Building Genuinely Affordable Homes

Building genuinely affordable homes

A pocket guide for Labour Councillors Contents Foreword

Foreword 1 One hundred years ago this year, the Addison Act made the UK’s first council housing possible. By the early 1920s, 213,000 new homes had been built. Building council Acknowledgements 2 homes became, however, a really serious business in post-World War II Britain: under the 1945 Labour Government, 700,000 new council homes were completed. In 1952, the Experiences of three London boroughs world’s largest architectural practice was at the London County Council, which employed 1,577 staff, including 350 professional architects and trainees. Getting started: finding sites and consulting with residents 3 Cllr Rachel Blake, London Borough of Tower Hamlets Fast-forward to 2019 and Right to Buy continues to decimate council housing stock; perversely, for so many, home ownership seems to be more out of reach than ever. Delivering housing and building communities 4 An entire generation is being forced to embrace long-term private renting in a country that Cllr Katherine Dunne, London Borough of Hounslow has some of the weakest protections in Europe for private tenants. Meanwhile, government spending on building new homes fell from £11.4bn in 2009 to just £5.3bn in 2015 How council-house building can respond to the climate crisis 6 – from 0.7% to 0.2% of GDP – and, since then, the housing minister’s desk has been Cllr Leo Pollak, London Borough of Southwark occupied by no fewer than six people.

Getting the most from s106 agreements But Labour Councils are fighting back.

A little London: the housing crisis in Manchester’s urban core 8 This project was born out of a symposium held at Islington Town Hall on 5 April 2019. Cllr Sam Wheeler, Manchester City Council Inspired by Labour’s 1945 election slogan, “Let’s Build the Houses – Quick!”, Councillors from London, Oxford, Southampton, Manchester, Birmingham and beyond spent the day No justice without housing justice: the story of Parkhurst Road 10 sharing ideas about getting genuinely affordable homes built. and Holloway Prison Cllr Diarmaid Ward, London Borough of Islington This booklet brings together a range of these voices from Labour Councils around the country. There are contributions on in-house council home building programmes, getting Housing Trusts and wholly owned companies homes built through wholly owned companies, and using the planning system and s106 agreements to ensure that private developers build their share of genuinely affordable Brick by Brick – delivering for Croydon 12 homes. There are many different ideas, but all have the same aim: to tackle the Cllr Alison Butler, Croydon Council housing crisis by getting the genuinely affordable homes that we need built – because a secure and genuinely affordable home can transform the life chances of a family in BMHT – the Birmingham approach 14 desperate need. Cllr Sharon Thompson, Birmingham City Council We hope that other councils can draw on this experience and expertise to help kick-start their own building programmes.

Diarmaid Ward Editor [email protected] @diarmaid_w

1 Experiences of three London boroughs Acknowledgements Getting started: finding sites and consulting with residents

Many people have contributed to this project in many different ways. Cllr Rachel Blake, London Borough of Tower Hamlets

