Affordable Housing Delivery Statement 2008-2011 · Web viewRelease of suitable public sector land...

Affordable Housing Delivery

Statement

2008 – 2011

Wrexham County Borough Council

V4 - November 2008

Wrexham Affordable Housing Delivery Statement 2008-2012

FOREWORD

Wrexham’s Local Housing Strategy 2007-2012 sets out the long term aspirations for all housing

in Wrexham. Its aims include the development of more good quality affordable homes and

ensuring that appropriate housing is available to all.

Access to good quality housing is vital in improving the quality of life for people in Wrexham who

cannot afford to rent or buy on the open market. The County Borough recognises this need and

has made Affordable Housing a Council Priority over the next three years. The development

and implementation of this priority demonstrates the Council’s continued commitment to

delivering more affordable housing in the County Borough.

This Delivery Statement sets the framework and outlines the methods by which the Council

Priority on Affordable Housing 2009 – 2012 will be delivered.

Signed Leader

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Table of contents

Introduction 4

Wrexham housing market and demographic profile 6

Affordable housing needs evidence base 7

Assessment of need 8

Affordability in Wrexham 13

Influencing demand 16

Enabling supply 18

Monitoring 27

Affordable housing delivery summary 28

Introduction

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Wrexham County Borough Council aims to ensure that everyone in the County Borough has access to a good quality home that meets their housing needs. However, the steep rise in house prices in recent years and the inability of many households to get onto the property ladder has made affordability a key issue within the County Borough.

Despite a fall in house prices in Wales of 11.7% in 2008, the recent economic crisis and property market downturn have made mortgages far more difficult to obtain. There has been no reduction in the requirement for affordable housing as fewer people are able to access owner occupation due to mortgage rationing and job insecurity.

The County Borough’s recognition of these difficulties and it’s commitment to ensuring that more affordable housing is available to residents in Wrexham has been reaffirmed by its decision to make affordable housing a Council Priority over the next three years.

The overall aim of this Affordable Housing Delivery Statement (AHDS) is to provide a clear mechanism outlining how the County Borough, as part of our strategic housing and planning functions and building on existing strategic housing partnerships and registered social landlord (RSL) expertise intends to improve delivery of affordable housing in response to both the Welsh Assembly Government’s (WAG) ‘One Wales’ target of 6,500 new affordable homes to be delivered in the period 2007/8 to 2010/11 and the local authority’s own identified affordable housing need.

This AHDS establishes a clear local 4-year target for affordable housing for the period 2007-2011.

Our strategic housing partnership, the Wrexham Housing Alliance has been established since December 2005. Membership of the Alliance includes senior management and representatives from the Local Authority, RSLs, the House Builders Federation and WAG. It is responsible for the delivery of the Borough’s Local Housing Strategy.

Wrexham’s Local Housing Strategy 2007 – 2012 has identified and prioritised the following five

aims:

1 To improve the quality and sustainability of existing homes and neighbourhoods2 To develop more good quality affordable homes3 To reduce homelessness and rough sleeping4 To ensure that appropriate housing is available for all, particularly the vulnerable and

those with special housing requirements5 To provide effective housing advice and promote the full range of housing options

available

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This Affordable Housing Delivery Statement supports the Local Housing Strategy, outlines the evidence for affordable housing need in the County and how we propose to secure, deliver and monitor provision.

The purpose of this Delivery Plan is to:

Re-state our commitment to enabling the provision of additional affordable homes in Wrexham

Define what affordable housing means

Confirm our understanding of the housing market

Describe how we can influence the demand for affordable homes

Bring together all the actions to increase the supply of affordable homes.

Clearly state what we are committed to enabling over the next four years.

Clearly state our expectations of our partner agencies

This Statement will not cover:

Quality of homes, including building ‘sustainable, environmentally friendly’ homes

Long term running costs associated with owner occupation including heat, light and power costs

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Wrexham housing market and demographic profile

Wrexham County Borough’s population stands at 131,000 residents accommodated in 54,500 homes. Between 1991 and 2001 the population grew at almost double the Wales average at 4.2%. The current growth in the population of 4.4% is considerably faster than the population for Wales as a whole.

However, ‘Wales Population – A Demographic Overview 2008’ – Welsh Assembly Government’ estimates that by 2031 all Wales population is projected to increase by 11 per cent. Whilst separate figures are not available for Wrexham it may be that the current figure of 4.4% (and as a consequence the new households and dwelling requirement) may be conservative and by inference underestimate the affordable housing requirement.

The proportion of older people in the population is predicted to grow significantly over the coming years. Projections by the North Wales Population and Housing Research Group predict a 37% increase in people over retirement age in the Borough by 2026 with significant increases in the elderly population (85+) of 78%.

