Land Supply: The conurbation has an over supply of ex-industrial land. This supply has often been re- designated for housing use without regard to its impact on the urban form, population and residential densities, or community and commercial facilities.
• Market Disequilibrium: There is currently a crude surplus of around 3,000 dwellings within the conurbation. Given the household projections and the new build rate, this surplus would be expected to increase fourfold over 15 years if no action was taken to restructure the market.
• Crime: Evidence from the surveys of neighbourhoods experiencing decline and purchasers of new build property confirmed that crime was an important factor influencing residential choice.
• Ground Conditions: Some neighbourhoods and individual streets are experiencing instability because of the legacy of deep and opencast mining that took place during the Industrial Revolution.
In addition to the factors listed above, there are a number of socio-economic issues that can be influenced by the Market Renewal Programme. The most important of these are listed below:
• Social Cohesion: There are groups of people who disproportionately experience poor housing conditions, a degraded physical environment and exclusion from employment and leisure opportunities. The Market Renewal Programme seeks to transform the housing offer for these communities whilst seeking to find comprehensive solutions to urban decline. It is recognised however that the manner in which the programme is delivered could either improve the cohesion of North Staffordshire, or if deployed in an insensitive way could exacerbate existing tensions.
RENEW North Staffordshire • Prospectus • March 2004 63 • Population and Household Change: The Market Renewal Programme will seek to alter the migration and demographic trends within the conurbation. However, to do so it will need to alter the public and investor perceptions of the core of the conurbation and reverse the social processes that have developed over 70 years.
• Transportation and Economic Growth: The Market Renewal Programme will seek to influence both transportation investment and economic growth.
5.3 Aims and Objectives
The overarching aim of this Prospectus is:
‘to promote the restructuring of the North Staffordshire conurbation, thereby providing a highly competitive urban form which is capable of retaining it’s population within a green and landscaped environment and facilitates the growth of an economy which has employment and income levels comparable to the regional average.’
The strategic-level evidence base, principally the housing market assessment, the Strategic Spatial Assumptions (SSAs) and the economic futures work provided a detailed understanding of the drivers of change in North Staffordshire and the likely trajectory in the absence of Housing Market Renewal.
Equally, the development of the ADFs and the Neighbourhood Action Plans (NAPs) pointed to a range of opportunities – and inevitably constraints – that could not be foreseen at the outset of Prospectus development
Following the analysis which has identified the factors influencing the market and the identification of issues that can be influenced directly or indirectly by the Market Renewal Programme, the aims of the strategy are:
• To balance the supply and demand for housing in North Staffordshire
• To provide sustainable neighbourhoods
• To retain and stabilise the conurbation’s population base
• To radically improve the environment of the conurbation
• To meet housing needs and promote social cohesion
• To provide a quality housing stock which increases economic competitiveness and links to wealth creation
• To reduce incidence of crime and fear of crime in Housing Market Renewal target area
Each of the aims of the programme is supported by a series of objectives which determine the interventions that will characterise the strategy. The targets and outputs that relate to these aims and objectives are set out in Section 8. Following the evaluation of the likely impacts from the planned actions – and their measurability – the objectives for the scheme were refined further as set out below:
Aim 1: To balance the supply and demand for housing in North Staffordshire
Objectives:
• To remove surplus properties from the housing market
• To facilitate the development of land for housing in appropriate urban locations
• To ensure an appropriate supply of property by size, price and tenure
64 RENEW North Staffordshire • Prospectus • March 2004 Aim 2: To provide sustainable neighbourhoods
Objectives:
• To provide neighbourhood management structures to manage change in AMIs
• To support older urban centres with appropriate levels of residential density
• To ensure that neighbourhoods whose primary function is to provide long-term accommodation are stable and popular
Aim 3: To retain and stabilise the conurbation’s population base
Objectives:
• To reduce the net outward migration from Stoke-on-Trent in a way which is sensitive to the needs of the wider conurbation
• To ensure that an appropriate level of new build accommodation is provided over the duration of the programme to retain and attract population and households in the intervention area
Aim 4: To radically improve the environment of the conurbation
Objectives:
• To remove housing inappropriately located along heavily polluted arterial roads
• To remove housing from areas of non-conforming industrial uses and locations with no long-term residential future
• To provide quality open space on ex-housing land which has been decommissioned
Aim 5: To meet housing needs and promote social cohesion.
Objectives:
• To ensure that BME groups have the opportunity to access the new build housing market in North Staffordshire
• To reduce overcrowding where neighbourhoods are subject to redevelopment
• To ensure that no specific groups of people or communities experience housing stock conditions that are significantly worse than the average for the conurbation
• To ensure that all groups affected by the redevelopment process are rehoused in an appropriate form of tenure and property type
Aim 6: To provide a quality housing stock which increases economic competitiveness and links to wealth creation
Objectives:
• To ensure that the Housing Market Renewal programme supports the development of a new commercial core for the conurbation
• To ensure that Housing Market Renewal supports viable local centres
• To ensure that effective links are made with construction training
RENEW North Staffordshire • Prospectus • March 2004 65 Aim 7: To reduce incidence of crime and fear of crime in Housing Market Renewal target area.
Objectives:
• To reduce crime that affects quality of life
• To improve community safety
5.4 The Shape of the Programme
Given the poor environment, the legacy of the industrial revolution and the over supply of Brownfield land in the conurbation, the strategy needs to be radical to ensure that the aims and objectives of the programme are achieved. The most significant elements of the programme are outlined below:
5.4.1 Areas of Major Intervention (AMIs)
The Board and the Local Authorities have already agreed to start the development work for the first four AMIs where up to ten years of activity will be required to restructure the local market. These areas are:
• Hanley South
• Middleport
• Meir
• Knutton / Cross Heath
NAPs have been produced for each of these areas (Appendices 8 - 11).
Based upon evidence provided by the HMA and ground condition surveys it is proposed to develop a further four AMI which are:
• Hanley East
• Hanley North West
• Stoke
• South Shelton
Given capacity constraints and issues relating to the phasing of resources, development work on the NAPs will not start in these locations until 2007.
The impact that the eight AMI will have can be summarised in the following way:
• They will restructure neighbourhoods that have the highest vacancy and turnover rates.
• They will make a major contribution to reduce disrepair.
• They will address poor housing stock condition as six of the eight target areas exhibit the worst stock condition within the conurbation.
• In Knutton/Cross Heath and Meir they will act as pilot projects for restructuring that will take place later in the programme on other large social housing estates.
66 RENEW North Staffordshire • Prospectus • March 2004 5.4.2 General Renewal Areas
In addition to the eight AMIs, it is proposed to declare six General Renewal Areas (GRAs). These areas tend to be smaller in scale than the AMI, containing around 1,000 dwellings each. There is likely to be a different approach to renewal in these areas, with a significant emphasis on environmental regeneration and retention of the stock. The six areas are:
• Burslem Park
• Birches Head
• Normacot
• Tunstall
• Smallthorne
• Dresden
These areas have been selected for this initiative because they tend to exhibit a more stable pattern of demand, better stock condition and a better environment than elsewhere in the inner city. Conversely they have relatively low prices compared to the conurbation as a whole. In the first phase, the GRAs are strategically located in proximity to the AMI and may be used to relocate residents from these Major Areas.
5.4.3 Environmentally Driven Programmes
The North Staffordshire conurbation could be transformed into the greenest conurbation in Britain. Given the emerging structural issues in parts of the city and the proposed second phase of AMIs, there is a significant opportunity to commence turning this concept into a reality.
Removing poor quality housing from arterial routes will radically improve the environment and remove housing from areas with poor air quality. It is envisaged that this intervention will involve the clearance of approximately 1,000 dwellings. In addition the programme of removing poor quality housing from mixed use industrial environments will involve the clearance of around 2,000 dwellings. These houses tend to be found in clusters of between 50 and 200 dwellings. Where housing is being removed for environmental reasons, it will not be replaced.
5.4.4 Town Centre Living
The Market Renewal Strategy will promote higher residential densities and town centre living wherever it is viable. The first phase of activity will facilitate development in Newcastle Under Lyme, Burslem and Hanley town centres.
5.4.5 Ex National Coal Board Estates
The Housing Strategies of both Newcastle under Lyme and Stoke-on-Trent City Council have focused on remodelling ex-NCB estates located on the periphery of the conurbation. The Board is committed to finishing the scheme at Coalville and has invested Early Action resources to maintain the regeneration of this estate. The focus of investment will need to switch from this estate as it nears completion to the two ex NCB estates which have not yet received targeted regeneration investment. These estates are Galleys Bank in Newcastle and Biddulph East in the Staffordshire Moorlands. Development work should commence in both of these areas during the next financial year.
RENEW North Staffordshire • Prospectus • March 2004 67 5.4.6 Chesterton Western Urban Village Pilot
Chesterton is one of several urban villages located on the Western edge of the conurbation. All of these areas, to a greater or lesser degree, experience peripherality, the effects of mining closure, and pockets of poor quality housing. The Chesterton Pilot Project will develop medium cost interventions that will ensure the reintegration of these communities into a conurbation which will ultimately have a different function and form within two decades.
5.4.7 A New Etruria Valley
The central core of the conurbation is currently experiencing the most severe social stress and a profound loss of function and form. It contains the weakest neighbourhoods, the largest concentrations of poor quality housing, an underdeveloped and vulnerable City Centre and a 460 acre hole in the urban form which used to be occupied in part by the Shelton Steel Works. There is no precedent in Western Europe, or in the United States, for a conurbation to flourish whilst its core is physically disintegrating. It is therefore, a prerequisite for successful regeneration in North Staffordshire that proposals are brought forward to bring the heart of the conurbation back to life.
The Market Renewal Prospectus will propose that a new planned environment is developed in the area between Burslem and Hanley which reinforces and develops the city centre and Burslem whilst reintegrating the Etruria Valley into the city by providing a new high quality residential development. The plan would integrate the following developments:
• The NAPs in Middleport / Burslem and Hanley South.
• The mixed use leisure and employment complex at Festival Park.
• A regenerated city centre.
• A University Quarter.
• New city living opportunities.
The delivery of a project this size would require the integration of investment plans from all of the public sector agencies represented on The Board. However, early indications suggest that the area could sustain an additional 20-25,000 new jobs and between 8,000-9,000 new dwellings.
It is envisaged that this new heart to the conurbation will provide a focus for regeneration in North Staffordshire and help secure regional and central government support for a project that has the potential to be of national significance. The project would be developed along ‘New Town’ principles with community facilities, schools and public open spaces being programmed into the development from the start. The ‘New’ Etruria Valley will provide a physical symbol of the renaissance of North Staffordshire and be a highly visible demonstration of the successful regeneration of the conurbation from the West Coast Mainline and the A50/A500 corridor.
68 RENEW North Staffordshire • Prospectus • March 2004 5.4.8 Local Authority Main Programmes
The success of the programme is critically dependent upon the support of the four local authorities and the creative use of their enabling powers. Given the pressing needs of the inner core of the conurbation, the HMRF will seek to support and complement local authority and private sector investment and other public sector investment streams in the following areas:
• The peripheral housing estates in Stoke-on-Trent.
• Silverdale and Newcastle Town Centre.
• Neighbourhood management.
5.5 The Scale of Change Proposed by the Programme
This strategy has been guided by a robust evidence base that has clearly highlighted the interdependencies that exist between economic change, the environmental legacy from the Industrial Revolution and the outworn physical fabric of the conurbation. These interdependencies have produced a dynamic of decline which is unlikely to respond effectively to one-dimensional solutions. The paragraph below illustrates the scale of physical change in the housing stock which will be stimulated by the HMRF. However of equal importance is the strategic alignment of housing, economic development, planning and transportation programmes that will flow from this approach.
The housing programme required to achieve the aims and objectives that underpin the strategy has to be radical in terms of outcomes, and extensive in respect of scale. The major housing outputs from the scheme over a fifteen year period are:
• 14,500 units cleared.
• 36,100 units refurbished.
• 12,500 properties constructed.
The target outputs and outcomes which flow from the Aims and Objectives of this strategy are outlined in Section 8, however, the detail of the proposed Market Renewal Interventions in the first AMIs are contained in the NAPs (see Appendices 8 to 11). These documents also contain a Policy Audit that highlights the linkages between the programmes and policies of the major public sector agencies. These linkages are critical to the success of the project given the complexities inherent within the urban environment, but also essential given the need to raise finance and target disparate funding streams in a co-ordinated manner.
5.5.1 Cost of the Programme
This Strategy will require support of £860 million from the HMRF. This will be matched on a pound for pound basis from the opportunities created for private sector investment. The two year programme supported by £30 million from the HMRF is outlined in detail in Section 6. The financial programme is explained in more detail in Section 7.
RENEW North Staffordshire • Prospectus • March 2004 69 5.6 Community Consultation and Stakeholder Engagement 5.6.1 Community Consultation
When the Pathfinder status for North Staffordshire was announced in 2002, the only Area Based Initiatives (ABIs) operating in the conurbation were the the Neighbourhood Management Pathfinder and Newcastle Western Urban Villages SRB 3 programme in Newcastle-under-Lyme. It has been necessary, therefore, to develop the capacity to engage with local residents who are affected by the Renew programme and establish the personnel and the communication methods from a very low base.
Over the last six months, a significant effort has gone into ensuring that the communities affected by the Market Renewal Programme have been involved in the development of the strategies for their area and the overall programme. This has been achieved though a mixture of rigorous and extensive qualitative and quantitative research (see Appendix 1) and through a series of approximately 40 different events including open days, presentations and meetings with the general public, community fora, Area Housing Offices and Resident’s Associations.
A Communication Team have been seconded from within Stoke-on-Trent City Council’s Housing Department to develop effective communication channels with the general public and to be on hand to answer queries on a dedicated telephone hotline. In Newcastle-under-Lyme the structures that were in place to deliver the Neighbourhood Management Pathfinder have facilitated community involvement. Communication experts, Staniforth and a ‘resident’s friend’, have also been commissioned to develop and implement a Communications Strategy and advise the Communications Team on appropriate communication methods for the full range of interested parties. Information is also provided through the following mechanisms:
• The Renew North Staffordshire website www.renewnorthstaffs.gov.uk
• Leaflets made available to the general public
• A Renew North Staffordshire Newsletter that will provide regular updates on progress and will be delivered to all households in the Pathfinder area.
• A video produced in collaboration with English Partnerships that will be distributed to schools, Residents Associations and community groups etc.
It is recognised that consultation and communication is a long term process of engagement and it is fully acknowledged that the initial proposals developed through the NAPs will need to be used as the basis of further negotiation with the community in the coming year. Significant resources from the HMRF have been apportioned in the next two financial years to accommodate the facilitation of the future consultation and communications process. This includes a budget for public relations, marketing, implementing the communications strategy, further work involving resident’s friends, masterplanners and community architects. In addition to work undertaken by the Renew Team, the local authorities will support the development of effective communication with residents. Their offer is outlined in Appendix 16.
70 RENEW North Staffordshire • Prospectus • March 2004 5.6.2 Stakeholder Engagement
The Market Renewal Strategy has been developed over the last 12 months through a process of engagement with key stakeholders involved in the regeneration of the sub-region. The proposal from the consortium of consultants acting on behalf of the Renew Team included specific reference to ensuring that officer, partner and political buy in to the Prospectus was achieved. To facilitate this buy in, over 60 interviews with key partners were conducted between April and September 2003.
A significant effort was also made by the Renew Team to keep stakeholders and officers engaged in the Market Renewal process by attending meetings and preparing briefings. In parallel to these efforts, more than 100 formal presentations were given and stakeholder meetings attended involving several hundred individuals.
The engagement process has involved the following interests:
• Elected Councillors, MPs and MEPs;
• Local government officials;
• Other local government and voluntary sector agencies
• Local Strategic Partneships (LSPs);
• Registered Social Landlords (RSLs);
• Private sector developers;
• Urban designers;
• Private sector lenders;
• Central government agencies;
The result of this dialogue has stimulated a debate in local government over the need to develop corporate policy responses, neighbourhood management and integrated planning, transportation and economic development strategies (see Appendices 16 to 18). The integration of the Market Renewal Strategy with other key regeneration bodies and programmes is an ongoing and iterative process. However, the achievements to date are outlined below.
5.6.3 Registered Social Landlords
RSLs and the Housing Department in Stoke-on-Trent have formed the North Staffordshire Housing Forum (NSHF) to develop a number of proposals to enable social housing providers to effectively engage with Market Renewal. In addition to the financial contribution the Housing Corporation can make, the forum is offering to:
• Align their revenue and capital expenditure to meet the objectives of Renew where appropriate, including assembling cross-sector partnerships with private sector developers.
• Contribute resources to develop and refine the evidence base and seek practical solutions to complex issues.
• Consider the secondment of specialist staff.
• Contribute to building the capacity of local communities in areas of major change.
• Assist with the delivery of programmes in areas that need additional capacity to facilitate clearance, re- provisioning and re-housing.
RENEW North Staffordshire • Prospectus • March 2004 71 As the Market Renewal Strategy develops the role of the RSLs in delivering the outcomes associated with the Renewal Programme, will become more varied and it is anticipated the Approved Development Programme (ADP) allocated by the Regional Housing Board (RHB) will provide for the following activity:
• Grant/subsidy for shared ownership, market renting and general needs new build property for rent;
• Contributions towards the renewal of Chesterton and Coalville;
• Purchase and repair to properties prior to resale within GRAs;
• Provision of supported housing developments such as an elderly persons village at Meir;
• Acquisition for demolition grant in social housing areas;
• Support from the Innovation and Good Practice Fund and Community Training and Enabling Grant;
• Short life housing schemes;
• Housing Association stock improvement.
5.6.4 The Housing Corporation
The allocation of Housing Corporation investment will in future be distributed by the RHB in line with the priorities of the Regional Housing Strategy (RHS). The next two years allocations from the ADP have not been announced yet, but Renew have given support to the following priorities:
• Coalville £4m
• Normacot £1.5m
• Abbey Hulton £144k
• Homebuy £250k
• Purchase and repair in GRAs £520k
The total support requested from the ADP over the next two financial years is therefore £6,414 million.
5.6.5 Advantage West Midlands (AWM)
The Economic Development Programme for North Staffordshire is principally delivered on behalf of AWM by the North Staffordshire Regeneration Zone (NSRZ). This body will eventually become a company limited by guarantee. The NSRZ is committed to working with Renew to support the Market Renewal strategy, their geographical boundaries are almost co-terminus and housing is one of the key enabling priority work areas for the Zone. To ensure Market Renewal and NSRZ objectives are considered in the development of projects, we are working towards a joint project appraisal procedure. Opportunities are also being explored to share the same office accommodation with provision for key partners such as AWM, English Partnerships and possibly GOWM and the Housing Corporation.
Between 2004 and 2007, NSRZ is expected to invest approximately £87m through AWM from a cocktail of funding. NSRZ will work in partnership with Renew to develop projects that contribute strongly to the objectives and outcomes of both programmes. In our first full year of joint working the following projects have been developed:
• The Business Case and Constitutional Model for a Special Purpose Vehicle: The Board and NSRZ have jointly funded consultancy work to examine the most effective type of SPV to deliver regeneration in North Staffordshire. This study has concluded that the most appropriate model would be a UDC, a recommendation that has been accepted in principle by The Board.
72 RENEW North Staffordshire • Prospectus • March 2004 • Development of a Commercial Core for North Staffordshire: Both AWM and Renew have worked closely in developing a feasibility study for this work (see Appendix 15).
• Construction Training: Renew have supported the application for funding a Construction Training College for North Staffordshire. The £7m project requires £2m of NSRZ funding and this bid is currently being appraised by AWM. The key features of the project are:
• The establishment of a facility for training in construction skills at Stoke-on-Trent College;
• The development of training packages that address the major workforce agendas;
• Engagement with major construction companies, local employer organisations, and Job Centre Plus to establish the major training initiatives for adults in the construction industries, which will include the development of a ‘North Staffordshire Adult Apprenticeship’.
• Development of an integrated spatial strategy: Work is underway to develop an integrated strategy for the North Staffordshire conurbation.
• Development of Transportation and Economic Development Strategies: Renew, AWM and the four Local Authorities have recognised the fact that to secure Market Renewal will require a step change in the quality of the strategies which effect the urban environment and the level of integration between economic development, housing, planning and transportation policies. The Local Authorities offer to deliver this step change is contained within Appendices 16 to 18. The Authorities are currently working with AWM and the Highways Agency who have contributed significant funding during 2004 to commission new transportation and economic development strategies for the sub-region.
