Affordable More Hom es Housing is 3million new homes by 2020 now - PDF document

Evidence Base • Strategic Housing Market Assessment The New Housing Market in Leeds • Research into Demand for Council Housing • City centre housing research • Housing and Economic growth in the Leeds City Region research • Student housing research • West Yorkshire BME housing research • West Yorkshire private rented sector research Housing Green Paper Affordable More Hom es Housing is • 3million new homes by 2020 now a key • Annual House building target issue for the increased to 240,000 • 45,000 new homes for social Government rent • 25,000 shared ownership • Local housing companies W hat is changing the Housing Market Housing Green Paper in Leeds? Building hom es m ore quickly Demographic changes • unlocking the planning system • Increasing population • releasing land for development Greener Hom es • Net in-migration • High environmental standards Successful local economy • Carbon zero developments by 2016 • Employment/ commuterism • student population 1

Patterns of Dem and Patterns of Dem and Households seeking to buy Households seeking to rent (social housing) 2 – 3 1 bed 1 – 2 bed 3+ beds beds 1 bed 1 – 2 bed 2 – 3 beds 3+ beds Existing 2.3% 33.1% 70.6% 66.7% Existing Households 14.1% 49.5% 71.8% 50.5% Households Newly forming 29.0% 86.3% 71.1% 13.3% Newly forming households 9.6% 71.2% 86.5% 28.8% households ALL 21.6% 67.9% 71.5% 31.9% ALL 5.9% 52.1% 73.6% 47.8% Supply of New Hom es 100 Supply of New Hom es ( Com pletions Flats/ Houses) ( Com pletions property size) 75% 2 0 0 3 - 0 7 5 7 .9 % 1 2 .0% 3 0 .1 % 50% 2 0 0 0 - 0 3 1 1 .7 % 6 5 .7 % 2 2 .6% 25% 1 9 9 5 - 2 0 0 0 6 .8 % 6 3 .7 % 3 0.1 % 0% 1 bedroom 2 - 3 Bedroom 4 + Bedroom 1 9 9 5 - 2 0 0 0 2 0 0 0 - 2 0 0 3 2 0 0 3 - 2 0 0 7 Average house price (Regional) 1999 -2007 Average percentage house price increase 2000 - 2007 £185,000 Leeds Y&H Region West Yorks £165,000 £145,000 £125,000 £105,000 £85,000 £65,000 £45,000 2 2 0% 1 97 % 1 9 0% 1 94 % 2 44 % £25,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 London Westminster Croydon England & Wales Leeds Source: Land Registry House Price Index report 2006 2

Joint Income needed to Affordability afford entry level house property (2006) Annual joint income needed to afford entry level price Collingham £128,700 Hyde Park £56,700 Adel £92,000 Chapel Allerton £56,500 Bardsey £82,100 Kirkstall £52,600 Headingley £77,900 Chapeltown £41,300 Alwoodley £72,900 Stanningley £40,500 Guiseley £67,300 Bramley £39,100 Otley £67,100 North Seacroft £38,800 Roundhay £62,500 North Gipton £35,000 Aberford £61,100 Harehills £33,000 (Source: Land Registry) Salaries in Leeds: 2 0 0 7 Deputy Sister (St James Deputy Sister (St James’ ’) ) £ £22,886 22,886 – – £ £31,004 (Source 31,004 (Source NHS NHS Recruiting) Recruiting) New Police Officer New Police Officer What is Starting Salary Starting Salary £ £23,454 ( 23,454 (Hansard Hansard Feb 2007) Feb 2007) happening in Newly qualified teacher Newly qualified teacher different parts £ £20,133 20,133 – – £ £29,427 (Education Leeds) 29,427 (Education Leeds) of the city? Environmental Health Officer (post qualification) Environmental Health Officer (post qualification) Starting salary Starting salary £ £20,895 (Leeds City Council) 20,895 (Leeds City Council) HGV HGV driver driver 17,200 - 17,200 -£ £19,000 (source 19,000 (source – – Yorkshire Post) Yorkshire Post) Catering Team Leader Catering Team Leader £14,500 (source £ 14,500 (source – – Yorkshire Post) Yorkshire Post) Housing Market zones Housing Market zones Outer Areas & villages Outer Areas & villages • Limited new supply • Limited new supply • Need joint income of • Need joint income of over 100,000 to afford over 100,000 to afford entry level Outer Areas & villages Outer Areas & villages entry level Outer Suburban areas • Escalating demand Outer Suburban areas • Escalating demand Inner Suburban areas Inner Suburban areas • Little social housing • Little social housing and few vacancies Inner Urban/’inner rim’ areas Inner Urban/’inner rim’ areas and few vacancies arising arising City Centre City Centre source Housing Market Assessments 2002 & 2007 source Housing Market Assessments 2002 & 2007 3