It would not have been possible without generous funding from Islington Council Labour The London-wide housing crisis is felt Tower Hamlets has set up a housing Group and Islington South & Finsbury Constituency Labour Party. It would equally not have acutely in Tower Hamlets, which has company, Seahorse Homes, alongside a been possible without Adrianne LeMan, who devoted so much time, effort and skill to the approximately 18,000 households on its Community Benefit Society, Mulberry design of the booklet. housing register with about 10,000 of Housing Society, as part of plans to fund those assessed as in urgent housing need new homes. In addition to these, our The Labour Councillors from around the UK, who attended the symposium at Islington because of homelessness, medical priority programme is funded through Housing Town Hall on 5 April 2019, all deserve credit for their part in creating this project. It was or overcrowding. Since all local Councillors Revenue Account borrowing, Right to Buy a great forum for sharing ideas and ultimately became the inspiration for compiling this will have spoken to a family in desperate receipts and grant. pocket guide. need of a new home, our housing strategy locally is grounded in the recognition of the Identifying sites for new homes has been a Finally, a special word of thanks must go to Cllr Kaya Comer Schwartz, and Matt Rhodes, need for genuinely affordable new homes. major part of the delivery plan. Our housing Catherine Sloan and Bridie O’Shea at Islington Labour Group Office for their help and strategy in 2016 included an objective to support. We had a manifesto promise to deliver review the Council’s capacity for new homes 1,000 Council homes in 2015 – which and to identify sites. We have looked at our This booklet is dedicated to every Labour Party member over the past 100 years and we added to in 2018 and so now have a estates to identify possible sites and we beyond who fought for decent and secure homes for working people and, in doing so, commitment for 2,000 Council homes! welcome suggestions from residents. immeasurably transformed the lives of so many families. When we were first elected in 2015, we needed to establish a new housing strategy, To date, our sites have included old garage together with housing finance and delivery and parking sites, old housing offices, and plans to meet our manifesto promise. single-storey shopping parades. Once sites At the time, new affordable homes in are identified we have established a two- Tower Hamlets were being let on a “hybrid” stage consultation approach under which we affordable rent, set at a percentage of discuss ideas with nearby residents. At the market rent. As part of preparing a new first stage, the Council’s team discusses the housing strategy we launched an site and the opportunity for new homes with Affordability Commission, which explored, residents and asks for comments and ideas. in detail, the impact of so-called affordable At the second stage, the Council teams rents on household incomes. present ideas to residents for further discussion. It was clear from this analysis that a household experiencing the total welfare We have started to secure planning cap would only be able to afford to live in permissions for these new homes, several a social rented home. In addition, we projects are on site and we are looking concluded that with such significant forward to welcoming the new residents increases in the cost of private rents in into their homes! London, we could no longer reasonably link our council rents to market rents and so created a new “Living Rent”, set at one- third of local incomes.

2 3 Experiences of three London boroughs

Delivering homes and building communities community buy-in and genuine support. Links Katherine Dunne, Cabinet Member for Communities and Workforce, The four strands of this are: promoting London Borough of Hounslow communities and places; improving London Borough of Hounslow Affordable engagement and consultation; developing Housing Supply Pledge Delivery Plan an approach to estate regeneration, and 2018-2022 Hounslow’s housing crisis is caused by We have secured sites, partners and Greater management that focuses on community http://democraticservices.hounslow.gov.uk/ two main factors: escalating housing need London Authority funding, but a five-year estate