5.6.6 English Partnerships
English Partnerships have developed a close working relationship with Renew during the 2003/04 financial year. The agency has been particularly active in supporting the development of the Early Action Programme for Hanley South, acting as an agent for Renew to purchase the Imperial Pottery site and co-ordinating a public sector strategy for site acquisition in the area. The role that English Partnerships has played in assisting with delivery of the programme in the first AMIs is illustrated below:
Hanley South:
• Supported the acquisition of the Imperial Pottery site;
• Funding the demolition of the Hanley Pottery buildings in a joint venture with Derwent Housing Association;
• Offer of resources to develop the delivery plan for the area;
• Initially promoted the acquisition of former industrial land with British Waterways and now discussing development with the purchaser and planning team;
• Discussing a potential development with the owners of the Eagle Pottery site.
Middleport:
• English Partnerships have had an input into the Burslem Masterplan and the regeneration company created to deliver it;
• The potential to assist with gap funding is now being explored to support the new residential units proposed within this AMI.
RENEW North Staffordshire • Prospectus • March 2004 73 Newcastle Under Lyme:
• English Partnerships are making a considerable contribution to regeneration in the Newcastle-under-Lyme ADF through it’s Coalfield Programme at Silverdale and at Knutton/Cross Heath through its strategic acquisition of the Collins and Aikman site, adjacent to the Lower Milehouse area.
In the medium to longer-term Renew would wish to prioritise English Partnership’s investment and delivery capacity in the Centre of the City of Stoke-on-Trent. Investment would be particularly focused around Middleport/Burslem, Hanley East, Hanley South, Hanley North West, the City Centre and Etruria Valley. There is also potential for involvement in a regeneration project for Silverdale and Parksite, linked to the redevelopment of the former Silverdale Colliery site, and more generally support for Town Centre living. Given the complex nature of the redevelopment process it is envisaged that financial support will be required from different budget holders within English Partnerships, including the Land Restoration Trust and the Land Stabilisation Fund.
5.6.7 Urban Design
Renew and the local policy community recognise that a high quality of urban design has to be integral to the redevelopment of the conurbation. Planners and urban design teams have worked closely with the Commission for Architecture & the Built Environment (CABE) to develop the capacity of the area to engage with the design aspirations of the Sustainable Communities Plan (SCP). Urban Vision has now established an Architecture and Urban Design Centre for North Staffordshire that will promote design-led regeneration and urban renaissance in the City and the sub-region.
It is intended that further training and awareness raising will help to ensure that the principles of good quality design and sustainability become embedded within Stoke-on-Trent City Council’s approach to new development and regeneration, whilst the production of new policies and documents such as a Residential Design Guide, will help to turn these principles into practice. Examples of how this is already being done include:
• Recently agreed and revised interpretation of planning policy within Stoke-on-Trent City Council so that planning applications for residential use will only be granted permission if they meet criteria relating to regeneration, sustainability and high quality design.
• The City Council and AWM are preparing a bid for funding to commission a City Centre Area Action Plan (or Masterplan) that will provide a clear, coherent vision of how the City Centre should develop, set out policies and design principles to guide development and provide an aspirational but realistic delivery plan.
• Production of a development framework for Hanley South, led by Stoke-on-Trent City Council in collaboration with its regeneration partners, based on a vision that sees the development of attractive, vibrant and sustainable residential communities within easy walking distance of the City Centre, making a major contribution to the regeneration of Stoke-on-Trent. This is being used to guide both regeneration interventions and developer-led schemes.
• Development of a Burslem Masterplan and Urban design Action Plan (currently being finalised) with input from CABE, together with a design brief for proposed residential development at Greenhead Street (adopted as Supplementary Planning Guidance in 2004). This has been prepared in consultation with the developer as a basis for detailed site design for high quality housing.
74 RENEW North Staffordshire • Prospectus • March 2004 5.7 Adjacency and Displacement
A key concern relating to the impact of the Market Renewal Programme is the extent to which the HMRF could stimulate the movement of residential activity from one area to another, generating unintended negative outcomes. Renew have been alert to the potential for further peripheral development to damage the fragile core of the conurbation whilst also recognising that there are issues of displacement and adjacency which will arise from reversing past trends. The HMA which supports this Prospectus (Appendix 1) has considered these issues building on empirical evidence gathered from new build surveys in the conurbation and in surrounding towns, neighbourhood surveys and census data. This analysis has also been reflected within the ADFs.
The scale of the proposed Market Renewal Programme in North Staffordshire means that it is virtually certain that displacement will occur during the duration of the scheme. The key public policy question is therefore, to what extent can the process of strategic development and public sector interventions minimise the occurrence and mitigate its impact? Having considered the evidence carefully, Renew consider that displacement could occur at five spatial levels and these are outlined below:
Sub-regional Level: The surveys of the purchasers of new build within the conurbation and within a 15 mile radius show a positive but weak relationship between new build per se and movements into and out of the conurbation. This weak relationship does not however hold for settlements such as Stone and Biddulph, which are immediately adjacent to the conurbation and where new build can have a significant impact upon population movement. This issue will need to be reflected in the Sub-regional Planning Frameworks which are being developed to support this Prospectus.
Within the Conurbation: There is a substantial surplus of land within the conurbation, and in recent years there has been a significant decentralisation from the core of the conurbation to the periphery. The evidence from the HMA suggests that the new build market in suburban areas is largely being sustained by indigenous demand. The Market Renewal Strategy seeks to shift the pattern of new build development from the periphery to the central core of the conurbation. The displacement here is, therefore, an objective of public policy.
Within the ‘Central City Area’: Six of the eight proposed AMIs, the Etruria Valley development and a proposed City Centre Market, are all located in the centre of the conurbation. Over time there will be significant movement of population. Some of this movement will be stimulated by direct public sector intervention, and some indirectly through the market anticipating future interventions. This movement of population will need to be accommodated and managed and it will be necessary to create a team to co-ordinate and monitor the activities being carried out by the delivery teams in the AMIs and the Etruria Valley. It will be necessary to link the provision of accommodation of various sizes, prices and tenures in the large new build sites in Burslem, Hanley South and Etruria Valley with the needs being created by the redevelopment process in adjacent areas.
Between Adjacent Neighbourhoods: It is possible that a process of contagion will develop between neighbourhoods that have been designated as areas requiring major intervention and adjacent areas with a similar residential structure. This issue is being addressed within the Market Renewal Strategy by declaring GRAs adjacent to areas that will experience major change. This declaration will support investor confidence in the adjacent areas and provide an ability to target resources and link displaced residents from unsustainable neighbourhoods to more stable locations.
Within AMIs: The AMIs contain a diverse housing stock which varies considerably in terms of quality and structural integrity. The regeneration programmes in these areas will last for ten years, and it will be important to make an early declaration as to which properties will be retained if blight of the whole neighbourhood is to be avoided.
RENEW North Staffordshire • Prospectus • March 2004 75 5.8 Summary
This section of the Prospectus has focused upon the Market Renewal Strategy, its spatial priorities and the contribution of major Regeneration Agencies to facilitate change. The factors driving housing market change are identified, in addition to the socio-economic issues that can be influenced by the programme. Each of the aims of the programme is supported by a series of objectives that determine the interventions. The targets and outputs that relate to these aims and objectives are set out in Section 8. The most significant elements of the programme and the scale of change proposed have been outlined and the cost of the programme identified. This section also described how initial consultation has been carried out and how partner agencies intend to support the programme.
The next section gives more detail in relation to major elements of the initial stages of the programme. It covers the areas that have been highlighted in the Strategy, describes the support that will be offered to individuals to improve their housing circumstances and summarises the expenditure for the next two years of the programme.
76 RENEW North Staffordshire • Prospectus • March 2004 6 The Housing Market Restructuring Programme 2004/05-2005/06
6.1 Introduction
Market Renewal is a long term process that profoundly effects places as well as people. The allocation of resources over the duration of the programme will be reviewed during the three year Central Government Spending Cycles, however, the designation AMIs will often necessitate a commitment to regenerate and renew an area over a period of a decade or more. It is important therefore to balance the need to develop viable short term spending programmes with an understanding of how the long term strategy for a neighbourhood impacts upon the Market Restructuring Process at the sub-regional level.
This section of the Prospectus has three constituent parts. The first looks at the places which will be the focus of Market Renewal activity over the next two years. However, it is also envisaged that in many of these neighbourhoods the restructuring programmes will run for at least ten years, and this part of the Prospectus briefly summarises the rationale for housing market intervention in each area over the longterm. The phasing of Area Based activity for the duration of the programme and the overall investment requirements for the neighbourhoods targeted by HMRF is highlighted in the Business Plan which is published as Appendix 13 and briefly summarised in Section 7. In addition to focusing the Market Renewal Programme on places, Renew has developed policies to support people during the first phase of Market Renewal. These policies are listed in the second part of this section and developed further in Appendix 12 and 18. They may be subject to change as the programme develops. Finally the last part of Section 6 lists the detail of the next two years of the programme and the outputs which will be generated by the HMRF as the programme moves from its development phase towards implementation.
6.2 The Balance of the Investment Programme in the First Two Years
Section 5 of this document detailed the aims and objectives of the Strategy, and highlighted a policy framework which involves neighbourhood activity, themed interventions and strategic linkages with other regeneration programmes. The next two years of the Market Renewal Programme will focus on developing neighbourhood based activity and securing the appropriate levels of linkages between key spending programmes and strategies.
The successful delivery of the Programme is critically dependant upon a significant strengthening of operational capacity and strategic and policy co-ordination. A major component of our forward plan to strengthen delivery arrangements is the creation of a SPV which can redevelop mixed use areas, using a range of skills and funding regimes. The absence of this vehicle at the beginning of the Programme has meant that the thematic interventions around removal of houses from mixed use areas, the arterial routes programme, and the redesignation of residential land for environmental improvements will not start to any significant extent in the period 2004 – 2006. The spending programme in the first two years reflects this, and a detailed phasing of the thematic interventions and the policy tools to facilitate restructuring are set out and costed in the Business Plan.
RENEW North Staffordshire • Prospectus • March 2004 77 6.3 Changing Places
Neighbourhood based interventions will be an important policy tool for Renew. Spatial interventions allow carefully tailored policy responses to be targeted at people, and at concentrations of need. Additionally a neighbourhood focus can promote a transformational agenda or alternatively policies can be aimed at preserving the status quo. Flowing from the analysis contained in the Appendices and the Market Renewal Strategy the Renew Pathfinder is seeking to support a number of neighbourhood based initiatives over the duration of it’s lifetime. Figure 8 highlights the 21 neighbourhoods which are likely to benefit from targeted HMRF funds over the next 15 years. Eight new residential neighbourhoods are included within the first phase of Market Renewal, in addition to four new locations for residential development (Hanley, Newcastle town centre, Burslem town centre and Etruria Valley) and the completion of the renewal programme at Coalville. Some of these neighbourhoods will see little investment in the existing physical fabric in the first two years as the emphasis will be on community consultation and neighbourhood management. However, in other areas it will be possible to renew property with confidence and it will be possible to commit early investment.
The area based component of the first phase of Market Renewal can be assembled under four headings which summarise the contribution that neighbourhood interventions can make to the regeneration of North Staffordshire and the restructuring of the housing market. These headings are listed below;
• Regenerating the Core of the Conurbation: The AMIs at Hanley South and Middleport will be linked to the redevelopment of the Etruria Valley, to provide a new residential heart for the conurbation. (See Figure 9).
• Promotion of Town and City Centre Living: Proposals are being developed to integrate new housing with the commercial renewal of Burslem, the expansion of Hanley City Centre and the continued development of Newcastle Town Centre. These initiatives will increase the supply of quality flatted accommodation, and stimulate a market which currently is virtually non existent.
• Support for Vulnerable Neighbourhoods: There are a number of neighbourhoods which are not experiencing market failure, but do exhibit serious weakness and this programme has identified the ex-NCB estates at Galleys Bank and Biddulph East, the ex-mining village of Chesterton and three GRAs in Stoke-on- Trent for targeted financial support over the next decade.
• Restructuring the Social Sector: The AMIs in Meir and Knutton and Cross Heath will act as pilot projects for Social Landlords in North Staffordshire, to see how intervention can address issues such as stigma, crime and high residential turnover. Smaller pump priming projects such as urban design analysis for the Abbey Hulton and Bentilee estates will help to direct mainstream capital and revenue budgets and land/RTB receipts to incrementally change the residential offer in the peripheral estates.
A summary of the issues and the strategic interventions proposed for ‘places’ are outlined in the following pages. In the AMIs where fundamental change and significant long term investment is required it has been appropriate to develop a vision for each of the new neighbourhoods. Where intervention is being proposed to strengthen and re-inforce the existing residential function it is not thought to be necessary to conduct this exercise.
78 RENEW North Staffordshire • Prospectus • March 2004 Figure 8: Location of Neighbourhood Based Activity
RENEW North Staffordshire • Prospectus • March 2004 79 Figure 9: Etruria Valley in the Core of the North Staffordshire Conurbation
80 RENEW North Staffordshire • Prospectus • March 2004 6.3.1 Etruria Valley: Description of the Area
Etruria Valley is strategically located adjacent to the A500 (T), the main West Coast rail line, the Commercial Core of the conurbation and between two of the four NAPs (Hanley South and Middleport (see Figure 9). It is effectively one of the main gateway locations to the North Staffordshire conurbation. Its access to these facilities and its relationship to the rest of the conurbation offer a massive potential for a strategically planned development. Critically, however, it must not provide competition for other more vulnerable parts of the Commercial Core and its development must respect the fundamental principles of:
• Complementarity
• Sustainability
• Optimising character eg. Canal
• Significant Landscape enhancement
• Creating a ‘sense of place’
The Etruria Valley extends over approximately 200 hectares. This includes: Festival Park (the former National Garden Festival site) at 60 hectares; Festival Heights at 10 hectares; and Etruria Valley Phase 1, which is a business park of 11 hectares. It also encompasses an area extending through to Middleport and Burslem (see Figure 10).
The largest area in single ownership on the Etruria Valley is the now the disused Shelton Steel Works. Here, a 33 hectare landholding is subject to a development agreement between Stoke-on-Trent Regeneration Ltd and Corus. The City Council owns 29 hectares of greenspace and there are 21 hectares of brownfield land to the West of the Trent & Mersey Canal. In addition, there are approximately 10 hectares of land around the former Burslem Canal Arm Port which offers a significant ‘bespoke’ development opportunity.
The Etruria Valley is dominated by the industrial dereliction of the former steelworks and the low-grade mixed commercial developments in Middleport. Major physical assets like the canal and substantial greenspace are drastically under-used as regeneration drivers. Being a heavily industrialised area, the area is likely to have substantial ground condition problems, which will require substantial investment to investigate and overcome. In addition, the transportation network is outmoded and should be totally re-planned using the latest thinking on sustainable transport planning.
RENEW North Staffordshire • Prospectus • March 2004 81 6.3.1.1 Strategic Responses
The development strategy for Etruria Valley is to facilitate the reconnection of Middleport and the Etruria corridor into a revitalised urban core of Hanley City Centre and Burslem Town. Therefore the re-development of Etruria Valley will carefully embrace linkages, connectivity and strong sustainability principles. It will also build upon its major physical opportunities, for example, significant existing and proposed waterside development and a potential transport interchange. Its development will integrate Etruria Valley into the urban form of North Staffordshire, and fulfil its potential as a high quality sustainable community. This ‘new heart’ to the conurbation will provide the focus for regeneration of a national significance. The ‘new’ Etruria Valley will therefore be the physical symbol of the renaissance of North Staffordshire in a highly visible location.
The SSAs (Appendix 2) and the Commercial Core Strategic Development Framework (Appendix 15 and 15a) supporting this Prospectus suggest creating well-planned City living in the axis around the south of the City Centre between Hanley South and Burslem. A strategic response to housing, economic regeneration, transportation and greenspace will be vital to the success of this programme.
The programme should embrace ‘Sustainable City living’ principles, offering complementarity of planned infrastructure and facilities and, where appropriate, offer mixed use opportunities. Dependent on the scale of residential change within the City, but predominantly the Commercial Core, it is expected that the area will offer a significant scale of high quality residential development. This sector will cater for a range of needs; affordable housing to settle people affected by clearance, re-settlement stock, through to attractive high-quality waterside living.
The next stage is to carry out an extensive programme of studies in order to take these concepts forward. This will include:
• Assessment of overall development (urban capacity) projections
• Undertake a housing capacity exercise on the basis of agreed concepts
• Clarify levels of total proposed housing clearance in the ‘Central City’ area and assess the potential for Etruria Valley to facilitate neighbourhood change elsewhere
• Assess ground/environmental conditions
• Transportation assessments, alongside the North Staffordshire Integrated Transport Study
• Undertake a sequential assessment to assess best areas for development and/or redevelopment
• Assess needs/audits of greenspace in line with Planning Policy Guidance, evaluate strategic options and support with effective standards and planning policies
• Detail assessment of key sites like Hanley West, Etruria Corridor, Corus (Etruria Valley) and potential Gateway developments
• Assess critical land assembly issues, and give early recommendations
This will enable the production of Area Action Plans to create a policy framework in which to take the proposals forward.
82 RENEW North Staffordshire • Prospectus • March 2004 Figure 10: Etruria Valley and Middleport
RENEW North Staffordshire • Prospectus • March 2004 83 6.3.2 Area of Major Intervention: Hanley South - Description of the Neighbourhoods
The area known as Hanley South is situated in the Stoke Central ADF and comprises the two neighbourhoods of Botteslow Street and Cliff Vale. The neighbourhoods are situated in the south east, southern and south west quadrants of Hanley City Centre (see Figure 8). There are relatively few areas of continuous housing in this AMI. The housing that is there is interspersed between industrial and former industrial areas, which undermines the urban quality of the area and increases the catchment size to needed to support local services.
The housing in this part of the conurbation is dominated by the terraced sector, resulting in a limited housing pathway for those wishing to move up the housing hierarchy yet remain in the vicinity. Slight differences occur between the two neighbourhoods as to the next most predominant type of housing. In Cliff Vale semi-detached properties predominate, whereas in Bottelsow Street maisonettes and flats are the more significant alternative to terraced housing.
Cliff Vale has a population of 4,554 people in 1,802 households and Botteslow Street has a population of 3,494 people in 1,852 households. In terms of the HMA, both areas form part of the ‘inner core’ typology and collectively they are the second weakest private housing market cluster after Middleport, Burslem and Hanley North West. Although the two neighbourhoods in this AMI share many common characteristics, they have diverged in the following important aspects.
Cliff Vale is largely defined by its growing BME and student populations. The area also has the highest number of asylum seekers and refugees. This has resulted in a population distribution where 30 percent of the population are aged between 20 and 24 years and where barely half the working age people are employed (unemployment rate of 12.1 percent).
In Botteslow Street on the other hand, the BME and student populations have largely bypassed the area and consequently the age profile is much older than in Cliff Vale. More people of working age are employed (57.9 per cent) and unemployment is lower at 9.1 percent. On many indicators the social profile of the neighbourhood is closer to Middleport and the rest of the inner core than it is to Cliff Vale. However, both neighbourhoods exhibit high levels of long-term limiting illness (Botteslow Street 42.7 percent and Cliff Vale 42.1 percent).
The social rented stock in Cliff Vale is currently performing well with low turnover and void rates. While Botteslow Street also has a low void rate, its turnover rate for social stock is 14 percent and this has risen since 200/01. This rate is largely attributable to the presence of flats, which tends to skew the data. In both neighbourhoods the social stock can be said to be currently stable with a good level of demand.
The private market stock is dominated by pre-1880 terraced stock, which has led to a large proportion being classified unfit by the Local Authority. Private renting is particularly prevalent in Cliff Vale, though there is also an expanding sector in Bottelsow Street. Voids in this sector are a serious and rising problem. Hanley South is of strategic importance to the renaissance of the City Centre and it is clear that the development of this area requires careful consideration and immediate attention to capitalise on its strategic location and the noteable but as yet under-utilised assets. A more detailed description and analysis of the Hanley South NAP can be found in Appendix 8.
The SSAs propose that a priority for Market Renewal should be to make the inner core competitive. One of the key recommendations is that support should be directed to supporting the evolution of the City Centre into a more vibrant and multi-functional centre where people wish to live, work and invest.
