Agenda item

A report on the overall progress to deliver 5000 affordable homes and highlight the work ongoing in 2024-25 is provided for the consideration of the sub-committee.

The Sub-committee received a report to update on the overall progress to deliver 5000 affordable homes and highlight the work ongoing in 2024-25.

The Our North Tyneside Plan was approved at full Council on 23 September 2021 and included a target of delivering 5000 affordable homes and a commitment to reduce the number of derelict properties in the borough.  In order to meet the target Cabinet approved a two phased approach to the Affordable Homes Programme (AHP) on 21 February 2022.

The Council has continued to make good progress towards its objectives and by the end of 2024-25 will have delivered over 2400 affordable homes including over 1400 new affordable homes through the HRA and the Council’s wholly owned delivery vehicle.

The Sub-committee were advised that work is underway on the former West Farm Public House, Killingworth and work has commenced on site to build 22 new Council Homes. Also, the former Children’s Home on Wellington Avenue, following a successful compulsory purchase order the property is currently being refurbished into new affordable homes with work due to be completed in the next few months.

The Authority’s wholly owned subsidiary company, Aurora Affordable Homes currently owns 117 properties with a further 6 in the purchasing process.

The sub-committee were advised that as part of the roll out of the  Private Sector Housing Improvement Plan a new Private Landlord Accreditation Scheme will be launched on 9 October at a landlord forum event in Wallsend.  The Sub-committee were advised that a long-term problematic property in Charlotte Street, Wallsend has now been purchased as part of the Council’s housing-led regeneration partnership with Aurora Affordable Homes.  The property will be extensively refurbished and will be let as an affordable home when complete.

Thirty eight affordable homes have been delivered by private developers so far this year.  It is forecast that a further 87 new affordable homes will be delivered through planning obligations in 2024/25.

Following the completion of the sale of the former Unicorn House site in North Shields to Karbon Homes, work continues to deliver the scheme that will provide 28 new affordable homes in North Shields town centre. Karbon will be acquiring 71 homes (56 Rent to Buy homes and 15 shard ownership) at Collingwood Grange, North Shields.  This will be in addition to the 100 affordable homes already delivered on the site.

It was queried whether the target set in 2022 was a new target or if it was in addition to the target set in 2014.  It was noted that the original target back in 2014 was 3000 homes, however, as officers have a good idea of when projects will come forward they are able to provide a good level of certainty on what can be delivered.

It was queried whether if the government requested that there be an increase in the number of affordable homes would North Tyneside have capacity to increase the number.  It was noted that within the current 30 year business plan there isn’t huge capacity it is fairly constrained.  It was also noted that Registered Providers also have the same issue as if there is going to be more building they need more flexibility with regards to grant funding and rent setting.  It was also noted that land supply is also a constraint.

It was queried about only 38 homes being built this year and whether or not that was a low number.  It was noted that this number is in the financial year from April and we have just reached the end of Quarter 2. 

It was queried whether with regards to affordable homes there is a way of controlling who buys these properties.  It was noted that shared ownership is usually for first time buyers where over time they can increase the equity.

It was also noted that with regards to Discounted Open Market Sale Properties there is a financial limit on those and they change product to product.  It was noted it is not a product for wealthy people.

It was also noted that those houses remain affordable in perpetuity.

It was noted that in the Local Plan it is stated the number of homes that will be built and out of those 20-25% will be affordable.  This was put into the plan.  It was also noted that there are planning restricting in place for when developments come to planning committee.  It was also noted that when it comes to affordable rent there are measures in place.

RESOLVED –         that the information presented in the report regarding the progress to deliver 5000 affordable homes be noted.