safety and wellbeing; and creating a documents/s145803/Appendix%201.pdf fuelled by costs going up and income going forecast for delivery based on current new, outcomes-focused funding stream – down; and a lack of supply caused by the community engagement raised concerns and the Thriving Communities Fund – to enable London Borough of Hounslow Thriving loss of social housing (from 2014 to 2018 issues. Without backing from the communities to make improvements to their Communities Strategy Hounslow lost nearly 500 council homes community, plans to deliver in excess of area or run activities. https://www.houslow.gov.uk/downloads/ through Right to Buy), very low new social 5,000 new homes in four years could be at file/2142/thriving_communities_ housebuilding, and unaffordable “affordable risk. The sites identified for new housing are The Thriving Communities Fund sits strategy_2019-2023 homes”. We simply do not have enough spread across the borough, but some areas alongside the Thriving Communities Strategy homes to house people. have already seen a great deal of new and establishes a single-application process Thriving Communities Fund Cabinet development in recent years. At the same and source of funding for community groups Report The consequences of this are a rise in time, we are only at the start of the to apply for grants from the council. It https://democraticservices.hounslow. homelessness, rough sleeping, family redevelopment of other areas, but have combines money from the neighbourhood gov.uk/documents/s151764/CEX%20 breakdown, people suffering from mental already received concerned opposition to portion of the Community Infrastructure 370%20Thriving%20Communities%20 health issues, and domestic violence. the manifesto commitment to 5,000 new Levy, Hounslow Housing’s Community Fund%20-%20Cabinet%20Version.pdf homes. Initiatives Funding, and the council’s existing A key pledge in Hounslow Labour’s 2018 Small and Communities Grants programme. election manifesto was to deliver 5,000 Feedback from residents told us that new affordable homes, 3,000 of which communities do not necessarily see the need This provides £1.9 million a year to would be for social rent. This challenging for, or want, more development; or they distribute to projects developed by residents ambition could face many issues, obstacles think developments are badly designed, too and community organisations. The creation and constraints to delivery, including a lack high, or too big. Since developments can of a single fund allows for greater openness of available sites, capacity issues, lack of change the character of a neighbourhood, and accessibility, increased value for money money, planning issues and community people worry that local heritage will be and quality of outcomes through improved resistance. damaged or lost. We also heard that people competition, and better co-ordination of the think that new housing is for outsiders, distribution of funding across the borough. In order to deliver the pledge, we would rather than for them, that it will exacerbate A dedicated Thriving Communities Fund need to employ a range of different sources existing problems, such as a lack of public officer will support groups with their for the new housing, including directly transport and parking provision, and that it applications and the delivery of approved building through the Housing Revenue will put strains on public space. They believe projects. Residents will be consulted on Account (HRA); infill on existing estates and that development does not cater or provide the application and delivery processes of estate regeneration; HRA–housing anything for existing neighbourhoods. the fund to ensure they meet community association partnerships; building through needs. the council’s wholly-owned company, As a result, we looked at how we can Lampton Development 360; securing support delivering the pledge and building affordable housing through Section 106 our communities at the same time. This agreements on private and housing involves taking a whole-place approach that association developments; and partnerships considers the social, political, infrastructure with public bodies. and economic aspects of development. By deploying strong local leadership and a long-term strategic approach that focuses on community outcomes we aim to achieve

