Sandwell's Housing Strategy 2008

Sandwell’s Housing Strategy 2008 – 2011

30th June 2008

Introduction

Sandwell is a metropolitan borough formed in 1974. It is one of seven authorities that make up the West Midlands conurbation and comprises 6 towns - Oldbury, Rowley Regis, Smethwick, Tipton, Wednesbury and West Bromwich. The borough is completely surrounded by other metropolitan authorities.

The borough’s housing land area is the most densely occupied in the West Midlands region. There are approximately 125,000 dwellings in Sandwell of which approximately 24% are Council housing. There are low levels of private rented and housing association properties.

The population of the borough was in decline but the demand for housing in the Borough is now increasing as a result of a reversal of the annual population loss that has taken place over the last 25 years and the population is projected to rise by 700 per year by 2029.

This population increase will present challenges for the Council and its partners as we plan to meet the housing needs of greater numbers of smaller households and an ageing population.

Sandwell has an increasingly diverse and culturally rich community. Black and minority ethnic (BME) residents make up 22 % (57,426) of Sandwell’s total population compared with an average BME population for the West Midlands Region as a whole of 11.26 %. This is expected to grow to 29% by 2026 and include an even greater diversity of ethnic backgrounds as households move around the European Union. This demographic change cannot be ignored as we plan to create and support sustainable and cohesive communities within an increasingly ethnically diverse population.

Sandwell is ranked 16th most deprived out of 354 authorities with 53 per cent of its population living in wards designated as ‘very deprived’. Approximately 81 per cent of households within the borough experience at least one of the following elements of deprivation: high unemployment, low educational attainment, poor and limiting health and disability or poor and overcrowded housing. Unemployment levels at 7.9% in 2006 were higher than the national average of 4.9%.

Under the Comprehensive Performance Assessment (CPA) 2007 the Audit Commission rated the Council as a 'two-star' authority out of a possible four. The housing score, however, was rated three out of a possible four. In terms of direction of travel, the Council is assessed as 'improving strongly'.

The Council separated out its landlord and strategic functions when it established Sandwell Homes as an Arms Length Company (ALMO) in order to ensure that its housing stock reached the Decent Homes Standard by 2010. Sandwell Homes manages almost 30,000 Council homes and went “live” on 1st October 2004 with a 10-year renewable management agreement with the Council.

The remaining 1,200 Council homes are managed as part of a PFI initiative with Riverside Housing Association under the terms of a 30 year agreement which began in 2007.

Why we have a Housing Strategy

The provision of good housing underpins all of Sandwell Council’s key priorities. These are:

• Safer, cleaner and active communities • Every Child Matters • Economy, skills and jobs

Providing more and better homes in the borough is a key strategic priority for the Council and the Sandwell Partnership, not only to meet basic housing needs, but also because we believe that if people live in a good home it provides the solid foundation for a better quality of life and improved life chances.

It is our vision to create good quality and accessible homes where people choose to live, in safe friendly neighbourhoods, close to a range of community facilities, schools and jobs.

In order to deliver this vision however, we face significant challenges as we work in partnership to deal with a legacy of poor housing, high rates of ill health and disability, unemployment and low educational attainment within Sandwell’s population.

Housing led initiatives can contribute to improving skills, education and employment chances whilst ill health can be improved and alleviated by living in homes which are adaptable and located in safe and supportive environments.

The affordability of homes in Sandwell for local people who are earning less on average than residents of neighbouring authorities is also a key challenge to be tackled through this Housing Strategy.

3 In addition, it is also becoming clear that the emerging consequences of the collapse in the sub-prime mortgage lending market in America, which is having a significant knock-on effect in Britain, will have a profound effect on local housing markets. The impact of these institutionally created difficulties, referred to as “the Credit Crunch,” is likely to last for some time and local responses will be developed within the overall direction set out in this Strategy. The Delivery Plan includes initiatives and actions which are aimed at alleviating some of the worst effects of the Credit Crunch and demonstrate the leadership of the Council and its partners in helping people when they are in the greatest need.

Local Authorities are obliged to follow Government guidance in developing and presenting their Housing Strategies. This guidance is, however, outdated and currently under review by the Department for Communities and Local Government. Sandwell’s previous Housing Strategy, covering the period 2005 to 2008, was assessed as being fit for purpose by the Government Office and the need to develop this updated Strategy cannot wait for revised guidance to be issued.

In the circumstances, this Strategy has been developed using the background of the current guidance but the approach has been modified and adapted to incorporate best practice as promoted by the Improvement and Development Agency (IDeA).

The Strategy will be reviewed annually in the light of experience and further guidance as it is produced. This will help keep a consistent strategic direction whilst enabling partners to develop and implement tactical initiatives to meet changing circumstances.

This Housing Strategy, as a Council owned document developed through the framework of the Sandwell Partnership, explains how we will work with our partners to bring about positive changes that will improve the lives of people who live in Sandwell. It builds on the successes of previous plans and actions and sets out a new strategic direction for the next three years.

The Strategy is not just about “housing.” The challenges facing Sandwell are multiple and complex and it is apparent that dealing solely with the quality of housing, or the number and types of homes to be provided, is not enough.

By working in partnership we will develop co-ordinated and cohesive planned responses that will improve the economic, physical and social health and well- being of the local population. The Strategy aims to make our vision materialise into reality over a realistic timescale.

The outcomes we want to achieve are:

• Increased choice of accessible and affordable housing for all sections of the community • The creation of high quality places as well as homes • Communities which are supported effectively

4 The provision of effective support for vulnerable people The provision of good housing underpins all of Sandwell Council’s key priorities. These are:

• Safer, cleaner and active communities • Every Child Matters • Economy, skills and jobs

It is our vision to create good quality and accessible homes where people choose to live, in safe friendly neighbourhoods, close to a range of community facilities, schools and jobs.

The affordability of homes in Sandwell for local people who are earning less on average than residents of neighbouring authorities is also a key challenge to be tackled through this Housing Strategy.

In addition, it is also becoming clear that the emerging consequences of the collapse in the sub-prime mortgage lending market in America, which is having a significant knock-on effect in Britain, will have a profound effect on local housing markets. The impact of these institutionally created difficulties, referred to as “the Credit Crunch,” is likely to last for some time and local responses will be developed within the overall direction set out in this Strategy. The Delivery Plan includes initiatives and actions which are aimed at alleviating some of the worst effects of the Credit Crunch and demonstrate the leadership of the Council and its partners in helping people when they are in the greatest need.