A significant increase in the student population, largely within Wrexham, with the continued growth of Glyndwr University is further increasing the pressure on local housing markets.

Despite recent falls, house prices in Wrexham increased by nearly 60% between July 2004 and 2008. Household incomes have not grown at the same rate (Average UK earnings rose 18% over same period)

County Borough average house price to income ratio stands at 5.9 (October 2008) with 68% of first time buyers still priced out of the market for a terraced property (mortgage based on 3 times salary)

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Affordable housing local needs evidence base

Both the current and future demand has been identified in:

Our Unitary Development Plan (UDP), which was successfully adopted in 2005

Our developing Local Development Plan (LDP) Preferred Strategy Document (Executive Board approved preparation of LDP in accordance with Preferred Strategy in September 2008)

Housing Potential Study published in March 2007

Annual housing land availability study

Local Housing Market assessment – published in March 2006

North East Wales Housing Market assessment published in March 2008

Our Council House waiting list and Affordable Housing Registers – a snapshot of demand for rent and to buy

The Accommodation and Housing Support Strategy for Older People Action Plan (2007) research document 2008 – “future older person provision in Wrexham County Borough.”

The Local Housing Needs Assessment and sub regional Housing Market Assessment have informed and enabled:

A full analysis of the County Borough’s housing market and an evidence base for affordable housing requirements

A robust analysis of cross-authority housing markets.

The policy statement on older persons housing requirements has enabled:

A robust analysis of the housing needs and aspirations of older people

Forward planning of the re-alignment of housing provision required to meet these needs. In particular the more specialist requirements such as Extra-Care provision.

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Assessment of needWrexham Housing Needs Assessment 2006 Fordham Research Ltd. was commissioned to undertake a housing needs assessment in 2005 to inform the emerging Local Housing Strategy and Local Development Plan, studying housing requirements across all tenures, areas and client groups within the authority.

The report divided Wrexham into sub regional areas:

Key findings included:

A shortfall of affordable housing across the Borough and a continued shortage in the future.

Greatest shortage in Wrexham Town, West and North East, (as identified above)

A need for 2205 more affordable homes by 2021 – an annual shortfall of 147 a year, based on conditions and reasonable assumptions at that time, representing 40% of the planned yearly supply of all types of housing in the county.

The overwhelming need for 2 and 4 bedroom properties.

A high target for affordable housing of up to 40% on development sites would be justified.

A mix of intermediate and social rented will be required to meet outstanding need.

42.1% of households contain “over 50’s only”. Almost half of “over 50’s” only households are single person households, which will have implications for the provision of future care.

North East Wales Housing Market Assessment 2008

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GVA Grimley Ltd. was jointly commissioned by Wrexham, Denbighshire and Flintshire to undertake a joint Local Housing Market Assessment across the North East Wales sub regional housing market area in 2007. Key findings of the report included:

Within the Core Study Area average house prices increased from £74,753 to £155,032 between 2001 and 2006

There is a significant undersupply of affordable housing given the recent increases in house prices, the reduction in the amount of available social rented housing and the current lack of development activity to bring forward new affordable housing.

Affordability for indigenous households and first time buyers remains one of the biggest delivery challenges.

A need to build a more balanced stock of new houses to include smaller stock that comprises of units suitable for single and family occupation, including the elderly.

Waiting list data indicates that there is a notably high level of demand for smaller social rented property. Within Wrexham demand is greatest for 2-bedroom units.

The need to secure greater levels of affordable housing as part of market housing developments.

The need for smaller affordable units (one and two bedroom) for greater numbers of young households likely to be excluded from entering the private housing market.

Maximise the delivery of affordable housing units on remaining potential housing sites and any surplus public land that arises during the plan period.

Opportunities should also be identified in urban centres to deliver quality apartments aimed at new households to contribute towards meeting the projected increase in demand for smaller single person or couple households.

A range of provision for elderly households should be explored.

Maximising the delivery of affordable housing on remaining land. This is particularly important in Wrexham where a considerable amount of future capacity consists of sites which already have planning permission.