Housing Market zones Housing Market zones Outer Suburban Inner Suburban Outer Suburban Inner Suburban • Over £65,000 per year • Limited new supply • Over £65,000 per year • Limited new supply joint income needed to joint income needed to • Need joint income of • Need joint income of afford entry level afford entry level over £100,000 to afford over £100,000 to afford • Vacancies in social entry level • Vacancies in social entry level housing reducing housing reducing • Impact of student Outer Areas & villages • Impact of student Outer Areas & villages substantially substantially housing market housing market Outer Suburban areas Outer Suburban areas • Limited new supply of • Limited new supply of • Escalating demand • Escalating demand Inner Suburban areas Inner Suburban areas social housing and few social housing and few • Reducing social • Reducing social vacancies arising Inner Urban/’inner rim’ areas Inner Urban/’inner rim’ areas vacancies arising housing stock and housing stock and City Centre City Centre vacancies vacancies source Housing Market Assessments 2002 & 2007 source Housing Market Assessments 2002 & 2007 Housing Market zones Housing Market zones Inner Urban/’inner Inner Urban/’inner rim’ rim’ City Centre City Centre • Significant new build in • Significant new build in • Investment market still • Investment market still EASEL and potentially at EASEL and potentially at buoyant Middleton buoyant Middleton • Oversupply of 1 bed • Largest proportional • Oversupply of 1 bed • Largest proportional apartments? increase in prices; Outer Areas & villages Outer Areas & villages apartments? increase in prices; • Over 23,000per year Outer Suburban areas Outer Suburban areas • Sustainability of further • Over 23,000per year • Sustainability of further needed to afford entry level Inner Suburban areas supply Inner Suburban areas needed to afford entry level supply • Attractive for investors. • Attractive for investors. Inner Urban/’inner rim’ areas • Reducing owner Inner Urban/’inner rim’ areas • Reducing owner occupier demand? City Centre City Centre occupier demand? source Housing Market Assessments 2002 & 2007 source Housing Market Assessments 2002 & 2007 Shared Equity & Sub Market Rent “I nterm ediate Housing” • Still very sm all part of the How does housing m arket this affect • Only 128 new units added choices of last year tenure? • Still lack of awareness and reluctance to take up • 35% of households in Housing Assessment Survey reported interest 4

Private Rented housing Social Housing • Increasing option of choice • Vastly reduced social • Buy to let housing stock. • Average rents high • Tenant base changing. • affordable on low to average • Demand buoyant. incomes through sharing • Vacancies falling. • asylum seekers/ migrants • Increasingly used for • discharge of homelessness duty statutory duties. • “Churning” • Reduced mobility within the tenure. Market Housing The old housing ladder What can we do? Low Cost Home Ownership Social Housing Governm ent’s Housing Needs Model Governm ent’s Housing Needs Model Market Housing for Sale/rent All prices and types Affordable Housing Assistance ‘ Starter Homes’/ Low Cost Market housing to Home (e.g. Debut, IKEA, BoKlok £60 - £120,000 71% 71% Ownership For 1st time buyers ) 2- 3 1,100 2- 3 1,100 x15years x15years bedrooms bedrooms = 16500 = 16500 Housing Intermediate Housing – Discounted Options 1 ,9 0 0 1 ,9 0 0 Sale/Shared Ownership Advice x 15 years Purchaser buys a stake and RSL retains the rest. x 15 years Leeds Strategic For those unable to afford market prices = 2 8 5 0 0 2 8 5 0 0 = Housing Partnership Target Intermediate Housing – sub-market rents £60 - £100 per week for those unable to afford Housing Market market prices The new Assessm ent housing Affordable housing for rent ladder (up to £60 per week) 5

Annual New Build Targets 2011 - 2021 Governm ent’s Housing Needs Model Annual New Build Targets 2011 - 2021 Governm ent’s Housing Needs Model W hole Market Full Market Intermediate Housing Social Rent HMA assessm ent Strategic Partnership Current perform ance 2 2 0 0 1 4 0 0 5 0 0 4200 1900 1100 1100 240 240 0% 25% 50% 75% 100% Total New Build Total New Build Affordable Hom es Affordable Hom es New opportunities for hom e ow nership New opportunities for hom e ow nership Home ownership For rent. 3300 900 0% 25% 50% 75% 100% Home ownership includes full market Roundhay/ Moortown & shared equity (shared ownership/ equity, low cost) A scheme of 150 properties in Current arrangements Rounday/Moortown Full Market Social Rent Other Low Cost 6