Housing Strategy with Campbell Tickell – event write-up

The Northern Housing Consortium and Campbell Tickell hosted their annual Housing Strategy seminar on 29th November.

 

Chairs Opening

The session was chaired by Maggie Rafalowicz from Campbell Tickell, who opened the session with an introduction discussing the current context for housing strategy. The opening introduced the challenges faced by housing and what strategies will need to address. Challenges include financial pressures including high interest rates, rising homelessness, consumer regulations being introduced for local authorities and resident engagement. The chair emphasised the importance of housing as an issue, as it is central to so many other issues facing the sector.

 

The Balance between New Build, Regeneration and Retrofit

The first speaker was James Clark, Assistant Director of Housing, Rotherham Council. James spoke on Rotherham Council’s plans and current situation in regard to their session, including the various things that Rotherham has to balance regarding their strategy and how they plan to address challenges.

James began the session by explaining to the session the dynamics of Rotherham and explaining to the group a little bit about how they have managed to build 500 new homes. This includes working with developers in more rural areas where the council has found it difficult to build previously. James also spoke about the difficulties that Rotherham is facing, such as affordable housing in rural areas. However, there was successes highlighted with James demonstrating to the group the houses that they have managed to build in the areas around the town centre.

The group was shown some of Rotherham’s policies around housebuilding to tackle problems around cost, the small site homebuilding initiative and the housing acquisitions policy, which was mentioned to the group as a way of trying to do “more for less”. James also talked to the group around energy efficiency and the challenges of doing this alongside other work and the costs associated with it. Finally, James spoke about the lessons learned from the Social Housing Decarbonisation Fundm including the importance of resident engagement and how there needs to be plans put in place for retrofit including investment plans and strategies.

 

Strategy from a Rural Perspective

John Burroughs, Housing Strategy and Development Officer at the new North Yorkshire Council was next to speak. Having brought his experience from working in Scarborough. John started the session by talking about the new local authority and some of the dynamics, explaining that it is the largest authority in England and Wales by square kilometre with a population of 620,000. In North Yorkshire, 65% of residents live in an urban area but around 35% live in a sparse area, with 17% living in a super-sparse area.

John spoke around the issue of affordability in North Yorkshire, with house prices being averaged around £284,000 in an area of low income and higher energy prices and transport costs. Included in this is the fact that the population of rural areas is aging, with people moving away due to loss of rural services.

John then moved onto the issue of holiday lets. In North Yorkshire there are around 8,00 holiday lets and around 8,200 second homes, which is around 6% housing stock. This gets even greater as you get to the coast, with some villages having excess of 50% of stock being either holiday lets or second homes. This is a major issue as it reduces supply, which increases rents and house prices, greatly increasing the risk of homelessness. John also spoke about the challenges to develop in rural areas, such as higher costs to develop on rural land.

Discussing how they planned to meet these challenges, John talked about the rural housing crisis being a key priority in their new strategy. John also discussed working with key partners such as the Mayoral Combined Authority and Homes England to develop an enhanced rural affordable housing supply pipeline, and sufficient investment. North Yorkshire Council has already had some successes, such as the delivery of community-led housing schemes in rural areas using Community Housing Funds.

 

Consumer Standards and Partnership at the Local Level

The next part of the session included two speakers from different organisations; Ceri Victory-Rowe, Director, Campbell Tickell and Mandy Sawyer, Head of Housing and Neighbourhood Services, Leeds City Council.

Ceri began this section by discussing the Regulator of Social Housing’s (RSH) consumer standards and what they mean for local authorities. Ceri first mentioned what had been in the consumer standards up to this point, including the different standards around Home, Tenancy, Neighbourhood and Community and Tenant Involvement and Empowerment. Following this there was a discussion around the new consumer standards and what they include. Included in this, stock quality has been a key part of the new standards, meaning that local authorities and housing associations need to have an accurate, up-to-date and evidenced understanding on the condition of their homes which must inform their provision of good quality. Ultimately, these new standards will mean that councillors will be responsible for ensuring the local authorities compliance. These standards will be in effect from April 2024.

Mandy then discussed the housing strategy from Leeds City Council and how new regulations can apply going forward. Mandy presented Leeds’s housing vision, with sought to meet the city’s housing needs whilst also providing good quality homes that are affordable. Another key part of this vision is ensuring that there is appropriate support for those who need it, which includes reducing inequalities, care integration and age and child friendly housing. Mandy ended the discussion with a section around how social housing regulation will impact the strategy, with the key takeaway being the requirement for more collaboration between the local authority and the registered provider, especially on key issue areas such as anti-social behaviour and homelessness.

Affordable housing completions reach the highest levels in eight years.

The Department for Levelling Up, Housing and Communities (DLUHC) recently published new data on the number of new affordable housing starts and completions in 2022/23.