5 In the circumstances, this Strategy has been developed using the background of the current guidance but the approach has been modified and adapted to incorporate best practice as promoted by the Improvement and Development Agency (IDeA).

The outcomes we want to achieve are:

• Increased choice of accessible and affordable housing for all sections of the community • The creation of high quality places as well as homes • Communities which are supported effectively • The provision of effective support for vulnerable people • The development of housing interventions which support and promote economic competitiveness for Sandwell and its people • Effective intervention to balance the supply and demand for affordable housing

The actions we will take, and the strategy itself, have been agreed and developed within the context of the Sandwell Partnership and they support the Council’s main priorities. They also take account of the priorities in the Local Area Agreement and have been influenced by other corporate and local strategies. National, regional and sub-regional priorities are also reflected in the strategy.

The actions in the Delivery Plan are founded on sound and effective consultation, detailed research, analysis and intelligence about current and emerging needs in the borough. The Delivery Plan sets clear targets and milestones for these actions to achieve real benefit for the people of Sandwell.

6 This strategy has been developed collectively and collaboratively through the Strategic Housing Forum which includes all the major housing stakeholders in the borough. The Forum Executive reports directly to the Sandwell Partnership (LSP), ensuring that there is comprehensive and informed input and action regarding the vision, planning and implementation of the strategy and the associated Delivery Plan.

The Strategic Housing Forum is ambitious and confident about its plans to meet housing need and there is a clear focus on what needs to be done to bring about improvements. This confidence arises from the significant progress made in delivering the priorities of previous housing strategies and which ensures that there is a sound base of success from which to progress with new initiatives and interventions over the next strategic planning cycle.

This document sets the scene for housing in Sandwell, including a description of the dynamics of its housing markets so that the reasons for our proposed actions may be better understood. It also illustrates that there is no single answer to the complex housing situation in Sandwell. This is why we have established strong and effective strategic partnerships to deliver comprehensive solutions to meet the challenges we have identified.

Our strategy will be kept under review by the Strategic Housing Forum which, acting on behalf of the Council and the Sandwell Partnership, will also closely monitor performance against the Delivery Plan so that necessary adjustments may be made by partners to ensure that targets and outcomes are achieved as planned.

It is in this wide local, regional and national context that this Housing Strategy sets out to deal with the complex housing and housing related issues in Sandwell.

The Housing Strategy in its local, regional and national context

Sandwell Council is very clear about its overall strategic priorities and is determined to achieve its desired outcomes. The Audit Commission’s assessment of the Council as “improving strongly” confirms the positive drive and enthusiastic commitment to tackle challenges robustly and with the will to succeed.

The Council’s priorities for the next three years are:

• Safer, cleaner and active communities • Every Child Matters • Economy, skills and jobs

The delivery of a successful and effective strategic and enabling housing role is fundamental to achieving these priorities and the Strategy has been developed in this context. As a result there is strong and universal political and corporate organisational support for this comprehensive Housing Strategy.

The Housing Strategy will contribute to making Sandwell safer and cleaner and will help develop active communities through implementing the housing related recommendations in the Community Cohesion strategy.

Our master planning activities for the Durham and Tibbington Estates, Charlemont Farm and, in particular, the Windmill Eye area within the Western Growth Corridor of Smethwick will promote active community involvement and contribute significantly to improving the environments of these neighbourhoods.

There are actions in the Delivery Plan that provide effective support for vulnerable people in the community. These include ensuring that young people leaving care have access to good quality affordable housing and that families are supported through a comprehensive housing advice and options service which is effective in delivering sustainable solutions to their housing problems.

The Housing Strategy is closely aligned with the Council priority to improve the local economy and to provide opportunities for developing skills and job creation. The provision of a mix of affordable and aspirational housing in the borough will contribute to balancing housing markets as well as attracting managerial and professional workers into the borough. We will work in partnership to regenerate industrial land that is no longer contributing to the local economy, restoring it to use for either housing, new employment uses or other uses.

8 A number of supporting and complementary strategies are linked to this housing strategy. They provide specific details in relation to particular issues and sections of the community and a list is provided as an appendix to this document.

The Audit Commission’s Housing Inspectorate has acknowledged that the Council has a comprehensive service planning system in place and that there is a good degree of synergy between different strategies and the Corporate Business Plan.

This applies particularly to this Housing Strategy as it builds on the successful interventions and initiatives of previous housing strategies and proposes actions and outcomes that are well integrated with the Council’s wider community objectives.

The Housing Strategy supports the Sustainable Communities Plan (Sandwell Plan) 2021 which is founded on the basis that Sandwell is proud to identify and promote itself as a borough with: “Great People, Great Place, Great Prospects.”

The Sandwell Plan sets out its immediate priorities for 2008 – 2011 as defined in the Local Authority Agreement (LAA) as:

• More and better homes • Improving health • Supporting independence • Reduce high volume crime • Children having a good start in life • Successful young people • Cleaner, safer, active communities • More people in employment • Statutory educational attainment

There are clear linkages between, and alignment with, the aims of this Housing Strategy and the Sandwell Plan itself. The actions and undertakings that arise from these will be performance managed, along with the commitments given in the Local Area Agreement, directly through the Sandwell Partnership and the Strategic Housing Forum Executive.

Specifically, the Strategic Housing Forum is committed to delivering its priorities in relation to the LAA against the following indicators:

• Net additional homes provided (NI 154) – 700 in 2008/09, 887 in 2009/10, 1074 in 2010/11 • Number of affordable homes delivered (NI 155) – 210 in 2008/09, 266 in 2009/10, 322 in 2010/11 • % decent council homes (NI 158) • Tackling fuel poverty (NI 187) – people receiving income based benefits living in homes with a low efficiency rating

This Strategy also reflects national, regional and sub-regional priorities that influence the direction and performance of our services and the investment decisions we make.

The national priority of improving all social housing to the minimum Decent Homes Standard led the Council to establish Sandwell Homes as an Arms Length Management Organisation (ALMO) to manage most of its housing stock in 2004. In 2005 Sandwell Homes gained access to Decent Homes Programme funding and has since successfully achieved, and outperformed, the challenging targets set in conjunction with the Council towards meeting the standard for almost 30,000 homes.

