Agenda item

Context:

 

The purpose of the report and presentation is to help inform a discussion to consider Monmouthshire’s input into the Welsh Government’s call for evidence on affordable housing delivery.

 

Key Issues:

 

The Welsh Government has issued a consultation over the summer seeking a call for evidence on affordable housing delivery. This is a key topic of interest and relevance to the Council and its communities.

 

Options Appraisal:

 

·         To respond to the call for evidence, having discussed the relevant issues in the call for evidence.

 

·         To decide to not respond to the call for evidence.

 

Member Scrutiny:

 

·         The salary earnings table refers to the wages declared.

 

·         The data provided indicates that more social housing is required in Monmouthshire.

 

·         In terms of the figures relating to properties that have received planning permission but have yet to be built, these properties are subject to a natural time lag of developments being built. 

 

·         Development sites are coming forward but at a slower rate than required.

 

·         The affordable housing developments that have been approved will be built.

 

·         Discussions have begun regarding what is required in the next Local Development Plan (LDP) regarding affordable housing provision.

 

·         There is a need to maintain the size standards in affordable housing and market housing.

 

·         Affordable housing contribution needs to be on site and be locally based.

 

·         Monmouthshire Housing was given the opportunity to contribute to the report.

 

·         The Authority is recruiting for a supported lodgings co-ordinator to work with our partners.  A pilot scheme is being developed via ‘supporting people’ to promote lodgings.  This scheme will also target young people.

 

·         The viability of affordable housing needs to be addressed to ensure that in future, more affordable housing is provided in Monmouthshire.

 

·         Young People in Monmouthshire are struggling to afford to remain in Monmouthshire when they leave home and look for their first property.

 

·         The Authority could look to support housing associations and encourage such associations to investigate converting empty properties and empty shops into affordable housing units within Monmouthshire. It was noted that these matters will be investigated in the next LDP bearing in mind the way shopping has changed in recent years. However, this will need to be tempered to ensure that viable retail properties are retained.

 

·         There are issues relating to property conversions but they can be achieved. Further investigation would be required. Housing associations within Monmouthshire had been approached regarding the provision of affordable units above shops.  Challenges were identified, such as remote landlords, shared access, the cost of health and safety improvements and shared services.  However, the opportunities are there to explore bringing some of these properties back into residential use.

 

·         The quality of build of affordable housing needs to be retained to ensure that residents’ quality of life is maintained.

 

·         Developers could be encouraged to buy large empty buildings with a view to converting them into affordable units.

 

·         It was considered that the planning application condition to commence building a property within five years is too long and should be reduced to three years.

 

·         The Register of Social landlords (RSLs) each has a private building section and the Authority benefits from these as their profit margins are lower, allowing for a greater affordable housing balance.

 

·         One of the reasons for the delay in getting properties built is due to infrastructure issues throughout the County. Development of some sites are being held up as developers are waiting for Welsh Water to install the appropriate infrastructure before building work can commence.

 

·         A Welsh Government rent to own scheme is available but this scheme is not available within Monmouthshire.  This might allow more of Monmouthshire’s young people to remain within the County and reduce the numbers leaving to live in more affordable properties outside of the County. It was noted that an allocation of funding has been given to Monmouthshire County Council regarding rent to own.  However, it is not an affordable housing scheme but is based on market rent.  The RSL has to be able to deal with the developer to obtain the home for less than market value.  This scheme could only work when an RSL has a site that it is developing itself.  Melin Homes has been approached to undertake this scheme at one of its sites in Abergavenny.

 

·         In terms of the options available as a local Authority, the Authority is looking to work with RSLs with Crick Road development as the first example. A partnership has been formed whereby, the RSL is looking to build market housing which it then uses to subsidise the affordable housing. We, as an Authority, are able to input into the design and to ensure the longevity of the properties and that the infrastructure and green infrastructure is adhered to.  Affordable housing can be enforced.  Working in partnership, allows the Authority to accelerate growth, have a greater influence on the design standard if the Authority is prepared to take a lower receipt.

