Issue - meetings

To consider the report of the Head of Housing Services.

Scrutiny Committee – Community considered the report at their meeting on 20 January 2009 and their comments will be reported.

(Report circulated)

The report of the Head of Housing Services was submitted, considering the implications of the housing market downturn and the Council’s response, particularly in relation to the provision of affordable housing.

Scrutiny Committee – Community considered the report at their meeting on 20 January 2009 and the comments of Members were noted. With regard to the proposal in respect of the definition of minor variations to the terms of existing and proposed Section 106 agreements, Executive noted the particular concern expressed by one member of the Committee. He feared that member involvement would be limited and requested that consideration be given to other ways of involving ward and Planning Committee members.  A further report by the Head of Housing Services and the Head of Planning and Building Control addressing the Councillor’s concerns was circulated. The report stated that a reduction in the amount of affordable housing, or the percentage of affordable housing for rent, would not be considered “minor” variations which could be made under delegated powers.  Members’ concern that they might be unaware of additional affordable housing being proposed in their wards was acknowledged but this was not controllable through the Planning system. The Head of Housing Services had undertaken to ensure that the Housing Enabling team kept members aware of changes of this kind. The Director Community and Environment had spoken to the Chair of Scrutiny Committee – Community who felt that the additional report addressed the issues raised at Scrutiny Committee – Community.

Executive members acknowledged the severe threat posed by the downturn in the housing market, particularly in relation to the provision of affordable housing through the use of Section 106 agreements. They welcomed the range of innovative solutions proposed by officers to negate the worst effects of the downturn in the housing market. Members hoped that the Government’s proposals enabling the construction of homes by Councils would come to fruition and were advised that the Head of Housing Services was looking into this and members would be kept informed.  Another member sought assurance that the design and quality of new building would not be allowed to decline. The Portfolio Holder for Housing and Social Inclusion responded that building regulations required increasingly high specifications, for example in relation to energy efficiency, and recent construction often exceeded required standards.

Executive resolvedthat:-

(1)        the report and its contents be noted;

(2)        a flexible approach be maintained to renegotiate and vary existing Section 106 agreements and consents to encourage the development of affordable housing wherever possible; and

(3)        variations to the specific terms of S106 agreements regarding affordable housing, where they meet the following criteria, should be treated as minor and therefore delegated to the Head of Planning and Building Control in consultation with the Head of Legal Services and Chair of Planning Committee:-

(a)        they do not affect the “headline” terms reported to Planning Committee and contained in that Committee’s resolution;

(b)        they do not result in a reduction in the overall proportion of affordable housing on  ...  view the full decision text for item 7

The report of the Head of Housing Services was submitted, considering the implications of the housing market downturn and the Council’s response, particularly in relation to the provision of affordable housing.

Scrutiny Committee – Community considered the report at their meeting on 20 January 2009 and the comments of Members were noted. With regard to the proposal in respect of the definition of minor variations to the terms of existing and proposed Section 106 agreements, Executive noted the particular concern expressed by one member of the Committee. He feared that member involvement would be limited and requested that consideration be given to other ways of involving ward and Planning Committee members.  A further report by the Head of Housing Services and the Head of Planning and Building Control addressing the Councillor’s concerns was circulated. The report stated that a reduction in the amount of affordable housing, or the percentage of affordable housing for rent, would not be considered “minor” variations which could be made under delegated powers.  Members’ concern that they might be unaware of additional affordable housing being proposed in their wards was acknowledged but this was not controllable through the Planning system. The Head of Housing Services had undertaken to ensure that the Housing Enabling team kept members aware of changes of this kind. The Director Community and Environment had spoken to the Chair of Scrutiny Committee – Community who felt that the additional report addressed the issues raised at Scrutiny Committee – Community.

Executive members acknowledged the severe threat posed by the downturn in the housing market, particularly in relation to the provision of affordable housing through the use of Section 106 agreements. They welcomed the range of innovative solutions proposed by officers to negate the worst effects of the downturn in the housing market. Members hoped that the Government’s proposals enabling the construction of homes by Councils would come to fruition and were advised that the Head of Housing Services was looking into this and members would be kept informed.  Another member sought assurance that the design and quality of new building would not be allowed to decline. The Portfolio Holder for Housing and Social Inclusion responded that building regulations required increasingly high specifications, for example in relation to energy efficiency, and recent construction often exceeded required standards.

RESOLVED that:-

(1)        the report and its contents be noted;

(2)        a flexible approach be maintained to renegotiate and vary existing Section 106 agreements and consents to encourage the development of affordable housing wherever possible; and

(3)        variations to the specific terms of S106 agreements regarding affordable housing, where they meet the following criteria, should be treated as minor and therefore delegated to the Head of Planning and Building Control in consultation with the Head of Legal Services and Chair of Planning Committee:-

(a)        they do not affect the “headline” terms reported to Planning Committee and contained in that Committee’s resolution;

(b)        they do not result in a reduction in the overall proportion of affordable housing on a  ...  view the full minutes text for item 7

To consider the report of the Head of Housing Services – report circulated.

The Head of Housing Services presented the report setting out the implications of the housing market downturn and the Council’s response, particularly in relation to the provision of affordable housing. 

A Member referred to the importance of sheltered and supported accommodation for the elderly within their local areas.

In response to another Member, the Head of Housing Services explained the policies relating to affordable housing provision including the split between affordable and market value properties within developments and the different types of affordable housing being offered. The current requirement was 25% and although consideration had been given as part of the Local Development Framework process to increase the affordable housing requirement for development to 35% this was unlikely to be pursued at present. Developers were now seeking to progress with affordable housing provision in order to utilise Government grants and thus maintain their turnover until the market improved. They were presently unwilling to build houses for sale at market value and were focusing on social housing provision. As part of this process, they were also offering to increase social housing provision above that agreed in the planning permission. Detailed discussions were therefore necessary with developers to reach agreement on both planning and management issues. The distribution of social housing throughout a site was an issue, with developers reluctant to pepper-pot throughout a site. Housing staff were working closely with developers and housing associations in the City to offer help and advice, where possible, to enable the completion of developments currently on site or to start schemes with planning consent on sites with Section 106 agreements attached.

The Head of Housing Services also explained the policies relating to property acquisition for the provision of social housing. In particular, the Council, with local housing associations, were looking to acquire extra units from developers to give them certainty of sales and therefore the confidence to either continue on site or progress towards a start-on-site date. He also briefly referred to policies in respect of the management of existing stock.

With regard to negotiations with developers, it would be necessary to adopt a flexible approach to the negotiation of existing Section 106 agreements to ensure that opportunities to procure new affordable housing were maximised and that developers were helped to regain the confidence to start building. The Head of Planning and Building Control already had powers to agree minor variations to the terms of existing and proposed Section 106 agreements in consultation with the Head of Legal Services and the Chair of the Planning Committee. To ensure speed in responding to requests to vary Section 106 agreements, it was proposed that the scheme of delegations continue where such changes are supported by the Head of Housing Services and the Portfolio Holder for Housing and Social Inclusion. Given the fast moving situation within the housing market and the need to respond quickly and flexibly, it was important that officers had the ability to negotiate such deals with developers and vary existing Section 106 agreements where  ...  view the full minutes text for item 9