Agenda Item 8 Cabinet Member Councillor Elizabeth Daly Strategic Rachel O’Reilly Leadership Team Lead Officer Author Alison Wilks Telephone 01306 870645 Email [email protected] Date 16 June 2020 Ward (s) affected All Key Decision No Subject Affordable Housing Strategy 2020 to 2025 Recommendations The Cabinet is asked to approve the Affordable Housing Strategy 2020 to 2025 attached at Appendix 1. Executive Summary The Affordable Housing Strategy provides an explanation on the different types of affordable housing, an analysis of housing need and past affordable housing delivery and supports the Council’s overriding ambition, which is: . to increase the delivery of affordable homes that are of sustainable construction, energy efficient and where possible have social rents; and . in the longer term, with the right conditions, become a developer and potentially a landlord of affordable/council housing. This ambition is supported by an Action Plan contained in the Strategy. Council Strategy Priority Outcomes Community Wellbeing Active communities and support for those who need it • Promote opportunities for residents of all ages to live safe, healthy and fulfilling lives. • Support individuals and families who find themselves unintentionally homeless, seeking to minimise disruption to education and employment. The development of new affordable housing will provide good quality homes for low income households that will offer them stability and enable them to live safe, healthy and fulfilling lives, close to essential education and health services and where possible their employment. Environment A highly attractive area with housing that meets local need • Promote sustainable development that takes into account social, economic and environmental factors, including protection of the Green Belt. • Encourage the creation of affordable housing to meet local needs and explore innovative methods of delivery. The key aim of the Affordable Housing Strategy is to deliver new affordable homes to meet local needs, including looking at alternatives methods of delivery. Housing associations and developers are encouraged through the Affordable Housing Strategy and the under-preparation Future Mole Valley Local Plan 2018 to 2033, to develop energy efficient sustainable homes. Prosperity A vibrant local economy with thriving towns and villages • Work towards making Mole Valley a prime business location with improved infrastructure to attract and retain creative, entrepreneurial and innovative talent. • Continue to drive the transformation of Leatherhead Town Centre and promote the character, culture and economy of Dorking. • Work with rural communities and businesses to enhance their strengths and address their challenges, helping them thrive and become more sustainable. Mole Valley needs a diverse housing market that provides for the local population and their range of incomes. Anecdotally it is known that employers have difficulty in recruiting to lower paid jobs and the reasons given are the lack of affordable housing and high cost of housing in the area. Affordable housing is, therefore, required as an important component of the housing market to support the economic vibrancy of the District and a supply of employees for a range of jobs. Affordable housing is equally important in the town centres and rural areas to contribute to the economy, sustainability and employment. In rural areas, affordable homes are also needed for young people who have been brought up in villages and now find themselves priced out of the market unable to remain in their home villages. The Cabinet has the authority to determine the recommendations 1.0 Affordable Housing Strategy 2020 to 2025 1.1 The Affordable Housing Strategy 2020 to 2025, sets out the Council’s plans to deliver new affordable homes and meet its other relevant corporate objectives. It also provides an important evidence base for the under- preparation Future Mole Valley Local Plan on the analysis of housing need and past delivery of affordable homes in the District. 1.2 The Strategy builds on the track record of delivering new affordable homes over the last 15 years. During this period the Council has been committed to a target of an average of 50 homes per year and since 2004/05, 875 new affordable homes have been completed, an average of 58 homes per year. This has been achieved in spite of reduced government capital subsidy, high land values, changes to the National Planning Policy Framework on affordable housing, and significant areas of Green Belt, open countryside and Areas of Outstanding Natural Beauty. However, the recent annual actual rate of delivery is declining. 1.3 The Strategy provides a background to the District, an explanation on the different types of affordable housing and an analysis of housing need that is summarised below. Homes in Mole Valley are priced above the national average and many households are priced out of the market . Average private rented sector rents are generally above the level that Housing Benefit is paid meaning that this sector is not always affordable for people on low incomes . The private rented sector has increased by 4% from 2011 to 2017 and has potential for further growth through institutional investment . The number of homes in the social/affordable rented sector has reduced . There are around 550 households on the Council’s Housing Register and most are under 55 and need a one bedroom home . The longest waits for accommodation from the Housing Register is for two, three and four bedroom homes that are in the shortest supply . The number of vacancies in the housing association stock has declined, apart from sheltered/age restricted (over 55 years) bedsit housing for which there is an oversupply and lack of demand . There is low demand from older people on the Housing Register for all types of housing association accommodation . The Strategic Housing Market Assessment 20161 (SHMA) shows a net annual requirement of 132 affordable homes over a twenty year period 2015 to 2035 . There are a high number of owner-occupiers who prefer to remain in their long-term family home rather than move to potentially a smaller home. There will be a continuing growth in the need for supported accommodation . The older population is increasing significantly and a specific need for extra care sheltered housing is identified. There is a need for affordable housing in rural areas 1 Strategic Housing Market Assessment June 2016 Cobweb Consulting . Taking all the information together there is an overwhelming need for new affordable homes 1.4 The key points from the analysis contained in the Strategy on the delivery of new affordable homes is detailed below. A range of tenures and supported housing have been delivered . Housing association owned sites and led-developments delivered a higher proportion of rented homes . Planning policy has delivered the required percentage number of affordable homes, though it delivers a higher proportion of shared ownership homes and fewer rented homes . Financial viability has affected four sites facilitated through planning policy and 13 (3%) affordable homes have been lost on those sites during the 15 year period analysed in the Strategy . Vacant Building Credit2 has not reduced affordable housing on planning policy sites to date, but will affect future sites where there are existing empty buildings that are not classed as abandoned. The government’s introduction of conversion of office space to residential accommodation since 2013, through the exercise of permitted development3, has resulted in 2814 new homes. However, none have been affordable because there is no requirement on developers to do so. Development land and opportunities in Mole Valley are constrained and may be improved as land is ultimately released when the under-preparation Future Mole Valley Local Plan 2018 to 2033, is adopted. 1.5 The overall aims of the Strategy are summarised below and are supported by an action plan included in the document. To continue to deliver new affordable homes and increase delivery the Council’s overriding ambition with this Strategy is: . to increase the delivery of affordable homes that are of sustainable construction, energy efficient and where possible have social rents; and . in the longer term, with the right conditions, become a developer and potentially a landlord of affordable/council housing. 2 Where vacant buildings are being reused or redeveloped, any affordable housing contribution is reduced by a proportionate amount equivalent to the existing gross floorspace of the existing buildings. Planning Practice Guidance May 2016 3 Town and Country Planning (General Permitted Development) (England) Order 2015 (GPDO) Amendment Order 4 Mole Valley District Council 1.6 The actions include: . maintaining the critical partnership with housing association partners and developers; . looking at alternative methods of delivery, including the potential of the Council building new affordable homes; . seeking to prioritise the mitigation of climate change in the construction process; . developing affordable homes for social rent and for those with support needs; . the long term ambition to provide extra care housing for older people, noting that the barriers to achieve this will be secruring land, a willing housing association partner and a robust revenue arrangement with Surrey County Council; . securing opportunities for new affordable housing through the Council’s regeneration activities; and . working with parish councils and