Riverside Housing Association is the Council’s partner in a Private Finance Housing Initiative that followed national policy direction and also helped the Treasury to refine the initiative for future schemes. Riverside’s locally based team is responsible for managing and improving the remaining 1200 Council owned homes to the Decent Homes Standard and is making good progress within the agreed programme.

The Council’s Housing Revenue Account Business Plan contains details of the assumptions made in planning investment and funding profiles for the Council’s own housing stock. Following discussions with the Department of Communities and Local Government, the Council has agreed to re-profile the Decent Homes expenditure to meet the target by 2012/13. The HRA Business Plan also takes account of the Council implementing the national policy priority of rent restructuring and convergence.

The national priority to achieve higher house building numbers is incorporated as a key component of this Strategy and is also is embedded within our coordinated Regional and Sub-regional perspectives and priorities. There are challenging targets for new house building which were set in conjunction with the Government Office for the West Midlands before the full potential impact of the Credit Crunch on house builders were known.

The impact of the Credit Crunch will affect our ability to meet targets in the shorter and medium term but the overall aims of the Strategy hold good – we need to develop new initiatives and tactical approaches which achieve our longer term goals. Our aim is to work closely with developers and house builders to achieve quality homes and neighbourhoods that keep the Strategy on target to meet our own strategic aims and outcomes whilst also meeting regional and sub regional targets.

Aspects of this Housing Strategy also include and reflect the work being undertaken at the regional level aimed at delivering the Regional Housing Strategy and the Regional Spatial Strategy.

This element of regional and sub regional working is a continuation of the positive role played by Sandwell in various partnerships at these levels. These include our involvement with:

• Central 3 Housing Market Partnership (Dudley, Walsall, Wolverhampton, Telford and Wrekin, South Staffordshire and Cannock) • Evolve (Dudley, Walsall, Wolverhampton and Telford) • Urban Living Market Renewal Area (Birmingham) • Growth Point submission (Birmingham and Solihull) • City Region • Homestamp Consortium (West Midlands authorities, West Midlands Police and the Fire Service) • Black Country Consortium (Dudley, Walsall and Wolverhampton) • Regional Kickstart Partnership

This housing strategy will continue to promote and enhance close working internally across all appropriate Divisions within the Council to ensure that realistic regional and sub regional aspirations and aims are developed and achieved.

This will include ensuring that the Black Country Core Strategy is fully incorporated into corporate and service specific strategies and outcomes. This is an integrated strategy aimed at improving the economy, environment and transportation within the local authorities that make up the traditional “Black Country” area (Sandwell, Dudley, Walsall and Wolverhampton) and has clear linkages with the desired outcomes of our own Housing Strategy.

11 A Strategy developed through meaningful and effective consultation

The Strategic Housing Forum is a sub group of the Sandwell Partnership (LSP) and the Executive Board led the process of consultation regarding the development of this Housing Strategy.

The Strategic Housing Forum was launched formally in May 2007 at a well- attended conference when residents and a range of partners and stakeholders assessed the strengths and weaknesses of the then current Housing Strategy (2005-2008).

There was an acknowledgement that the previous strategic objectives, which had concentrated on the clearance and removal of unsuitable and obsolete public sector housing, had been successful but delegates and representatives clearly identified the need to change the focus in order to meet the new challenges of affordability, housing supply and place shaping.

In July 2007 discussions began to establish a new vision that reflected the current and emerging housing scene in the borough. These discussions also included consultation about the objectives and outcomes which should be set for, and delivered by, a Housing Strategy to cover the next 3 years, between 2008 and 2011.

This was followed by a major Sandwell Partnership housing conference in early September, “Housing for the Future, Homes for Life.” This important consultative event endorsed a new vision and objectives for the next housing strategy. These were incorporated into a Consultation Paper that set out a range of ideas about how the strategic housing function might progress within the Sandwell Plan.

There was a significantly positive and enthusiastic response from across the Partnership. Further analysis fed into the adoption of a rigorous negotiated actions process with partners for the development of the associated Delivery Plan.

Consultation regarding the framework and key issues to be included in the new strategy was carried out as part of a comprehensive and co-ordinated approach with simultaneous consultation undertaken by the Partnership about the Sandwell Plan.

This was supplemented with complementary consultation that was also taking place regarding the Black Country Core Strategy.

Work to develop the detailed framework and content of the strategy was undertaken with Cabinet and elected members and senior staff across all Council thematic areas. Older and younger residents were specifically targeted, through Agewell and the Youth Cabinet.

12 We also carried out targeted consultation at separate events with Sandwell Community Information and Participation Services (SCIPS), with Private Sector Landlords through the Landlords Forum and with major developers.

In addition the parallel development of the BME Housing Strategy and the Homelessness Strategy, which are essential components of this Housing Strategy, enabled further in depth consultation about wider strategic housing issues with service users with specific needs.

As a result of this comprehensive approach we can clearly demonstrate that the new housing strategy framework and content has been developed through wide and effective integrated consultation with residents, current and potential service users, statutory, voluntary and community sector agencies and key delivery partners.

13 A Strategy to be delivered through effective partnerships

Successful delivery of this housing strategy depends on high quality partnership working. Our strategic goals are firmly rooted in the new Sandwell Plan. All of our key delivery partners have worked with us to articulate the contribution that housing can make to deliver the Partnership concept of recognising Sandwell as an area that offers “Great People, Great Place, Great Prospects.”

The Council already has a strong track record of working in effective partnerships with stakeholders from the public, private, and voluntary sectors to achieve its strategic aims.

We work with Government agencies and partners to deliver projects funded through commercial sources as well as through other funding routes including the Housing Market Renewal initiative, New Deal for Communities, Decent Homes Improvement Programme, Urban Regeneration Company (Regenco), the Working Neighbourhoods Fund and the Kickstart programme.

Our core delivery partners are fully represented on the Strategic Housing Forum that has been established to strengthen the partnership approach in planning and delivering strategic housing services. This ensures that key strategies and initiatives can be better aligned.

Because of the complex nature of the housing markets in Sandwell a number of different partnerships focus on specific geographical areas to tackle the regeneration and growth issues effectively.