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Council Housing waiting list – by wards

Greatest demand - applicants waiting per letting

Ward

Total Number of

homesTotal Number of applicants

Total number of lettings

Applicants per letting

Bryn Cefn 49 238 0 238

Gwersyllt East & South 39 358 3 119

Gresford East & West 86 186 2 93

(Wrexham Town) 14 87 0 87

Little Acton 83 412 5 82

Erddig 57 152 2 76

Holt 86 117 2 59

Marchwiel 60 114 2 57

Rhosnesni 63 307 6 51

Brynyffynon 179 560 11 51

Applicants for affordable non council housing

Top ten areas by demand – intermediate housing waiting list

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Wrexham TownRuabonRhostyllenBrymbo/Pentre BroughtonActonPonciau/JohnstownGwersylltChirkRhosllanerchrugogCoedpoeth


Future older person housing need in Wrexham County Borough

Research undertaken by the County Borough’s Strategic Housing Section during Summer 2008 adopted a methodology advocated by the Departments of Health and Communities and Local Governments published toolkit “More Choice, Greater Voice” (February 2008)

Key findings included:

Population estimates - 29,100 people currently aged 60+ within the County Borough. This represents 22% of the population. Broken down by age cohort as follows:

Age Group Population 2026 % increase from 2001Retired – 74 20,550 20%75-84 11,950 62%85+ 4,450 78%Over retirement age 36,950 37%

2005 based population projections and 5 year migration trends

Most concerning is the significant increase in the very elderly population, the group likely to be in need of the most cares and support.

The “More Choice, Greater Voice” toolkit provided a framework to enable local analysis of both the current and future need for specialist older person’s accommodation in the County Borough. The tables below refer to all older persons' requirements of which an affordable element is likely to reflect the current tenure of 34%.

Indicative levels of provision of various forms of accommodation for older people – based on current supply levels and population levels.

Tenure

1,000 75+ 2001

Suggested ratio per 1,000 of

population 75+

Suggested number of

units

Current provision

2008Current

ratio 2008Surplus / deficit

Conventional sheltered for

rent 9.87 50 494 750 76 257Conventional

sheltered leasehold 9.87 75 740 19 2 - 721Enhanced

sheltered for rent 9.87 10 99 154 16 55

Enhanced sheltered for

9.87 10 99 Nil 0 - 99

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saleExtra care

sheltered for rent 9.87 12.5 123 Nil 0 - 123

Extra care sheltered fore

sale 9.87 12.5 123 Nil 0 - 123Housing based provision for

dementia 9.87 10 99 Nil 0 - 99Registered care home - personal

care 9.87 65 642 564 57 - 78Registered care home - nursing

care 9.87 40 395 492 50 97

Indicative levels of future provision of various forms of accommodation for older people – based on current supply levels and future population levels.

Tenure

1,000 75+ 2026

Suggested ratio per 1,000 of

population 75+

Suggested number of units 2026

Current provision

2008Current

ratio 2008Surplus / deficit

Conventional sheltered for

rent 16.39 50 820 750 76 -70Conventional

sheltered leasehold 16.39 75 1229 19 2 -1210Enhanced

sheltered for rent 16.39 10 164 154 16 -10

Enhanced sheltered for

sale 16.39 10 164 Nil 0 -164Extra care

sheltered for rent 16.39 12.5 205 Nil 0 -205

Extra care sheltered for

sale 16.39 12.5 205 Nil 0 -205Housing based provision for

dementia 16.39 10 164 Nil 0 -164Registered care home - personal

care 16.39 65 1065 564 57 -501Registered care home - nursing

care 16.39 40 656 492 50 -164

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Affordability in WrexhamFor the purposes of this statement affordable housing is defined as:

‘housing where there are secure mechanisms to ensure that it is accessible to those who cannot afford market housing on first and subsequent occupation’’

Assessing Affordability

“A household is considered likely to be able to afford to buy a home that costs 3.5 times the gross household income for a single earner household, or 2.9 times the household income for dual income households”

“A household should be taken as being able to afford market housing in cases where the rent payable is no more than 25% of their household income (Local Housing Market Assessment Guide, WAG)”

This definition has been taken from our Supplementary Planning Guidance (SPG) on Affordable Housing.

Increasingly within the County Borough there are difficulties securing an adequate supply of affordable housing. This is due to:

Decline in the supply of council housing due to right to buy and significant reduction in turnover in the last 5 years

Demographic change Rising property values

The need to develop more good quality affordable housing is a key target in Wrexham’s Local Housing Strategy (2007-2012) and a key objective within the LDP Preferred Strategy Consultation Document 2007 to promote social progress – ‘there will be a plentiful supply of affordable, accessible and well designed housing’

The Wrexham Housing Needs Assessment 2006 made recommendations based on conditions and reasonable assumptions at that time. In the intervening period the North East Wales Housing Market Assessment (March 2008) supported the conclusions of the earlier studies.

However, as in other parts of the UK, Wrexham has been affected by the property market downturn. The new economic conditions are already being reflected in a fall in the rate of affordable housing secured through Section 106 agreements. Despite the reduction in house prices, entry level values across the Borough, more restrictive mortgage lending criteria and job insecurity arising from the economic downturn have not enabled first time buyers to enter the market.