4 5 Experiences of three London boroughs How council house building can respond to the climate crisis workforce and uncertainty around Brexit, to not only improve the thermal efficiency of Cllr Leo Pollak, London Borough of Southwark develop a local skills base. It also, however, existing blocks, but also (in the context of gives us an opportunity to look creatively land-use pressures and acute housing need) at the supply footprint of the new homes enable us to preserve the embodied carbon Thanks to the work of climate activists, tackle the climate crisis can enable, rather we are building. Every tonne of cement and energy of existing homes while building David Attenborough, Greta Thunberg and than frustrate, our efforts to tackle the releases an average of 900kg of carbon into more. To this end, we are developing a a worldwide army of school strikers, the housing crisis. This has brought three broad the atmosphere, and every tonne of steel new rooftop building best-practice guide, profile of the global climate emergency has areas into focus. realeases more than 1,800kg of carbon. partly to solve the design and construction risen dramatically over the past year. In this context, we are looking at what challenges this specialist form of building First, we are currently reviewing our design material could help to reduce this impact, poses, but also to develop a package of Southwark council has responded by guide and technical specifications to see with a particular focus on engineered fire- benefits for residents to help secure their bringing its commitment to becoming a how we can increase the operational safe timber. Cross-laminated timber (CLT), buy-in. This includes building rooftop carbon-neutral council forward, from 2050 efficiency of our new homes, with an all- which is sourced from actively managed homes in an off-site modular factory to to 2030; this, in turn, has brought the options-available approach to incorporating sustainable forests, can provide stronger, minimise the on-site “installation” period environmental impact of our services and new heat-store, energy-efficiency and lighter and more sustainable structural and associated disruption. We are aiming to operations into focus. renewable technologies into our schemes. frames for new buildings than concrete or set up the supply chain so that our residents While we are already including photovoltaics steel. Southwark already has a number face a construction period of weeks rather At the same time, we are ramping up and ground- and air-source pumps on most of CLT buildings, including the Kingsdale than years or months. We are also offering our council-home delivery programme of our schemes, we are actively exploring School sports hall and music room, in existing residents the first option to live in against our generational target of building what other technologies can easily be Dulwich, and the Stirling Prize-nominated one of the new homes, with their vacated 11,000 new council homes. Thanks to an installed in our new homes, as well as new homes at Trafalgar Place, in Walworth. (and, if necessary, refurbished) homes made extraordinary legacy of municipal house setting targets for Environmentally Conscious Hackney council has also created many available to people on our housing register. building in our borough, we are able to Product (ECP) and Building Research timber-frame projects in the borough, In addition, we are looking to include as leverage land and resources on a significant Establishment Environmental Assessment including the world’s largest timber-housing many non-rechargeable improvements scale, and to build the largest number of Method (BREEAM) ratings that define project, at Dalston Lane, which demonstrate as possible to existing blocks to coincide new council homes for rent (at social rents their heat recovery and energy efficiency CLT’s superior heat retention and fire-safety with the new-build process, including new on secure lifetime tenancies) anywhere to minimise energy bills and tackle fuel record. roofs and lifts, and any new and improved in the UK: 654 have already been built; poverty. We are also reviewing our borough landscaping that residents would like a further 210, on 12 sites, are currently heat networks ahead of a major investment This agenda requires, however, a critical designed around their blocks. This will not under construction; 804, on 22 sites, have round, with a focus on reliable, affordable view of the state of British forestry. Most only improve everyone’s living environment, planning permission and are due to start and truly sustainable heat and power. This structural timber is sourced from Austria but will also reduce works bills and service on-site soon; and a further 1,400, on more includes extending the South East London and Scandinavia – Britain’s forests have charges. than 50 sites, are currently being designed Combined Heat and Power (SELCHP) never recovered from Henry VIII clearing with residents. In addition, we are beginning network that generates heat from processed them to build ships to conquer foreign lands. In addition to rooftop development, we exploratory work on a further 90 sites that household waste in a plant on our border A new multi-generational commitment is believe there is the potential for low-impact have the potential of delivering up to 1,500 with Lewisham, as well as discussing with needed to reforest Britain for carbon capture homes in more conventional infill housing, more council homes. TfL ways in which heat recovery from the and for building, including putting the Green as well as less conventional “sites”, such as underground train network can be shared Belt land that limits urban sprawl around on canals, basins and even parts of the river. As we begin to scale up our council-house more effectively. It also includes learning our major cities to much more productive building ambitions we are, however, from recent projects, such as Camden’s Agar use. Could London be surrounded by forests We don’t have all the answers to these compelled to ask what kind of development Grove or Norwich’s Goldsmith Street, which that are actively managed to regenerate the challenges, but now is the time to start we’re planning to deliver over the years are pioneering new standards of energy city as it evolves? thinking about how to solve the housing ahead. Given the huge carbon footprint efficiency in council housing. and climate emergencies that need to be associated with the concrete and steel Third, we are looking to unlock sites that overcome. Labour council house builders that form the structural basis of most new Second, we are establishing a new lend themselves to low-waste low-impact are best placed to lead the way on this housing, and the financial challenges of construction company to drive down build building. This includes a new focus on the agenda, and a future Labour government building to Passivhaus standards, we are costs and speed up delivery and, since opportunity for rooftop development where could lead this transformation for Britain currently grappling with how our efforts to construction supply suffers from a limited upward extensions to existing blocks could and beyond. 6 7 Getting the most from s106 agreements

