Leeds Planning Network Master Class: What is the future for affordable housing? 17th March 2016 #LPNLEEDS
Chair Introduction Jane Kettle Housing Consultant & Researcher #LPNLEEDS
Geraldine Howley Chief Executive, Incommunities
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The Changing Landscape for Housing Associations Geraldine Howley, Chief Executive, Incommunities Improving lives Incommunities
History of incommunities 

Housing stock transferred from Bradford Council in 2003 36,000 homes
How Bradford Compares England
Bradford
Mean house prices £265,888 in 2014 Mean annual £26,499 earnings in 2014
£146,613
Unemployment rate in 2015/16
8.9%
7.4%
£22,641
Deprivation in Bradford
Almost 40,000 children and young people aged 0-18 are living in poverty. 61% of children in the district live in low income households, compared with 44% nationally. Roughly equal proportions of children in poverty live in families headed by a couple as headed by a lone parent. In Tong ward a higher proportion of children live in lone parent families. Average household incomes of Incommunities tenants: £14,000
Most (over 90%) Incommunities customers sit in the lowest 10% band for household income levels nationally Improving lives Incommunities
Our Customer Profile  The majority of customers are aged over 66+
Improving lives Incommunities
Recent Challenges Facing Affordable Housing
Bedroom tax Universal Credit Budget 2015 – rent cut Latest: LHA rates
Coalition Government Spare
Room Subsidy
Universal
Credit
Queen’s speech
Summer Budget
Comprehensive Spending Review
Housing And Planning Bill Proposal
Spring 2016 Budget Update
On Thursday 16 March 2016 George Osborne announced his latest budget. Quite a few of the initiatives were trailed in the media. In contrast to last October, there were very little housing related announcements. In summary the key elements are: Housing: There is a starter homes land fund giving local authorities access to £1.26m to remediate brownfield land for at least 30,000 starter homes.
13,000 affordable homes 2 years early, bringing forward Capital spending.
Capital spending:
Lifetime ISA used by under 40s to purchase their first home.
Joint working for unlocking land around railway stations to provide sites for new development.
Spring 2016 Budget Update
Planning reform – further efforts to streamline the planning system. Garden towns/cities – locally determined smaller settlements on the outskirts of towns. Stamp Duty Land Tax – some release of funds for development of new homes. PRS Sector Committee – to stimulate institutional involvement. Rough sleeping – additional funding of £100m to provide low cost ‘second stage’ accommodation. Welfare: Additional support to self-employed Working Tax Credit claimants. Changes to benefits for the disabled. Business Rates - some reduction in Business Rates for commercial property depending on the Rateable Value.
Response By The Sector
Surviving the short term threats in order to exist and hope to thrive later?
Organisational Change
Non-core services being cut Staffing Diversification Service delivery Commercial activity Mergers
Asset Management Appraisal
Asset Management Strategy LSVTs – legacy Right property, right location, right type Looking at demand patterns – reliable evidence/research essential Development – social housing vs for sale
What Does This Mean For Our Customers?
Housing Demand What else is changing? Demographic change Changing household formation patters Rising health costs Affordability crisis
Perspective Of Incommunities
Development 
Since 2006 we have developed 591new homes in the district for rent, shared-ownership and sale
Development Today
Challenges
Sustainability of business plan
Rental income and revenue reduction
Sustaining social purpose and values
Low demand in Bradford
Delivering development programme and funding projects
Impact on viability – downgrades
Merger code/Consolidation
Nationalise/Privatise?
Opportunities Working differently: digitalisation Meaningful partnerships (collaboration with Councils, other HAs, third sector, health, etc.) Different forms of construction Diversification of product Commercialisation Devolution Northern Powerhouse/ H4n
What does the future look like? Global Challenges - Increasing social mobility – diverse communities - Population growth - Global inequality - Lack of stability in government as government and organisations come under greater scrutiny - Climate change and resource depletion
Resilient Leadership in a changing world
Values Based Organisations Technological advances Good Governance Talent Management and Succession
Jenny Wood Harrogate Borough Council
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The demise of the council house (and why kidnapping a Housing Minister is never the answer)
Housebuilders extraordinaire(s)
Local Ward Member with council houses
The problems 2000 households on our waiting list 60 families in bed and breakfast and homeless hostels Affordable housing shortfall of 313 per annum Highest average house prices in Yorkshire and the Humber Highest market rents north of Watford Gap Ex-council house (with conservatory) for sale at £300,000
Housing and Planning Bill ( the best bits) • • • •
Enforced sale of high value council houses Pay to stay Starter Homes Voluntary Right to Buy of HA stock
Spotlight on Enforced Sale Stock and valuations as at 31/03/15
Total Stock
Bedsits/1 beds
1496
Properties Suggested valued at or "High above "High Value" Cap Value" cap £85,000
1442
%
96%
2 beds
3 beds 4 beds 5 beds
Note
1253
£130,000
410
33%
1023 69 4 3845
£165,000 £265,000 £375,000
522 1 0 2375
51% 1% 0% 62%
Includes87% of 2 bed houses
The cumulative effect • • • • • • • •
Spare room subsidy Rent reduction Local Housing Allowance Cap (2018) Reduction in benefit cap to £20,000 (families) and £13,400 single people NPPF Affordable Housing Definition HCA Grant (shared ownership) Reduction in HB for 18 – 21 year olds (2017) Pay to Stay ..........
Starter Homes - Affordable Housing I cant keep up...... • £250,000 – 80% market value • £70,000 income • FTB under 40 • 5 years The big question - how much real affordable housing will they displace?
Location, location, location
Martyn Broadest Connect Housing
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Q&A
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Key Points & Conclusion
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Our next events:Workshop 16th April 2016 ‘Writing Neighbourhood Planning Policy’ Master Class 12th May 2016 ‘Future of Retail’ #LPNLEEDS