This dramatic shift in housing market conditions suggests that the shortfall in affordable housing is likely to be more significant than the 2,205 figure highlighted in the report. This is further supported by factors such as:

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House prices increased by nearly 60% in the Borough over the 4 year period July 2004 to 2008.

Whilst average house prices fell by £10,000 between July and October 2008 house price to income ratio still currently stands at 5.9 for the Borough. (October 2008)

First time buyers needing higher deposits are struggling to get a mortgage in the current financial markets.

68% of first time buyers priced out of the market for terraced houses as at October 2008.

New housing developments, the main vehicle for affordable housing provision through s106 agreements are not progressing due to the property market downturn.

In recent years the significant inflow of migrant workers from the new EU accession states in Eastern Europe and the continued growth of Glyndwr University resulting in a significant increase in the student population in Wrexham have further increased the pressure on local housing markets.

We have established an affordability ‘matrix’ within the County Borough in the context of a sub regional analysis model established within the Housing Needs Assessment 2006

Affordability levels are revised quarterly using household income data from CACI Paycheck, and are based on median local incomes. During October 2008 extensive consultation was

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undertaken with Estate Agents operating throughout the County Borough to validate the process and methodology.

Median household income by sub region and maximum property price achievablebased on X3 income and 10% deposit

Average property and terraced price by sub region

Sub Region Median Income Maximum Property Price achievable

North East £32,728 £109,000Rural East £29,519 £98,500Wrexham Town

£26,987 £90,000

North West £25,727 £86,000Rural West £28,037 £93,500South West £23,966 £80,000West £24,943 £83,000Caia £22,023 £73,500 Source - CACI Paycheck 2007 Source – Hometrack

Using terraced property prices as the entry point on the housing market, the table below shows the difference in price between maximum property price achievable and terrace property prices.

Sub Region Difference between 3x income and terraced house

% Difference

North East £55,250 34%Rural East £33,166 25%Wrexham Town £39,391 30%North West £35,266 29%Rural West £30,100 24%South West £54,171 40%West £20,260 20%Caia £39,060 35%

Source - Affordable housing for sale prices – 3rd quarter 2008

The table below shows the suggested affordable housing prices by sub region based on 30% discount on current house prices.

Sub Region 1 Bed Flat

2 bed flat 2 bed terraced

2 bed semi

3 bed terraced

3 bed semi

4 bed detached

North East £82,950 £93,100 £99,050 £106,400 £108,500 £116,900 £165,900Rural East £74,900 £84,000 £89,250 £95,900 £97,650 £105,000 £149,800

Rural West £71,400 £79,800 £85,400 £91,700 £93,100 £100,450 £142,800Wrexham Town

£68,600 £77,000 £81,900 £88,200 £89,600 £96,600 £142,800

North West £65,170 £73,150 £77,700 £84,000 £85,400 £91,700 £130,200West £63,700 £71,400 £76,300 £81,900 £83,300 £89,600 £127,400South West £60,900 £68,600 £72,800 £78,400 £79,800 £86,100 £121,800

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Sub Region Average Property Price

Terraced Property Price

North East £288,125 £164,250Rural East £272,100 £131,666Wrexham Town £166,358 £129,392North West £162,655 £121,266Rural West £196,800 £123,600South West £158,800 £134,171West £139,740 £103,260Caia £166,358 £112,560


Caia £56,000 £63,000 £67,200 £72,100 £73,500 £79,100 £112,700

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Influencing demand

As well as looking at what we can do to enable supply, we will consider what we can reasonably do to influence the demand for additional affordable housing.

We will reduce the demand for new affordable housing by, amongst other things:

1. Helping older people stay independent in their own homes, thereby reducing the demand for new institutional and specialist schemes. This will be achieved through a range of measures within our Accommodation and Housing Support Strategy for Older People Action Plan (2007 – 2010) including:

a) Widening the accommodation choices for older people within Wrexham County Borough by :

Evaluation of existing accommodation and identifying a programme of remodelling and improvement, including all providers.

Enhancing the promotion and enforcement of barrier free or lifetime home standards within general market housing developments.

b) Enabling older people to become more easily adapt and maintain their existing homes by:

‘House Proud’ Scheme – A comprehensive scheme for elderly or disabled owner/occupiers to improve and adapt their homes, through the provision of loans and equity release.

Wrexham Care and Repair – providing advice, support and practical assistance with regard to home repairs and adaptations for older/disabled owner-occupiers.