The Little London: development and population in and still has a demand for more jobs and That is the multi-spectrum approach, in the Manchester’s urban core opportunities, but the statistics show the town hall, in the party, in communities and Cllr Sam Wheeler, Manchester City Council limits of unfettered markets. Real incomes on the streets, that is beginning to shift the for the average Mancunian peaked in 2002. conversation. I represent Piccadilly, a ward created in The centre was turned into a commercial The highest-paying jobs in the city go to 2018 as a result of the booming population and business district. So successful was the people who live outside it. The cuts to local My most important message to Labour in the centre of Manchester. This year, council at exporting the working-class people government cannot be in-filled by council councillors would be, therefore, one of after a great deal of argument, a planning most likely to vote for it that, in 1967, it lost tax rates, and to posit council cuts as an self-care. Yes, read your papers, make application went through my ward which control of the council. excuse to let developers run rampant, as if the arguments, be a strong voice for included on-site affordable housing within a those living in new-build flats never demand your community in the face of developer development. It wasn’t much, some 19 units, The population continued to decline even services, is at best wishful thinking and at overreach or bureaucratic inertia, but and we’re still not sure exactly how we’ll after Labour returned to the town hall in worst disingenuous. Above all, however, understand always that you’re just one allocate them, but what is remarkable is that 1971 amid the changes to local government the question is, if Manchester cannot make part of the fight, and that there are many this was the first on-site affordable housing boundaries. That year the local authority’s serious demands of the developers now, out there who can and will help you. Ask that will be built in the centre of Manchester own estimate of the population of the when will it be able to? them. It is, after all, by the strength of our this century. city determined that there were 553,600 common endeavour that we achieve victory, Mancunians. In 1972 this fell by 14,000, As a backdrop to this, there is a much bigger one storey at a time. The history is important here. Look at a and it kept falling, year-on-year until 2000, game taking place: The Northern Gateway, map of the centre of Greater Manchester when the population hit its nadir of about an attempt to build a new town of 40,000 and, if you know London, you’ll see the 400,000. This decline then promptly, and next to the city centre, that pushes up from echoes: Piccadilly, New Islington, New rapidly, reversed. The inflexion point is stark: my own ward into existing communities Cross, Blackfriars –the names and the huge each year up to the millennium the city in Cheetham, Harpurhey, Collyhurst, and neo-Gothic town hall show the desire to rival stagnated or declined, each year since 2000 elsewhere. While this represents a true the capital that was at the centre of 19th- it has increased, on average by about 8,000 opportunity to achieve a large-scale build century Manchester. Underlying this was people a year. Manchester is now bigger of housing that is accessible to the majority a population explosion and, as always, a than it was 50 years ago and is continuing of Mancunians, it will require voices within subsequent housing crisis. Part of my ward to expand. The population of city centre has and without the town hall to be louder is Angel Meadow, once an incomprehensibly increased from a few hundred to more than than those of the developers. If we want a overcrowded slum, described by Frederick 25,000. different future, we’re going to have to fight Engels as “Hell on Earth” when he wrote The for it. Condition of the Working Class in England This is the key to understanding the during his time in the city. difference between development in London Responding to this has been partially a and Manchester today – our social cleansing conversation within the Labour Party. A It was the reaction against the slums had already happened in the middle of the younger group of councillors, who have a that drove the post-war clearances, and 20th century. The question now is what to strong sense of their Mancunian identity and Manchester’s Labour Council ran the largest do as the urban environment fills back up; who have lived their adult lives in the city’s and fastest slum clearance programme in the as Manchester continues its resurrection, growth period, has been crucial in pushing country. Yet it was unwilling to take on those who is it for? a sense that the city can demand more from middle-class homeowners outside the city developers. This has been strengthened centre truly to remodel the city. Instead, the Although Manchester has a 20% affordable and supported by a much-increased party entire population of the centre of Manchester (including 5% social) requirement on its membership that has a broad range of was exported to overspill estates: Darnhill, housing developers, until now this has skills. Also crucial, however, has been the Langley, Hattersley and to the newly created meant, at best, an s106 payment to build wider social movement, from NGOs, such Wythenshawe area to the south of the city. some housing for poorer people elsewhere as Shelter, to organisers, such as Acorn, – and it often hasn’t even meant that. One and activists, such as Greater Manchester can understand the point that Manchester Housing Action, who have created the is still a poor city, still needs investment, political space to demand more.