The future of the Hanley South area both depends on and contributes to the realisation of this strategy. The strategy for Hanley South must ensure that the dependencies for a vibrant city centre can be fulfilled. Accessibility is crucial and the SSAs recommend that the Stoke Road/Snow Hill Road builds on its current identity as a Quality Bus Corridor to become a public transport priority corridor. Access for shopping and business trips
84 RENEW North Staffordshire • Prospectus • March 2004 by private car must be sustained. The SSAs propose that the Etruria Road link to the A500 and the Lichfield Street/Victoria Road route link to A50 to the south are prioritised as the main strategic access routes.
Environmental quality is also imperative to change perceptions. The SSAs build on the City’s Greening For Growth Strategy. They recommend the connection of existing but fragmented green spaces to reveal the essentially green and spacious character of the conurbation and to provide a positive decommissioning strategy for land. It recommends an ambitious strategy to link Trentmill Nature reserve to the south east of the AMI, through Hanley South to the city centre by creating a green lung.
In turn, a vibrant city centre can provide the driver to re-establish sustainable residential areas in the inner core and reverse the current trends, which have been leading inexorably towards a hollowing out of the urban core In Newcastle-under-Lyme a slowly emerging market for apartment living is adding to the already established town centre living ‘offer’ of walk-in terraces, showing that a potential untapped market exists. Renew and English Partnerships have also started to assemble land in this critical area, which will give it the power to influence the nature and quality of developments
6.3.2.1 Strategic Responses
The vision for Hanley South is:
‘A sustainable residential area for the City Centre, building on the dynamism of the Commercial Core strategy. Mixed tenure and housing typology development will provide decent homes for current residents and attract the more affluent back into the City. High quality public open spaces within the neighbourhood exploit the topography and provide a visible and inspirational link between the city centre, existing green space and the open countryside beyond the city boundaries. Population levels are maintained to support school and community facilities. Existing vulnerable communities, in particular the BME community, are supported.’
Key strategic objectives are:
• To demolish obsolete, failing or poor quality stock and acquire strategically important vacant or disused sites to assemble land for a new urban village.
• To invest resources in areas only where the long term sustainability can be reasonably achieved, particularly in the light of local ground conditions.
• To renew retained dwellings and their surrounding environment to achieve statutory fitness but more importantly create places where people want to live.
• To bring forward existing development sites around the canal for high quality walk in residential development. Development around the canal should be at the higher end of the scale, with lower densities accommodated elsewhere on the site.
• To work with key partners to establish a high quality urban environment to:
- Implement an ambitious green strategy to change the image of Hanley South and the conurbation.
- To restructure the land use of the area, relocating industrial uses incompatible with a residential function whilst supporting a policy of harmonious mixed use.
- Reinforce Stoke Road/Snow Hill as a lively attractive and pedestrian friendly street where its assets (canal, St Mark’s Church, Victoria Square) are fully exploited. Public sector investment in the built form e.g. the Shelton LIFT centre should be encouraged to facilitate this objective.
RENEW North Staffordshire • Prospectus • March 2004 85 • To improve connectivity of area to the centre.
- Key access routes to the City Centre particularly from the station and the learning quarter are maintained and equal weighting is given to public and private modes.
- Robust pedestrian crossing points are established at grade on Potteries Way to overcome severance.
- New development sites should be linked to the existing road structure.
- New development opportunities around Etruria are anchored into the existing urban form to give them too a sense of place and a logical relationship with the City Centre.
6.3.3 Area of Major Intervention: Middleport - Description of the Neighbourhood
Middleport is set within the Stoke North ADF, strategically situated to the west of Burslem Town Centre, to the east of the A500 (T), to the south of Chatterley Valley development site and to the north of the Etruria Valley (see Figure 8). Middleport originally acted as a sub-district of Burslem serving the pottery works along the Trent and Mersey canal, but is now severed from Burslem by a collar of declining industrial uses.
Middleport exhibits many of the typical characteristics of the old inner core of the North Staffordshire conurbation, i.e. mainly terraced Victorian housing interspersed with factory premises and vacant sites around a largely historic street pattern. The most prevalent land use is residential, but the perception of the area is influenced by the legacy of its industrial heritage. Almost 70 percent of the housing stock is terraced, which is double the average for the whole of Stoke on Trent. There are much smaller amounts of semi-detached, maisonettes, flats and detached properties. Consequently, housing pathways are extremely limited.
Middleport neighbourhood has a population of 4,853 in 2,216 households and this loose urban continuum is termed ‘urban inner core’ in the HMA typology. The age profile of the area is essentially mixed but with a relatively low number of elderly residents. Although Middleport’s BME community is not particularly large (7.6 percent) it has doubled in the last decade. In contrast to Burslem and Hanley North West, Middleport fares better in terms of employment and 62.5 percent of the working age population are in employment (unemployment rate of 7.6 percent).
Overall the social sector accounts for 24.6 percent of the housing stock, 11 percent of these are RSL properties and there are no significant lettings problems associated with the stock. The turnover rate is 10.9 percent and only 6.6 percent of properties churned twice of more in the last two years. The number of empty properties is low and falling. Overall there is an adequate inflow into the existing housing stock and the potential outflow may be limited by ageing and limited alternatives. The only concern with this sector is the relatively high transfer rate. In contrast the private sector, the properties are predominantly terraced and more than a quarter of these have been classified as unfit. There are pockets of abandonment and the number of empty properties is high and rising. A more detailed analysis of the Midleport NAP can be found in Appendix 9.
The SSAs developed to support this strategy suggest that Middleport has a future, although this future may consist of a radically different urban form. The proximity to Burslem provides the neighbourhood with a strategic rationale to reinforce walk-in centres as attractive places to live. The neighbourhood will benefit from the work on the Integrated Transport Strategy for the conurbation. It is currently severed by traffic seeking to access the A500 junction. If traffic could be re-directed away from the inner core (and the old A50) this would provide the opportunity to improve the amenity and quality of local access in the heart of Middleport.
86 RENEW North Staffordshire • Prospectus • March 2004 6.3.3.1 Strategic Responses
The vision for Middleport is:
‘To become a ‘heritage’ suburb to Burslem Town. Its canal, listed buildings and former industrial character will endow it with a unique sense of place. It can capitalise on its connections to a revitalised historic centre whilst offering access to the strategic road network and economic areas that will be at the heart of a more dynamic Stoke-on-Trent. It will be characterised by the rich resource of integrated green spaces within and around the neighbourhood.’
Such a vision will require radical change to the current urban environment to address the weaknesses of Middleport that have contributed to its un-sustainability. The objective will be to use an environmental led strategy to restore confidence of current residents in the future of the area and create a place to which others will aspire to live.
Key to the vision is the recognition that Middleport cannot provide the range of services at the heart of a sustainable neighbourhood. It is simply too small. Its future is tied into a revitalised Burslem Town. The vitality of Burslem Town in turn depends on an expanded and more affluent catchment area. Priority and indeed the critical dependency is thus to reconnect Middleport and potential new development around the Etruria Valley into Burslem Town through strategic land development and green linkages.
Key strategic objectives are:
• To clear poor quality terracing and enhance the environment of the remaining stock.
• To relocate industrial premises which are incompatible with a residential function, in the Furlong Road, Navigation Road corridor between Middleport and Burslem. The acquired land will need to be assembled for residential redevelopment including homes for those displaced by renewal activities.
• To provide homes in a way which is acceptable to the aspirations and financial situation of residents who wish to stay.
• To create a high quality urban environment by:
- Improving the quality and security of existing green spaces by investment in their fabric and considering development at the edges to enable better surveillance
- Linking green spaces together to form a high quality green spine for the arc running from St Paul’s Park in the north to Grange Park in the south
- Working with stakeholders to change the nature of historic Newcastle Street from a congested thoroughfare to a pleasant street
• To Co-ordinate actions by other stakeholders to address the problems of anti-social behaviour and crime which have eroded community cohesion and tarnished the quality and amenity of the urban fabric and open space in Middleport.
• To realise the strategy to reconnect Middleport to Burslem, priority for new development should be focused on the Furlong Road, Navigation Road corridor. Moreover in the conurbation context, the Hanley South NAP is seeking to develop a City Centre canal-side residential offer.
RENEW North Staffordshire • Prospectus • March 2004 87 6.3.4 Area of Major Intervention: Meir - Description of the Neighbourhood
The Meir neighbourhood is situated within Stoke South East ADF, to the south east of the North Staffordshire conurbation. The neighbourhood is located to the north of the A50 (T) between Longton Town and Blythe Bridge approximately six miles from Hanley City Centre (see Figure 8). The area is predominantly residential with limited retail and green space, although it borders a large expanse of countryside on its eastern flank.
The area’s housing is dominated by inter and post war council housing stock, predominantly semi-detached but also some low-rise flats and maisonettes. Alternative tenures are present to the east of the neighbourhood with some private houses, bungalows and terraced stock.
Meir neighbourhood has a population of 6,176 in 2,681 households and a socio-economic profile typical of the ‘social periphery zone’ within the HMA typology. Just over half the working-age people are employed (unemployment rate of 11.9 percent) and Meir is among the first quartile for limiting long-term illness. The age profile of the area demonstrates a similar beehive pattern to Stoke on Trent overall, however, the percentage of teenagers is higher and relative growth has occurred in this group and the 35-59 age group.
Annual Council property turnover is high at 17.7 per cent in 2002/03. Although the trend is down on previous years, it is still well above the ODPM low demand threshold of 13.5 per cent. The flats in the estate contribute most to the churning (35.9 per cent in 2002/03) but housing turnover is also above average at 11.6 per cent. In Meir the particular problem is properties becoming repeatedly void, with 14.3 per cent of its stock doing so twice or more in the last two years.
Meir’s longer-term weakness is underlined by the lack of future demand when set against standard letting performance indicators. Meir combines instability with limited inflow and unless the estate attracts more inward movers, the recent improvements in housing management performance for voids and turnover can be expected to reverse over time. A more detailed description and analysis of the Meir NAP can be found in Appendix 10.
There can be a positive future for Meir. Its future and function in terms of economy are related to the economic growth areas situated around Blythe Bridge and the A50/A500 (T) growth corridor and the strategic transport network to which Meir is closely situated, rather than being in the immediate sphere of influences of centres such as Hanley and Stoke Town. Its location and possible economic future, plus its position in the strategic hierarchy of ‘places’ in the conurbation, suggest that Meir could function as a pleasant suburban district – improving the current tenure mix but also retaining its role as providing social housing.
Structurally, Meir is similar to the new build housing that is being created on the edges of the conurbation elsewhere. There is increasing demand for areas of housing of a similar density, layout and location in relation to open countryside. However, the current proliferation of Council housing and its negative image prevent these potential assets from being realised. The major issue is to ensure a positive future for Meir within this overall strategic vision.
Meir is representative of many 1930s local authority built estates. This area therefore offers the opportunity to explore thematic interventions in terms of tackling problems that are common to other peripheral, monolithic Council estates elsewhere. This will be particularly relevant for the Sandon Road neighbourhood located on the other side of the A50 (T), which has similar physical characteristics and problems as Meir.
The SSAs about green space suggest that this could be a neighbourhood where an ambitious green strategy could ultimately restructure the neighbourhood by bringing the adjacent countryside into the residential area as a number of green lungs. This could address current problems of functionless open space and could exploit the assets of proximity to the surrounding green belt.
88 RENEW North Staffordshire • Prospectus • March 2004 6.3.4.1 Strategic Responses
The vision for Meir is:
‘To restructure the Meir neighbourhood and create a desirable suburban mixed tenure district served by a robust local centre. This will attract new development away from less well connected sites elsewhere and reinforce the attraction for current residents.’
In order to ensure that the future of Meir is sustainable, the current pattern of a single dominant housing type must be addressed and wider tenure choice offered to create a sustainable neighbourhood with a sense of place and character. Consolidation of existing centres should occur through protecting the higher density housing near to neighbourhood and district centres. In addition, the structure of the neighbourhood should be improved to facilitate easier movement and access to services, taking account of the principles of Crime Prevention through Environmental Design.
Key strategic objectives are:
• To reduce the overall number of Local Authority dwellings in order to reduce both the surplus in the social housing market and to contribute towards creating a more balanced community in relation to housing tenure.
• To create sites for new residential development or public open space to improve the structure of the area and quality of the green environment.
• To improve the structure of the area and legibility of the street pattern through improving connections, encouraging and improving pedestrian movement and attempting to resolve the conflict between car and pedestrian uses.
• To bring the countryside into neighbourhood through improved access, developing green links and developing a better interface between residential blocks and the open countryside.
• To improve access to open space and to improve safety through natural surveillance.
• Support the Meir District Centre as a destination for a local walk-in catchment as well as passing trade.
• To provide locally services within the estate through consolidation of the Stansmore Road Centre.
6.3.5 Area of Major Intervention: Knutton and Cross Heath - Description of the Neighbourhoods
The neighbourhoods of Knutton and Cross Heath are situated within Newcastle under Lyme ADF, to the west of the North Staffordshire conurbation. The neighbourhoods are located approximately 1 – 1.5 miles from Newcastle Town Centre (see Figure 8). The neighbourhoods contain a mix of housing, industrial and open land and have good access to the villages and countryside to the west of the conurbation, which includes the Apedale Community Country Park.
Despite these two neighbourhoods being combined to form one NAP, there are significant differences which may necessitate differing approaches to the types of intervention and their mode of delivery. For example, Knutton has historically developed into and retains a village structure and feel, while Cross Heath is a more linear formation bordering the A34. Consequently, these neighbourhoods will be described individually below.
RENEW North Staffordshire • Prospectus • March 2004 89 6.3.5.1 Knutton
Knutton comprises inter-war predominantly semi-detached housing. The older village core, which developed along the current High Street contains a mix of terraces, RSL controlled sheltered housing schemes and bungalows. To the South of the village core there is some 1960s and 1970s private housing. To the north west and south east of the centre are 1930s and 1940s former council housing estates, which predominantly consist of semi-detached properties with a limited number of maisonettes and detached houses.
Knutton neighbourhood has a population of 3,172 in 1,372 households and it is one of six urban Newcastle under Lyme neighbourhoods forming the bulk of the ‘mixed tenure suburban’ typology. This is the market typology closest to the average for the North Staffordshire conurbation. No particular age group is dominant in this area, but there has been a significant reduction in the relative size of the 0 – 4 age group ad the 50 – 54 age group has the most sizeable relative growth. The unemployment rate is 7.1 percent.
Following a large scale voluntary transfer from the Local Authority, Aspire Housing now manages 660 units in Knutton which is a more balanced tenure profile than Cross Heath.
The stock turnover performance of the Knutton stock is 13.2 percent and other stock is 11.5 (2002/03); these are still close to the ODPM threshold for annual turnover. Knutton has experienced a rise in the overall void rate between 1991 and 2001 from 2.1 percent to 3.5 percent and this deterioration is in line with the pattern of mixed tenure suburban neighbourhoods in the conurbation. Knutton faces the problem of instability in its social rented sector alongside limited inflow. Although there have been significant improvements through Aspire and the Neighbourhood Management Pathfinder, unless the estates are able to attract more inflow the recent improvements can be expected to reverse over time. A more detailed description and analysis of the Knutton neighbourhood can be found in Appendix 11.
6.3.5.2 Cross Heath
Cross Heath consists of a series of small estates and the dominant housing typology is 1940s and 1950s Aspire housing stock, which are mainly semi-detached properties. There is also an area of terraced stock that comprise mainly short four house sections, more similar in appearance to semi-detached properties. In addition, there are some larger semi-detached and detached properties and the area is also interspersed with some bungalows, sheltered and post-war pre-fabricated BISF properties and four-storey walk up flats.
The Cross Heath neighbourhood has a population of 3,264 people in 1,477 households and in market terms it is located in the ‘social periphery’ typology and shares the same characteristics and market trajectory. Overall, the age profile for the area is mixed, just over half of working age people are in employment (unemployment rate of 9.2 per cent) and it is among the first quartile for limiting long-term illness.
Aspire Housing owns 876 units in the two estates; Cross Heath and Lower Milehouse. The latter estate is managed through a Tennant Management organisation (TMO). The property turnover of the Aspire Housing stock in this area is high; 23.5 percent in 2002/03, nearly double the ODPM low demand threshold and the highest in North Staffordshire by some way. Churn rate for flats and houses is also very high (30.9 percent and 20 percent respectively) driven by a section of the stock (16.7 percent) that has become void twice or more in the last two years. Void levels are at 2 percent, down from 3.7 percent in 2001. The owner-occupied private market in Cross Heath is limited in size as is the private rented market.
Cross Heath is faced by the twin problem of instability in its social rented sector with a limited inflow and it is one of the weakest markets in the conurbation. Unless it can attract more inflow, the recent improvement in voids can be expected to reverse over time. A more detailed description and analysis of the Cross Heath neighbourhood can be found in Appendix 11.
90 RENEW North Staffordshire • Prospectus • March 2004 6.3.5.3 Strategic Responses
The strategic rationale behind interventions for Knutton and Cross Heath is to address the growing threat of over provision of certain stock types and tenures and make better use of its urban assets. These include: the ease of access to Newcastle Town; locally based services; potential sites for development; and access to open space. It is for these types of intervention that Market Renewal funding will be available. In addition, due to the dominance of 1930s social housing, Knutton and Cross Heath present the opportunity to explore thematic interventions for solving problems that exist in similar estates throughout the rest of the HMR area.
The aim is to capitalise on the advantage of the area’s proximity to Newcastle Town Centre, the value of its location in relation to other assets and services and to create a sense of place in order to change people’s perception of the area and rid it of its current stigma. A number of strategic interventions will support the objective of delivering a sustainable communitiy. Increasing the mix of tenures is essential. Despite its proximity to areas of open space, connections are currently weak. Improved access to open space and linking into the strategic green space strategy are thus a priority. Access to local services is an important part of creating a sustainable community. This could include supporting the village centre in Knutton, which is likely to be able to continue to support local services provided the catchment size is maintained.
In physical terms, the two areas are separate residential neighbourhoods and are likely to continue to operate in this way given the severance caused by green space and topography. This may not be negative – it allows each area to explore a distinctive identity. For Knutton this may mean drawing on its village heritage and character whilst for Cross Heath it will mean building on its proximity to Newcastle Town Centre and shaking off its socially peripheral image.
The vision for Knutton is:
‘To re-image Knutton as a village, to create a more balanced community’
Key strategic objectives are:
• To reduce the overall number of dwellings which are rented from RSLs.
• To encourage partnership work to improve the High Street environment and retain it as a destination for providing community services and small-scale retail to a local walk-in catchment.
• To improve access to and quality of open space.
• Improve the relationship with the countryside.
• Increase housing choice in terms of type and tenure.
The vision for Cross Heath is:
‘To consolidate Cross Heath as a sustainable community with access to local services and well connected to Newcastle Town Centre’
Key strategic objectives are:
• To reduce the overall number of RSL dwellings.
• To create sites for potential mixed tenure residential development.
• To improve access to and quality of open spaces, particularly to the sweep of land between Knutton and Cross Heath.
• To improve permeability to the area, encourage movement and reduce perception of isolation.
• To increase housing choice in terms of type and tenure.
RENEW North Staffordshire • Prospectus • March 2004 91 The above actions are based on the following assumptions relating to the adjacency of Knutton and Cross Heath:
• In strategic terms, Knutton and Cross Heath are inter-dependent – Knutton’s medium long term strategy may be dependent on the impact of Housing Market Renewal in Cross Heath
• The priority for phase one interventions is in Cross Heath
6.3.6 General Renewal Areas: Description of the Neighbourhoods
In support of the eight AMI it is proposed to phase the declaration of the six GRAs over the life of the programme (See Figure 8). The emphasis will be on achieving regeneration through improvement to the environment and the stock. The first phase of the GRAs include Burslem Park, Birches Head and Normacot and these areas have been chosen to coincide with the development of three of the four NAPs. Although the GRAs have advantages over the AMI in terms of stability in demand, environment and quality of stock, they still exhibit low house prices in comparison to the wider conurbation.
Each area is composed of predominantly Victorian terraced properties. This housing is a relatively popular choice for owner-occupiers in comparison to the AMI, but some of the poorer and in some cases structurally damaged properties are being purchased by private landlords, who are often more reluctant to invest in maintenance and refurbishment. There has been some investment by owners in the more popular home improvements such as double glazing, kitchen and bathroom fittings. However, basic maintenance to external elements such as roofs, stacks, rainwater goods, walls, yards and boundary walls has obviously not been a priority for some homeowners.