Carrying out an options appraisal for an affordable gardening and window cleaning service

Develop an approved register of contractors

Improve awareness of social care and health staff

Undertake a full review of adaptations in all tenures and develop and implement an action plan.

c) Enabling older people to live in their home for longer by:

Establishment of a pilot patch based warden scheme

Development of a housing support service for those beginning to experience difficulties in managing their accommodation

d) Increasing the provision of ‘Telecare’ to support older people

2. Reviewing existing housing advice and options, including the introduction of a conflict resolution service in September 2008 to help retain existing tenures and households

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and a ‘one stop shop’ in January 2009 to improve access to advice and benefits take up.

3. Developing, encouraging and policing the private rented sector especially houses in multiple occupation. Securing long term access to this sector of the market. Reducing tenancy turnover, improving standards and management through:

The private sector Landlords Forum

Promoting the Welsh Landlord Accreditation Scheme

An effective housing standards team focusing on a range of programmed inspections within the HMO sector.

4. Reducing levels of homelessness and rough sleeping through:

Developing further prevention services to address the main causes of homelessness.

Establishing funding for a permanent night shelter with associated preventative and follow on options.

5. Through our Private Sector Empty Property Strategy the Council will take action to reduce further the number of empty homes in the County.

6. More effective use of existing council stock by reducing under-occupation levels.

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Enabling supply

Our principal mechanism for facilitating the delivery of affordable housing is through effective partnership working both inter-departmentally within the County Borough and through our partnership agencies. This approach to partnership working is facilitated through our co-ordinating housing forum – The Wrexham Housing Alliance.

The Alliance has been set up to improve the working mechanisms and relationships between the Council, RSL’s and the private sector. The main purpose of the Alliance is:

Providing a housing framework to deliver the vision for Wrexham Co-ordinating and assisting in the preparation, implementation and joint delivery of the

Local Housing Strategy Improving joint working across all sectors to achieve the best value for residents and

tenants Promoting housing issues across Wrexham and act as a lobbying group at sub-regional,

regional and national levels Better integrating the Local Housing Strategy with other local key strategies and plans

The Alliance focuses on the Local Housing Strategy and links to the Community Strategy & Health, Social Care and Well-being Strategy. Subgroups are established to deliver on identified priorities within the Local Housing Strategy.

The Alliance is comprised of senior officers of partnership organisations and agencies and sub-group membership is comprised of officers capable of undertaking the work on behalf of the Alliance and delivering on the ground. The structure enables the establishment of formal links with the wider housing sector.

Alliance members include the local Registered Social Landlords (RSL's); private sector representatives – National Housebuilders Federation and Private Sector Landlords Forum. Senior Council Officers (Housing Strategy, Planning Policy, Development Control, Economic Development, Property Services and Landlord Services): Lead Member for Housing and Planning.

Supported by The Wrexham Housing Alliance our Housing Strategy Team undertakes an enabling role in the delivery of affordable housing. Through the Affordable Housing Delivery Plan the County Borough will facilitate this provision through a commitment to resources and a range of delivery mechanisms.

These will include:

Existing Unitary Development Plan (UDP) requirements Local Development Plan (LDP) key policy initiatives Supplementary Planning Guidance -using Section 106 planning obligations Rural Housing Enabler project

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Capital Grant bids through Welsh Assembly Government Social Housing Grant programme

Release of suitable public sector land at below market value to support affordable housing provision.

Empty Homes Strategy Developing partnerships and best value

Local Development Plan key policy initiatives

(THE COUNCILS DRAFT ASPIRATIONS – PENDING FINAL COUNCIL APPROVAL OF DEPOSIT LDP))

The Council is in the process of preparing a statutory Local Development Plan which will provide for general housing and affordable housing. The following policy initiatives are draft aspirations pending final Council approval of the deposit LDP

The County Borough has a 7.5 year supply of available land for housing (over and above the requirements within the AHDS draft guidance).

Affordable housing is a key priority within the LDP. We will increase the level of affordable housing over and above that included within the existing UDP by:

Allocating land for 6,300 new homes during the plan period 2006 – 2021 This equates to 420 new homes a year of which approximately 900 would be affordable.These will be provided through a combination of the planning system, Social Housing Grant schemes, returning empty properties to use and development of unused land assets of the council and other public sector organisations.

Specific policies for affordable housing thresholds and quotas (with the possibility of further review depending on economic viability of particular developments.

Specific policies for affordable housing rural exception sites

Allocation of 100% affordable housing sites

We will significantly increase the level of affordable housing requirement through SPG by using Section 106 agreements to develop affordable housing for sale and to rent by requiring:

33% of the total number of homes proposed on sites between 3 and 9 units in the Western Villages and Wrexham.

