The report of the Executive Member for Housing and Regeneration is enclosed.
In November 2015 we had endorsed a draft Manchester Residential Growth Strategy and agreed that there should be public consultation on the draft (Minute Exe/15/123). In March 2016 we had endorsed a revised version of that Growth Strategy which set out the key priorities for delivering residential growth over the period 2016 – 2025 (Minute Exe/16/043).
A report from the Executive Member for Housing and Regeneration examined the recent progress and successes in securing the development of more affordable homes across the city. The report explained that “Affordable Housing” had emerged as an aggregate term for a range of housing tenures that would allow people on lower incomes to access homes at below market values. The main sorts of tenures being:
· Shared Ownership - a part rent / part buy model where residents pay rent on 25-75% of the value of the property initially with the option to buy the remainder later;
· Affordable Rent - although this can technically be set at or below 80% of market rent, affordable rent is typically set at or close to the full 80% level; and
· Social Rent - this is typically set at or around 60% of market rent, although is not directly linked to market rent in the same way as affordable rent.
The report demonstrated how the cost of building a new home for affordable occupation could be funded, both for affordable and social rent. In both cases, with even with an assumption of the land being made available at nil cost, the borrowing against the assumed rental income would be insufficient to fund the construction of the house. Further funding would be needed and the report explained the range of possible sources of those funds.
The report then set out a number of possible policy ideas that could contribute to a step-change in the number and tenure of affordable homes being built across the City. Those were:
· Policy Idea - The Council will strengthen the 500 home commitment to become 500 new social rented homes to be delivered by March 2022.
· Policy Idea - The Council will develop and consult on a new Manchester affordability policy based around the individual income and circumstances of all Manchester residents.
· Policy Idea - The Council will commit to delivering a programme of 3,000 new affordable Council homes over 10 years - 1,000 at social rent, 1,000 at affordable rent and 1,000 shared ownership.
· Policy Idea - Deliver a first phase of 300 new affordable Council homes by March 2022, 100 for social rent, 100 for affordable rent and 100 shared ownership.
· Policy Idea - The Council will take steps to maximise the social value from expanded new Council house building, including training and employment opportunities for Manchester residents.
· Policy Idea - Where legal agreements permit, future phases of existing residential growth joint ventures and new joint ventures where Council sites represent a significant contribution will deliver 20% net new affordable housing.
· Policy Idea - At least 1,000 of the affordable homes to be ... view the full minutes text for item 109