Some of these partners work in areas that cross into neighbouring authority areas and include:

• Urban Living • Evolve • Central 3 Housing Market Partnership • Black Country Consortium • City Region • Growth Point partners • West Midlands Police

Other partners concentrate on working to tackle housing and associated issues within the borough and these include:

• Regenco • Greets Green NDfC • Lyng Community Association • Riverside Housing Association (Harvills Hawthorn PFI) • Sandwell Homes • Cotterills Farm housing co-operative

14 • Partner Housing Associations • Private sector landlords

Our partnership with Urban Living has enabled substantial housing market transformation in parts of West Bromwich, Smethwick and Oldbury. Our partnership with Regenco is transforming West Bromwich as a sub-regional centre.

Our partnership with Sandwell Homes is enabling the refurbishment of our Council housing stock through the Decent Homes Programme and has raised the quality of housing and neighbourhood management in the Borough.

Our partnerships with Housing Associations, including our Private Finance Initiative partner, Riverside, and our Extra Care Homes partner, Housing 21, are providing new affordable homes and meeting strategic priorities related to supporting vulnerable people.

Whilst these projects provide homes for vulnerable people we also work very closely with the Supporting People Commissioning Body to agree complementary strategies and initiatives that provide the practical support and assistance for vulnerable people across all tenure sectors. The Supporting People Programme helps people remain in their own home, living independently, and makes a significant contribution towards our overall housing objectives.

This Housing Strategy recognises the strength of existing partnership arrangements and will develop similarly robust and constructive new working arrangements to deliver all our objectives and outcomes.

A well-informed Strategy to deal with complex issues

The development of this Housing Strategy has been intelligence driven. A wide range of research and data sources has confirmed a picture of a Borough experiencing rapid change.

Sandwell housing markets have a sub-regional, regional and national context which helps shape their development. The issues for this strategy are radically different from those that existed a decade ago when there was more stability in the local and sub-regional housing markets.

This chapter sets out in summary form the evidence underpinning the Strategy. The detail of the analysis cannot be incorporated fully here. All the key reports and studies used to inform this document are available on our website and our Housing Strategy & Research team will be happy to provide help on request.

The following key drivers are clearly influencing housing markets in Sandwell:

• tenure re-structuring and stock condition • population and household change • Black and Minority Ethnic issues and the nature and extent of inward and outward movement in the Borough • the limited variety of the housing stock, economic change and deprivation • demand for housing

Whilst these are all significant influencers in their own right, they take on relatively different and added dimensions against the national and international background created by the Credit Crunch.

Tenure re-structuring and stock condition

There has been a significant re-structuring of tenure (who owns and controls the housing) within the borough. 25 years ago nearly half of all households in Sandwell were council tenants. Housing Associations have consistently housed around 4% of households throughout this period.

Since 1980 the proportion of social housing in the Borough has fallen from 50% to 29% so that now, only around a quarter of all households in Sandwell are council tenants and the majority of homes are in the private sector.

This re-structuring of housing tenure has been created by various national housing policies, such as giving tenants the Right to Buy, and also through successful local regeneration initiatives which were included in past housing

16 strategies to clear and demolish unpopular and obsolete council housing (especially high rise flats).

In 2003, 80% of council housing in the borough did not meet the basic Decent homes Standard. It was estimated that there was also a high proportion of homes in the private sector that did not meet the same standard and which were occupied by vulnerable people.

Significant progress has been made regarding the improvement of council housing. By October 2007 fewer than 50% failed the Decent Homes Standard and these will be dealt with before 2013 following discussions and requests from the Government to extend the Decent Homes Programme timescale.

A lack of adequate resources to tackle poor conditions in the private sector stock however, means that major challenges remain in improving homes occupied by vulnerable people.

Whist we have accurate and up to date comprehensive information about the public sector stock in the borough, our knowledge of the condition of stock in the private sector needs to be updated.

In order to develop effective policies to deal with issues in the private sector we will commission a stock survey that will provide essential information about stock condition and occupying households.

A key element of our Housing Strategy is to encourage and enable owners to access funding through the use of equity based home loans and other financial products developed through the Kickstart Partnership in order to carry out essential home improvements.

We will use accredited Home Improvement Agency services to assist homeowners in planning and arranging improvement works.

We will promote and enable initiatives that improve thermal efficiency and provide heating systems that will help reduce fuel poverty and ill heath.

We will work with Sandwell Homes and Riverside Housing Association to ensure that all council housing meets the Decent Homes Standard within agreed timescales.

We will promote the landlord accreditation scheme and offer incentives for landlords to improve their properties to the Decent Homes Standard

17 The Private Rented sector

There has been a revival of the private rented sector in the borough. This sector grew from an estimated 7% of the total stock in 1981 to 9% in 2001 after nearly a century of continuous decline and there are indications that a new generation of landlords has helped the sector to grow substantially in recent years.

This is partly due to the development of new loans, linked to the increase in property values that have encouraged people to “buy to let.” Whilst this economic opportunity is now less stable than it was less than 12 months ago, there has been a significant growth in the number of properties within this sector. This has coincided with a reduction in the supply of affordable homes in the borough at a time when there has also been an increase in the formation of new households without the resources to buy.

It is clear that there are significant ‘hot spots’ across the Borough reflecting areas where landlords can obtain higher returns from low value properties and areas where there are higher concentrations of transient groups, including newcomers from abroad, who often seek out low cost private sector rented housing to meet their immediate needs.

These areas include Smethwick, Bearwood and parts of Tipton and Tividale where properties tend to serve different segments of the market such as newcomers, students, professionals and those unable to afford, or using it as an interim stage on their route to, owner occupation.

Precise figures of privately rented homes in the borough are difficult to obtain but we will carry out more research and work closer with the Private Sector Landlords Forum to secure better intelligence to inform future policy development.

The private rented sector meets a variety of housing needs that are not readily satisfied by other tenures. Our work with private sector landlords therefore, will be aimed at encouraging growth in this sector.

We will use the Accredited Landlords Scheme to ensure that private sector rented accommodation meets a good minimum standard of management and stock condition.

We will target proactive enforcement against poor landlords where necessary to ensure that privately rented accommodation is safe for tenants and their families.

We will work with private sector landlords to explore ways in which vacant homes may be brought into use at affordable rent levels.

We will work cooperatively with Landlord representatives to understand better the workings and of the private rented sector.