50% of the total number of homes proposed on sites of 10 or more units or 0.30 hectares (gross) in the western villages and Wrexham or 2 or more units or 0.10 hectares (gross) in the rural areas.

100% on all windfall sites additional to the LDP housing requirement.

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In exceptional circumstances where affordable housing needs cannot be met within rural settlements, consideration will be given to proposals for no more than 10 affordable homes on the edge of settlements.

The initial benefit of discounted prices will be retained in perpetuity through scheme management by a partner RSL and by legal agreement.

Developers will be expected to provide affordable homes ‘on site’ that are well integrated into the overall development. In exceptional circumstances off site provision will be considered.

In exceptional circumstances a financial contribution (commuted sum) in lieu of on-site affordable housing provision may be acceptable where it has been agreed with the Council that the affordable housing should not be provided on-site and where the developer does not own or control an alternative site. The contribution will be calculated according to an agreed formula.

Where a commuted sum is paid, the Council will ring fence such a sum for affordable housing and will use its best endeavours to utilise any financial contributions in the area of the site from which the contribution has been derived.

For developments of one or two units we may consider a financial contribution requirement for each home for the purposes of empty property refurbishment (Subject to further viability assessments)

The mix of affordable homes will be a matter for negotiation between the Council and the developer, negotiations will be guided by:

o The profile of housing need in the area, as evidenced by the Local Housing Market Assessment, the Council’s Housing Waiting List and Affordable Housing Registers

o What is appropriate for the location

Where development viability is to be considered or a developer believes the above percentages cannot be achieved for other reasons the developer must provide suitable evidence to justify any reduction in the provision of affordable homes from the percentages stated.

Developers will be expected to use an industry standard financial appraisal toolkit to demonstrate viability of the scheme. This appraisal must also be assessed by a Valuation Office Agency, District Valuer or an independent surveyor agreed by the Council. All costs relating to development viability will be met by the developer.

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DRAFT – PENDING FINAL COUNCIL APPROVAL OF DEPOSIT LDP

Estimated Housing totals, including affordable housing, to be set out in LDP up to 2021

Total housing units Affordable housing units

Completed 2006 - Apr 08 1551 100

In the pipeline (Under construction or with planning permission Apr 08)

3459 247

To be allocated (subject to proposed LDP targets of 33% affordable for sites of 3-9 units and 50% for 10+ units)

1290 629

Sub-total 6300 976

10% ‘slippage allowance’(schemes with pp or awaiting S.106 since Apr 08)

630 70

Sub-total including slippage 6930 1046

Potential affordable-only sites identified by Oct 2008 that broadly meet the preferred strategy

134 134

Direct SHG schemes 350Returning empty properties to use 80

Grand total 7064 1610

Need (housing needs assessment) 2205

Un-met affordable housing need -595 (over lifetime of LDP)

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Rural Housing Enabler Project

Due to the specific factors affecting rural communities, the Council is funding the appointment a Rural Housing Enabler (RHE) in partnership with the following organisations:

Welsh Assembly GovernmentFlintshire County Council

Pennaf Housing Group (host organisation)Cymdeithas Tai Clwyd Wales and West Housing Association

The RHE Project has been developed to help meet the housing needs of people in the rural areas of Wrexham and Flintshire. The Project aims are to raise awareness of housing needs in those rural areas and the means to tackle them. It will facilitate the provision of rural housing by bringing together willing landowners with development partners, working with communities to deliver solutions to local housing needs (including the potential of Community Land Trusts and self building), influence local and regional strategies that impact on affordable housing and provide information to help address national issues relating to affordable housing in rural areas. To meet these objectives the RHE will build on the strengths of the existing programme by retaining the independent nature of the RHE and the need to work closely with local communities to identify their housing needs and find appropriate solutions. The initial lifespan of the project will be three years, commencing in January 2009. A full review of the effectiveness of the project will undertaken in the third year, with a view to extending the project beyond the initial three year term, subject to successful outcomes and the availability of further funding.

Affordable Housing Delivery Incentives

Social Housing Grant programme (SHG)

The County Borough has not been successful in maximising Social Housing Grant funding in the past. With the aim of receiving an increased and satisfactory Social Housing Grant for 2009/2010 priority was focused on evidencing the deliverability of each scheme in the submission to the Assembly.

The success of this strategy was demonstrated with a programme award amounting to £8.37 million including approval of the County Borough’s first older persons Extra Care scheme. This level of award far exceeds levels of Social Housing Grant previously awarded to Wrexham. Our 2010/11 bid totals £18.95 million to develop 212 affordable units including our second extra care scheme bid and a number of specialist physical and mental disability schemes.