 

·         Setting up our own housing company will enable the Authority to borrow money and start building.  This could be undertaken with partners that already have an established structure set up. The expertise is already there and are specialists in building.

 

·         The Authority is actively looking at modular construction with a view to building affordable homes to modular standards.

 

·         Monmouthshire County Council is the pilot Authority for the Monmouthshire Housing Association (MHA) project with Cardiff University.

 

·         In response to questions raised regarding the viability reports, the Head of Planning, Housing and Place Shaping stated that he would investigate the matter further.

 

·         Welsh Government needs to provide more support to the Authority in order for it to meet Welsh Government targets.

 

·         Community Land Trusts (CLTs) – Properties remain asset locked and would remain affordable in perpetuity. The properties are not built for profit. Less viable Council owned farms could be turned over to a CIC with the CIC using modular housing proposals to build Community Land Trusts for residents of the County, which would remain affordable in perpetuity. This matter could be further discussed at a future meeting of one of the Select Committees.

 

·         The 25% affordable housing in the south of the County needs to be reviewed in the next LDP due to the increase in house prices in this region since the announcement that the Severn Bridge tolls are to be removed.

 

·         An increase in the number of sites coming forward in the County will decrease the value of land within the market. This would aid in the number of affordable housing properties being delivered and have fewer issues regarding viability.

 

·         If the Welsh Government was to give tax relief on capital gains value for the landowners willing to subjugate their land into affordable housing with the pre-requisite of affordable housing being a covenant onto the land, then the Authority would, in time, have more land coming forward.  There would be fewer chances for developers to negotiate the viability assessment.

 

·         In terms of the LDP process, the Welsh Government commissioned a report to look at why sites are not coming forward.  By the time the Authority goes to deposit with the plans and submits them to Welsh Government, evidence will be required that sites are deliverable, including viability information.

 

·         The weaknesses in the current proposals are that evidence from 2020 will be considered but it is unknown whether this will be relevant in 2033, as this is the date that the LDP runs to.

 

·         Engagement with developers has taken place regarding candidate sites. However, it is anticipated that developers will not undertake all of their significant and expensive due diligence work regarding a specific site until they have confidence in the Plan.

 

·         The shortage of land within the County is man-made. There is considerable land within Monmouthshire.  However, much of the land is unsuitable for building on.

 

·         In response to a Member’s question regarding the regionalisation of capacity and expertise, it was noted that considerable collaborative work is undertaken at officer level across the region. The Head of Planning, Housing and Place Shaping chairs the South East Wales Strategic Development Plan.  There is also a separate group, namely, the South East Wales Strategic Planning Group.  Candidate sites have been established via a regional methodology. An employment methodology has also been agreed to obtain comparable data. Costs and expertise can be shared with other nearby planning authorities that are at a similar stage as Monmouthshire with regard to the development of their new LDPs.

 

·         Strategic matters will be dealt with via the new Strategic Development Plan (SDP).

 

·         There are three identified RSLs that currently work within Monmouthshire and strong relationships have been developed between the Authority and the RSLs.  A Select Committee member suggested that the Authority should consider opening up opportunities to work with other RSLs.

Committee’s Conclusion:   ·         More affordable houses need to be built within the County with the quality of build being maintained.   ·         Build for the future taking into account available land and future proofing such accommodation.   ·         Quality, affordable housing is required with appropriate standards being put in place also for market housing.   ·         Developers need to provide appropriate funding towards affordable housing provision.    ·         Further capacity and support is required regarding issues surrounding viability in order for the Authority to be able to provide more affordable housing, going forward.   ·         Space standards is available in England but not in Wales.  Welsh Government should be lobbied on this matter.   ·         Good quality accommodation is essential.   ·         Infrastructure issues need to be addressed.   ·         Better, more affordable first time buyer accommodation is required for young people.   ·         Community Land Trusts (CLTs) – Guidance on how to take this matter forward needs to be investigated with a view to CLTs being incorporated into the LDP.   ·         Support from Welsh Government regarding building up the capacity of staff.   ·         Refurbishment of high street locations as potential properties for affordable housing.