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Building Genuinely Affordable Homes

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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, govern- ment 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.
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