We will continue to focus on SHG as a priority and aim to increase bids year-on-year, supported by the phased release of local authority land. In order to target resources most effectively our future SHG bids will focus on the delivery of general needs affordable housing.

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Strategic Capital Investment Fund

In December 2008 the WAG announced an additional £42m of funding to support the delivery of additional affordable housing schemes in Wales through the new Strategic Capital Investment Fund (SCIF). SCIF funding of £1.8 million has been allocated to the County Borough for the three year period 2008/9 to 2010/11.

Scheme bid submissions for 2008/9 have already been successful in delivering 17 units of affordable accommodation in Wrexham, Gwersyllt and Penley. We will continue to ensure that our SCIF bids for forthcoming years maximise the opportunities to deliver more affordable housing.

Homebuy Scheme

In light of the recent WAG announcement that Social Housing Grant funded Homebuy will be re-introduced as a mechanism to aid people to access home ownership, we will continue to work with our RSL partners to facilitate this initiative.

Welsh Assembly Government Mortgage Rescue Scheme

Launched in 2008 an RSL will provide those eligible for assistance with an equity loan so that mortgage outgoings will be reduced or, where this is not suitable, the RSL can purchase the home to allow the owners to continue to live in the property as tenants. The County Borough is promoting this scheme and it is anticipated that the mortgage rescue scheme will deliver a total of 15 units across the remaining 2 years of the AHDS.

Discounted Sale Homes

We have recently negotiated some units of accommodation that will be sold at discounted rates through a private developer, with a covenant included in the conveyance restricting any future sale price to an agreed affordable valuation to applicants from our lo-cost home ownership waiting list.

Release of suitable public sector land support affordable housing provision.

A review of potential development land within the council’s ownership has recently been completed which has identified 271 sites – both Housing Revenue Account (HRA) and Non HRA. The appraisal has identified 61 sites within settlement limits with the potential to provide 471 affordable homes if developed at the standard county-wide density of 30 dwellings per hectare.

These sites are currently undergoing feasibility assessments with the aim of supporting affordable housing development.

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Housing Revenue Account Land

Historically the sale of Housing Revenue Account land at below best value has been restricted to support and enablement of the provision of affordable housing through the Social Housing Grant process.

Following on from the land review, the County will maximise the opportunities for addressing housing needs by initiating a phased release of all suitable HRA land over a five year period from April 2009.

This will support both future Social Housing Grant submissions and general affordable housing and the Council will continue to work closely together with its partners to consider the appropriate use of these land assets.

Other public sector land

Current council policy for non HRA land has traditionally focused on maximising capital receipts on sales and the Council has no formal policy for disposal at less than best value. The Council will further investigate and debate the phased release of council land at below market price over the long term to support affordable housing and fully consider the impact this will have on other services.

Key strategic sites

In addition the County Borough is examining the following significant key strategic sites for potential affordable housing provision in full or in part (subject to capital funding and future negotiations with key stakeholders). We are in the process of assessing deliverability which may help to form the basis of a key strategic housing partnership.

Bridge Street - Wrexham

A strategically important site within Wrexham town centre. Wider Bridge Street/ Brook Street regeneration strategy prepared in 2001. Significant parcel of land comprising cleared site between Bridge Street and St. Giles Way in ownership of Welsh Assembly Government.Outline planning permission for residential, office and retail and A3 leisure uses.

Initial discussions have taken place between Council Officers and Welsh Assembly Government exploring potential for disposal of all or part of the site to an approved RSL for affordable housing.

Brymbo

240 acre site of former Steelworks with planning permission granted on substantial proportion of site and large scale private development already underway. Further permissions recently

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renewed for private development to include an affordable element in line with planning policy. A significant adjacent site in council ownership is currently subject to options appraisal.Wrexham Gateway

Within Council ownership the Western Gateway is an area where major development is proposed in the Wrexham Unitary Development Plan and in the Wrexham Economic Development Strategy. An 18 acre element allocated for residential development within the Unitary Development Plan is integral to the wider Western Gateway development area which includes another 30 acres of development land.

Application has been made to the Welsh Assembly Government for Strategic Capital Investment funding under the carbon pathfinder project. Very significant highway infrastructure works required. Any development expected to achieve Welsh Assembly Government target for zero carbon emissions. Development options being considered.

Flexys – Cefn Mawr

Flexys Rubber Chemicals Factory in Cefn Mawr in the process of phased closure – significant contamination issues to be resolved and options are currently being considered.

Private Sector Empty Property Strategy 2007 - 2012

The Wrexham Private Sector Stock Condition Survey (March 2006) suggested a total of around 1,300 empty properties within the County Borough, of which 543 were classed as long term vacant (i.e. empty for more than 6 months). Whilst the number of empty homes was reducing slowly during the housing boom, there is a danger that numbers will rise again due to the economic downturn and reduction in open market prices.

