Agenda item

To receive a report on the progress made in 2019/20 and an update on how delivery in 2020/21 has been impacted by several challenges outside of the control of the Authority including the global pandemic.   

Cabinet received a report on the progress made in 2019/20 in supporting the Ambition for North Tyneside through Housing Growth and an update on how delivery in 2020/21 had been impacted by several challenges outside of the control of the Authority including the global pandemic.

The Mayor and Cabinet had clearly stated their policy intention in the Our North Tyneside Plan that the Authority would deliver “more quality affordable homes.” 

180 new affordable homes had been delivered in North Tyneside in 2019/20 across the following workstreams:

·         22 new build homes through the Housing Revenue Account (HRA), including Bonchester Court and Beadnell Court in Battle Hill ward.

·         Bringing back 8 long-term empty properties into use as affordable housing.

·         Working with Registered Providers (RPs) to deliver 13 new affordable homes at Charlton Court, Monkseaton (now known as Cedartree Court).

·         Delivering 114 new homes through planning obligations.

·         The North Tyneside Trading Company (Development) Limited had successfully acquired 13 new homes from the open market to be let at an intermediate affordable rent.

·         Specialist Housing - Aspire Healthcare had delivered a new 10-unit independent supported living scheme in Whitley Bay.

The unprecedented impact of the global pandemic had significantly reduced the delivery of affordable homes in 2020/21. The programme now expected to have delivered 90 new homes in North Tyneside which was considerably less than planned due to the unprecedented circumstances of Covid-19 resulting in delays to delivery on some sites, a breakdown of these was provided in Appendix 2 to the report. Delivery plans for 2020/21 included:

·         The HRA Housing Growth Delivery Programme would deliver 12 new homes in 2020/21, including schemes at Edwin Grove and Bawtry Court. Further homes would be delivered at The Cedars and Charlotte Street. 

·         The Authority continued to work in partnership with Registered Providers to provide affordable homes. The delays associated with the Covid lockdown had hampered delivery this year and therefore no affordable homes had been delivered by RPs in North Tyneside. 

·         The Authority would continue to focus on tackling empty homes and where possible bringing them back into use as affordable dwellings.  Several approaches to tackling empty homes would be considered including providing advice and assistance to homeowners and continuing to work in partnership with the National Landlord Association. The Authority would continue to use the Repair and Manage programme to refurbish long-term empty homes and take ownership of them until all costs had been repaid. This approach would deliver at least 6 affordable homes in 2020/21.

·         The number of affordable homes delivered through planning obligations had fallen from 197 in 2018/19 to an expected 50 in 2020/21. This was due to delays caused by the Covid19 lockdown and the planning permissions for the large sites at Murton Gap and Killingworth Moor not yet submitted.  Additional affordable homes would continue to be secured through Section 106 requirements in the future as further planning applications were submitted by developers.

·         It was anticipated that the North Tyneside Trading Company would acquire 22 homes in 2020/21. Several opportunities would be explored by the Company to continue to support the Authority’s Affordable Homes Programme and it was anticipated that the Company would increase their asset base to around 100 homes by the end of 2021/22. Rental income would continue to be received from the properties owned by the Company and reinvested back into the stock or used to further increase the number of affordable homes.

The report outlined the various challenges to delivery including the market conditions facing private housebuilders; the impact of Covid-19; and Government policy, particularly the proposed replacement of S106.

To increase affordable housing delivery, a new ten-year delivery programme had been identified and was attached as Appendix 4 to the report. The 10-year plan would aim to invest circa £50m and deliver around 350 new affordable homes by 2031. Specifically, the plan would aim to build at least 300 new council homes and bring back at least 50 empty properties into use as affordable homes.

With work underway or approval in place on five schemes (Bawtry Court, Edwin Grove, The Cedars, Charlotte Street and Wellfield Avenue), approval in principle was sought for the development on a further 8 sites identified in Table 1.5.5a. All the sites would require feasibility studies on them to assess their suitability for development and would require planning to be approved. This would include consultation with ward members and residents.

Any changes or revisions to the plan would be shared with the Strategic Property Group and ward members on a regular basis, with further Cabinet approvals being sought where required.

Delays by the developers to bring forward planning applications including the strategic sites at Murton Gap and Killingworth East, plus the uncertainty caused by the Covid-19 pandemic continued to pose a challenge to the delivery of the Affordable Homes Programme (AHP).

Whilst the new ten-year HRA delivery plan would help address this shortfall, it was also recommended that the Authority aligned the AHP to the Local Plan deadline of 2032 and increasing the target accordingly. This would provide greater certainty on delivery timescales with several large-scale planning applications due to come forward in the next few years.

With an extended target date and a plan to increase direct building by the Authority, it was appropriate that the current target of 3,000 was increased. It was recommended that a new target of 4,000 was agreed by 2032. This was a challenging target but reflective of the Authority’s commitment to delivering high-quality affordable homes across the Borough.

An indicative delivery programme to 2032 was included in Appendix 3 to the report.

Cabinet considered the following decision options: In relation to the Affordable Homes Programme:

Option 1 – To receive and note the update on the progress of delivering the Affordable Homes Programme detailed at 1.2(1) of the report; and agree the recommendations detailed in paragraph 1.2(1b) and 1.2(2) of the report

Option 2 - To receive and note the update on the progress of delivering the Affordable Homes Programme detailed at 1.2(1) of the report; and reject the recommendation detailed in paragraph 1.2(1b) and 1.2(2) of the report.

Resolved that (1) in relation to the development of the sites identified in the 10-year delivery plan ‘Supporting the Ambition for North Tyneside through Housing Growth’:

a)         the principle of development by the Authority of the sites identified within section 1.5.5 of the report be approved; and

b)         the Head of Environment, Housing and Leisure, in consultation with the Cabinet Member for Housing, Head of Resources and Head of Law and Governance, be authorised to undertake all necessary work to bring forward the development of the sites as identified in section 1.5.5 of the report.

(2) in relation to the Affordable Homes Programme:

a)         the progress made in 2019/20 and the delivery plan for 2020/21 be noted; and

b)         the increases in the delivery target within the programme from 3,000 to 4,000 affordable homes by 2032 in line with the Authority’s Local Plan be agreed.

(Reasons for decision: It will support progress on delivering the Elected Mayor and Cabinet’s commitment to deliver more quality affordable homes.)