6.3.6.1 Strategic Responses
The aim of the GRA initiative will be to maintain the areas as predominantly privately owned housing with a balanced mix of owner-occupation and private renting. This will be supported by the encouragement of those affected by clearance in the AMIs to relocate to a GRA in the vicinity. Major changes in property numbers are not intended in this first phase of the programme, although some small scale clearance is likely. Initiatives will be integrated and will support local residents in improving the likely sustainability of the area, and this will include a full programme of community consultation and participation.
Encouragement will be given to ensure that the standards of any repairs or improvements will meet both the Decent Homes and Fitness Standard and particular emphasis will be given to home security. Environmental works, incorporating Crime Prevention through Environmental Design principles, will be targeted to promote a positive image to those living, visiting or passing through the areas,. In addition, contractors who can demonstrate a clear commitment to the recruitment, training, and employment of persons from the locality will be given priority in the tendering process.
Renew resources will be used to promote and support private sector investment through a range of initiatives that address issues of property condition and environment. During 2003/04 the three first phase GRAs have been externally surveyed and a programme of action devised for 2004/05. Detailed full housing surveys of those properties highlighted due to poor conditions or conflicting uses will be completed as a priority in order to determine an appropriate future course of action. Other intervention tools which will be used include: individual and block based grant or grant/loan provision; environmental works to boundaries; alleys and open space; and facelifts to both residential and commercial premises located on major routes through these areas.
In addition Home Improvement Agencies (HIAs) will play a useful role by focusing on these issues and by their ability to use more flexible projects such as ‘Handyman’ type schemes, skills training and tool hire.
92 RENEW North Staffordshire • Prospectus • March 2004 All the GRAs have been affected by the expanding private rental market. To achieve effective regeneration the engagement of private landlords in projects in this area is essential, and the expansion of enforcement activity may also be necessary. The correct type and amount of security in rented properties will also be important to sustain tenancies and prevent voids. Community warden services have already been piloted elsewhere in the conurbation and have shown to be an effective method of dealing with low level anti-social behaviour and by acting as a referral system for environmental issues such as public health and highways. Wardens are also able to work closely with local community groups and other agencies active in the area. A common approach is being taken across each GRA that will see a community engagement and neighbourhood warden theme adopted during the implementation of works.
Long-term vacant houses attract anti-social activities. Their acquisition and sale to first-time buyers or those relocated due to clearance activity through a partnering arrangement with a local RSL could remove this problem. A similar partnering approach could be taken with any small redundant warehouses and workshops in poor condition that may be appropriate for purchase and demolition. This could release small plots of land for community use, for landscaping or parking. The Housing Corporation’s support is being sought to facilitate the early purchase and repair of vacant properties that can be returned to the market.
It is anticipated that the City Council’s Urban Renewal Division will deliver the first phase GRA projects in Burslem Park (in association with Keynote Housing Group) and Birches Head (in association with Staffordshire Housing Association), with Beth Johnson Housing Association taking the lead in Normacot.
Overall the areas chosen provide an opportunity for regeneration with relatively limited investment. Within a three year programme priorities will be set to achieve early, block based improvement and more minor demolition. As the programme of work begins and the community become more directly involved in its development, the overall emphasis and range of projects may change, and the funding regime will be fluid enough to adapt.
6.3.7 Town Centre Living
The Market Renewal Strategy aims to promote higher residential densities and town centre living wherever it is viable. Initially the intention is to focus on Newcastle, Burslem and Hanley centres. The type of intervention will focus on a residential form, which is a mixture of houses and flats of mixed tenure around features such as the canal and public open spaces which may increase values. Its sustainability lies in its access to public open space, environmental design that deters crime and a mix of housing which offers a range for potential purchasers, including a percentage of affordable housing.
6.3.7.1 Newcastle Town Centre: Description of the Area and Strategic Responses
Newcastle Town Centre has developed as a market town with a traditional residential character which has protected it from the fragmentation associated with the industrial decline in the six towns of Stoke-on-Trent. Located to the west of the six towns it is currently the best performing of North Staffordshire’s urban centres and has the potential to accommodate a vibrant housing market which caters for a mixed income community.
Within the ‘walk-in’ catchment area there are both traditional small terraces and some of the most expensive housing in the town. The construction of up-market apartments at the edge of the centre on an important gateway site is a promising sign of continued high quality, town centre living. However, there are also pockets of very poor quality condition stock and a rise of private sector renting to less affluent and transient groups. Social housing flat accommodation also suffers from high turnover and there are problems of disorder related crimes linked to a lively evening economy.
RENEW North Staffordshire • Prospectus • March 2004 93 Renew will pump prime a strategy to support Town Centre living by focussing on the following:
• Providing a balance of both high quality and affordable housing.
• Achieving a high quality of design.
• Creating an attractive and effective gateway to the town.
• Raising the profile of the town centre as a local exemplar for Town Centre living.
• Providing valuable lessons for other locations within the Market Renewal area.
• Acting as a catalyst for renewed confidence across a wider area.
A range of interventions will be instigated to fully exploit the potential of the area as a highly sustainable location for housing.
An exercise will be carried out to identify the areas/pockets of highest quality environments and of the lowest. This will be done with community consultation and other stakeholders to encourage shared aims and perceptions. This initial exercise will be carried out within a clear framework provided by the Local Authority, which should be linked to the LSP's community engagement structures.
At the same time, there will be a detailed assessment of what kind of housing is required in the area. This will be informed in part by the potential demonstrated by the first exercise and will also be based on a housing needs assessment and integrated into the overall vision for Market Renewal; i.e. identifying what role Newcastle Town Centre area should play within the North Staffordshire context. From the information generated by these two exercises, a vision and action plan will be developed in partnership with stakeholders and the community. The establishment of community and business representation will be undertaken at an early stage to effectively address the role of the area as a residential location and as the local service centre.
The following funding sources will be sought:
• Renew funding for the major housing costs - demolition, land purchase, group repair (external works) and rehousing.
• The use of Newcastle under Lyme Borough Council funding (for housing improvement) as set out in the Council's capital spending strategy in response to the Prospectus.
• Newcastle under Lyme Borough Council and potentially Staffordshire County Council funding could also be available for other associated non-housing projects such as youth outreach work.
• Housing Corporation funding through ADP for new build and refurbishment where this accords with the Borough Council's housing strategy.
• AWM/NSRZ funding (e.g. business enhancement scheme)
• Private sector investment/development will be a key ingredient, potentially associated with gap funding.
6.3.7.2 Burslem: Description of the Area and Strategic Responses
Burslem Town centre is situated to the north west of the City Centre. In spite of regeneration activities, Burslem has the highest level of retail unit vacancies in the six towns and is particularly exposed to further decline in the pottery industry. There is a very limited residential walk-in catchment area with a ring of industrial and ex- industrial uses around the town centre. The collapse and stigmatisation of the private sector housing market in Middleport have exacerbated this and there has been little residential redevelopment to attract and retain more affluent residents.
As identified in the Stoke North ADF (Appendix 3) and the Middleport Neighbourhood Action Plan (Appendix 9) there will be radical intervention in Burslem and Middleport. The re-provision of housing around Middleport, and in the north of Etruria Valley, will provide aspirational homes in a quality environment. This will promote the
94 RENEW North Staffordshire • Prospectus • March 2004 historic and heritage nature of Burslem town, building a unique and attractive residential environment. The centre of Burslem has been subject to a masterplan, and capacity for 800 town centre dwellings have been identified. Renew have negotiated with English Partnerships to prioritise this area for gap funding in the next two years of the programme.
6.3.7.3 Hanley City Centre: Description of the Area and Strategic Responses
Hanley, the City Centre, is at the heart of the North Staffordshire conurbation and contains a sub-regionally significant shopping centre and cultural facilities. The Commercial Core initiative is seeking to develop a wider economic base and larger-scale City Centre (see Appendix 15). However, the City Centre commercial expansion alone will not be sufficient to comprehensively redevelop the vacant land dividing the City Centre from Festival Park and Etruria Valley in the west. High quality non-commercial uses will also be important to consolidate the Centre.
Renew support to the redevelopment of the City Centre is being developed through the Commercial Core Strategic Development Framework (Appendix 15). Part of the remit of this work is to develop a ‘quarter’ led approach to the development of the City Centre with an emphasis on facilitating City Centre living.
The Hanley South NAP (Appendix 8) focuses on removing failing and physically unstable housing around the City Centre. Housing re-provision will be around the area’s assets, including an attractive canal-side environment adjacent to public open spaces, and linked to the University ‘quarter’ to build up a quality residential area which brings aspirational housing into the City Centre for the first time. Renew’s land ownership in the Botteslow Street area and private sector proposals along the canal also offer redevelopment opportunities.
To establish a market within the City Centre will require gap funding in the first instance. Following developer interest Renew have negotiated with English Partnerships to prioritise subsidy in the first two years of the programme for this area.
6.3.8 Ex-Coal Board Estates
Within North Staffordshire there are six estates originally built by the Coal Board in the 1950s to house miners and their families. They share the common feature of a statutorily defective housing stock. This has important implications for investment needs, current and future market value and future sustainability. There are five former Coal Board estates across the three local authorities within the Market Renewal area. These are:
• Galleys Bank, Parksite and Crackley in Newcastle-under-Lyme
• Biddulph East in Staffordshire Moorlands
• Coalville in Stoke on Trent
There is a large private rented sector in these areas, a legacy of the previous disposals policy of the NCB and the impact of large number of unmortgageable PRC properties that have not been reinstated. Void rates also tend to be high. Whilst low demand and unfitness are identified, issues of demand may be masked on some estates where private landlords are letting their properties to tenants who may have problems securing tenancies elsewhere because of their recent housing history. The key problem across all estates seems to be the issue of unmortgageable properties and their impact on the environment in terms of the piecemeal renovation of these properties and the number of private sector landlords purchasing unmortgageable properties.
RENEW North Staffordshire • Prospectus • March 2004 95 6.3.8.1 Galleys Bank and Biddulph East: Description of Neighbourhoods and Strategic Responses
The Galleys Bank and Biddulph neighbourhoods are situated to the north of the Market Renewal area. Galleys Bank is approximately eight miles to the north of Newcastle Town centre and lies adjacent to the old A50 and Kidsgrove Town centre. Biddulph is the most northerly neighbourhood within the Pathfinder area lying approximately five miles to the north of Tunstall to which it is joined by the A527. (see Figure 8)
The two estates fall within the boundaries of different Local Authorities (Galleys Bank in Newcastle under Lyme and Biddulph East in Staffordshire Moorlands) but share many characteristics. The houses on both estates were originally non traditional PRC Schindler type properties designated defective and unmortgageable. In spite of programmes of intervention more than half of the former Coal Board houses on the estates remain defective. Galleys Bank estate has 267 defective properties (of 450) and Biddulph East 231 (of 431).
Population returns from the census enumeration districts identify 2,644 people living in 1,016 households in the Galleys Bank district and in Biddulph (whole Biddulph Pathfinder area) 5,247 people living in 2,153 households. There are similarities in the two areas that reflect their mixed tenure, suburban typology although the Biddulph area is generally showing greater private market weakness. There are similar numbers of people in work (around 60%), and owning cars (around 70%). The slightly higher number of elderly households Biddulph (16.8%) is reflected in the higher rate of limiting long-term illness (48.1%).
On the Galleys Bank estate empty properties, semi derelict garage courts and a poor environment contribute to problems of anti-social behaviour. There is a fairly stable population with a high proportion of long term residents, but an increasing number of private investors purchasing houses, and transience within the private rented sector which is contributing to destabilisation in the local housing market. Biddulph East has high levels of unemployment and the wider Biddulph area has a void rate of 4.7% with a higher than average turnover rate of houses and bungalows in the social housing sector.
Options for addressing the complexities of the range of ownership and stock condition/mortgageability issues are currently being developed through the Galleys Bank community visioning project. The aim of this project is to develop an effective delivery mechanism which will be required to address these complexities on both the Galleys Bank and Biddulph East estates.
A range of delivery mechanisms are being discussed in association with Newcastle Under Lyme Borough Council, Staffordshire Moorlands District Council and other stakeholders. One option could be a joint venture group with RSLs and developers. Assets, such as acquired properties and cash, could be held by the Joint Venture Company (JVC) as part of the partnership terms of reference. A legal structure could be created for the vehicle for taking forward priorities in respect of building and other regeneration objectives. Funding from Renew would initially pump prime the process. However, the JVC would need to be set up such that it did not remain dependent upon successive injections of regeneration funding but became commercially viable. The Local Authorities would support the JVC in developing and improving properties for private onward sale and shared ownership. RSL partners would underwrite the buying of properties and through equity share would recycle money from the sale of improved, mortgageable properties back in to the JVC to secure sustainability across the other ex-coal Board estates in North Staffordshire.
Active acquisition of properties is likely to present the most viable way forward for proactively tackling problems in the private sector, by contributing to a change in the tenure profile and enabling a more strategic approach to be taken.
96 RENEW North Staffordshire • Prospectus • March 2004 6.3.8.2 Coalville: Description of the Neighbourhood and Strategic Responses
The Coalville estate originally consisted of 406 properties, predominantly non traditional Wates and ‘Cornish’ system located to the south east of the City. Of these, 85 houses received defective dwelling grants in 1980’s, but the remaining 321 remain unmortgageable. The Coal Board offered the houses for sale to tenants in the mid 1980s and those not bought by tenants were sold at auction to private investors. The levels of unmortgageability have led to increasing numbers of private landlords purchasing properties on the estate. It is estimated that almost 100% of private tenants are unemployed and claiming housing benefit. The poor condition of properties has given the estate an appearance of deprivation and neglect with incidences of crime and anti-social behaviour increasing.
In 1999 under the umbrella of the government sponsored ‘Coalfields Initiative’ the Coalville Partnership was formed from Riverside Housing, Staffordshire Housing Association and William Davis Builders under the guidance of the City Council. The original strategic aim was to regenerate the estate by attracting funding for refurbishment works and to ensure this was achieved through the involvement of the local community and relevant Local Authority departments.
Whilst actions taken so far have significantly improved the nature and general condition of the estate for residents, it was soon recognised that the existing plan devised for the estate in 1999/2000 would not fully tackle the problems of the area. Funding previously identified would still leave unimproved houses on the estate because of a shortage of resources. In addition, as elderly owner-occupiers moved on and sold their homes they would increasingly pass in to the ownership of private investors who have a poor history of maintaining and improving their properties.
The Market Renewal Pathfinder has enabled a fundamental review of the strategy for the Coalville estate. The Coalville Partnership have been asked to develop a new community led masterplan which will guarantee the future sustainability of Coalville within the wider Weston Coyney area. This has however, by necessity, required current agreed and funded refurbishment works to be placed on hold, which may have given an adverse impression to anyone visiting the estate. Some environmental works have recently begun to improve cleared sites as a stopgap measure before the future of these areas is determined in light of the new approach.
The Partnership has now outlined their proposals for the estate in general terms at a local public meeting on 15th December 2003. Their ‘New Vision’ looks to remodel the estate, diversifying tenure, improving open space and thus restoring confidence. Objectives for the estate have also been updated, and these now are:
• To significantly reduce the private rented tenure by removing poor private landlords from the estate through the use of Compulsory Purchase Orders / Intensive Enforcement Action / Accreditation Schemes;
• To improve the housing market on the estate by ensuring every property on the estate is of a mortgagable standard, in partnership with the private sector;
• To promote a range of home ownership initiatives and encourage investment by the private sector, to increase ownership occupation by up to 150 homes, and
• To improve the estate environment, infrastructure and amenities, in keeping with the property improvements.
Detailed consultation through exhibitions, focus groups and one to one interviews and events based at the local Community Centre commenced in mid February 2004. Through a competitive process involving community representatives, an external Design Consultant was appointed in January 2004 to assist in this process. The Partnership is also looking to employ a Planning Consultant to review the use of Compulsory Purchase Powers as a tool to achieve the change required.
It was anticipated that previous proposals would have achieved a final tenure mix of 130 owner occupied, 80 private rented and 150 RSL properties. The new mix is likely to be nearer 190 owner occupied, 20 private rented and 115 RSL properties. This is equivalent to an overall reduction from the original 406 to 325 homes.
RENEW North Staffordshire • Prospectus • March 2004 97 In addition to the Coalfields funding, resources have also been secured from the Housing Corporation, and these have been used to purchase nearly 150 houses through voluntary means. Of these, around 70 have been refurbished to mortgagable standard and 50 demolished. In addition the City Council has instigated housing based clearance activity in three areas, and some environmental works have also been completed.
6.3.9 Chesterton Western Urban Village: Description of Neighbourhood
The Chesterton neighbourhood is located within the Newcastle Under Lyme ADF to the west of Newcastle Town and adjacent to the A34 (Figure 8). Chesterton village is a mixed community of ex-Council (now owned by Aspire Housing) and private housing, ranging from pre-1914 terraces to 1960s semis, with a few more recent developments. The Chesterton neighbourhood has a population of 4,587 in 1,853 households. A strong sales demand in the area reflects that generally found in the North Staffordshire area. However there is a mixed demand for the social housing with pockets of low and higher deman housing being located within close proximity of one another.
Like the other urban villages that fall within the Newcastle Under Lyme ADF, Chesterton is suffering decline as a result of the closure of the local collieries and the decline of the other local employers that caused the village to grow. The commercial core of the village has gradually deteriorated in both vitality and viability in spite of employment development to the north and south of the village and intervention through the SRB 2 programme:
Piecemeal development has led to an erratic mix of development forms and styles that are poorly integrated and have undermined the original and coherent urban form and eroded the ‘sense of place’ and the physical and visual unity of the area. Generally there is poor spatial definition with a confused public/private space interface but the area does contains small pockets of positive urban form that have the potential to be stimulating and welcoming spaces.
6.3.9.1 Strategic Responses
The overall aim of the intervention is to assist the future sustainability of the area, to reinvigorate the housing market and contribute to urban renewal in Chesterton. In addition the Chesterton intervention will provide a pilot and model for interventions in the renewal of other Newcastle Under Lyme ‘urban villages’ including Knutton and Silverdale.
The emerging intervention strategy identifies 15 discrete sub-areas within which some form of intervention is required to overcome current weaknesses and threats and enhance the areas strengths and opportunities in order to secure the sustainability of the village as a whole and re-invigorate the housing market. These can in effect become discrete ‘projects’ that can be approached on an individual basis but can together be treated as ‘stepping stones’ to the renewal of Chesterton.
From these 15 ‘projects’ priority actions have been identified that will potentially have the greatest impact on the future sustainability of the area. Some of these interventions will potentially be funded or part-funded through the Renew programme, for others alternative sources of funding will be sought. These identified priority actions will need to be further developed and consulted on. The intervention strategy identifies a net gain of 148 units of housing. This is considered necessary in order to lead to a sustainable community and reinvigorate the housing market.
Further consultation with local people will be required to develop the detail of the plans. At the same time more specific research will be undertaken into the accommodation needs of elderly people in the area and into the viability of the retail area in the centre of the village. A private sector house condition survey of approximately 300 pre-1914 terraced stock is also scheduled over the next 12 months.
98 RENEW North Staffordshire • Prospectus • March 2004 6.4 Support For People
The scale of change implied by this Market Renewal Strategy is slightly greater than the market driven scenario outlined in Section Four. This is because of the holistic approach being taken in respect of environmental quality, stock condition and land stability. In addition to a slightly higher clearance figure than that predicted by population change and demand projections for new build housing, the strategy also has the impact of bringing forward market restructuring before the projections described above have worked their way through the residential markets.
There is therefore a major issue relating to the adequate provision of affordable housing for people who are being displaced because of Market Renewal Activity. It is clear that there will be a significant management challenge created by the movement of people as new neighbourhoods are created and the pattern of land use is changed. The Board are committed to minimising the social costs associated with market restructuring and have therefore, been working with the Local Authorities to develop mechanisms to allow people to transfer from their current property to an appropriate tenure in a sustainable neighbourhood. Social landlords will be responsible for the costs of investment in their own housing stock, and arrangements for re-housing tenants and leaseholders, where necessary, will be determined by social landlords in consultation with residents. However, it is expected that the broad principles underpinning Renew’s approach to the provision of assistance and the re-housing will be reflected in the policies of social landlords.
6.4.1 Assistance to Residents in the Market Renewal Area
The Renew Assistance Policy (Appendix 12) identifies:
• the measures that will be put in place to promote sustainable neighbourhoods,
• support that will be available to private sector residents to meet the costs of repairing and improving their homes, or to secure alternative housing if they live in an area designated for clearance.
The policy has been drafted before detailed community liaison and it is expected that it will be subject to change and development in the coming years.