The Council will take action through its Empty Property Strategy aimed at reducing the number of empty homes in the County using our legal powers and through effective partnership working with the private sector, housing associations and WAG.

The Council will increase the level of affordable housing by:

Improved services to landlords by working closely with them through the private sector landlords forum to promote schemes which will help them to provide more affordable, good-quality and well-managed rented accommodation.

Providing more homes by making use of privately-owned empty properties to provide an extra source of accommodation for homeless households through our existing voluntary private sector leasing scheme.

Many long term empty properties require repair and refurbishment to bring them up to a standard suitable for habitation. In many cases owners are unable to sell, have had problems with maintenance or are unable to arrange funds to repair.

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We recognise that with suitable funding and management agreements refurbished empty properties can provide affordable housing through leasing arrangements with our partner RSL’s. Therefore from April 2009 we will:

Provide funding of £100,000 for low cost refurbishment over the next three years to fund repair and refurbishment to bring empty properties back into use. Financial assistance will be subject to a subsequent fixed term leasing arrangement. We will develop a partnership agreement with our local RSL’s to establish mechanisms and management arrangements. Rental income generated will be recycled to make the scheme cost neutral.

Use funding from developer-required financial contribution and commuted sums to further fund and support the scheme.

For high cost refurbishment we will facilitate funding through the Home Improvement Trust which will also be subject to a leasing arrangement.

Developing partnerships and best value

We intend to develop a twin track approach to the provision of affordable housing:

1. Through the Wrexham Housing Alliance we will continue to work with our RSL consortia partners to deliver our Local Housing Strategy, focus on Social Housing Grant bids and continue to improve deliverability and provide more affordable housing.

2. Building on the expertise within our Planning, Asset Management, Economic Development and Housing Strategy Departments we will develop options for capacity building and best value through a joint venture with one or more RSL’s and/or developers to improve deliverability and value for money.

The benefits of assessing housing needs and joint delivery mechanisms have been clearly demonstrated through:

North East Wales Housing Market Assessment (2008) jointly funded by Wrexham, Denbighshire and Flintshire Councils.

Development of North East Wales Rural Housing Enabler Post joint funding as outlined above.

We will seek to strengthen partnership arrangements with our neighbouring local authorities to explore possible future joint funding submissions and further housing market studies and solutions on a sub regional basis.

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Monitoring

The Council Priority on Affordable Housing will be developed and implemented in line with the Council’s Project Management Guidelines as a ‘corporately significant project’.

Time table:

March 2009:

Approval from Executive Board to proceed.

Late March 2009:

Full Council approval of the Affordable Housing Delivery Statement

April 2009:

Establishment of Project Board and Project Team. Completion of detailed ‘business case, option appraisal and Project Initiation Document’. The development of measures and actions with costings for the short term and longer

term to meet the affordable targets outlined in the summary statement. Appropriate risk assessment work A communication plan.

Autumn 2009

Initial report to Scrutiny Committee to reflect the actual performance and comparative performance results from 2008/09.

Quarterly

Report to Project Board

Annually

Summary report to Executive Board

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Affordable Housing Delivery Summary Statement

# All targets are subject to market conditions and secured capital funding from both public and private sources. In particular all Social Housing Grant projections for 2010/11 are subject to Welsh Assembly Government funding.

Action 2007/8Completed

2008/9Completed

2009/10Projected

2010/11Projected

4 year Total

SHG (subject to WAG allocation) –

General Needs inc Homebuy

Vulnerable Households & Extra Care

Mortgage Rescue (not included above)

Rural Exception sites (not included above)

Empty Homes (not included above)

Strategic Capital Investment Fund (SCIF)

11

5

0

0

0

0

10

3

1

0

0

17

65

22

5

0

0

20

132

133

10

0

0

10

218

163

16

0

0

47

Non-SHG funded

Section 106

New build units (committed)

4 11 67 80 162

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Section 106

New build units (windfall) 0 0 2 3 5

Rural exceptions policy inc CLTs 0 0 5 10 15

Empty Homes initiatives 0 0 5 5 10

Other measures (Homebuy) 0 0 5 5 10

Totals 20 42 196 388 646

Target Delivery figure 147 147 147 147 588

Variance -127 -105 +49 +241 -58

Action Plan to meet Delivery figure

2007/8

Completed

2008/9

Projected

2009/10

Projected

2010/11

Projected

4 year Total

Release of County Borough land to support affordable housing to support joint venture proposal

0 0 0 30 30

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