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 delivered through the remainder of the Residential Growth Strategy will be let at social rent.

·         Policy Idea - 500 plots will be released on small sites to Registered Providers by March 2019 for affordable housing, requiring at least ? of homes to be let at social rent and for all homes to be completed by March 2022.

·         Policy Idea - The Council will continue to work in partnership with existing registered providers and support them to maximise their investment in the city.  The Council will also encourage other not-for-profit Registered Providers to invest in Manchester provided they play a meaningful role in the city and invest in areas where existing Registered Providers are not major stockholders.

·         Policy Idea - After allowing appropriately for other key uses (employment, education, health, infrastructure, culture, amenity etc.) Council land disposals will be principally for development that wholly or partly delivers affordable housing for those in our City who are in the greatest housing need.

·         Policy Idea: The Council will lobby the Government to remove the Right to Buy.

·         Policy Idea: The Council will explore ways in which all of the new affordable homes (at least 2,000) in the 4 Housing Affordability Zones fall outside the Right to Buy.

·         Policy Idea - The Council will complete within 12 months a feasibility study into a genuinely affordable housing scheme within the City Centre of appropriate density for its location. In drawing up the parameters of and delivering this study, the elected councillors of City Centre wards and the elected City Centre spokesperson will be included. Should the feasibility study find such a scheme to be viable, subject to the standard scrutiny procedures of the Council, the Council shall proceed with the scheme.

·         Policy Idea - the Council will assess potential demand for and scope for provision of other affordable housing within the City Centre, taking into account viability and deliverability.

·         Policy Idea - The Council will invest, in conjunction with Registered Provider partners, in better marketing to older people the opportunity to downsize and provide support during any move.

·         Policy Idea - The Council will develop a Supporting People Housing Strategy (including extra care, dementia friendly and learning disabilities) by March 2019 working alongside health and social care colleagues, housing providers and Greater Manchester partners.

·         Policy Idea - The Council will explore the feasibility of at least 3 community-led housing projects on Council land providing at least 30 affordable homes in total. At least one of these will be led by older people.

·         Policy Idea - The Council will develop a strategy to unleash the potential for community-led housing of all tenures across the City by Summer 2019.

·         Policy Idea - The Council will explore how it can support the City’s essential key workers to access affordable homes in appropriate locations to meet their needs.

The report explained that the intention was to examine in detail the financial and legal issues that would arise from these policy ideas. The intention was for a further report in 2019, setting out more details on those financial and legal implications, risks and the resources to implement the ideas.

It was also noted that a recent meeting the Economy Scrutiny Committee had also considered this report and had endorsed its recommendations (Minute ESC/18/57).

Decision

To endorse the proposals for affordable housing policy ideas as set out above and to note that officers will now consider the financial and legal consequences of those proposals and report again in 2019.