8 9 Getting the most from s106 agreements

No justice without housing justice: the story of Parkhurst It wasn’t, however, only Islington that took While we need to see more detail on Road and Holloway Prison issue with the idea that it wasn’t possible to Peabody’s proposal, this is a potentially Cllr Diarmaid Ward, London Borough of Islington build more genuinely affordable homes brilliant result for our borough. Islington because of the excessive sale price: the Council and the local community stand The last prisoners left HMP Holloway in around the need for genuinely affordable government’s Planning Inspectorate also ready to work with Peabody to make this a July 2016 as part of the government’s homes, and for a women’s centre to honour dismissed the developer’s appeal. The great success. £1.3bn prison building and reform the legacy of the site. Understandably, many Inspectorate made it clear that, when programme. The Ministry of Justice was people were also concerned about how we assessing the value of any site, local very open about its aims – to maximise were going to enforce this policy when the planning obligations must be taken into the sale price and use the funds to build Ministry of Justice’s primary aim was clearly account. When the developer decided to prisons elsewhere; it was an attempt to to achieve the maximum possible price for appeal against the Inspectorate’s decision take advantage of Islington’s land values the site. in the High Court, the Secretary of State for and to use the site as a cash cow. No Communities & Local Government was on consideration seemed to be given to the The good news is that our policy was tested the same side as the London Borough of fact that this was London’s only women’s in the High Court – and we won. Islington. prison, the distance that relatives would have travel to see their loved ones who were In April 2018, the High Court considered In a nutshell, the High Court judgement serving a custodial sentence, or the fact that a case that centred around a planning made it clear that developers cannot argue Holloway had served as a hub for specialist application for a residential development that because they have overpaid for land, services for vulnerable women. Nor was any on the site of the former Territorial Army they are unable to meet the borough’s consideration given to what the borough building on Parkhurst Road. That is within requirements for genuinely affordable desperately needed – as much genuinely shouting distance of the former prison that, housing. The learned judge went even affordable housing as possible. to name but a few, once incarcerated Emily farther: a postscript to the judgement Davison, Constance Markievicz and Oscar made it clear that the Royal Institution of Any application to develop the site had, Wilde. Chartered Surveyors (RICS) should update however, to be approved by Islington its guidance so that future disputes of this Council’s Planning Committee. Thankfully, The first thing to note about Parkhurst Road kind could be resolved before they got Islington has some of the toughest planning Ltd v Secretary of State for Communities anywhere near a courtroom. In particular, policies in the country; they are designed and Local Government and London Borough future guidance should ensure that to deliver as much genuinely affordable of Islington is, as you’ll see from its name, developers should not seek to mitigate high housing (mostly homes for social rent, that Islington Council and the Secretary of purchase prices by reducing the numbers of plus some London Living Rent or Shared State were on the same side. To understand affordable homes. Ownership homes) as possible. why, we need to look back a little. The speculation around the Holloway In August 2017, Islington Council published When the matter originally came before Prison site came to an end on 8 March this a draft Supplementary Planning Document Islington’s Planning Committee in 2014, the year when it was announced that the site (SPD) on the Holloway Prison site. It had applicant committed to just 16 genuinely had been bought by the Peabody Housing one aim – to send a clear signal to the affordable homes from a total of 112, a very Association. Peabody has committed to market that anyone who was looking at long way from the Council’s policy of at least going above and beyond our planning buying the site needed to be aware of their 50%. The developer argued that, having requirements by making 600 of a total planning obligations. Most importantly, any paid the Ministry of Defence £13.3mm for 1,000 homes genuinely affordable, including development on the site needed to include the site in 2013, it wasn’t financially viable 420 homes for social rent. at least 50% genuinely affordable homes. to include more genuinely affordable homes. The committee rejected the application, and When we published our planning guidance also rejected a further application in 2016. many local residents got in touch to show their support for our approach, particularly

