Council Housing to the Rescue

Phil Roberts and Russell Shortland - NKDC

Contents

• The NK District• Background to investment• Future programme• Build standards• Developments

356 sq miles

107,800 population

3,834 Council homes

SHMA – 40,000 properties

40% affordable

100 Flourishing

Communities

North Kesteven

Background to investment

• Council house building fell in the 1980s & 90s • 88,530 in 1980

• 130 in 2004

• Housing finance regime discouraged building• Growth of the enabling role supported by Government

funding through Housing Corporation/Homes and Community Agency

• NK’s support for enabling roles through Section 106 agreements plus making free land available

• Investment in stock – achievement of decent homes standard

Background to investment

• Council remained committed to strong policy direction on affordable housing and sustainability

• Led to development of straw house programme in 2009• exemplar scheme

• Local Authority New Build Rounds in 2009-11

• Strong position to bid – identified sites and straw house programme• 35 properties • £1.8m grant – remainder HRA• code 4 standard

• Later under continuous market engagement programme 11 further properties

Background to investment

• All properties completed within deadlines• Approximately within budget• Factors in this success

• Right people on board

• Identified the sites – knew what would work and where

• Long term investment in the Council stock – funding available

• Ready to go – straw houses

• Prepared to work quickly

• Political will

NK’s future programme

• HRA self financing – March 2012• Housing Subsidy system

• Notional accounting practice to redistribute housing funding

• For NK - £4m annual net payment

• Self Financing• Ends the subsidy approach

• One off payment - £57m

• Debt financed through repayment

• Plus £9.6m borrowing headroom

• Significantly better off under this approach –

by year 30 - £7.7m per annum

Subsidy v self financing

NK’s future programme

• Housing needs continue to outstrip supply for affordable housing

• Limited HCA investment in the District currently• Building Council housing is a key theme in the corporate

plan• Self financing opportunity

• Agreed priorities and a standard for existing properties with tenants

• Calculated required capital programme over 30 years compared with funding available (including headroom)

• 10 year £46m new build programme – 300 plus properties

NK’s future programme

• Key issues:

• Site availability• Sites identified – 170 properties

• Surplus public sector land

• Regeneration opportunities

• Section 106 obligations

• Own land

• New build standards • Fabric First

NK’s future programme

• VFM• Affordable rents – funding back into affordable housing

• Agreed to reinvest RTB receipts as well

• Viability assessments – impact on HRA

• Procurement – finding cheaper alternatives

• Staffing resources• Reviewed structures – new responsibilities and posts

Straw Bale Houses in NK

This is a North Kesteven District Council Servicestraw

The challenge: Building

economically viable

properties that reduce the need for

space and water heating

Code 4 Houses 2009-2012

42 Code 4 houses built on 9 sites

All properties heated with Air Source Heat Pumps

High specification

Architecturally Imaginative

Well received in the communities

Tenant and end user consultation said……

• The Emerging “Fabric First” standard• Occupants wanted ...

• NO Unnecessary items ………………….

• INCLUDE

• Even better insulation !

• Gas heating

• Triple glazing

• Better storage

• Improved layouts

• Over bath showers in houses (wet rooms in bungalows)

• Remote water service isolation

• External storage (Garden Sheds ?)

• Bigger bedrooms

• So………………………

We listened….

Improved Storage (+5%)

Better layouts with furniture design

Biggerbedrooms

Light and radin storage

Over bathshowers

SureStopRemote water

isolation

The technical bit …………………………….

Walls -  U value  0.18 W/m2K (building reg 0.28)

Ground Floor  -  U value  0.15 W/m2K (building reg .22)

Roof - U Value -  U value  0.11 W/m2K (building reg 0.16)

Window   -  U value  1.40 W/m2K (building reg 1.6)

Doors               -   U value 1.40 W/m2K (building reg 1.8)

Air Permeability      less than 5 m3/hr/m2 (building reg 15)

• To summarise, on average over a 25% improvement on current Building Regulation standards.

Our Air Test Results

Current Developments

• 6 flats – Hutson Drive North Hykeham – Started this week.

• 26 Mixed units – Mareham Lane Sleaford – Planning application submitted 1st March 2013

• 13 Mixed units – Northfield Road Ruskington – Planning application submitted 25th March

Mareham Lane Sleaford

Billinghay 2012/13

Completed 15th March 2013 (four month build)

Any questions?