Renew aims to ensure that decent housing in sustainable, well designed neighbourhoods can be made available to all residents in the intervention area. For residents whose homes are in need of repair or renovation, the policy aims to encourage residents to consider the use of loans and equity release products where they can afford to do so. These products will be available to bridge the gap between the applicant’s own resources, including any grant or statutory assistance, and the cost of paying for essential repairs, improvements or adaptations.
The policy will contribute to Renew’s wider aim of building confidence in neighbourhoods targeted for intervention. Where appropriate, it will therefore target repair, renovation and relocation grants and loans on an area basis to encourage residents to remain within and invest in designated neighbourhoods.
Measures to promote sustainable neighbourhoods include:
• A range of initiatives in each intervention area to keep residents informed and involved. As intervention programmes are developed residents, local businesses and other agencies will be involved in shaping delivery programmes.
• Individual needs and circumstances of residents living in homes requiring renovation or demolition will be assessed and will guide the development of the programme.
• People living in properties targeted for intervention will have access to advice on relocation options and/or home repair as appropriate.
• A neighbourhood management approach will be taken to build on inter agency and inter departmental partnership working.
RENEW North Staffordshire • Prospectus • March 2004 99 Assistance to private sector residents affected by clearance and low income owner- occupiers who need assistance to improve and repair their home is summarised in Tables 15 and 16. Where residents are required to move to an alternative home, Renew aims to offer tenure options, at a range of costs, including access to social renting, shared ownership, ownership with the support of equity loans and outright ownership. In addition, Renew will seek to ensure that residents are supported through the process of change and that, as far as possible, negative consequences of the inevitable upheaval are minimised. A particular priority is to meet the needs of vulnerable and elderly residents, both through support during the renewal process, and by making available housing options that match aspirations, needs and financial circumstances.
The policy will apply across the Market Renewal area to neighbourhoods that are designated for intervention by the Pathfinder. Whilst the assistance set out in the policy will be funded principally by market renewal funds, this provision will be supplemented in certain circumstances by Local Authority resources. Broadly speaking, Market Renewal resources will be targeted towards clearance, re-provision and the improvement of the exterior of dwellings and the physical environment, whilst local authority resources for private sector renewal will fund improvements within residents’ homes.
100 RENEW North Staffordshire • Prospectus • March 2004 Table 15: Re-Housing and Related Assistance in the Private Sector
Re-housing and related assistance in the private sector Name Description and eligibility Funding source
Voluntary The Pathfinder wishes to ensure that the use of compulsory purchase powers is minimised by Market Renewal Fund acquisition offering compensation and relocation arrangements encourage residents to sell on a voluntary basis. The Pathfinder will ensure that steps are taken to acquire property by agreement with the owner, wherever possible. Where this is the case, the terms of the acquisition will be comparable with those that would apply under compulsory procedures, with the purchase price set at market value. Occupiers will be eligible for Home Loss Payments and Disturbance Payments from the Local Authority (or UDC if applicable) in line with government guidance. The relevant local authority (or UDC) will determine the appropriate power in each case.
Compulsory Where negotiation fails and a voluntary acquisition cannot be achieved, compulsory Market Renewal Fund purchase purchase powers will be used to deliver regeneration. Purchase price will be current market value.
Relocation Private sector occupiers will be able to choose their rehousing option, subject to their Relocation grant - Market package: financial circumstances and the availability of any particular form of housing/assistance at the Renewal Fund. time of rehousing. The options are as follows: 1. Renting from the Council or an RSL - Location and landlord dependent on availability at Nominations to LA/RSL the time accommodation. 2. Shared ownership - Available for people who wish to purchase a home, but cannot afford to buy on the open market. Shared ownership enables the purchase to buy a share of a Home Swap (if developed) – property and pay rent on the remaining share. Subject to availability at time of rehousing. Market Renewal Fund 3. Home buy (and any new customised equity share arrangements that are developed) - Available to those unable to buy on the open market. There is an existing shared equity scheme run by [Beth Johnson HA], in which owner purchases 75% of the property value. There are no monthly payments on the remaining 25% share, which is lent by the RSL. When the home is sold, or earlier if the owner wishes, 25% of the value at the time of the sale is repaid to the RSL. The Pathfinder will work with Beth Johnson to make this option available if feasible. 4. Private purchase or rent - residents can opt to use Home Loss/other compensation to purchase new property without additional assistance 5. Relocation grant - currently being piloted and available on a means tested basis for those in designated clearance areas who cannot afford to buy on the open market. A grant of up to £10,000, plus statutory compensation, would be available to bridge any gap between the value of the applicant’s home and the cost of a replacement home of an equivalent size or size suitable for the circumstances of the household. The Pathfinder will stipulate that the replacement home is either a post war property or is a refurbished property in a designated renewal area. The applicant must remain in occupation for 5 years or repay the full sum. The grant will be subject to review following pilot evaluation. 6. Home Swap [Not currently available]. For low income home owners unable to purchase alternative accommodation, including those with negative equity. This would only be offered as the Pathfinder identifies Renewal Areas that will provide housing for relocation. The LA would acquire properties in an improvement area, and sell these to displaced home owners at no extra cost to the owner, taking a charge on the property equivalent to the difference in value between the old and new homes (after the mortgage charge and any negative equity charge placed by the lender). The charge is discounted at a percentage of the valuation differential each year for a number of years, so the longer the owner remains, the less would have to be repaid to the LA. The charge is recovered only when the property is sold.
Enhanced Additional support will be provided to residents who are elderly or disabled, or assessed as Market Renewal Fund for relocation vulnerable and in need of assistance. This will include assistance with moving including specialist staff support. packages for arranging disconnection/ reconnections/removals, decanting if required, removal and refitting residents with of fixtures and fitting not included in the property valuation, including any disabled aids and LA DFG funding. support needs adaptations.
Where needed, for those eligible, disabled facilities grant assistance will be provided for adaption of a new home either through disabled facilities grant (in RSL/private sector homes) or financed by LA (in LA homes).
RENEW North Staffordshire • Prospectus • March 2004 101 Table 16: Assistance for Private Sector Home Repair and Improvements
Assistance for private sector home repair and improvement Name Description and eligibility Funding source
Handyperson Available through the Home Improvement Agencies operating in the Pathfinder area, people LA service over 60, the disabled, and those referred by social services are eligible for help with small repair and maintenance jobs. The householder makes a means tested contribution to labour costs.
Home repair A mean tested grant of up to £5,000 in any two year period for emergency or essential Market Renewal Fund for assistance repairs. It is available to those in receipt of a means tested benefit, or who are assessed as designated renewal areas. eligible under mean test (no age restriction). Otherwise, LA.
Disabled facilities A mandatory grant available for adaptations (not property disrepair/unfitness) to enable LA grant disabled people to maintain independent living. A means test determines the level of contribution, if any, to be made towards the cost of work/equipment, to a maximum grant of £25,000. It may be more cost effective to use Home Repair Assistance for works under £5,000.
Renovation grant A grant to property owners in areas designated for renewal for major repairs/improvement LA to bring accommodation to a fit/decent homes standard. Applicants are means tested and eligible expense and maximum grant level varies dependent on type of intervention proposed in designated area. Owners must remain in occupation and landlords must make property available for rent for 5 years.
Loans for repair A loan to property owners in areas designated for renewal to bridge the gap between the Market Renewal Fund for and improvement applicants’ own resources including any grant and statutory assistance and the cost of specified external works in [products in paying for essential repairs, improvements or adaptations. The type of loan available will designated areas. development] depend on products being developed and upon individual circumstances but could include shared equity, interest free interest only and repayment products from a range of providers. If LA in other circumstances. property appreciation loan model is used, Renew will explore use of a cap on equity share growth to protect clients from the impact of excessive growth in equity linked repayment liability. Essential fees (legal, survey, searches, IFA etc) associated with setting up the loan may receive further assistance, subject to resources being available.
Group repair/ In certain areas designated for renewal, external renovation and improvement works may be Market Renewal Fund environmental offered as a way of improving the appearance of and confidence in the area. Works might enhancement include new roofs, windows and doors, re-pointing brickwork, repair or replacement of boundary walls/fences etc. To encourage participation in the scheme, 100% grant will be offered to property owners for specified external works (not subject to means test). Owners must remain in occupation and landlords must make property available for rent for 5 years.
Energy efficiency The level and type of grant available is subject to availability at any given time. Warm Front Market Renewal Fund for works Grants of up to £2,500 are available to provide insulation and heating improvements for specified works in designated people over 60, on income related benefits. Grants of up to £1,500 are available for renewal areas. households on income related benefits with children under 16, a householder who is pregnant or householders on disability benefits. The Being Energy Efficient scheme provides LA in other circumstances. discounts and advice in targeted communities.
Grants for Landlords joining a recognised accreditation scheme are eligible for a grant to provide LA landlords joining measures such as home security and energy efficiency works and works to meet the Decent Accreditation Homes Standard in properties that are already fit for human habitation. Grant is available to Scheme cover 50% of the cost of works to a maximum of £2,000 grant (£4,000 eligible expense).
102 RENEW North Staffordshire • Prospectus • March 2004 6.4.2 Neighbourhood Management
An effective approach to neighbourhood management is critical to achieving a smooth transition in parts of North Staffordshire, which will experience considerable change over the next few years. It introduces more focused service delivery into the areas targeted by the Market Renewal Programme for urban re-modelling. The proposals contained within this prospectus are a logical next step; following two years work in Stoke-on-Trent, between the City Council and the Local Strategic Partnership in delivering the City’s Neighbourhood Renewal Strategy; a further two years work in Newcastle Under Lyme Borough in delivering neighbourhood management as part of the National Pathfinder Programme; and a six year SRB Programme in Biddulph East led by Staffordshire Moorlands District Council.
Over this period significant progress has been made with North Staffordshire’s Neighbourhood Renewal programme. In Stoke on Trent, the original Neighbourhood Renewal programme focused delivery into the six most deprived wards. As a result of a comprehensive mapping process and the preparation of an associated database, 47 neighbourhoods have been identified across the City. These are grouped together for management purposes into ten Area Forums, each comprising approximately four neighbourhoods. Consequently, Stoke on Trent City Council, working in collaboration with partners from the Local Strategic Partnership, is able to prepare plans for neighbourhood management across the City.
With regard to the policy framework, which will make this possible, Stoke-on-Trent City Council has an established policy of decentralising service provision and decision making. Important progress has already been made with the development of Area Community Forums, comprising the local community network, ward councillors and multi-agency services. Area Implementation Teams (AITs) have also been established to achieve better joint working between service providers. Stoke on Trent City Council has also established a Community Facilitation Service funded through the Neighbourhood Renewal Fund to develop and deliver Local Area Plans with the AITs.
The proposals also build on the work of Newcastle Under Lyme Borough Council and its partners in the Knutton/Cross Heath area in delivering Neighbourhood Management as part of the national Neighbourhood Management Pathfinder (NMP) Programme. Currently, service level agreements (SLAs) are being negotiated between the Neighbourhood Management Plan and Staffordshire County and Newcastle Under Lyme Borough Councils. There will be two corporate SLAs and a number of specific ones on key service areas. These will aim to provide a framework within which the NMP and Local Authorities can enhance current services or devise new and improved services using the core principles of neighbourhood management. They will define precise levels of service as well as setting out mechanisms for the consultation and participation of the local communities.
The proposals for neighbourhood management are also closely aligned with the Community Strategies for Stoke-on-Trent, Newcastle-under-Lyme and Staffordshire Moorlands and provide a mechanism for the implementation, at neighbourhood levels, of several of the strategic proposals set out in these strategies. Consequently, the majority of the building blocks and structures for the effective delivery of neighbourhood management are already in place.
In summary, the strategy for implementation is:
• Development of Area Committees (in Stoke on Trent) whose purpose is to bring the decision making processes of Stoke on Trent City Council closer to local communities.
• Further development of Area Community Forums (in Stoke on Trent) which will work alongside Area Committees linking directly into the decision making process around the delivery of Neighbourhood/Area Plans. Area Community Forums will be an important ‘sounding board’ for the work of Area Committees.
RENEW North Staffordshire • Prospectus • March 2004 103 • Development and implementation of Neighbourhood/Area Plans (including appropriate neighbourhood targets for education and youth work, anti-social behaviour, street scene, public transport, crime, housing management, public participation, employment and health). Plans will also need to take account of physical land use planning issues.
• Implementation of an appropriate community planning model involving joint activity between stakeholders (community and service providers) for the preparation and review of Neighbourhood / Area Plans, for example, the Burslem Grange Priority Policing initiative.
• Further development (including provision of training and support) of multi-agency area teams charged with the responsibility of developing and delivering Neighbourhood / Area Plans.
• Development of SLAs to improve and better target service delivery.
• Further development of a neighbourhood budget for rapid response/early intervention activities, with devolved decision making to ensure that residents ‘have a real say’.
• Creation of neighbourhood centres, based on existing models such as the Bentilee District Centre, through the rationalisation of public service buildings and co-location of services in a single building serving the neighbourhood and wider area.
• Creation of a new service delivery protocol which joins up the service package around the needs of individuals and family units.
• Creation of local environmental management arrangements employing, where possible, local people in the delivery of housing maintenance, street cleaning, maintenance of parks, play areas and open spaces, warden services, cleaning and catering in public buildings, maintenance of local shopping parades, etc. This approach also seeks to bring voluntary and community groups into the management of the neighbourhood environment.
• Implementation of a locally delivered employment charter whose purpose is to address issues of wealth creation, setting targets for reducing unemployment levels amongst key groups, such as young people, BME communities, those with ill health/disabilities, long-term unemployed and lone parents. Also included would be a local labour agreement in the procurement of goods and services as appropriate. The charter will also seek to address issues of access to employment, including public transport services.
• Joint service planning on a multi-agency basis (delivered in Stoke on Trent through AITs). This will include childcare, family support and early education delivered through multi-agency teams based in Children’s Centres. It will also include Extended Schools and developing multi-agency arrangements such as Behaviour and Education Support Teams (BESTs).
• In Stoke on Trent the appointment of Neighbourhood Co-ordinators, aligned with the Community Facilitation Service and AITs, with the evident skills for bringing together partners in delivering complex programmes in a multi-agency environment. In Newcastle Under Lyme the neighbourhood management approach will also build on existing community engagement mechanisms.
• Implementation of a rigorous performance management framework and evaluation process.
• Implementation of a motivational programme focusing on the personal development needs and mentoring support for individuals and groups of residents to improve employment prospects and support community leadership. Provision of advice to support residents in areas of transition. This would be linked closely to the work of the Youth Services and Adult Education.
• Implementation of a community cohesion programme focusing on the needs of the BME communities in the City. This will build on the existing Community Cohesion Pathfinder.
104 RENEW North Staffordshire • Prospectus • March 2004 • There are considerations in taking forward neighbourhood management arrangements which will be addressed through our delivery plans for neighbourhood management, these include:
- the need to strengthen our locality planning framework based on existing area plans and the development of supporting NAPs
- the need to further strengthen joined-up working across services and to resolve issues of services to be delivered centrally and locally.
- the development of devolved governance arrangements and local involvement. At the present time in Stoke on Trent it is suggested that accountability remain in the Community Forums. This should assist in ensuring the sustainability of neighbourhood management and ensure it remains integrated with mainstream activity.
• The development of a communications strategy will also be fundamental to the successful implementation and operation of neighbourhood management. For a full description of neighbourhood management proposals see Appendix 18).
6.4.3 Improved Housing Management for Private Sector Tenants
Under the Government’s Sustainable Communities Plan, Stoke-on-Trent was chosen as one of five funded national pilots in June 2003 to investigate methods of encouraging improvements from landlords operating in the private rented sector in advance of the introduction of selective licensing. Central Government funding has therefore been made available for two financial years at £180,000/year, although the speed with which the Stoke on Trent scheme was launched has seen an additional allocation of £20,000 for 2003/04 from under- spend on other pilots.
The Stoke-on-Trent Landlord Accreditation Scheme was formally launched in late October 2003, with the aim of improving property conditions and management practices in the private rented sector. Unique within the pilots the scheme is a formal partnership initiative between Stoke on Trent City Council and the North Staffordshire Landlords Association (which the City Council helped to form in 2000), and is designed to benefit both partners equally, and to provide help and advice to all individuals and agencies with an interest in the private rental market in the City.
The scheme covers all private rented property in Stoke-on-Trent and additional enforcement resources are targeted at four areas where the activities of poor landlords are known to be having a major effect on the local communities, i.e. Tunstall, Middleport, Northwood and Coalville. The intention is for this approach to be rolled out across other neighbourhoods in future years
The project is focussed on individual landlords and their portfolios and is also aimed at providing a forum for promoting the debate about the role of private renting in the city and how this fits in with the aims and objectives of the HMR Pathfinder in stabilising the local housing market. The initial Steering Group responsible for the launch of the Accreditation Scheme has professionals from Environmental Health, Housing Benefit, Anti- social Behaviour, and Mediation Services fields. More importantly it has professional landlords who themselves are pledged to ridding the market of those individuals who damage the image of private landlords and who also gain an unfair business advantage by not complying with the basic principles of good housing management.
After an initial bedding-in period aim of this Group was to set up a wider panel of interested professionals, local politicians and community representatives in the New Year. On their agenda will be such issues as disparities in Housing Benefit between private rented and social rented accommodation; the potential role of Landlord Licensing powers contained within the new Housing Bill; and how private landlords can assist with the use of Anti-Social Behaviour Orders.
RENEW North Staffordshire • Prospectus • March 2004 105 The Scheme partners are looking to rebrand this forum as a ‘Task Force’ with a formal launch in the spring/summer of 2004. The aim will be to send a strong message to anyone already renting or considering renting, that Stoke on Trent City Council has a zero tolerance approach to those failing to meet minimum standards of management and property conditions. However the message should also be that the partners are happy to work with those professional landlords who provide the choice and diversity of accommodation that some of those living within the city either desire or can afford.
The progress relating to this pilot scheme is summarised below:
• The multidisciplinary Steering Group was formed and has been responsible for developing the Scheme concept, including standards, rules and associated documentation;
• An Accreditation Unit have been formed consisting of a Project Leader, Research Officer and three Enforcement Officers;
• Background information on the activities and properties owned by private landlords in the four key target areas, has been gathered and proactive visits are underway;
• Small scale landlord accreditation grants for fit dwellings (50% up to a £2,000 max) have been offered linked to the Market Renewal strategy;
• A dedicated website landlordaccreditation.co.uk will be launched in March 2004;
• A series of landlord training events commences in March 2004
• A range of discounts and services have been negotiated from local suppliers for accredited landlords;
• Promotional events have been carried out including attendance at local property auctions;
• In March/April 2004, in conjunction with Staffordshire University, a survey of private tenant views is to be undertaken which should help to assist in forming a private tenant forum;
• To date 144 landlords have been signed up, covering 951 properties and equivalent to 2,917 lettings;
• Development work to expand the scheme to the whole of North Staffordshire is well advanced
6.4.4 Community Safety
Activities relating to clearance, intervention and renewal are likely to increase both fear of crime and crime itself. The fact that areas are being cleared or renewed and people are moving out is likely to attract and encourage criminal activity. Empty properties can attract crime and this will have direct implications for spending on securing empty properties, police patrols and security of development sites which will require proactive partnership working linked to the neighbourhood management approach (Appendix 18).
The Renew objectives are to reduce crime that affects quality of life and to improve community safety. Using Crime Prevention through Environmental Design (CPTED) and Secure By Design (SPD) principles will add to the building of sustainable neighbourhoods. An example of this is the development at Normacot Grange which was built to SBD standards and has developed into a relatively crime free area amidst other declining local areas such as Meir. Target hardening initiatives already exist in both Stoke-on-Trent and Newcastle Under Lyme and these can also be extended and built upon.
A key element of the Renew approach will be the support given to Neighbourhood Wardens. Funding has been identified for Neighbourhood Wardens in each of the AMIs to help combat rises in crime, antisocial behaviour and a degeneration of local environments. In general the neighbourhood wardens will
• Provide advice on crime prevention.
• Report environmental problems to appropriate bodies.
• Provide better information on anti-social behaviour.
• Forge links with neighbourhood watch schemes and residents groups.
106 RENEW North Staffordshire • Prospectus • March 2004 The availability of a local warden service which is flexible to the needs of community which they serve will help to deliver the level of neighbourhood management on a practical level, which could not be possible without such a locally focussed service.