Black and Minority Ethnic households

The growth of black and minority ethnic (BME) communities in Sandwell has been an influencing factor on the housing market. To address the emerging issues of BME households we have developed a BME Housing Strategy. This is a proactive response that acknowledges the borough’s rich ethnic and cultural diversity as an asset, leading to the development of actions to achieve equity of outcomes within this Housing Strategy.

Between the two census periods 1991 – 2001 the BME population showed a growth of 41.2%, the largest growth experienced in the Black Country boroughs. By 2001 one fifth (20%) of the population of Sandwell was from a BME community.

There has been a demonstrable and significant increase of diversity within BME communities. Alongside long established, broadly Commonwealth, BME communities there has been an increase in newcomers from the eastward expansion of the European Union and asylum seekers and refugees from Africa and the Middle and Far East.

It is clear that Sandwell’s most dynamic housing markets exist in the South East of the Borough and that BME households influence, and are influenced by, the housing opportunities which are available and on offer in this area.

Research conducted on behalf of Urban Living shows that BME households are generating significant household growth and demand and that many are living in unsuitable housing conditions.

Conversely, it is apparent that some BME households with relatively high incomes have moved away from Sandwell to meet their housing aspirations.

Specialist population projections predict a rise in Sandwell’s BME households to 25% by 2026. BME communities will, however, remain a minority and will include greater numbers of people from European Union countries.

The key demographic feature of the BME population is its younger age structure although there will also be an increase in older BME households who will have specific housing needs which are related to age and culture.

We will provide better information in appropriate formats for the diverse minority communities in the borough so that there is greater awareness of housing services and eligibility.

We will work with partners to ensure that housing initiatives and interventions are coordinated to ensure that the health and well being of vulnerable ethnic minority households is protected.

The Housing Strategy Delivery Plan will include actions that take account of households with increasingly diverse ethnic demographic and cultural needs.

We will also address the issue of overcrowding that disproportionately affects BME households.

We will promote the development of larger, more aspirational housing in the borough to help retain BME households who would otherwise move away.

Population and household change

After decades of population decline the population of Sandwell is projected to grow by 6% between 2004 and 2029. This is much higher than the predicted growth in our neighbouring authorities of Dudley and Walsall. In Wolverhampton the population is predicted to see a continued decline and, in Birmingham, it is predicted to grow by 10%.

The Office of National Statistics’ (ONS) revised estimates in 2007 increased the population projection for Sandwell for 2029 from 299,000 to 304,000 people. This represents a significant shift in population movement as it predicts an average increase of 700 people per year, which is a reversal of the actual average population loss of 900 people per year since 1981.

The Regional Spatial Strategy target for Sandwell is to produce a net supply of 24,900 new dwellings over the period 2001-2026. This implies a population of some 17,000 more than currently predicted by the ONS and is an issue to be managed within the delivery of the Housing Strategy.

All the West Midlands conurbation authorities, with the exception of Birmingham, are expected to experience a significant degree of population ageing over the next two decades.

In Sandwell the number of people aged over 45 years is projected to grow by 19,000 by 2019 with the largest increases projected in the 45 to 64yrs age group and the 65yrs plus age group.

20 There is likely to be a substantial increase in under occupation unless new developments and policies provide better incentives for older and smaller households to move to more suitable accommodation.

In terms of services, older people make greater demands on health and care services. There is a clear link between older populations and disability, particularly in relation to mobility problems.

Household change, more or less households from the same number of people, is as significant as population and demographic growth in terms of its impact on housing demand. The number of households in Sandwell has remained more or less static for a long time, increasing by only 4,000 from 113,000 to 117,000 between 1981 and 2004.

Whilst the overall population fell by 9,000 over this period the number of households grew by 13,000 reflecting the trend for more people to live on their own or as newly forming smaller households.

Future household projections predict an increase of 20,000 to more than 137,000 households in the Borough by 2029. This is five times greater than that achieved in the past 25 years. Only about 5,000 new households, or a quarter of this growth, are assumed to be from a further decline in existing household size. The clear assumption is for population growth.

By 2019 single person households are projected to account for 55,000, or 40% of, households in Sandwell. There is also an important economic implication arising from the growth in single person households. Single people must meet all their housing costs from their own income compared with couples who use their pooled, or shared, income. More single person households means lower average household incomes and reduced economic housing demand.

We have adopted the Regional Spatial Strategy targets to assess and evaluate housing needs and demands over the period of this strategy.

The Housing Strategy will take projected population and household growth into account when planning the numbers and types of new homes in the borough.

The strategy will explore new ways of providing affordable homes in conjunction with Sandwell Homes, developers and other partners.

The Housing Strategy will address the needs of older people by planning to provide more appropriate new and remodelled accommodation with associated support

The strategy will also introduce new policy initiatives to assist older people to move to more suitable accommodation so that better use can be made of the existing stock, particularly housing which is suitable for families

Not all older people will want to move to alternative accommodation and the strategy will address the support needs of older people who wish to stay as long as possible in their current home.

The Housing Strategy will address the need for a variety of smaller homes which are affordable across all tenure sectors and which can be used to meet modern lifestyles and expectations.

The strategy will encourage the development of financial products and associated financial planning advice to enable people to meet their housing needs independently.

Economic Change & Deprivation

Sandwell and the neighbouring Black Country authorities now have around 100,000 jobs less than in the 1970’s and a concentration of employment sectors which are still adversely affected by change.

The Black Country Study sets out a range of policies that aim to bring incomes in the area closer to the national average over the next three decades. In particular the aim is to diversify the economy, to change the occupational structure of the borough by creating more senior and professional jobs and to upgrade the skills of the workforce in the region.

These are significant challenges. Unemployment levels in Sandwell in 2006 were 7.9% compared with the national average of 4.9%. The proportion of unskilled residents at 24.8% was close to twice the national average and 24.8% of Sandwell’s population had no qualifications compared with the regional average of 17.5%.

Despite recent relative growth in earnings, Sandwell remains the lowest waged area within the conurbation. In the five years from 2002 there is evidence of increasing polarisation in incomes that correlates with the pattern of deprivation throughout the borough.

In 2007 Sandwell was ranked 14th out of 354 authorities with 53% of the population living in wards designated as”very deprived.”

The recently updated Government Index of Deprivation shows that much of the West Midlands conurbation falls within the worst 10% of neighbourhoods nationally. Sandwell lies at the core of this area with few neighbourhoods falling outside the worst 10% category.

