Housing in London – the Housing in London – the Mayor’s new roleMayor’s new roleAlan Benson - GLA

OverviewOverview

• The strategic drivers • Housing need and supply • The devolution of housing powers • Towards the Mayor’s Housing Strategy

The strategic drivers The strategic drivers

The case for London The case for London

•London’s economy drives Britain’s economy - is not in competition with it

•Housing is a threat to London’s economic growth and social wellbeing

•Need to increase supply and improve quality

•Need for investment in infrastructure to maximise major opportunities

London population 1901-2001

0

2

4

6

8

10

1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001

Pop

ulat

ion

& h

ouse

hold

s (m

)

0

1

2

3

4

5

Ave

rage

hou

seho

ld s

ize

Population Households UK AHS

London’s demography London’s demography

New home buildingNew home building

3+ bed new homes 3+ bed new homes 1991/2 2003/4London 26% 19%South East 49% 58%South West 49% 63%East 50% 69%West Mids 59% 63%East Mids 64% 76%Yorks+H 67% 65%North West 71% 70%North East 75% 79%

Homelessness Homelessness Supply, demand and temporary accommodation

20,00025,00030,00035,00040,00045,00050,00055,00060,00065,000

1991/ 9

2199

2/ 93

1993/ 9

4199

4/ 95

1995/ 9

6199

6/ 97

1997/ 9

8199

8/ 99

1999/ 0

0200

0/ 01

2001/ 0

2200

2/ 03

2003/ 4

Num

ber o

f hou

seho

lds

Homeless households in TA Homeless acceptances New social lettings

OvercrowdingOvercrowdingSevere overcrowding

0.00

0.50

1.00

1.50

2.00

2.50

1981

1991

2001

Perc

enta

ge o

f ho

useh

olds

London Rest of England

Affordability ratiosAffordability ratios

Income inequality Income inequality Income distribution of Londonerson UK quintiles (AHC) - 2000/ 01

0%

20%

40%

Bottom fifth Next fifth Middle fifth Next fifth Top fifthNational income quintiles after housing costs

Climate change Climate change

Housing need Housing need and supplyand supply

Housing need Housing need • Need 35,400 new homes per annum• 66% should be affordable • Social housing• 42% of new social should be 4 bed plus

• Market • 34% of new market should be 3 bed plus

• Intermediate• little demonstrable “need” – requires policy steer

London’s housing capacityLondon’s housing capacity

The London Plan The London Plan London Plan targets• 30,500 homes• 50% affordable (70/30 social:intermediate) • 100% lifetime, 10% wheelchair accessible

London Plan delivery of new homes- 1999: 17,000 - 2005/6: 24,000 (new) 28,000 (total)

Affordable homes - 1999: 6,000 - 2005/6: 8,000 (new) 12,000 (total)

But concerns over mix and size

Residential land pricesResidential land prices

012345678

Aut83

Spr85

Aut86

Spr88

Aut89

Spr91

Aut92

Spr94

Aut95

Spr97

Aut98

Spr20

00

Aut200

1

Spr20

03

July2

004

Jan20

06

Mill

ions

England and Walesexcluding London

Inner and Outer London

South East England

Source: VOA

The planning pipeline The planning pipeline

10000

20000

30000

40000

50000

6000019

87

1989

1991

1993

1995

1997

1999

2001

2003

2004

/5

Year

Net A

dditi

onal

Dwe

llings

Approvals Completions

Residential constructionResidential constructionLondon's residential construction sector,

1995-1999Barratt12%

Fairview12%

Bellway6%

St George8%

Berkeley (exc St.George)8%Next Five Largest

19%

35 Others35%

Ownership of land with residential planning permission by number of schemes with private units

Devolution of housing powersDevolution of housing powers

The road to housing devolution The road to housing devolution

• Feb 2003: Communities Plan • Introduced regional housing strategies• Set up Regional Housing Boards

• Jun 2003: LHB set up and first London Housing Strategy published

• Mar 2004: HMT Barker Review - recommends merging regional housing and planning

• Nov 2006: GLA Bill - Review of Mayor’s powers

• Oct 2007?: New powers commence

Review of Powers - other areas Review of Powers - other areas

• Planning• Power to ensure local development plans are in compliance with London Plan• Positive powers on strategic planning applications

• Other strategies • Adult skills strategy • Energy and climate change strategy • Health inequalities strategy

New housing powersNew housing powers

• The responsibilities of the London Housing Board will transfer to the Mayor • Mayor will publish a statutory Housing Strategy and Strategic Housing Investment Plan• Mayor will decide the broad distribution of the affordable housing part of the Regional Housing Pot

Strategic powersStrategic powers

• Local housing strategies will be required to be in general conformity, includes:• “any strategy [or] other statement of the local housing authority’s policies or proposals related to housing”

• Implementation model is existing statutory strategies not London Plan• Need to clarify “reach” • Need to consider sub-regional position

Investment powers – the RHPInvestment powers – the RHP

(1) Apportioning the overall pot

£2,300m The Mayor will have the same powers as the LHB

(2a) The council decent homes programme

£420m The Mayor will not be involved

(2b) The HC affordable housing programme

£1760m The Mayor will make decisions on the broad allocation

(2c) Other funding: estate regen, private sector renewal etc)

£120m The Mayor will have the same powers as the LHB

(Based on 2006/8 figs)

Strategic Housing Investment PlanStrategic Housing Investment Plan

• Drawn up and agreed by all key agencies - (GLA, LDA, HC, EP, TfL, LTG DC, GOL, LCs)

• Ambitious aims:• Cover all housing related investment • Set out common priorities• Align the activities of public sector investors • Maximise private sector leverage • Co-ordinate housing and infrastructure investment • Framework for innovative delivery models

TimetableTimetable

Nov 2006 - Queen’s SpeechNov 2006 - “Towards the Mayor’s Housing Strategy” Feb 2007 - Consultation on this closesMay 2007 - GLA Bill gets Royal Assent Jun 2007 - Draft (non-statutory) Housing Strategy Jul 2007 - Strategic Housing Investment Plan Aug 2007 - Comprehensive Spending Review Oct 2007 - GLA Bill commencement 2007/08 - Statutory consultation on Housing Strategy and Strategic Investment Plan

Housing structures Housing structures

• Strategy• Renewed Mayor’s Housing Forum• Sub-groups to engage wider specialists • Equalities Standing Group

• Investment• Housing Investment Panel• Developer engagement

• Scrutiny - London Assembly

Towards the Mayor’s Towards the Mayor’s Housing StrategyHousing Strategy

Key issues for new strategy Key issues for new strategy

• Putting people first • delivering housing’s enabling role

• Building more homes • tackling the barriers to delivery

• The right homes in the right places• shifting the mix – spatial/tenure/size

• Creating places where people want to live• design led development

Key issues for new strategy Key issues for new strategy

• Reviewing intermediate housing • is it giving us what we want?

• Promoting choice and mobility • better matching need and demand

• Tackling climate change • top priority for change

• Other issues • list is not exhaustive

alan.benson@london.gov.ukalan.benson@london.gov.uk