Agenda item

Context:

To brief the Select Committee on the completion of the Local Housing Market Assessment (LHMA), July 2018 and to seek approval for submission of the LHMA to the Welsh Government.

Key Issues:

·         All local authorities have a requirement to consider the housing accommodation needs of their localities under section 8 of the Housing Act 1985.  Local Housing Market Assessments are a crucial part of the evidence base for preparing Local Development Plans and Local Housing Strategies. 

·         This LHMA has identified the potential need for 468 affordable homes per year over the next five years.  This number can be further broken down as:

-           Social rent need                               102

-           Low cost homeownership need    284

-           Intermediate rent need                    82

-           Total need                                         468

·         It is important to note that these figures are not an annual delivery target as new build homes are not the total solution to the supply of affordable homes in the County.  The Council’s target remains 960 affordable homes (96 per year) over the period of the Local Development Plan (LDP) 2011 – 2021.

·         Housing’s Private Sector Housing Team has established a new lettings agency, Monmouthshire Lettings Service (MLS), and is working with private sector landlords to increase the availability of units for private rent whilst also trying to bring empty properties back into use.  Monmouthshire’s shared housing service, which offers accommodation for single persons, also comes under the MLS banner.

Member Scrutiny:

·         Social rents are set by the Welsh Government. Intermediate rent is a rent that is above social rent but below market rent. In Monmouthshire, intermediate rent is below Local Housing Allowance.

·         At the bottom of each table identify what the acronyms are.

·         This document links in with the emerging Local Development Plan (LDP). The figure of 468 affordable homes per year is challenging as only 250 homes in total are currently being built per year (market and affordable homes).

·         Some of the people who do not appear on Monmouthshire’s housing register, as they have moved to a neighbouring county where properties are cheaper, are in the 20 – 40 year old category.  For economic and demographic purposes, there are the people that the Authority should be trying to retain in the County.

·         However, the strengths of the County are that it is a pleasant place to live and easily accessible by car. The turnover of affordable housing being relatively low, in terms of community cohesion, is positive. However, this is not good for people on the waiting list for housing.

·         The backlog of housing need is an issue for all local authorities.

·         Affordable housing means housing that people cannot access on the open market and therefore require assistance. It incorporates social rent, intermediate rent and low cost ownership.

·         The Adults Select Committee and the Economy and Development Select Committee could provide a steer with regard to affordable housing and how this will be taken forward in the next LDP.

·         Empty properties on the high street could be altered and utilised to provide social rented properties / hostels.

·         An internal call for brownfield sites had recently been undertaken. However, there had been a low response due to the limited number of brown field sites available within the County. Another call for brownfield sites, both externally and internally, across the County will be undertaken in the near future. 

·         Monmouthshire Housing Association has been asked to buy back as many ex right to buy properties as possible to increase the existing housing stock.

·         Low cost home ownership (LCHO) is a shared equity scheme operated by Monmouthshire County Council’s partner Registered Social Landlords (RSLs).  LHCO is generally 50/50 in Monmouthshire as 70/30 is not affordable due to high house prices.  The successful applicants own the home and have an interest free equity loan from the RSL.

·         Monmouthshire County Council’s policy does not include shared ownership, as this product is not considered to be affordable. Applicants would only own the percentage of the home that they have purchased and would have to pay rent to the RSL for the remaining percentage. Their mortgage plus their rent would equate to the price of buying the home on the open market.

·         Empty properties are going to be looked at with a view to bringing these forward with the Authority’s Registered Social Landlords (RSL) partners.

·         Monmouthshire’s Housing Association partners are only permitted to advertise on Rightmove if the houses cannot be occupied from the housing register. All properties are advertised via Homesearch.

·         With regard to people not wanting to housing in other areas of the County, some of the reasons for this are the difficulty in accessing work; children having to change schools and moving away from family. For example, if someone is working in Chepstow and on a low wage and is offered a house in Monmouth, this could make it difficult for that person to access work.

·         Community consultation is undertaken regarding village sites which helps to identify the mix and tenure of build required. When the land is secured and is scheduled to come forward, community consultation is held allowing people to come forward to register their housing need. These consultation events also allow members of the community to comment on layout and design.

·         In response to a question raised regarding whether Monmouthshire County Council might have a case with the Welsh Government for additional resources for areas where the local housing cost is higher than other areas in Wales, it was noted that the Welsh Government uses a formula for allocating the Social Housing Grant that does take all issues into consideration.  It would be difficult to state a case for more funding as every authority has this need.  Monmouthshire has successfully lobbied for a rise in the Acceptable Cost Guidance (ACG) rates for small sites, which will help in the rural areas.

·         If a family is sharing with another family in a rural location, the family that is sharing could bid for a property through the Rural Allocations Policy.

·         Monmouthshire County Council is continuing to allocate social housing grant to fund the buy-back of former council houses sold through the Right to Buy. These properties are bought back at market value – SHG funds 58% of the cost and the RSL funds the remaining 42%.

·         The Welsh Government is funding the Innovative Housing Programme.  This is a programme of demonstrator schemes to inform the Welsh Government on the types of homes that they should support in the future. The first phase of the programme is supporting 22 affordable housing projects with a wide variety of different models and methods of delivery.  The second phase of delivery will also be open to the private sector.  Monmouthshire Planning Committee has approved two schemes put forward by Monmouthshire Housing Association.  These are in Abergavenny and Caldicot. One is a development of four courtyard bungalows for older persons and the other is for four one-bed mews style houses.