A pattern of high unemployment, low incomes and low educational attainment, which are themselves indicators of deprivation, is supplemented and

22 compounded by high rates of ill health, disability and poor housing across the borough.

The data strongly suggests that if the issues are to be addressed in the areas identified then the starting point may not be housing intervention.

We will adopt a multi faceted approach that will emphasise health, family support, and education and training initiatives in the first instance, with measures to improve housing and tenure provision supporting the programme.

This Housing Strategy has been developed with a wide range of partners to help tackle these multiple challenges in a coordinated way.

The Strategy and its associated Delivery plan have the long term aims of increasing opportunities for training and qualifications for people seeking social housing to enable them to become more financially independent.

The Strategy will encourage and enable people to seek affordable options and solutions to meet their housing needs.

The Strategy aims to improve the condition of the social housing stock in the borough to meet the Decent Homes Standard in line with Government guidance so that there will be a reduction in the incidence of ill health caused by poor housing.

We will also promote and enable initiatives that improve thermal efficiency and provide heating systems that will help reduce fuel poverty and ill heath for vulnerable people in the private housing sector.

Housing Supply and Demand

At current Regional Spatial Strategy (RSS) requirement levels Sandwell has 8.5 years of housing land supply. Overall, by April 2008, new housing supply was on target to exceed the current (RSS) requirements of 6589 net completions between 1998 and 2010.

Some 1208 new dwellings were under construction. A potential 4118 dwellings were projected on sites with planning permission, with a further 1265 on sites without permission at present but likely to become available in the next five years. There were a further 1867 potential units on other known sites.

23 Since the problems with sub-prime mortgage lending in America have become apparent however, it is clear that lending institutions in Britain are experiencing cash flow difficulties which are impacting on their ability, or willingness, to provide capital finance for home loans and new building.

This is particularly affecting the sale of new homes, especially apartments, and many developers have now scaled back their operations considerably. This has implications for the achievement of several strategic housing outcomes.

During 2005/06 and 2006/07, 330 affordable homes were provided through negotiated planning consents out of a total of 2,200 completions. Over 80% of planning permissions in 2006/07 had conditions attached requiring affordable housing provision. The cut back in building activity and a reduction in the number of planning applications received in the last six months, with the consequent lost opportunities to negotiate for affordable housing, will severely restrict and reduce the provision of affordable homes through this route.

Nevertheless, we will review the obligations of developers so that, in the longer term, we will be in a position to negotiate for a greater number of affordable homes on appropriate sites when the economic situation improves.

Whilst the strategy is to maximise the number of affordable homes provided it is clear that the traditional methods of provision will not be adequate in the short to medium term. New initiatives will need to be created and developed in order to help meet our targets.

We will explore the use of Council resources to increase the provision of affordable housing in various ways, including new build and the acquisition of existing homes.

We will also explore the options available to buy back former Council houses in order to add to the rented stock.

It is, however, not sufficient to ensure solely that appropriate numbers and types of new homes are provided in the future. The reality is that most of the current housing stock in Sandwell will still be here in two decades time and the condition of that stock must be maintained and improved. The variety and desirability of the stock, and the neighbourhoods in which it is located, are core strategic issues.

Work undertaken on council housing estates by Riverside Housing Association and Sandwell Homes is changing the sense of place for the better. The skyline of the borough is being radically improved and enhanced by the transformation of ugly high rise blocks into attractive and significant buildings as a result of the external treatments carried out on what are termed “signature blocks.”

24 We will work with Sandwell Homes to maximise the number of high rise blocks which receive external treatment which creates desirable environments and places to live.

Most of the existing housing stock in the borough is of low value. Over 75% of houses in Sandwell are in Council Tax Bands A and B, compared with a regional average of 57% and a national average of 45%. There is a virtual absence of dwellings in higher band values over £250,000.

There is evidence that households with relatively higher incomes have moved out of the borough in order to meet their housing aspirations involving higher priced homes.

House prices in Sandwell have recently risen faster than the national average with rises of 96% between 2000 and 2004, compared with 67% nationally for the same period. The increases in house prices locally however, have not corresponded with increases in household incomes and there are clear affordability implications for most of Sandwell’s residents.

There is a substantial variation in house prices between neighbourhoods in Sandwell. At the extreme, for example, prices in the Great Barr area are double those in Ocker Hill in Tipton. Within the Black Country authorities Sandwell has the strongest concentration of low value areas and the fewest higher value neighbourhoods

The government produces an indicator of affordability based on the ratio of lower quartile house prices to lower quartile earnings at local authority level. The ratio for Sandwell has doubled from 3.0 to 6.0 between 1997 and 2006.

This is in line with the regional and national average although Sandwell is still more ‘affordable’ than elsewhere in Birmingham and the Black Country (except for Wolverhampton). Our recent Housing Needs and Demand Study has confirmed growing affordability problems in the Borough. Recent rises in house prices far outstrip increases in incomes for local residents.

There are significant variations at neighbourhood level, with areas such as Cape Hill, Smethwick, Oldbury, Great Barr, Wood Green and Friar Park having higher ratios and Tipton, Tividale and Rowley being relatively more affordable.

There has been significant improvement in the vacancy rate of local authority stock. In 2001/02 there were over 5% of Council dwellings vacant in 2001/02 compared with less than 1% in 2007.

In the private housing sector there is a need to make better use of the 1,500 properties that are currently vacant. Vacancy rates are not consistent across the Borough. The highest rates are found spread across the centre of the borough from south east to north west following the pattern of lower property values.

The Council has a duty to develop and implement a Homelessness Strategy and this work is undertaken in partnership with the Homeless Forum. A new Homelessness Strategy is being developed to coincide with the overarching objectives of this Housing Strategy.

The number of homeless households for whom the Council has accepted statutory responsibility has fluctuated in recent years around an average of 825 per year. The majority of acceptances are primarily to do with relationship breakdown and it is concerning that many of these include actual or threatened violence and abuse.

We will keep under review the difficulties faced by developers in selling existing new homes and will look at ways in which these homes may be made available for occupation in other ways to meet local housing needs.

This Housing Strategy recognises the importance of retaining affluent households in the borough and we will encourage the development of aspirational housing for all households.

We will urgently review the Council’s current affordable housing policy and develop an affordable housing strategy as a key element of this Housing Strategy.

The Housing Strategy will make maximum use of powers and initiatives to enable the development of a range of affordable homes with our partners in order to meet local needs.