6.4.5 Energy Efficiency and Health
Energy efficiency measures have a critical role to play in linking housing investment with health and environmental improvements. Energy efficiency improvements cut carbon emissions, improve health and help eradicate fuel poverty. Stoke-on-Trent, Newcastle-under-Lyme and Staffordshire Moorlands Councils have worked together for several years to promote energy efficiency and are currently developing a sub-regional Affordable Warmth Strategy. The Renew Board has commissioned a piece of research to identify potential energy efficiency and security interventions within the Market Renewal area to:
• Improve the value of properties
• Increase sustainability and reduce the maintenance of properties
• Increase the comfort and well-being of vulnerable residents.
This will include providing advice and information to residents, making referrals to other agencies and making energy efficiency and security improvements to properties. The type of Market Renewal intervention will determine action and investment, so that in clearance areas the priority will be to provide both advice and assistance and emergency and short-term measures in order to ensure residents can keep warm and safe. In the AMIs generally the intervention will, in the first instance, be directed at addressing fuel poverty and security and in the GRAs the main emphasis will be on improving energy efficiency and safety whilst at the same time ensuring that individuals experiencing fuel poverty access available assistance. The approach will link in with the funding and implementation of the emerging sub-regional Affordable Warmth Strategy.
6.5 The Market Renewal Programme 2003/04–2005/06: The Two Year Spending Programme
The bid for HMRF resources over the next two financial years is £30m. This will support a total public sector funding programme estimated to be £59,753m. This investment will be contributed from the sources identified in Table 17 below.
Table 17: Public Sector Investment Contributions
Name Contribution
Housing Market Renewal £30m
English Partnerships £10m
Local Authorities & Social Housing Providers £14m
Housing Corporation £ 6m
Total £60m
In April 2003 the ODPM announced that up to £4m would be made available for Renew to deliver Early Action Projects. This resource complemented £600,000 of investment which had been allocated to Early Actions by The Board from the £2.66, made available to develop this Prospectus. Table 18 shows how this resource has been utilised, with three quarters of the resources being targeted at developing the Hanley South AMI. The bid for an additional £30m of resources should be seen therefore, as a continuation of the programme started in 2003/04.
RENEW North Staffordshire • Prospectus • March 2004 107 Table 18: Market Renewal Early Action Projects 2003/04
Projects Expenditure £’000 Hanley South AMI: Hanley South - Clearance 1,500 Former Imperial Pottery Site 1,100 Trent Bathrooms Site 0 Lichfield Street - Potential Purchase and Clearance 300 Planet Wharf - Potential Purchase and Clearance 230 Relocation Grants 200 Etruria and Cliff Vale Clearance Area 0
Projects Integrated with Wider Regeneration Schemes: Cavour Street 400 Tunstall East - Redevelopment 420 Coalville 150 Minor Grants to Support the Landlord Accreditation Pilot 100 Abbey Hulton Environmental Improvements 100 Neighbourhood Management - Managing Areas in Transition 100 Total 4,600
Table 19 shows the projected outputs generated Market Renewal Activity to 2005/06. This level of activity will have been generated by £34.6m of HMRF investment and of particular note is the projected land supply of 242 hectares which will be brought forward for development during this period. The majority of this supply is located in the Etruria Valley and Hanley South area, and it requires very little in public subsidy to bring it forward because of prevailing residential land values. This land supply is a significant asset given the need to front load the provision of a balanced portfolio of new build which will facilitate redevelopment.
Table 19: Housing Market Restructuring: Total Outputs 2003/4-2005/6
1,283 properties acquired for clearance/improvement
242 hectares brought to the market
814 properties improved
1,800 homes benefiting from environmental improvements
18,825 homes subject to additional management measures to tackle low demand
350 new properties constructed
108 RENEW North Staffordshire • Prospectus • March 2004 6.5.1 The Market Restructuring Programme: 2004/05-2005/06
The spending profile listed in Tables 20 and 21 has been guided by the characteristics of the target areas and the assessment of the extent and nature of the development work required to establish the programme. For example, Hanley South contains 48 acres of empty or underused land which can be brought forward for development, an existing clearance programme, and a number of streets with severe stock condition issues and/or land instability. The area has benefited considerably from development work and land acquisition funded from the Early Action Programme. The intelligence in relation to the physical fabric of the Middleport and Knutton / Cross Heath areas, is also relatively robust, as the former area has been subject to a Neighbourhood Renewal Assessment, and the Knutton / Cross Heath area had been in receipt of approximately nine separate regeneration funding streams in the last decade. In contrast to these areas, no development work has been conducted in the Meir area, and there is therefore, a very low start for Market Renewal expenditure in this neighbourhood.
In all of the AMIs it is proposed to provide enhanced neighbourhood management and to provide resources to enable the community to engage with the process of change. In addition to the AMI the programme will pump prime activity in the three GRAs, Chesterton, Galleys Bank / Biddulph East and Newcastle Town Centre. Other areas of activity which will be supported by this financial programme include finishing projects supported by the Early Action Programme in Tunstall, Bentilee, Abbey Hulton and Coalville.
RENEW North Staffordshire • Prospectus • March 2004 109 Table 20 - Renew Investment Programme - Year 1
110 RENEW North Staffordshire • Prospectus • March 2004 Table 21 - Renew Investment Programme - Year 2
RENEW North Staffordshire • Prospectus • March 2004 111 In comparison with the other seven pathfinders which have submitted their schemes in this financial year, this initial programme represents a gentle start to the Renewal Programme. This spending profile has been raised on a number of occasions with ODPM during 2003 and agreed by the Renew Board. It was provisionally agreed that we would have a two stage process to developing the Market Renewal delivery and strategic framework, which took account of the historic capacity deficit in North Staffordshire. The first phase of the programme therefore, concentrates on: developing the human capacity to deliver larger scale programmes of urban renewal and neighbourhood management; developing strategic links between the policies and programmes of other public sector agencies; and crucially working collaboratively with the communities which are most affected by change.
The programme contained in Tables 20-21 is pump priming a significant widening of Market Renewal activity from 2006 where 11 neighbourhoods will be subject to varying degrees of intervention. In addition, it is envisaged that the new development at Etruria Valley will have started during 2006. This will follow the completion of a detailed plan which sequences the development of new build within the core of the city, details the quality of affordable housing required, and estimates the Section 106 contribution which can be raised to pay for essential physical and social infrastructure.
Given the extent of change expected within the core of the conurbation, we envisage that eventually the renewal and redevelopment of the area will need to be managed at two levels. In the AMIs, local delivery teams will work with local residents to implement the NAPs. However, the programme will need a management team to manage the Central City Redevelopment process. This would allow the programme to: take account of adjacency issues; ensure that an appropriate level of affordable housing is reprovided; and, where necessary, allow money to be vired from one AMI to another to ensure programme delivery. This arrangement is reflected in the financial modelling in Section 7. A more detailed exposition of the financial in puts and phasing associated with this two year programme can be found in the Business plan (Appendix 13).
6.6 Summary
This section has described the places or neighbourhoods that will be the focus of Market Renewal activity over the next two years and has summarised the rationale for HMRF investment. In this initial phase, the Programme will focus on developing neighbourhood based activity, leaving a more thematic approach to later stages when the delivery capacity will be increased. This neighbourhood focus allows a response of either the promotion of a major transformation of the area or, alternatively, action to preserve the status quo. The area based approach can be summarised as regeneration of the core of the conurbation, promotion of Town and City Centre living, support for vulnerable neighbourhoods and restructuring the social sector.
The section also described the policies developed to support people during this first phase of Market Renewal. The effect of the Strategy on residents is slightly greater than that implied by market driven change because of the holistic approach being taken and the early impact of market restructuring. There is therefore, a major issue and management challenge relating to the adequate provision of affordable housing for people displaced because of Market Renewal activity. The identified support for people includes the measures that will be put in place to support sustainable neighbourhoods, support to private sector residents including improved housing management in the private rented sector, neighbourhood management, the promotion and co-ordination of community safety and arrangements to promote energy efficiency and health.
Finally, the section identified the bid for HMRF resources over the next two financial years along with the total public sector funding programme for market restructuring. This spending profile represents a gentle start to the Market Renewal Programme that takes account of the historic regeneration capacity deficit in north Staffordshire.
The next section summarises the overall Market Renewal Programme and Business Plan, a more detailed version of which is included as Appendix 13.
112 RENEW North Staffordshire • Prospectus • March 2004 7 Overall Programme and Business Plan
7.1 Introduction
This section of the report sets out details of the proposed investment programmes to support Market Renewal over an 18 year period. The length of this programme has been determined partly by the intensity of intervention required in some parts of the urban form and the scale of management required to avoid social dislocation and unmet housing need. In view of the scale of interventions required to address market failure and reconstruct the urban form, it is not considered desirable or practical to try to deliver the investment programme in less than this period.
The Business Plan outlined in Appendix 13 demonstrates considerable leverage of funds from both other public sector sources and the private sector. The initial two-year programme has been derived from detailed plans and appraisals and includes conclusion of the first phase "early win" interventions. Considerable work has been undertaken in order to assess the cost and phasing of activities in the first four (of eight) proposed AMIs. Estimates for the later phase of AMIs have been based upon this first phase. Inevitably, detailed design and master-planning work will be required in respect of the proposed City Centre redevelopment initiative which may need to respond to recent geological survey findings and these estimates must therefore be regarded as provisional. This detailed work will be undertaken during years one (2004/05) and two (2005/06).
The next section of this chapter summarises the main funding requirement, with subsequent sections setting out the approach adopted and key assumptions.
7.2 Funding to Support the Proposed Investment Programme
It is estimated that the gross expenditure on Market Renwal activities associated with the Pathfinder area will amount to £2.3bn over twenty years. Renew will require Market Renewal funding of some £860m to achieve this level of investment. The total estimated funding can be summarised as follows:
RENEW North Staffordshire • Prospectus • March 2004 113 Table 22: Renew: Total funding by Source
£m % Private sector leverage Land and property sales 769 33% RSL private finance 81 4% Equity loan repayments 29 1% Total private sector leverage 879 38%
Other public sector HIP / HRA revenue 256 11% English Partnerships 154 7% RDA 88 4% Social Housing Grant 78 3% Other 2 Total other public sector 578 25%
Market Renewal resources Capital 769 33% Revenue 91 4% Total Market Renewal 860 37%
Total Renew Funding 2,317 100%
With considerable private sector leverage and support from our partners, the Market Renewal requirement represents just 37 per cent of the planned gross investment. In addition, on conclusion of Renew’s activities it is forecast that equity loans outstanding will amount to some £106m at current prices, generating additional capital receipts in subsequent years.
Our Market Renewal requirement and resource bid for years one and two, the period covered by the current Comprehensive Spending Review, amounts to £30m. A programme on the scale envisaged will require thorough preparation and planning. Much of this early programme will therefore consist of detailed surveying, masterplanning and resident consultation, although work on GRAs and key strategic property acquisitions will also be underway.
7.3 Investment by AMIs
The following table summarises the proposed investment by AMI. The table also provides a thematic breakdown of expenditure, linked to funding source.
114 RENEW North Staffordshire • Prospectus • March 2004 7.3.1 Summary of Outputs The programme will generate the following outputs:
Table 23: Renew: Programme Outputs
Demolitions: Private rent / owner occupied 11,877 Local authority 1,000 RSL 1,550 Commercial 69 Other 5 Total 14,501
New Build: Private rent / owner occupied 7,480 Low cost Home Ownership (LCHO) 3,354 RSL rent 1,694 Total 12,528
Net reduction (residential dwellings) (1,973)
Refurbishments: Council 21,077 RSL 4,680 Private rent / owner occupied 9,710 Total 35,467
The shape of the Programme is contained within Table 24. This shows a substantial concentration of resources within the centre of the conurbation. This focus of resources will allow for the physical restructuring of the six AMIs within the core, while ‘Central City redevelopment’ budget will allow a flexible approach to rehousing people effected by clearance, through the offer of subsidised affordable new build in Burslem, Hanley or the Etruria Valley.
7.4 Business Plan Methodology
The Business Plan is based upon thematic interventions derived from detailed NAPs prepared for the first phase AMIs, along with supporting strategies for clearance of properties along arterial routes and removal of properties that constitute ‘non conforming uses’ within the intervention area. Costs have been extrapolated from the first AMIs to estimate the scale of investment required in the second phase. Provision is also made for six GRAs, works to peripheral housing estates and other smaller scale interventions. The first phase AMIs will support the start of the proposed ‘Central City redevelopment’ strategy, with a significant replacement provision to take place at the Etruria Valley. The revenue expenditure forecast provides for the costs of Renew’s operating infrastructure over a twenty-year term. It is anticipated that the Stoke Town AMI clearance programme will be commercially led and the contribution from Market Renewal resource is forecast to cover the cost of any renovation activity.
The detailed business planning assumptions for the phased programme, together with the long term cash flow forecasts stated in both nominal and real terms, are set out in the Business Plan at Appendix 13.
RENEW North Staffordshire • Prospectus • March 2004 115 7.4.1 Key Business Planning Assumptions
Detailed financial assumptions are set out in the Business Plan. The cost and income assumptions summarised in the tables above are stated in real terms at current prices, with no allowance for real growth in either construction and operating costs or income from land and property sales. In practice, it is expected that real growth in market values will exceed cost growth, although given the complexity and scale of the market restructuring proposed the timing of this key change is inherently difficult to predict. Expected net gains of this nature will serve to reduce the requirement for Market Renewal resources in later years and the sensitivity analysis contained within the Business Plan illustrates the potential impact.
The build cost estimates include all preliminaries, overheads and, where applicable, VAT at current rates. Demolition costs allow for associated expenditure on site clearance, security and monitoring.
The programme will involve significant displacement of households in the intervention areas, along with some businesses and community facilities. A wide range of financial support packages have been devised to assist those affected by Renew’s activities, as set out in the accompanying policy document enclosed at Appendix 12. It is intended principally to offer a mixture of grants, access to new shared ownership housing, and various types of equity loan arrangement, as appropriate to individuals’ circumstances. These packages have been designed to both support achievement of strategic objectives for tenure change and ensure all those affected by the strategy have real choice in selecting their future housing options, commensurate with Renew securing maximum value for money from its investment. RSL partners will play a significant role in this strategy, mainly through the provision of shared equity housing.
A reasonably significant number of RSL properties will need to be acquired (1,500) and it is intended to purchase this stock on a basis which ensures no detrimental impact on the social landlords’ long term business plans. Precise details will be subject to negotiation in each case.
7.4.2 Sensitivity Analysis
The Business Plan contains a large number of assumptions which, although included on the basis of local research and informed estimates, will nevertheless clearly be subject to some change over the twenty years of the forecast. A range of sensitivity tests have been conducted, as set out in the detailed Business Plan, in order to examine the impact of potential changes in key variables. These demonstrate, inter alia, the potential effect of significant real growth in market values, the precise timing of which cannot be predicted with any certainty. The Business Plan will be reviewed at not less than annual intervals, in order to ensure all necessary revisions are incorporated and the impact assessed as and when variations occur.
7.5 Value for Money
We have employed financial advisors, HACAS Chapman Hendy, to review the proposals in relation to value for money. They have ensured a consistent approach to costing, with sums benchmarked against available local data where applicable. Many estimates anticipate the outcome of negotiations with interested financial parties, however, where possible, estimates included in the financial model have been drawn from evidence contained in the HMA and other local information.
116 RENEW North Staffordshire • Prospectus • March 2004 7.6 Leverage
Given the major scale of this initiative and the unique nature of the urban problems to be addressed by Renew, there is a demonstrable requirement for significant public subsidy to give effect to these proposals. Nevertheless we expect to achieve private sector funding of 38% of gross expenditure, equivalent to leverage of 1:1 when compared to the Market Renewal requirement (£879m private sector, £860m Market Renewal).
It is important to appreciate the significant growth in household equity that can be expected to result from the strategy. Although the cash conversion for Renew will be confined to repayment of equity linked loans, economic activity in the whole conurbation will clearly benefit from this stimulus.
7.7 Partner Agencies
Our partners have been closely involved in the production of the proposals and we have sought in principle assurance that anticipated resources will be allocated to the strategy. All have indicated that Market Renewal is an investment priority.
RENEW North Staffordshire • Prospectus • March 2004 117 Table 24 North Staffordshire Market Renewal Area Programme Cost Estimate: Summary
Other Hanley Central City Central City Knutton & Stoke City Middleport Meir South NAPs (x3) Relocation Cross Heath - NAP
Summary cashflow £000's £000's £000's £000's £000's £000's £000's Expenditure Acquisitions 36,082 10,486 61,978 155,069 263,616 12,350 50,378
Land costs 4,703 3,062 25,596 26,852 60,213 22,510 9,072
Demolition 8,194 3,299 12,274 28,301 52,069 3,876 8,802
Displacement packages 41,649 20,383 56,781 76,593 195,405 8,939 23,995
Refurbishment 3,399 5,663 4,976 - 14,038 5,220 -
New Build - Dwellings for sale 42,888 - 32,890 353,441 429,219 17,157 -
RSL LCHO 17,852 5,088 8,508 99,211 130,659 4,844 -
RSL rent 5,319 8,198 3,510 34,342 51,370 2,447 -
Other 1,326 1,197 1,936 3,463 7,922 1,213 1,110
Infrastructure 737 2,213 3,781 - 6,731 989 -
Other 5,186 4,818 5,158 - 15,162 --
Revenue programmes 5,650 5,965 6,869 15,919 34,403 6,008 5,732
172,986 70,371 224,257 793,192 1,260,806 85,555 99,089
Income
Social Housing Grant 5,122 5,095 1,760 28,600 40,578 2,280 -
LA HIP 2,279 4,027 7,101 - 13,407 198 -
LA HRA MRA 533 1,630 809 - 2,971 --
Sales ------
Outright 62,129 - 45,906 493,403 601,438 31,351 -
LCHO 12,062 3,528 8,358 69,943 93,890 3,210 -
Other ------
Land sale receipts - - 1,234 - 1,234 3,260 -
Loan repayments 3,268 928 2,892 7,982 15,070 139 2,004
Other programme funding 28,353 20,000 59,792 24,500 132,645 14,273 68,252
LA Revenue - - - - - 75 -
Private finance 7,610 4,893 3,432 35,011 50,947 7,021 -
HMR Revenue 37.1% ( 5,650 5,965 6,869 15,919 34,403 5,933 5,732
HMR Capital ( 45,980 24,305 86,103 117,835 274,222 17,814 23,101
172,986 70,371 224,257 793,192 1,260,806 85,555 99,089
118 RENEW North Staffordshire • Prospectus • March 2004 Table 24 continued
Newcastle General NCB Peripheral Chesterton Galley's Arterial Small Total Town Centre Renewal Estates Estates Bank / Roads Area Areas (x6) (incl Biddulph Clearance/ Silverdale) (NCB?) Non-conf use
Summary cashflow £000's £000's £000's £000's £000's £000's £000's £000's £000's Expenditure
Acquisitions 5,010 38,845 8,720 - 10,859 - 43,600 124,415 557,793
Land costs - - 1,000 - - - 3,014 9,453 105,262
Demolition - 5,383 1,400 - 2,114 - 7,000 24,087 105,262
Displacement packages 2,340 38,825 3,450 - 8,744 30,000 30,430 62,954 405,082
Refurbishment - - - 298,695 - - - - 317,953
New Build -
Dwellings for sale - - 5,564 - 14,690 - - - 466,629
RSL LCHO 1,111 1,220 1,264 1,800 8,458 - - - 149,356
RSL rent 4,846 1,220 5,199 9,741 6,041 - - - 80,864
Other 140 372 97 - 1,260 342 100 335 12,892
Infrastructure ------7,720
Other 500 1,850 50 - 500 - - - 18,062
Revenue programmes 349 1,588 125 3,834 480 856 250 37,636 91,261
14,296 89,303 26,869 314,070 53,147 31,198 84,394 258,880 2,317,606
Income
Social Housing Grant 3,078 1,994 5,774 4,800 8,977 10,000- - - 77,480
LA HIP - 2,674 - 165,301 - - - 200 181,781
LA HRA MRA - - - 70,843 - - - - 73,815
Sales ------
Outright - - 8,983 - 16,251 - - - 658,023
LCHO 880 - 786 - 8,136 - - - 106,903
Other ------
Land sale receipts ------4,494
Loan repayments - 1,479 - - 573 - 4,386 5,213 28,864
Other programme funding 1,500 15,000 1,000 - 6,000 - 6,000 - 244,671
LA Revenue 125 - - - 75 - - 100 375
Private finance 2,350 388 2,419 17,269 654 - - - 81,048
HMR Revenue 37.1% ( 224 1,588 125 3,834 405 856 250 37,536 90,886
HMR Capital ( 6,139 66,181 7,782 52,021 12,075 20,342 73,758 215,830 769,267
14,296 89,303 26,869 314,070 53,147 31,198 84,394 258,880 2,317,606
RENEW North Staffordshire • Prospectus • March 2004 119 7.8 Summary
This section details the proposed 18 year investment programme. It is estimated that the gross expenditure on Market Renewal activities associated with the market Renewal area will amount to £2.3 billion over twenty years including £860m of HMRF which equates to 37 percent of the planned gross investment. It is also forecast that at the end of the Programme approximately £106m (at current prices) of outstanding equity loans will generate additional capital receipts in later years. The resource bid for the next two years of the Programme amounts to £30m.
