DRAFT LONDON HOUSING STRATEGYJamie Ratcliff, Assistant Director – Programme, Policy & Services

22 January 2014

HOMES FOR LONDON

• Increasing housing delivery of all tenures - more than

42,000 homes a year

• Increased focus on workingLondoners – “who work hard to make this city a success”

THE MAY O R’ S HO US IN G COV E NA NT• £1.25bn – 42,000 homes• Bid by 10 March 2014• Most completions expected

by March 2018, some flexibility for ‘trusted delivery partners’ dependent on bids

• Tenure mix expected to follow London Plan (60:40)

• Solely affordable housing (strategy wider)

PLANNING CONTEXT

• ‘FALP’ published 15 January – consultation until 10 April

• Increases London Plan target to 42,000pa homes (delivery identified in SHLAA)

• Identifies potential for increased delivery in town centres to get to requirement found by SHMA of c.49,000pa

S UP P LY CH AL LE NG E

IN CRE AS I NG S UP P LY• At least 42,000 new homes a year

– with 15,000 affordable & 5,000 long-term PRS

– double intermediate by 2020 and double again by 2025

• The 2015-18 programme– 40 per cent low cost home ownership– 30 per cent at “capped” rents – 30 per cent at “discounted” rents

DIS CO UN TE D RE NT

• Expected to be set at 80% or LHA level• Nominations by Boroughs – not intermediate

rent• Nominations must be to households not

affected by household benefit cap (£350/500pw)

• Borough can use own resources to reduce• In the absence of own resources rents can

only be lower if balanced with increased capped rent

• 50% of all providers rented programmes

CAP P E D RE NT• Capped at 50% of market rent (inc. s/c) but

can’t be less than Target Rent (+ s/c).• Expect most homes to be at or close to 50%

(in reality low-value areas and schemes with high s/c will be Target Rent)

• In exceptionally high value areas can be 50% of LQ rents

• Boroughs can use own resources to reduce rents

• Rents could increase to balance discounted reduction

• 50% of all providers rented programmes

BOR OU GH FRA ME WOR KS• Agreement of

principles: • Any desired balancing

adjustment to capped & discounted rent levels

• Distribution of flexible home ownership and Affordable Rent (both capped and discounted)

• Confirmation of noms approach to discounted rent

• The approach to Flexible homeownership, including in relation to marketing cascades and income restrictions.

• Exit strategy by 2016 on all GLA land• Continue to encourage use of London

Development Panel – optimal procurement• A wider role for GLA on public land across the

capital

LAN D

• Some short-term constraints– Materials & labour

• Need existing players to maximise delivery– Not the time to sit on your hands

• Need new players– Large & small– Different models– ‘Modern’ construction

methods?

DE V E LO PME N T C APACI TY

• All homes to meet LHDG standards & bespoke PRS design

• Retrofit every poorly insulated home by 2030

• By 2016 All council landlords to be able to independently meet decent homes standard - £145m fund

IMP RO V ING Q UAL IT Y

• Relaxation of Local Authority borrowing for housing– Some movement in Autumn Statement

• Devolution of full suite of property taxes– Certainty for investment and freedom to use

optimally

LO NG-T E RM F UND IN G

HAR D-WO RKI NG L OND ON ER S

• Improving the intermediate market• Supporting home ownership• Massively expanding shared ownership• Rethinking allocations and mobility

• London Rental Standard – accreditation and significant public campaign

• Encouraging longer tenancies and increased professionalisation

• Optimising enforcement against criminal landlords

• New supply – encouraged through land release and planning

P RIVAT E R E NTE D S E CTOR

• Increase provision of purpose built homes for older people

• Halve the level of severe overcrowding in the social rented sector

• No second night out and no living on the streets

THE MOS T V UL NE RAB LE

HOU SI NG Z ON ES• Laterally applying concept of Enterprise Zones

– Focusing attention & resources in areas where housing can rapidly delivered, at scale

– What mix of incentives can achieve this?– Further thinking being developed

• Up to £200 million for the London Housing Bank to deliver up to 3,000 homes– Soft/equity-linked loans repayable in c.10yrs– Increased capital support cf. grant– Flexibility on exit route for providers– Focus on large-phased sites

• Further details in due course – no opportunity to bid yet

LO NDO N HOUS I NG BA NK

T I ME TABL E

Publication of draft strategy 25 November 2013

End of consultation period 17 February 2014

Review responses/revise strategy February - March 2014

Submission to London Assembly Mid March 2014

Submission to Secretary of State End April 2014

Publication of final strategy Late June 2014

• Concerted effort required by all to deliver homes London needs

• Significant resources available to London in 2015-18

• Longer-term certainty would enable much, much more to be done

S UMMARY