We will work with Sandwell Homes to explore the options available to provide new Council homes in the borough.

We will work with Housing associations to maximise the number of affordable homes provided with the aid of Social Housing Grant or other means.

The Council’s Affordable Housing Policy will be reviewed as a priority within this Housing Strategy to ensure that more effective use is made of the planning system to provide new affordable homes.

The Housing Needs and Demand study completed in 2007 will be used to develop new options to meet current and emerging needs. It will also set the context for the negotiation of affordable homes through the Planning system.

The Housing Strategy will contain actions to improve access to available rented housing, across all tenures, for households who seek rented accommodation in the borough.

The Strategy will aim to reduce the number of vacant private sector homes and will include taking appropriate enforcement action to deal with those that have been vacant for more than six months.

As a key means of supporting households who are subject to abuse and violence leading to potential homelessness we will ensure that Partner agencies direct resources to help jointly fund SOADA (Sandwell Organisations against Domestic Abuse).

The Strategy will also develop new, and enhance existing, options that can be applied to prevent and avert homelessness in the borough. This will include exploring the option of purchasing homes and converting mortgages to rent for vulnerable households who are threatened with homelessness.

27 Meeting our Strategic Objectives and Outcomes

The Strategic Housing Forum’s vision is:

To create good quality and accessible homes where people choose to live, in safe, friendly neighbourhoods, close to a range of community facilities, schools and jobs.

This chapter of the Strategy provides more detail about how we aim to deliver successful outcomes that will make the vision real.

How we will intervene effectively to balance the supply and demand for affordable housing in Sandwell

• Sandwell has an excellent track record of delivering on the housing land requirements of the Regional Spatial Strategy and this will continue. Close working arrangements are in place within the authority and across the Black Country authorities through the Black Country Core Strategy Group and we will ensure that Sandwell participates actively in delivering land for housing development.

• Over the period of this strategy there will continue to be a focus on high profile area-based initiatives. These are developed and funded by a variety of different regeneration programmes. Some of these are now entering their final phases (Greets Green NDfC). The Lyng will see the completion of its 700 home refurbishment and new build programme. Sandwell Homes Decent Homes Programme and the Harvills Hawthorne PFI Partnership will continue to improve the quality of the social housing offer in the Borough.

• Masterplanning exercises will be undertaken to enable the regeneration of housing areas that have a high density of relatively poor quality public or private sector homes. The Durham, Tibbington, Charlemont Farm and Windmill Lane areas will be considered as priorities for investment to provide more good quality affordable homes.

• Urban Living Housing Market Renewal Pathfinder will build on the market restructuring work already achieved with a particular emphasis on redeveloping redundant industrial areas and securing the regeneration of the Western Growth Corridor (Windmill Eye Project). Over the course of the last housing strategy Urban Living secured nearly £27 million of funding to invest in the area and has delivered on its key objectives.

• City centre living will support the major physical, economic and cultural regeneration of West Bromwich. Housing is a key component of plans developed in partnership with Regenco, our Urban Regeneration Corporation, acting as a catalyst for action.

• We will continue to work closely with neighbouring Black Country authorities and Telford & Wrekin Council, on behalf of the Regional Assembly, to research the dynamics of housing markets at a sub regional level so that they can be better managed.

• The supply side of affordable housing will be increased by more effective working arrangements with partners. For example, with regard to specialist housing, Housing 21 will build three new Extra Care Schemes for older people whilst other Registered Social Landlords and Sandwell Homes will remodel existing stock to meet the needs of older people.

• We will make full use of our planning powers to build more new affordable homes through ‘planning gain’. We will also improve access to available homes by advertising Housing Association vacancies and homes offered by accredited private sector landlords.

How we will increase choice while ensuring that housing is accessible and affordable for all sections of the community

• We will continue to develop the Council’s housing allocations policy, advertising vacant rented homes and extending partnerships with key managing agents, Housing Associations and Private Sector Landlords to ensure access to more and different housing options for Sandwell’s residents.

• Work will continue through the BME Housing Strategy to understand different requirements and market new housing and housing services that meet the needs of diverse ethnic groups within the community. In particular, further work will continue on developing services to meet the needs of BME Elders, a sector that is projected to increase significantly over the period of this strategy.

• We will look carefully at the range of enabling powers that we can bring together as a partnership to ensure that good homes are affordable for all sections of the community. This will include not only working with partners to bid for a wide range of grants but also making use of the Council’s own assets to best effect. The Affordable Housing Strategy will set out our approach in detail.

• We will support the development of tenant management organisations to enhance options and choice in Sandwell.

How we will provide high quality places and homes

• This objective has been a feature of the comprehensive area based regeneration initiatives that we have delivered and it will continue to be a significant objective throughout the period of this strategy. For

29 example, as the Greets Green initiative reaches its Succession Strategy phase, other initiatives at Charlemont Farm, Tibbington, the Durham estate and Windmill Lane will enter their developmental phase. Master planning exercises will be undertaken to enable the regeneration of these areas of relatively poor quality, high density local authority housing.

• The Neighbourhood Renewal Assessment that has been commissioned for the Rood End area will be concluded and the poor quality private sector housing in this neighbourhood will be treated as a priority for intervention.

• The procurement processes that have been pioneered in restructuring the housing market in the Lyng, as part of the wider regeneration of West Bromwich, will be adopted to enable new housing programmes to be delivered over the lifetime of this strategy.

• The delivery of the Decent Homes Programme within the Council’s stock will be substantially completed over the period of this strategy.

• A new High Rise Strategy will complement the work undertaken, with a focus on the wider environment and neighbourhoods and the opportunity to create a real sense of place through external treatment of signature blocks .

• The private housing sector has traditionally provided some of the greatest housing challenges facing the borough. Good work is set to continue bringing empty properties back into use, licensing houses in multiple occupation, raising standards through accreditation and increasing access through, for example, advertising properties for rent in Sandwell Homes’ Property Shops.

• The continuing work of Warmzone, funded through our contribution to tackle fuel poverty in the borough, will have a continuing impact on improving homes and the quality of life for Sandwell’s residents.

• One of the major tenure related changes in Sandwell in recent years has been the substantial growth of the private rented sector. This is complex and involves people buying for investment (the ‘buy to leave market’) and to generate income (the ‘buy to let’ market). Further research will be carried out to clarify the extent and impact of these changes, particularly in the light of the emerging funding issues faced by lending institutions.

