Agenda item

To provide Housing Sub-committee with an update on the delivery of Phase One of the Affordable Homes Programme 2022/23 and identify emerging opportunites for Phase 2.

The sub-committee received a report providing an update on the delivery of Phase One of the Affordable Homes Programme (AHP) 2022/23 and identifying emerging opportunities for Phase Two.

The Affordable Homes Programme was launched in 2013 and had delivered 1,934 affordable homes to date, including 573 new Council homes.  This represented a 145% improvement on the ten years prior to the programme starting.  Work to support private landlords and tackle empty and derelict properties continued to improve communities and since 2019 the number of empty homes in the borough had reduced by 39%.

The Our North Tyneside Plan, approved by Council on 23 September 2021, increased the affordable homes delivery target to 5,000.  To meet this challenging target, the programme would be delivered in two phases.  Phase One would see delivery of a further 2,000 affordable homes bringing the Phase One total to 4,000 by 2032.  This included the delivery of a ten-year Housing Revenue Account plan that would aim to deliver at least 350 new Council homes, utilising new technology to reduce carbon emissions.  The indicative programme for Phase One was appended to the report.

In 2022/23, it was forecast that 215 new affordable homes would be delivered.  A full breakdown of the delivery programme was appended to the report.

The Authority had continued to bring back derelict and empty homes for use as affordable homes.  This included targeting long-term empty properties and working with owners who may struggle to maintain rental properties.  Phase One of the AHP would see at least 60 derelict homes targeted with further plans being developed to increase this number significantly.

It was explained that the Authority worked in partnership with Registered Providers to provide affordable homes.  Schemes due to be completed later in the year included West Chirton Industrial Estate South Phase 2 – 33 new homes expected to be completed at Riverside’s development of Norham Road – and Action Building Maintenance, Oswin Road – 16 affordable homes for vulnerable clients with mental health issues.

The largest volume of homes within Phase One of the AHP would be delivered by private developers who were subject to ever changing market conditions.  The Authority worked proactively with Private Developers to facilitate bringing sites within the Local Plan forward and ensuring that planning applications were submitted with the maximum level of S106 affordable homes that met the needs of the area.  It was expected that private developers would contribute around 1,500 homes in Phase One of the AHP.

The report detailed emerging plan for Phase Two of the Affordable Homes Programme.  These included:

·         Identifying potential windfall opportunities for both the Authority and private developers

·         Exploring the potential of brownfield sites that could be used to provide new affordable homes

·         Increasing the number of derelict properties that are brought back as affordable homes

·         And further increasing the delivery of affordable homes through the North Tyneside Trading Company Limited

Members were informed of emerging opportunities for new housing sites at the former West Farm Public House, Killingworth and the former landfill site at Howdon.  Both sites had significant known constraints and were subject to a North of Tyne Combined Authority bid for brownfield funding to support further site investigations and potential remediation work.

The report outlined key challenges to the delivery of the AHP.  It was noted that housing and construction industries continued to deal with market volatility due to several factors arising from the legacy of the global pandemic and the current war in Ukraine.  Whilst sale prices and demand for homes remained strong, there was a risk that higher inflation and interest rates may lead to developers slowing activity, reducing the provision of affordable homes.

It was agreed to note the update on affordable homes.