Across England, 63,605 new affordable homes were completed in the year: an increase of 7% on 2021/22 and the highest number since 2014/15. Looking forward, more than 71,000 new homes began construction in the year. This is the highest number of affordable housing starts since data collection began in 2014/15.

Homes for affordable rent accounted for 38% of affordable housing completions, making it the most common tenure. Shared ownership was the second most common tenure, accounting for 32%, while social rent made up only 15% of completions.

Private Registered Providers (PRPs) built 78% of new affordable homes in the period, compared to 14% by Local Authority Registered Providers (LARPs).

 

The Northern picture

Social landlords built a total of 13,282 homes across the three Northern regions in 2022/23. This is, again, the highest figure since 2014/15.  The chart opposite shows the annual number of affordable housing completions between 1991/92 and 2022/23.

A total of 13,849 affordable housing starts commenced within the year too: the highest figure since 2019/20.

Exactly half of all affordable homes delivered in the North were for affordable rent, compared to 33% for shared ownership and 11% for social rent.

The North West region built the highest number of new affordable homes, at 7,034 in the year. You will find a full regional in the below table.

Region Number of affordable housing completions (22/23) Number of affordable housing starts (22/23)
North East 1,857 3,023
North West 7,034 7,504
Yorkshire & Humber 4,391 3,322
North 13,282 13,849
England 63,605 71,046

Twenty-nine percent of affordable homes in the North were delivered as part of Section 106 agreements. This continues the pattern of Section 106 delivering proportionately fewer homes in the North than across the country. For comparison, section 106 delivered 47% of all new affordable homes in England.

 

The ten Northern local authority areas that built the greatest number of new affordable homes were:

  • Leeds – 665 homes
  • Cheshire West and Chester – 636 homes
  • East Riding of Yorkshire – 584 homes
  • Preston – 519 homes
  • Wigan – 498 homes
  • Cheshire East – 496 homes
  • Warrington – 450 homes
  • Newcastle upon Tyne – 425 homes
  • Manchester – 413 homes
  • Doncaster – 408 homes

 

You can find further detail and statistics on affordable housing development from DLUHC here.

750,000 private renter households in the North let down by Government’s energy u-turn

Shocking new analysis, announced in a report today, shows the extent to which private renters in the North will be hit by Prime Minister Rishi Sunak’s net zero u-turn, announced in September.

 The government’s decision to scrap plans to force private landlords to improve the energy efficiency of their properties could leave over 750,000, or around two-thirds, of households living in privately rented homes in the North with higher energy bills and poorer living conditions.

The announcement means landlords no longer need to make improvements to get their rental properties to the minimum Energy Performance Certificate (EPC) C rating by 2028.

The previous proposal was to raise the standard to EPC C, meaning landlords would incur costs, paying on average £4,700 per property. The government estimated in 2020, before the energy crisis, that this would save tenants an average of £220 on their energy bills every year¹.

The findings have been published in the Northern Housing Consortium’s (NHC) Northern Housing Monitor report, an annual ‘state-of-the-region’ report for housing in the North.

Nearly two-thirds of privately rented homes fail to meet the EPC C standard and it was estimated they cost around £680 more to heat last winter compared to homes that meet the EPC C benchmark. Those living in the North West (330,000 homes) and Yorkshire and Humber (312,000 homes) regions were the most severely affected.

For the private rented sector, the report highlights that 62,000 homes in the North will need to be upgraded annually.

The Prime Minister’s announcement potentially means that many northern households will suffer as a result of living in poorly insulated and inefficient to heat homes which undermines their occupants’ current health and children’s life chances.

The NHC report also shows that rising fuel poverty is an extensive problem and is not spread equally across the country. There are 1.04 million fuel-poor households across all of the North’s housing stock – this is over 30% of the nation’s fuel-poor households.

Tracy Harrison, Chief Executive of the Northern Housing Consortium, said:

“The government’s decision to scrap plans to raise minimum energy efficiency standards will have a detrimental effect on hundreds of thousands of households across the North.

“The Prime Minister’s u-turn overlooks the existing costs of an inefficient energy system with 750,000 privately rented households in the North living in properties that are performing below band C.

“Once again, tenants living in private rented homes will face higher energy bills and live in poorer conditions, without their landlords being held to account for making improvements to their properties.

“The private rented sector accounts for more than 1 in 6 of the North’s homes, which also puts the UK’s target of reaching net zero by 2050 at risk and simply generates greater pressures in later years.”

The monitor is NHC’s account of the state of the housing market in the North of England, highlighting emerging trends and identifying the developments which are having the most significant impacts on people, homes and neighbourhoods in the North. A copy of the full Monitor is available on the NHC website at www.northern-consortium.org.uk