• Recent research has identified ‘hotspot’ areas of high turnover in the private rented sector and targeted work will be carried out to deal with some of the neighbourhood management problems associated with this.

30 • The private rented sector provides a useful and welcome source of good quality, easily accessed homes and we will develop initiatives to learn more about and to promote and encourage this housing sector.

• Within the Community Safety Partnership the success of recent years will continue. For example recorded crime in Sandwell has gone down between 2003/04 and 2006/07 by 28%. The Safer Sandwell Partnership’s Strategic Plan 2008/11 identifies the key activities that will be undertaken during this period by the Safer Sandwell Partnership and these will be coordinated with interventions and actions to deliver the wider aims of the housing strategy.

• Quality environments include those where there is a choice of local facilities and activities for all ages, including parks, sports, libraries and arts. We will work closely with colleagues in other Council thematic areas to ensure that proper connections are made as we implement our housing strategy.

• We will provide clear planning design and site briefs setting out what our expectations are for new housing in the borough. This will include meeting a wide range of design standards such as: Lifetime Homes, Secure by Design and Level 3 of the Sustainable Homes Standard.

• We expect developers to exceed minimum standards where possible and will negotiate to achieve this.

How we will support Communities

• Involvement of service users is the key to shaping effective service provision. Sandwell Homes’ major customer profiling exercise, the Getting to Know You project, will help tailor initiatives and response to meet community and individual needs, expectations and aspirations.

• The implementation of a new Tenant Consultation Agreement will give communities a strong voice.

• Sandwell Partnership is committed to extensive consultation and discussion as housing related initiatives are developed and implemented.

• This Housing Strategy will deliver actions and outcomes that contribute to the Community Cohesion Strategy and Action Plan.

• Economic exclusion and inter-generational issues will also feature as issues to be tackled within the Delivery Plan.

• The Masterplanning approach we will undertake in areas such as Tibbington, the Durham estate, Windmill Eye and Charlemont will involve communities proactively in developing options and approaches for the regeneration of their neighbourhoods.

How we will support vulnerable people

• The period of this strategy will cover the implementation phase of our enhanced Housing Options service. This is underpinned by the separate development of an innovative outcomes-focused Homelessness Strategy. This has been produced with the support and guidance of the Department for Communities and Local Government and the Government Office for the West Midlands.

• The Homelessness Strategy will concentrate on four key groups: people fleeing domestic abuse, relationship breakdown (particularly youth homelessness), vulnerable adults and people in housing debt. The emphasis is on prevention rather than crisis management.

• The Housing Strategy will assist partners to meet the targets included in the new PSA 16 which requires action to increase the proportion of socially excluded adults in settled accommodation and employment, education or training.

• The focus on homelessness prevention means we will work with vulnerable people to agree individual Personal Housing Action Plans. These will look not simply at immediate housing needs but also at future support needs and aspirations. These will be managed through the Housing Options Service.

• Our research has identified Domestic Violence as being a main cause of homelessness in the Borough. We will build on the work we already carry out with partners, in particular SOADA, to ensure that Sanctuary schemes are implemented and that vulnerable households are supported through crises towards safety and independence.

• The Housing Strategy will promote and encourage responses to meet the needs of vulnerable adults and children. We will work with partners to achieve much greater coordination in service planning and delivery, with a particular focus on people with disabilities though our management of the disabled facilities grant process

• We will explore the further development of our successful and innovative project working with adults in drug treatment that involves supporting empowerment and independence and active involvement from service users.

• The Sandwell Plan priority, Every Child Matters, states the need for families and children and young people to have access to decent homes. Home is the base for life chances and it is at the heart of the goal for children to: Be Healthy, Staying Safe, Enjoying and Achieving, Making a positive contribution, Economic well being. We will ensure that the housing needs of young people leaving care are met, with support being provided as appropriate.

• Multi-agency coordination is essential to achieve this. For example the Young Person’s Single Referral Panel provides one pathway for young people between the ages of 16-25. It assesses their level of vulnerability, helps with all of their support needs, not just housing, and gets them into appropriate sustainable accommodation. We will enhance this service with move-on Protocol Plans to support independence, accessing training and employment.

• The Supporting People Programme underpins and complements our strategic approach to supporting vulnerable people and we will work closely with partners to develop and enhance new and existing projects which complement housing related initiatives.

How we will develop housing interventions that support and promote economic competitiveness.

• Housing interventions are key components of the economic regeneration plans for the sub region. For example, the revitalisation of West Bromwich as one of six core Black Country city centres is a major element of the revised Regional Spatial Strategy for the West Midlands. A substantially improved ‘housing offer’ is a vital ingredient in retaining and attracting higher income households to the borough in order to rebalance the population as it grows.

• Sandwell has demonstrated that there is a significant demand from within the borough for more expensive, aspirational housing. This includes demand for large family homes from more prosperous sections of the BME business and professional community who would otherwise re-locate outside the borough. We will incorporate requirements for this type of housing in planning briefs for appropriate sites.

• The level of public and private investment that is due to occur in Sandwell over the next few years provides an historic opportunity to develop and grow the skills capacity within the borough. We will pursue opportunities to improve employment prospects and training for local people.

33 • As a partnership we will use every opportunity to secure Great Prospects for the Borough and its people. Our “Think Local” and “Find it in Sandwell” initiatives are already retaining and circulating resources for the benefit of people and companies in the borough.

• As a result of housing work-related procurement agreements we have already developed significant experience using local labour agreements and modern apprenticeships with partners to get our young people into much needed and well paid trades and jobs. We will continue this successful approach to provide enhanced employment prospects for all residents.

Conclusion

This housing strategy will only be delivered and brought to fruition through a variety of multi disciplinary and partnership arrangements which will mature over the life of the document.

We have an agreed set of actions that are included in the current Delivery Plan but these will also be developed and improved as the strategy is kept under review and actively performance managed by the Sandwell Strategic Housing Forum Executive.

The aim is to set a clear strategic direction within which flexible approaches can be developed to cope with changing circumstances and emerging issues and significant events.

This is the challenge faced by all our partners who are working to deliver our shared vision:

It is our vision to create good quality and accessible homes where people choose to live, in safe friendly neighbourhoods, close to a range of community facilities, schools and jobs.