10 11 Housing trusts and wholly owned companies Delivering for Croydon – Brick by Brick Other income streams are created for the Achievements to date council by land sales to Brick by Brick (at More than 40 sites, consisting of around Cllr Alison Butler, Croydon Council market rates), lending to Brick by Brick (at 1,500 homes, now have planning consent, market rates), and the commissioning by with almost 50% of these units being As a new Labour administration in 2014, The challenges Brick by Brick of a variety of council services affordable. Around 500,000 sq ft of non- one of our top priorities was to increase the Of course, there were challenges with (such as planning fees, financial services, residential space is being delivered. Brick supply of affordable homes. We knew that this new model. It is often difficult to etc). In addition, Brick by Brick employs by Brick has also advanced a further 15 or this could not be left to the market, but were communicate the complexities and pitfalls local firms for all its contracts and works so sites across the borough with a view to receiving little or no grant and had nearly of using the HRA, and how new homes closely with the council’s “Croydon Works” making planning applications in the coming reached our borrowing cap on the Housing are funded (or not, as the case may be), team to ensure that local residents have months. Around 24 schemes are currently Revenue Account (HRA). We therefore and some felt that the new homes were access to employment opportunities. on-site: the first units are now complete, needed to create a new development not “council homes” in the traditional and reservations are being made through vehicle, but it was crucial that it was one sense. In a wider context, Croydon, in With regard to community identity and the Brick by Brick shop in central Croydon. that met our values and delivered for our common with all London boroughs, has pride, Brick by Brick makes a point of Fourteen more schemes are in pre-contract residents. exceptionally challenging housing targets; using the best architectural input, including negotiations. Across all these schemes, meeting these requires a change in attitude a number of smaller, diverse practices, around 35% of the active workforce is The principles from communities towards new housing and has also developed its own in-house sourced from Croydon. We wanted an independent development development. Our supply of smaller, infill, architectural practice – Common Ground company, capable of competing with the sites in suburban areas meant that new Architecture – which creates additional What’s next? commercial development companies that development would take place in established revenue for the council. It has an absolute In June 2019 the council agreed to sell were active in Croydon, but with the council communities, which added complexity and, focus on practical, high-quality design that more of its land to Brick by Brick for the being the shareholder, enabling us to lock sometimes, opposition. Similarly, since is tenure blind and applied on all sites, development of new homes. This consists in the benefit from development activity. delivering at pace and scale requires a new irrespective of size or location. Close to 50% of around 60 sites across the borough, We wanted a company that focused on way of working for a number of the council’s of affordable housing is being achieved on potentially providing around 500 new providing housing-led development for service areas, it was important that the small sites, where normally no affordable homes, with a target of up to half of the the benefit of the people of Croydon: one entire council bought into this new way of housing would be delivered by other homes being affordable. This is part of the that would deliver homes right across our delivering homes. developers. ongoing Brick by Brick delivery programme borough, meeting local needs and improving that will see the continuation of these local areas. The new homes would be The difference made by Brick by Brick Community-led housing benefits in the years to come. provided across a variety of tenures, with Brick by Brick offers huge benefits to Brick by Brick is also playing a key part those for sale making it possible to fund Croydon. In addition to providing thousands in Croydon’s ambitions to deliver at more affordable homes than had previously of new homes, it is able to deliver improved least five community-led housing sites. been delivered through the planning system. community facilities and area improvements. Some community housing proposals had A good example of this is the multi-million previously foundered at the first hurdle, We set up the company to ensure that pound investment in the refurbishment partly through a lack of development all profits from development activity were of Fairfield Halls, South London’s largest experience. Now, under our new policy, returned to the council and, therefore, the Arts Centre, but there is also a new library bidders receive design and development people of Croydon. As a council, we also in South Norwood, a new theatre for support from Brick by Brick and Common wanted to ensure that our homes would Coulsdon, and a range of new community Ground: they help community groups be of excellent design-and-build quality – facilities. All new homes, whether for sale, overcome the typical challenges that they homes that would improve the places where shared ownership or affordable rent, have face in delivering affordable homes on they were built, and homes in which people a “Croydon First” policy, which prioritises smaller sites. wanted to live. Croydon residents or, in the case of the affordable rented homes, local residents on the council’s housing waiting list. The council receives100% of any development profit, ensuring that it stays in the borough.