Detailed work has been undertaken to cost and phase the first four AMIs and this work has been used for the later phases. Considerably more detailed design and master planning work will be required and this is detailed in the Business Plan methodology. The section also details the key business planning assumptions, the sensitivity analysis, value for money methodology and leverage. The next section outlines the outcomes and performance targets of the Programme in line with the aims and objectives as outlined in section 5.
120 RENEW North Staffordshire • Prospectus • March 2004 8 Outputs and Performance Targets
8.1 Introduction
As noted in Section 5, Renew has developed its programme against a set of objectives grounded in a clear understanding of the drivers of change in North Staffordshire and the likely trajectory in the absence of Housing Market Renewal.
This has enabled proper consideration of the likely impacts of Housing Market Renewal at a range of spatial levels:
• Sub-region and conurbation
• Pathfinder area
• Key neighbourhoods
• Adjacent areas
In the development of outcome targets Renew is acutely aware that whilst the spend will be targeted at neighbourhoods and thematic interventions within the Market Renewal Area, the ambition and scope of the scheme is such that direct and indirect impact on the socio-economic performance of the conurbation is expected to be considerable. For this reason, we have judged it essential to include targets for both the intervention area and the conurbation.
We have taken particular care to avoid unrealistic impacts after just three years. This is particularly relevant in North Staffordshire where we have chosen to have a relatively slow start to capital investment to allow the sub- region to develop a transformational agenda. A good example of this is expected void rates. A declining market trajectory is identified in the HMA and we therefore expect voids in some neighbourhoods not targeted in the early programme to rise. In any case we have factored in the lead times involved in implementing clearance sensitively and appropriately in AMIs and elsewhere. We consequently judge that stabilising the void rate for the Pathfinder area at 6% in 2007 compared to the 2001 baseline of 5.7% will represent a real achievement. But longer-term, the significant clearance and new build programme means that a demanding voids threshold of 2% should be pursued.
The rationale for these outcomes also reflects ODPM guidance on measuring Pathfinder performance and Renew endorses the joint approach taken by ODPM and the Audit Commission on this issue.
We have also determined a number of additional target outcomes in relation to the strategic aims and objectives of the scheme.
RENEW North Staffordshire • Prospectus • March 2004 121 The achievement of outcomes will be measured by the Pathfinder Team and wider partners and stakeholders within the agreed evaluation framework but it is anticipated that this will be based around:
• Bespoke datasets provided by statutory agencies for example the Local Authority planning departments (build/demolitions, pipeline) or housing departments (HIP return)
• More generally integrating Market Renewal with the policy development and review process of key stakeholders in North Staffordshire, initially in initiatives such as the NSRZ but longer-term with mainstream services
• Bi-annual updating of the neighbourhood index produced as part of the HMA (see Technical Appendix 1, supplementary document 1A) by the policy unit in the Office of the City Manager, Stoke-on-Trent City Council
• Through major residents’ surveys across the Pathfinder area scheduled in years 3, 7, 12 and 15 of the programme , with booster samples reflecting the distribution of AMIs and each of these milestone and communities of interest (for example, students and BME groups.
• Through the mainstream consultative structures of the Local Authorities and key partners, including local ward structures
• Through the process of consultation and policy implementation in the early AMIs where it is expected that lessons will be learned for phase 2 NAPs
• Active participation in a national evaluation of Housing Market Renewal which is expected to include interim and final evaluation stages
8.2 Evaluation
Renew intend to develop a monitoring and evaluation framework which is capable of accommodating the unique characteristics of this Market Renewal Strategy, whilst accommodating the specific needs of the ODPM to monitor and evaluate the scheme nationally. The Business Plan that accompanies this Prospectus provides some of the projected outputs required by the ODPM, however, for a number of outputs further discussions are required with ODPM officials to achieve clarity in terms of definitions and potential additional data sources.
122 RENEW North Staffordshire • Prospectus • March 2004 Table 25: Renew Outcome Measures and Targets Targets 2019 Targets Reduce void rate to 2% 75% of new build units in the over lifetime of inner core scheme 5% bands E-H in Pathfinder area 77% bands A-B (of which 65% Band A) Minimum 59% owner occupation Nil schemes through completion in programme AMIs and mainstreaming 800 new units in Burslem Centre Town 500 new units in the City Centre for Newcastle Town Figure TO BE DETERMINED Centre Targets 2007 Targets Stabilise void rate at 6% 50% of new build units in the between 2004-07 inner core early for specific target Too early for specific target Too Four schemes covering phase one AMIsby 2005 Eight schemes covering phase one and two AMIs by 2009 be determined To Baseline Void rate Pathfinder area 5.7% rate Pathfinder area Void in 2001 11.6% of new build in inner of conurbation 1997- core 2002 in Bands Only 305 properties E-H (0.5%) 95% in Bands A-B (with 84% Band A) 52.9% in 2001 (67.1% conurbation) Existing Neighbourhood Management scheme for Heath Knutton/Cross new build in Negligible recent and its Hanley City Centre South extension or the centres of Burslem and Newcastle Outcome Measure Reduction in the overall void rate new build in Stoke- Directing into the inner core. on-Trent Reduction in low value stock of defined as the proportion in lowest value properties Bands Council Tax owner occupation Increase low base based on 2001 from and 2011 censuses with measured interim and progress by surveys and Council Tax register in place structures Appropriate in line with measure) (process scheme area-targeting Significant new build in town markets centre Conurbation New Buyers To remove surplus properties from the housing market from surplus properties remove To urban facilitate the development of land for housing in appropriate To locations (see by size, price and tenure supply of property an appropriate ensure To also objective 3.2) To provide neighbourhood management structures to manage change in neighbourhood management structures provide To AMIs density levels of residential with appropriate support older urban centres To (also supported by objective 1.3) 1.1 2.1 AIM 1: Balance the Supply and Demand for Housing Provide Sustainable Neighbourhoods AIM 2: To 1.2 1.3 2.2
RENEW North Staffordshire • Prospectus • March 2004 123 Table 25: Renew Outcome Measures and Targets (cont) Targets 2019 Targets Maximum void rate of 5% in any single neighbourhood cluster (excluding student market of South Shelton and Vale) Cliff 12% of Pathfinder area population living in current less than one year address (excluding student market of Vale) South Shelton and Cliff 10% of Pathfinder area population living in current less than one year address (excluding student market of Vale) South Shelton and Cliff Pathfinder area 75% across with no neighbourhood cluster below 65% Maximum average net outflow of 750 pa for Stoke-on-Trent over lifetime of programme falling to nil by 2019 of Achieve 40% retention students Targets 2007 Targets Highest void neighbourhoods mainly fall in phase 2 AMIs so early target inappropriate not appropriate Early measure not appropriate Early measure Pathfinder area 67-70% across Early measure not appropriate Early measure of Achieve 30% retention students Baseline Void rate in Northern inner Void 10.2-13.1% ranges from core less address % living in current than one year: housing 19% Terraced 17% Inner core Social periphery 12% baseline from Pathfinder area 2001 census TO BE DETERMINED % living in current neighbourhood less than one year: housing 12% Terraced 13% Inner core Social periphery 9% (NAP surveys 2003) NAP surveys 67% for the AMIs -1,553 pa for 1999-2001 in Stoke-on-Trent 30% of inflow considering after staying in Stoke-on-Trent graduation (Hanley South student survey 2003) Outcome Measure Reduction of voids in neighbourhoods with highest vacancies Reduction in population turnover satisfaction with Increased neighbourhood. Halve the three year average of Halve the three migration for net outward Stoke-on-Trent of students proportion Increase outside Stoke-on-Trent from considering staying in city after graduation Conurbation New Buyers To ensure that neighbourhoods whose primary function is to provide long- that neighbourhoods whose primary function is to provide ensure To stable and popular term accommodation are To reduce the net outward migration from Stoke-on-Trent in a way which is Stoke-on-Trent migration from the net outward reduce To sensitive to the needs of wider conurbation 2.3 3.1 AIM 2: Balance the Supply and Demand for Housing AIM 3: Population Retention and Stabilisation
124 RENEW North Staffordshire • Prospectus • March 2004 Table 25: Renew Outcome Measures and Targets (cont) Targets 2019 Targets 12% of buyers in 2007-2019 BME groups from in owner- 4% overcrowding occupied households in (4.5% in inner Pathfinder area neighbourhoods) core/BME Stabilise population and household numbers Stock to include 14% detached and 45% semi- detached with terraced falling to under 30% 1,000 units along arterial roads in lifetime of scheme cleared 2,925 units demolished in mixed-use and small clearance in lifetime of scheme areas space of green 50 hectares Targets 2007 Targets 6% of buyers in 2004-07 from BME groups Early measure not appropriate Early measure be determined To be determined To not appropriate Early measure Baseline 4% of buyers in 1998-2003 BME groups from in owner- 4.9% overcrowding occupied households in (6.5% in inner Pathfinder area neighbourhoods) core/BME Population 145,773 Households 62,366 Only 4.8% detached and 39.2% detached 43.6% Terraced n/a n/a n/a Outcome Measure More BME buyers of new build More housing in conurbation. in Reduction of overcrowding owner occupied housing will most benefit BME groups affected Increase in population and Increase households of proportion Increase detached and semi-detached housing in line with aspirations (conurbation new buyers survey) Clearance of housing along arterial routes Clearance of housing in localities with non-conforming land use and with no long- future term residential of open space Provision Conurbation New Buyers To ensure that an appropriate level of new build accommodation is that an appropriate ensure To and attract to retain over the duration of programme provided population and households in the intervention area have the opportunity to access new build that BME groups ensure To housing market in North Staffordshire subject to neighbourhoods are where overcrowding reduce To redevelopment To remove housing inappropriately located along heavily polluted arterial housing inappropriately remove To roads of non-conforming industrial uses and areas housing from remove To future locations with no long-term residential quality open space on ex-housing land which has been provide To decommissioned 3.2 5.1 AIM 3: Balance the Supply and Demand for Housing AIM 4: Radical Improvement of the Environment AIM 5: Meet Housing Needs and Promote Social Cohesion 5.2 4.1 4.2 4.3
RENEW North Staffordshire • Prospectus • March 2004 125 Table 25: Renew Outcome Measures and Targets (cont) Targets 2019 Targets to be determined 27% of new build to be low cost home ownership through equity and other shared financial support and 13.5% build for rent 15% over lifetime of programme of 500 units Output measure market in new city centre Urban Village in Burslem Urban Village in Hanley South with links to city centre Etruria 468 acres Bring forward site 5ha of of around Provision land to support expansion of Learning Quarter be dertermined To Reduce gap with conurbation by 50% Targets 2007 Targets to be determined be determined To To be determined To be determined To be determined To Baseline Baseline position to be to determined disaggregated key groups survey 1997 Stoke-on-Trent found 17,000 unfit units mainly in the inner core n/a 10% of new build in Stoke-on- 1998-2003 Trent n/a Acquisition underway funded Early Action through programme be determined To Domestic burglary 28.3 per 1,000 households 2002/03 (conurbation 21.8) rate 127.9 per 1,000 Disorder population 2002/03 (conurbation 98.3) Outcome Measure Reduction in levels of unfitness condition measure or agreed of replacement Proportion housing in following clearance to include subsidy element foster affordability of RSL proportion Increased new build as % of total Process objective but Process underpinned by new housing units in city centre Land assembly in the first three to years of the programme facilitate the new build market be determined To Reduce domestic burglary and cases of disorder Conurbation New Buyers To ensure that no specific groups of people or communities experience that no specific groups ensure To significantly worse than the average for housing stock conditions that are the conurbation are process by the redevelopment affected that all groups ensure To type and property form of tenure in an appropriate rehoused quality of life crime that affects reduce To To ensure that the Housing Market Renewal programme supports the that the Housing Market Renewal programme ensure To for the conurbation (also links with core development of a new commercial objective 6.2) (also that Housing Market Renewal supports viable local centres ensure To links with objectives 2.2 and 6.1) made with construction training links are that effective ensure To 5.3 7.1 6.1 AIM 7: To Reduce Incidence of Crime and Fear of Crime in Housing Market Renewal Target Areas Reduce Incidence of Crime and Fear in Housing Market Renewal Target AIM 7: To AIM 5: Meet Housing Needs and Promote Social Cohesion AIM 6: Link to Wealth-Creation 5.4 6.2 6.3
126 RENEW North Staffordshire • Prospectus • March 2004 Table 25: Renew Outcome Measures and Targets (cont) Targets 2019 Targets Targets to be developed in Targets conjunction with Community Safety Partnership to be developed in Targets conjunction with Community Safety Partnership Targets 2007 Targets Targets to be developed in Targets conjunction with Community Safety Partnership to be developed in Targets conjunction with Community Safety Partnership Baseline 28% with household member victim of crime in AMIs recent 28% very/fairly worried about being physically assaulted 59% very/fairly worried about into home broken Outcome Measure Reduce exposure to crime Reduce exposure Conurbation New Buyers To improve community safety improve To 7.2 AIM 7: To Reduce Incidence of Crime and Fear of Crime in Housing Market Renewal Target Areas Reduce Incidence of Crime and Fear in Housing Market Renewal Target AIM 7: To
RENEW North Staffordshire • Prospectus • March 2004 127 Table 26: ODPM Outcome Measures Targets 2019 Targets 50 Hectares set once definitions Target agreed set once definitions Target agreed be determined To set once definitions Target agreed Targets 2007 Targets Target set once definitions Target agreed. Meanwhile, voids reduction against proposed measure objective 1.1 set once definitions Target agreed be determined To set once definitions Target agreed Baseline n/a LAD 2002 : Stoke-on-Trent 3,980 private units for Stoke- of which 3,471 owner on-Trent occupied LAD 2002 : Stoke-on-Trent 11,552 local authority 3,500 RSL 14,405 private be determined To 81% of those in AMIs definitely planning to move in years expect to next three leave the neighbourhood Notes Note this is district data for only – would Stoke-on-Trent to include not be appropriate and Newcastle-under-Lyme Moorlands LADs. Staffs Council Stoke-on-Trent Current to not configured register Tax data. Pathfinder area produce in Baseline will be produced Local 2003/04 by three Authority Districts (LADs) in common format with other Pathfinders ODPM/common Needs agreed Pathfinder definition be determined To ODPM/ common Needs agreed Pathfinder definition. the average for As comparator, is 78% NDC areas Outcome Measure The total hectares of land made available for final use. The total hectares vacant for homes in the intervention area The number and percentage of pathfinder including the proportion than 6 months (by tenure, more induced voids). subject to of homes in the intervention area The number and percentage low demand (as defined by HIP guidance) tenure. of low value house price sales in the number and percentage The reduction house prices in the 25th 15th and 5th in comparison to regional percentiles. their of householders intending to move from The number and percentage with the national average. years compared neighbourhood in the next three A9 A10 A11 A12 A13
128 RENEW North Staffordshire • Prospectus • March 2004 8.3 Summary
The scope of the Programme is such that there will be both direct and indirect impacts on the socio-economic performance of the conurbation. Targets for both the Market Renewal intervention area and the conurbation are therefore included. As identified in Section 6, there will be a relatively slow start to capital investment in order to develop the transformational agenda. Consequently unrealistic impacts early in the Programme are avoided. The rationale for the Programme outcomes reflects ODPM guidance on measuring performance and this section identifies some of the processes through which the achievement of outcomes will be measured. However Renew intends to further develop a monitoring and evaluation framework.
The next section focuses on the delivery of Market Renewal and the wider regeneration agenda, in particular the creation of an SPV and the strengthening of local regeneration capacity.
RENEW North Staffordshire • Prospectus • March 2004 129 130 RENEW North Staffordshire • Prospectus • March 2004 9 Deliver and Key Implementation Issues
9.1 Introduction
Whilst the Renew management team co-ordinates and oversees the delivery of the Market Renewal programme, partner agencies play a significant role in its delivery. To date, the Local Authorities have been the lead agencies as part of their broader remit for delivering planning, housing and regeneration policy. There are three strategic housing authorities involved in the North Staffordshire pathfinder. Stoke-on-Trent City Council (a unitary authority), Newcastle-under-Lyme Borough Council and Staffordshire Moorlands District Council. Staffordshire County Council has responsibilities within Newcastle-under-Lyme and Staffordshire Moorlands for services including the current Structure Plan framework and social services. As well as having strategic housing responsibilities, Stoke-on-Trent is a major landlord, with around 22,000 homes in management. Newcastle- under-Lyme has transferred its 10,000 Council homes to Aspire Housing, and has a much reduced strategic and enabling housing function by comparison with Stoke-on-Trent. Similarly, Staffordshire Moorlands is no longer a landlord, with its former housing stock owned and managed by Moorlands Housing.
In Stoke-on-Trent, the City Council’s Neighbourhood Renewal Strategy and Community Plan establish the framework within which Market Renewal interventions will be delivered. Arrangements for delivering interventions in Newcastle-under-Lyme are currently being developed by a strategic group involving the Local Authority, the County Council, Aspire Housing, the Knutton/Cross Heath Neighbourhood Management team and the LSP Unit.
Strengthening the capacity of the sub-region to deliver the redevelopment and regeneration of the North Staffordshire conurbation is key to the success of this programme. The Market Renewal Strategy and Programme has been constructed to allow time to improve strategic linkages and enable effective communication with the citizens who are most likely to experience change. A number of initiatives are currently being explored which will significantly increase local capacity and these include:
9.2 Renew North Staffordshire Development Team
A dedicated Market Renewal Team has been operating on an interim basis within Stoke-on-Trent City Council to support the work of Renew, and in particular to support The Board with the development of the Market Renewal Prospectus, and to put in place effective delivery arrangements for the Market Renewal programme. Team members are currently funded through a mix of Market Renewal and City Council resources. The team’s remit is to:
• Support the Board in developing the Market Renewal prospectus
• Provide the strategic framework for the regeneration of the North Staffordshire Housing Market
• Empower the Renew Board to direct the programme of renewal activity
• Maintain a high level of market intelligence to inform the integration of housing, planning, economic development and wider regeneration strategies
• Establish and maintain effective renewal partnerships at sub-regional and local levels
• Develop and maintain effective systems for performance monitoring and review
• Ensure that effective delivery structures are put in place
• Oversee the negotiation and subsequent review of the long term funding contract with central Government for Market Renewal.
RENEW North Staffordshire • Prospectus • March 2004 131 The capacity of the team now needs to be expanded to support the delivery of the Market Renewal programme, which will commence following Government approval of the Renew Prospectus. Specifically, it is intended that the team will be developed to provide capacity for:
• Programme commissioning and monitoring: a team will be established under a Head of Programmes, to commission, oversee and monitor masterplanning and project delivery, and ensure co-ordination of the various strands of Market Renewal activity. Renew staff will work closely with the agencies selected to deliver neighbourhood level interventions, ensuring that planned interventions are aligned with strategic objectives;
• Financial management: a team will operate within Renew to oversee development and maintenance of the Renew Business plan and associated Delivery Plans, for approving and monitoring expenditure within agreed plans, for maximising external funding opportunities to support Market Renewal activity, and for maintaining a focus on best value in the use of Market Renewal resources. The Finance Manager will play a key role in managing the interface between Market Renewal funds, other regeneration funding streams and mainstream resources, ensuring that succession strategies are in place to support the investment delivered through market renewal.
• Strategy and policy management: a team will be established to oversee and develop the strategy set out within the Prospectus, and monitor the overall performance and direction of Renew. A critical element of this team’s remit is to maintain Renew’s intelligence base and housing market performance appraisal systems. This will provide an ongoing assessment of the impact of market renewal interventions, both within intervention areas and in adjacent neighbourhoods, and beyond the Market Renewal boundaries within the conurbation.
