Agenda item

            The Board considered a presentation from Alasdair Cross, which provided an update on affordable housing development across the Borough and current Council policy concerning the delivery of affordable housing. It was noted that there were two main methods of providing affordable housing; firstly through Registered Providers developing 100% affordable housing schemes funded through their own resources or more usually utilising Homes and Communities Agency Grants; or secondly through the planning system using Section 106 Agreements.

            It was noted that the National Planning Policy Framework required Councils to plan to meet the full objectively assessed need for market and affordable housing in their areas. Strategic Housing Market Assessments (SHMA) were used to assess the housing needs arising in an area and inform the development of housing and planning policy for affordable housing which considered the balance between supply and demand for affordable housing.

            The Halton SHMA (2011) had been undertaken in conjunction with neighbouring authorities in the Mid Mersey Housing Market Area. The SHMA identified that in 2010 2,053 households were falling into housing need per annum. The study forecast an annual supply of 1,162 units to meet these needs, leaving a predicted unmet need across the Borough for an additional 891 affordable dwellings per annum for the following five years 2010-2015. A sub regional SHMA (including Halton) was proposed to be undertaken in 2015-16 to reassess the level of affordable housing need in Halton.

            The Board was advised that the annual unmet need for affordable housing was far in excess of the proposed total housing delivery targets as set out in the Halton Core Strategy Plan 2013, which stated 552 dwellings per annum. It was, however, acknowledged that the SHMA was an evidence-based document that was used to inform policy, the affordable housing needs identified were not a defined target that must be met. Additionally it was noted that there were no policy consequence of not meeting the 891 affordable dwellings per annum.

            The presentation detailed the cost, in Widnes and Runcorn, of renting both in the private and social landlord sectors and of buying properties. It also contained information on household incomes in Halton in 2010. Members were also provided with information on the number of affordable houses provided in Halton from 2010-2013. Since 2010, in total, there had been 1,011 affordable housing dwellings completed or in the pipeline which went some way to meeting Halton’s affordable housing need. However, this figure was greatly under the 891 dwellings per annum unmet affordable need identified in SHMA.

            Following the adoption of the Core Strategy Local Plan and the introduction of affordable housing policy, applications for housing in qualifying sites were subject to the policy requirement. However, to date 5 applications had been assessed, but unfortunately the viability of each development would have been compromised by the inclusion of an affordable requirement and, as such, no units had yet been secured.

            It was acknowledged that the investment in affordable housing through the Affordable Homes Programme had also been reduced. The investment for the period 2011-2015 was expected to be £4.5bn over 4 years, whilst the investment for the period 2015 to 2018 was expected to be only £2.9bn.

            It was also recognised that the private rented sector through housing benefit, did make a significant contribution to filling the gap between need and supply of affordable housing. The Halton SMHA stated that in relation to meeting housing need and given the levels of affordable housing need shown in the study, the private rented sector was likely to continue to be used to some degree to make up for the shortfall of genuine affordable housing for the foreseeable future. It was also noted that the private rented sector was not a form of affordable housing and that it did not provide secure tenancies.

            RESOLVED: That the report be noted.