12 13 Housing trusts and wholly owned companies

The scale of the housing challenge that To that end, in 2016 the Council engineered BMHT – the Birmingham approach faces Birmingham means that Birmingham a way to improve its engagement with Cllr Sharon Thompson, Birmingham City Council City Council must also maximise the use of smaller Birmingham-based contractors by the city’s existing housing stock. creating a procurement list of local SMEs Birmingham’s Labour council is How are we rising to this challenge? to be used on smaller sites of 15 units or successfully tackling the housing crisis Under Labour, Birmingham City Council has Following a successful pilot, BMHT is now less. This not only reduces costs, but also with a creative and innovative approach to become the biggest single developer of new building an annual supply of two-bedroom boosts the local economy by supporting city providing the quality homes needed by a homes in the City, delivering homes for rent bungalows to support older people looking contractors. In addition, since the Council is young and growing population. and sale in a wide range of locations. to downsize from larger Council houses. also keen to ensure that local people benefit This encourages older tenants to release from the jobs being created by the ongoing Meeting this challenge is a key component The council’s Birmingham Municipal family-sized homes back into the housing building programme, it has designed the of the council’s growth strategy because Housing Trust (BMHT) is building more stock. In an initial pilot phase, 23 houses award-winning Building Birmingham housing is about so much more than simply dwellings than the private sector: it has were returned to the waiting list, with older Scholarship programme to help local young putting a roof over people’s heads. Quality delivered more than 3,100 new homes for tenants offered more suitable bungalow people forge careers in the construction social and affordable housing transforms sale or rent since 2009, with a further 365 accommodation. Tenants, who had not industry. lives and futures, it has an impact on homes currently under construction. These previously considered registering for a people’s physical and mental health, on homes have provided significant housing transfer to one-bedroom sheltered flats, The programme, which invests £500 education, and much more. growth and BMHT is now the largest joined the waiting list for the scheme. from each completed BMHT into the skills authority housebuilder in the UK. It has pathway, helps to reduce barriers to those The housing crisis will be fixed only published plans to build a further 2,708 The Council has also been very successful from marginalised communities and less- through local government intervention – new homes by 2029. This £346 million in returning empty properties to use affluent families and has also encouraged and Birmingham City Council is playing a investment will include larger regeneration through its Empty Property Strategy. a growing number of females and young leading role in this. projects, smaller garage sites and stand- Building on earlier successes, the strategy people from BAME backgrounds to consider alone homes. has recently been updated to ensure that careers in construction. More than 70 The Birmingham Development Plan, the city has the largest, highest-quality young people are currently supported with adopted in January 2017, forecast a In addition to larger family-style homes, the stock available to accommodate both up to £9,500 a year over their three-year population increase of around 156,000 by next wave of BMHT properties will include existing and future citizens. university degree and, to date, 70% of 2031. That equates to a need for 89,000 the first phase of modular homes, enabling graduates have attained a first-class degree. additional homes. Planners estimate there the council to unlock previously unused, Empty property achievements, 2003- The Council also has a successful Planning is sufficient space within the city boundary smaller sites. The ten-year programme 2018: Apprentice Scheme to help develop a more for just 51,000 homes, leaving 38,000 will build new homes, both for sale and • 1,647 long-term empty homes back to diverse and younger pool of city planners properties to be built in neighbouring local affordable rent, with quality, sustainability use; within Birmingham. authorities across the city border. and design at the very heart of their • 63% of properties three+ bedrooms; construction. • 37% in East and North West Primarily of course, this is about providing Almost half (46%) of Birmingham’s citizens Birmingham; quality homes for a young and growing are aged under 30 and one of the biggest The new properties will be constructed to • 198 dwellings secured to prevent population. Housing transforms lives, it challenges facing the city is providing homes lifetime homes standard; will benefit from unauthorised entry; transforms futures. It has an impact on that these young Brummies can afford. Of highly efficient insulation, energy-efficient • 20 previously long-term empty people’s physical and mental health and the 51,000 new homes needed inside the boilers and heating systems; and will feature properties leased and repaired for use can have a positive impact on education. city boundaries by 2031, 38% (19,400) Sustainable Drainage systems (SUDS) that as additional social housing in the city. As Birmingham builds thousands of new need to be affordable homes. will not only deal with any drainage issues, homes over the next decade, the Council is but will also promote bio-diversity at each Housebuilding on the scale required in determined to ensure that as many people site. Birmingham will clearly boost the city’s as possible reap the social and economic economy; the challenge is to ensure that rewards. the work also contributes to the city’s inclusive growth agenda.

14 15 This project was born out of a symposium held at Islington Town Hall on 5 April 2019, inspired by Labour’s 1945 election slogan, “Let’s Build the Houses – Quick!”

Building homes was a serious business in post-war Britain. Under Attlee’s Government, 700,000 new council homes were completed.

This booklet brings together a range of voices from Labour Councils around the country on how they are getting genuinely affordable homes built in their area.

There are many different ideas, but all have the same aim – to tackle the housing crisis by building the genuinely affordable homes that are needed.