• Public relations and communications: the public relations and communications issues associated with the delivery of the Market Renewal programme are profound, and will be co-ordinated from within the Renew team. The linkages with Local Authority consultation and community liaison activities will also be addressed by this function.
A structure chart for the expanded team is provided at Figure 11. The team will be led by a Director, who will support The Board, oversee relationships with the ODPM, Treasury and Audit Commission, manage the strategic relationship with key partners, and oversee the management of the Renew Team.
9.2.1 The Local Authority Offer
In Appendices 16 to 18 the four Local Authorities have outlined how they intend to align their strategic programmes and services to support the concept of Market Renewal. They detail:
• How key regeneration, economic development and transportation strategies are being developed.
• The role of the LSPs in delivering and shaping the regeneration agenda.
• The role that key services such as Education will play in delivering neighbourhood renewal.
• The contribution of the LIFT Programme to improving primary care facilities across North Staffordshire.
• The role of the Private Finance Initiative in developing infrastructure for the inner core of the conurbation such as street lighting and schools.
The Technical Appendices highlight in some detail the proposed approach to Neighbourhood Management. In Newcastle-under-Lyme there is an established Neighbourhood Management Pathfinder which has been running for two years in the Knutton and Cross Heath area. In Stoke-on-Trent it is proposed to develop a model of neighbourhood management in each of the AMIs. Partnerships will be developed involving the Local Strategic partnership and the Community Facilitation Teams working with the area forums, which will be serviced by Area Implementation Teams.
132 RENEW North Staffordshire • Prospectus • March 2004 9.2.2 A New Urban Renewal Team for Stoke-on-Trent
In addition to the strengthening of the Renew Team outlined above, Stoke-on-Trent City Council has significantly increased its capacity to deliver urban renewal services by appointing a new Assistant Director to oversee this function and a staffing complement of sixteen officers which will include a Neighbourhood Renewal Manager and three Principal Renewal Managers. These urban renewal staff will work closely with the enhanced neighbourhood management structure which is outlined in Appendix 18.
Other initiatives which will be developed over the next twelve months include:
• An Environmental Maintenance Trust: Discussions are taking place with English Partnerships to see if a vehicle can be created which can take control of surplus land and public open space created through the regeneration process. This trust would receive dowries to maintain land, and act as a catalyst to attract funding from other agencies such as the Forestry Commission, the Lottery, English Partnership and the Environment Agency.
• Stoke-on-Trent Regeneration: Is a development company jointly owned by St Modwen Plc (81 per cent ownership) and Stoke-on-Trent City Council (19 per cent ownership). This company is a major landowner in the Etruria Valley, and will be a key partner in developing this flagship project.
• Private Sector Partners: A Procurement Strategy will be developed over the next twelve months, which will seek to fully engage the private sector in Market Renewal generally, but particularly in the intensive and long term activity necessary in the core of the conurbation. The development of a Procurement Strategy would strengthen the Pathfinders approach to value for money (VFM) and does not imply a current weakness in the private sector activity in North Staffordshire. The new build rate for sale has now been remarkably consistent in Stoke-on-Trent since 1971, and currently about £60m per annum is invested in new property in the City each year.
• Registered Social Landlords: The development of this prospectus has fully involved the local RSLs. Where appropriate RSLs will be given a lead role in developing and / or implementing local housing strategies. The responsibilities that will be designated to RSLs in the first phase of the programme include:
• William Sutton Trust - Environmental improvements at Abbey Hulton.
• Bentilee Community Housing - Developing an urban design template for peripheral estates.
• Beth Johnson / Prime Focus - Taking the lead in delivering the AMI in Hanley and the GRA in Normacot.
• Aspire Housing - Developing the action plans for Knutton / Cross Heath and Chesterton in partnership with Newcastle-under-Lyme Borough Council.
• Staffordshire Housing Association - The lead agency redeveloping the Coalville estate on the edge of Stoke- on-Trent.
RENEW North Staffordshire • Prospectus • March 2004 133 9.3 A Special Purpose Vehicle
The partnership recognises, however, that given the scale and complexity of the proposed programme, there is a need to enhance current delivery capacity, and is considering arrangements for achieving this. The Board is also concerned to maximise the scope for integration of Market Renewal activities with the interventions being delivered by the NSRZ to enhance the economic competitiveness of the sub-region. As noted above, the NSRZ is preparing to deliver a series of major regeneration projects involving radical restructuring of land use and site remediation.
Renew and the NSRZ Board have therefore commissioned a joint examination of the options for the establishment of a SPV to enhance capacity to deliver large scale physical regeneration in North Staffordshire. The intention is that the new organisation would operate as a partnership between the NSRZ and Renew, with the capacity to deliver the large scale interventions that will be required, including:
• Land assembly
• Site reclamation and servicing
• Securing gap funding for schemes
• Packaging up housing portfolios for refurbishment, clearance or letting contracts
• Selected direct development, such as Business Incubator Centres
• Ensuring mainstream infrastructure and greening expenditure is aligned to the programme
• Engage with the private sector to support and guide its development proposals.
Two options have been considered for the SPV; an urban regeneration company and an urban development corporation (UDC - a non-departmental public body set up with a statutory objective and powers to regenerate an area). The UDC model is the option provisionally favoured, and further work is now being carried out to review the business case for the model and discuss options with the ODPM.
If established it is intended that the UDC would be the agent of Renew and the NSRZ, with planning powers and responsibility for delivering a strategy agreed jointly by both organisations in accordance with a Business Plan that they would also agree. If this model meets with the approval of local stakeholders and Government, it would require up to 18 months to establish. It is the intention of Renew to hold discussions with English Partnerships, AWM and the four Local Authorities to explore the option of creating a ‘virtual’ UDC in the short- term, where each of the agencies would pool staffing resources and expertise.
134 RENEW North Staffordshire • Prospectus • March 2004 Figure 11 Proposed Renew Team Structure
Director PA
PR and Strategy and Head of Finance Manage Communication Policy Manager Programmes Manager
Finance Officers x2 Area Programme Neighbourhood Managers X5 Management (1 per ADF) Officer Policy Information Support Officer (statistics/ Officer forecasting) X3 RZ LA Monitoring and LSPs Evaluation Officer
Administration General administration x 2 Finance assistant x 1 PR Support x 1 Programme/Strategy/Policy x 1
RENEW North Staffordshire • Prospectus • March 2004 135 9.4 Summary
This section identified the key delivery and implementation issues for the Market Renewal programme. Strengthening the sub-region’s capacity to deliver the redevelopment and regeneration of the conurbation is key to its success. There are a number of initiatives seeking to do this which include expanding the capacity of the Renew team, development of an Environmental Maintenance Trust and strengthening the partnerships with Stoke-on-Trent Regeneration, the private sector and RSLs. However, given the scale and complexity of the regeneration agenda, The Board is also considering the option of establishing an SPV to deliver large scale physical regeneration in North Staffordshire in partnership with NSRZ. As the SPV would take around 18 months to establish the option of creating a ‘virtual’ UDC in the short term is also being explored.
The next section details Renew’s approach to risk management.
136 RENEW North Staffordshire • Prospectus • March 2004 10 Risk Management
10.1 Introduction: The Development Context
This section sets out Renew North Staffordshire’s Risk management approach. This process is key to identifying, assessing and controlling risks that emerge during the course of the programme, as although risk can not be avoided it can be managed, minimised and anticipated. There are levels of risk which the programme needs to be mindful of:
Figure: 12 Levels of Risk
Programme Level Project Level
External Forces Internal Factors e.g. economic climate e.g. management structures
In order to develop a comprehensive approach to risk management the guiding principles and steps set out in the Green Book have been used to guide the development and review process, these are:
• Establishing a risk management framework, within which risks are identified and managed;
• Senior management support, ownership and leadership of risk management policies;
• Clear communication of organisational risk management policies to all staff; and,
• Fully embedding risk management into business processes and ensuring it applies consistently.
10.2 Key Issues and Approach
In order to provide consistency of approach a risk register will be used, this offers a valuable tool which lists all identified risks and the associated analysis, evaluation and current status. The box below sets out the table of contents for this as recommended in the Green Book.
RENEW North Staffordshire • Prospectus • March 2004 137 Box 1 Risk Register Table - Sample Contents Page
• Risk number (unique within register);
• Risk type;
• Author (who raised it);
• Date identified;
• Date last updated;
• Description;
• Likelihood;
• Interdependencies with other sources of risk;
• Expected impact;
• Bearer of risk;
• Countermeasures; and,
• Risk status and risk action status.
The risk register will be continuously updated and reviewed and will be the responsibility of the monitoring and evaluation officer in the Renew team, reporting to the Board. This approach will ensure that risk management and the issues which it raises are embedded in the evaluation and monitoring framework and that analysis is based on a holistic picture of progress and projections are subject to a robust ‘reality check’.
The embedding of risk in the evaluation process is also key due to the inter-related nature of many of the risk factors and as the programme matures and delivery expands the nature and influence of the risks will change, cease and new ones may be identified – for example, capacity in terms of the team to deliver the objectives will be a key risk over the initial years as recruitment etc. is subject to external forces. However, as the programme becomes established and knowledge and experience grows this risk will be significantly reduced. The tables below present the initial risk assessment, firstly for the Prospectus as a whole followed by risks which could be associated with projects:
138 RENEW North Staffordshire • Prospectus • March 2004 Table: 27 Risk Assessment - Prospectus Level
Probability Impact Risk Risk Management Plan (H,M,L) (H,M,L)
Actions not radical enough to M H Strategic procurement will take place and the knowledge management achieve the vision of a stable process will ensure appropriate and aspiration activity is set in place. Renew and thriving housing market will also link with key partners such as the Regeneration Zone to strengthen the areas economic and social base in order to ensure that the market becomes an appropriate regulator for the area.
Change in national economic L H Central government projections are for continued economic growth in conditions coming years and this is supported locally by the findings of the Economic Futures Report
Accuracy of costing and time L H Variation is inevitable between estimates and actual costs and benefits over scales such a long period (excluding optimism bias).
Interruption of funding L H Key funding partners have been engaged for a significant time already, formal commitments for the first 2 years are in place and negotiations for future years are ongoing. A high level of shared ownership has been achieved and Renew will work to ensure this is maintained.
Loss of community or political L H The Prospectus has been developed on a robust quantitative and qualitative support evidence base with relevant consultation. This inclusive approach will be continued and expanded as each of the major intervention areas will have a consultation and dissemination strategy / process in place. Transparency is a guiding principle.
Shortage of skills and M H This risk in particular will decrease over time as the team and knowledge experience for the project develops. However the initial delivery years are at risk in terms of obtaining the appropriately skilled individuals to drive the programme forward. Recruitment and retention are a current priority and secondees are being utilised as an interim management measure.
Non-alignment of key strategies L H Renew is well linked to all key local, sub-regional and regional agendas and significant progress in terms of shared Board membership, cross-referencing within delivery plans etc has already been established, this will continue as Renew recognise the importance of linkages in terms of adding value and providing a sustainable future for residents.
Failure of key partners or L H Linked to the interruption of funding, risk above this is being managed delivery vehicles through strong relationships with key partners and funders, also the nature of the partners and the inter-related nature of activities proposed mean that this risk is unlikely to come to fruition, however continued engagement and not ‘lip service’ will be embedded.
RENEW North Staffordshire • Prospectus • March 2004 139 Table: 27 Risk Assessment - Prospectus Level (cont)
Probability Impact Risk Risk Management Plan (H,M,L) (H,M,L)
Unexpected demographic L H The HMA and Economic Futures reports point to an area which is change developing out of a period of decline and transition and therefore any significant demographic changes will already of occurred.
Homes constructed do not L H It is fundamental that Renew links to projected trends research and the match areas need planning structure to ensure that the provision put in place through new build activity meets the needs of future generations as well as a reasonable developers profit.
Rise in construction industry M H Due to national shortages in the sector this is a real risk. As a response the costs LSC and the City Council have recently commissioned research in to the sector to establish a way forward to put the capacity in place locally – Renew will engage in the strategy’s development and support its delivery.
Legislation / regulation changes L M This issue will be embedded in the sector strategy noted above and factored - particularly in relation to the in as identified. construction sector
Planning risk - location / L H Planning is a key factor for the programme and processes have / are being specification established to ensure that location / usage issues do not contradict. Referencing urban design work, masterplans etc will be an established protocol prior to permissions being granted.
Uneven economic regeneration M M The economic function of the different areas needs to established. Naturally some areas are going to benefit more from direct access to resources, such as development sites, however Renew is committed to even distribution of quality of life provision and links with the community plan and LSP have been established to support the achievement of this aim.
UDC not achieved M H On-going discussions are taking place to facilitate the development of an UDC.
Operational Procurement risks: M H There are associated risks with purchasing land or property from the private Land acquisition; sector, however the transparency of approach and dissemination of House purchases; information is key to ensuring that procurement can take place. In addition CPO; English Partnerships funding is being used for interim management procurement in order to provide Renew with a stronger control over the local market.
Ground condition issue more M H Significant issues have been raised around the stability housing in a number series than anticipated of areas in the city, with this in mind a wider survey is costed in to determine the full scale of the problem.
Property value increase making L H There is unlikely to be a significant rise in the short to medium term programme unaffordable however as the programme develops this will be monitored. Caveats and contractual agreements will be reviewed through governance review in order to reduce the potential impact on the funding profile.
140 RENEW North Staffordshire • Prospectus • March 2004 Table 28: Risk Assessment - Project Level
Probability Impact Risk Risk Management Plan (H,M,L) (H,M,L)
Supporting infrastructure and M M Ensure all relevant searches - communication lines, sewage etc are carried impact on spatial plan for new out prior to any design phase. build.
Resistance to relocation and M H Potential to significantly increase project costs. Transparent consultation will CPO be used to support the process.
Negative impact on displaced M H Consultation with businesses around needs and current employee businesses – turnover / catchment area. productivity / employee loss.
Uncertain land ownership / M H Commence at an early stage searches for necessary information to reduce public rights of way possibility.
Environmental / habitat issues L H Review of area to establish is this is a potential issue and if any rare species on potential development sites identified work with relevant agencies to ensure minimum disruption.
Public expectations M H The publics expectations of Renew need to be managed and information needs to be transparent and accessible at all stages in the process.
Lack of Community Provision L H Need to ensure that design stages take in to consideration the need for community facilities such as education, shops, children’s play areas etc. all of which support sustainable communities.
10.3 Summary
This section lays out the guiding principles that have been used to develop a comprehensive approach to risk management. These include a risk management framework, senior management ownership of risk management policies, clear communication of the policies to all staff and fully embedding risk management into business planning. A risk register will be used to provide consistency of approach. The section also contains a risk assessment at Prospectus level of the Market Renewal programme.
The next and final section describes the current Governance structures and highlights the review process to be followed over the next year.
RENEW North Staffordshire • Prospectus • March 2004 141 142 RENEW North Staffordshire • Prospectus • March 2004 11 Governance
11.1 Introduction
The Board currently has 19 voting members, and is an unincorporated body which cannot enter into contracts or legally procure services. The Board Membership was selected to ensure senior political representation from the four Local Authorities and they are accompanied by the respective Chief Executives or a senior nominated officer. The other Board Members represent Public Sector Agencies that can make a major contribution to the Market Renewal Programme, and two Private Sector representatives that have experience of property development, mortgage lending, and the Private Rented Sector.
11.2 Terms of Reference for the Partnership Board
The terms of reference agreed at the Renew Board of 16th October 2002 are listed below:
• To be responsible to the ODPM for the development of an annual review of the Market Renewal Strategy.
• To oversee the allocation of resources which flow from the Market Renewal Fund and to ensure that the agreed targets and outcomes are achieved.
• To ensure the integration of the Housing Market Renewal Strategy and Programme with the existing regional and sub-regional strategies and programmes.
• To ensure that the development and implementation of the Market Renewal Programme secures and maintains a high degree of community consent.
• To ensure that the Market Renewal process is supported by high quality partnerships, which are performance driven.
• To set and review key milestones, outputs and outcomes for the Market Renewal Programme and ensure that proposed delivery mechanisms are fit for purpose.
• To ensure that an appropriate evaluation framework is developed and maintained to inform the Board of the performance of the Market Renewal Programme.
11.3 Next Steps 11.3.1 Board Structure and Membership
The Renew Board has been structured to maximise the potential for integrating the policies of all the key agencies involved in the regeneration of the sub-region. Whilst the Chair is independent, Board Membership is otherwise made up of representatives of each of the Local Authorities in North Staffordshire, the County Council, English Partnerships, AWM, the Regional Government Office, the Housing Corporation, the Health Authority, the Police Authority and the sub-regional Strategic Housing Partnership. Representatives of a Developer, and the National Housing Federation are also Board Members (see Table 29 below).
RENEW North Staffordshire • Prospectus • March 2004 143 Table 29 Renew Board Membership
Name Organisation Represented Mr Peter Bounds Independent Dr Ita O’Donovan Stoke on Trent City Council Mr Mike Wolfe Stoke on Trent City Council Mr Felix Harley Newcastle-under-Lyme Borough Council Councillor David Leech Newcastle-under-Lyme Borough Council Mr Simon Baker Staffordshire Moorlands District Council Councillor Locker Staffordshire Moorlands District Council Mr Ron Hilton Staffordshire County Council Councillor Wakefield Staffordshire County Council Mr Peter Murray English Partnerships Mrs Marie Greer Advantage West Midlands Ms Philippa Holland Government Office for the West Midlands Mr Nick Reed Housing Corporation Professor Bernard Crump Shropshire & Staffordshire Health Mr Mike Brereton Shropshire & Staffordshire Health Mr Jim Washington North Staffordshire Housing Mr David Wilson Private sector: Wilson Bowden plc Mr Chris Down National Housing Federation Chief Superintendent John Wood Staffordshire Police
11.3.2 Relationship with the Accountable Body
Stoke-on-Trent City Council operates as an accountable body for partner agencies in respect of a number of regeneration funding streams including various SRB strands and the Neighbourhood Renewal Fund. It is therefore well placed to deliver the role of Accountable Body for Market Renewal, taking responsibility for receipt of Market Renewal Grant, for ensuring that funds are applied in accordance with Market Renewal Strategy (as formulated by The Board) and for providing project appraisal and financial management systems.
The working arrangements between Renew and Stoke-on-Trent City Council are as follows:
• Stoke-on-Trent City Council has entered into a funding agreement with ODPM on behalf of Renew
• The Board formulates the Market Renewal programme and oversees its management
• The pathfinder Local Authorities approve the overall expenditure programme, in the form of a Delivery Plan, via internal approval mechanisms, and delegates decision-making responsibilities within the Delivery Plan to the Renew Board
• Stoke-on-Trent City Council’s Financial Regulations, Standing Orders and Appraisal process apply to all Market Renewal expenditure proposals
• Stoke-on-Trent City Council’s Director of Corporate Resources is the authorised signatory for all grant claims in respect of the Market Renewal Pathfinder.
144 RENEW North Staffordshire • Prospectus • March 2004 During the strategic development phase, the Board has functioned well, however it is accepted that a review of the governance arrangements will be necessary to accommodate the different pressures and volume of work which will arise as the programme moves into the implementation phase. The issues to be explored include:
• A review of the skills required for the Board to effectively manage the programme.
• An examination of the potential for smaller sub-groupings to input their skills and experiences into the development, monitoring and review of the programme as it expands.
• The need to review the relationship with the NSRZ to ensure there is no duplication of activity.
• A review of the organisational structure of The Board to explore whether a legally constituted Board could more effectively assist with the development of the programme. This review would clarify the operational and legal duties which arise from Board Membership.
The Board has in principle, agreed to include two community representatives on the Board. Facilitating this membership is not a straightforward process, and the method of securing this representation will need to be included in the governance review. The review of Governance Structures will be completed by August 2004. This review will also need to be taken into account with the development of new delivery vehicles and their relationship with The Board. These delivery issues are explored more fully in Section 9.
11.4 Summary
This final section explains the status of The Board, lists its terms of reference and describes the structure and membership. Stoke-on-Trent City Council is the Accountable Body for Market Renewal and therefore takes responsibility for Market Renewal Grant. The section describes the working arrangements between Renew and Stoke-on-Trent City Council and recognises the need for a review of the Governance arrangements, taking into account the development of new delivery vehicles.
RENEW North Staffordshire • Prospectus • March 2004 145 RENEW North Staffordshire Civic Centre Glebe Street Stoke-on-Trent ST4 1RJ Telephone 01782 232024 www.renewnorthstaffs.gov.uk changing places: transforming lives