affordable housing strategy working draft march 2011

8/7/2019 Affordable Housing Strategy Working Draft March 2011

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Affordable Housing Strategy 2011 - 2016

If you would like this document in an alternative format please

contact:

Adult Care Services

1st Floor, Textile Hall

Manchester Road

Bury

BL9 0DG

Telephone 0161-253-5870

Email: [email protected]

Copies of this document are available on the Councils website via

www.bury.gov.uk

Copies are available in large print, Braille and audiocassette on

request.

This document can also be supplied in another language:

0161-253-5870


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1.0 Foreword

I am pleased to present Bury Council's new Affordable Housing Strategy.

It has been written in response to the local and national need for more

affordable homes and is based on evidence from the last Census and

the Local Housing Market Assessment.

The Affordable Housing Strategy highlights the reasons for the shortage of

affordable housing in Bury and demonstrates the steps we will take

to maximise delivery to improve the affordable housing offer for Bury

residents. The main focus is to work with our partners to increase the

number of good quality affordable homes to meet the needs of those who

want to live here, and build sustainable communities.

The strategy has been prepared at a time of significant economic

challenge which has had a substantial impact on the delivery of new

homes. Nevertheless, despite these difficult times and with mortgage

lending at an all-time low, our Affordable Housing Scheme has remained

active unlike many local authority areas across the region. Since the start

of the recession in 2008, the scheme has helped 43into affordable home

ownership. A further 27 households have managed to secure social

rented accommodation (a combination of special needs and general needs

housing) through work with our Joint Commissioning Partnership.

Throughout the UK today, there is insufficient housing to meet the

needs of a growing population. The issue of affordable housing hasnever been so important. Natural population growth, social change

such as people living longer, rising numbers of single person

households and net inward migration put further pressures on our

housing stock (Chartered institute of Housing, 2010).


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Councillor Michael

Hankey

Executive Member for

Health and Well-Being

We recognise that market conditions can change quickly

and we must respond to circumstances in order to

achieve our vision and deliver our priorities. Therefore,

we will update our action plan annually to take account

of changes in the housing market and new opportunities

for providing affordable housing.


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2.0 Strategy Vision and Aims

The long term vision of this strategy is to:

Help Bury people access a decent home that they can afford and

which meets their needs.

The strategy has identified six strategic priorities:

reshape housing for future needs and aspirations - ensure a greater

choice of quality homes to increase options and create mixed

sustainable communities;

maximise the provision of affordable housing through specific

initiatives and joint working with our partners;

increase affordable housing development by implementing our

Affordable Housing Policy;

continue to improve quality and design to ensure that affordable

housing negotiated through Section 106 Agreements is built to the

same standard and specification as private housing; use local house price and income data to ensure new build

properties are affordable;

improve the quality of existing neighbourhoods by seeking to bring

empty properties back into use.

In order to achieve our vision and overarching goals, the strategy aims to:

highlight the extent of affordability in Bury; identify the number of households that require affordable housing

and establish current and future demand across all tenures;

strengthen the Council's Strategic Housing role;

identify a range of initiatives for the expenditure of developer

contributions where affordable housing units have not been sold on

site.


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This strategy fits well with the corporate vision to make Bury the place to

live, work, study and visit. In supporting the development of choice of

quality housing, this strategy will make a valuable contribution to Team

Bury's ambitions:

The place to live in Greater Manchester

An area where people feel safe and secure

Healthiest Borough in the North West

Popular visitor destination

premier retail town in the North of Greater Manchester

Centre of excellence for education and training in the North West

Each township thriving Area with first class services

Quality jobs for Bury people


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3.0 Defining Affordable Housing

There are many different types of affordable housing. For the purpose of

this strategy, we have adopted the Governments definition of affordable

housing under the following categories:

Social rented housing: housing that is let at low rents to people in

housing need. It is generally provided by councils and Registered Social

Landlords (RSLs). The rents are controlled by the Government to keep

them affordable.

Affordable Rent: Rented accommodation provided by RSLs at a rent of

up to 80% of the cost of similar private rented property.

Intermediate affordable housing: housing to buy at prices below

market value, or housing to rent at a higher cost then social rent but less

than private rent (this is different from Affordable Rent in that it is aimed

at tenants wanting to save deposits to buy a home). This category

includes discount market housing, shared ownership and shared equity. It

consists of a range of house types and sizes to reflect the different

characteristics of those in need. Therefore, we may have requirements

for specialist housing to meet the needs of certain groups including larger

housing, sheltered housing and housing for disabled people. These

requirements have been identified in both our Housing Strategy for Older

People and the forthcoming Vulnerable Adults Strategy (copies can be

obtained www.bury.gov.uk).


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4.0 Context

National

The Governments national objective for affordable housing is to ensure

that everyone has the opportunity of a decent home they can afford.

In many parts of the country, house prices have increased rapidly over

the years because the supply of housing has not kept up with demand.

This is mainly due to increased numbers of households caused by growth

in the population and an increase in the number of one person

households. Kate Barkers review of housing supply in 2004 identified a

shortage of at least 40,000 new social rented dwellings per annum which,

under current legislation would need to be met by the private sector and

RSLs.

The increase in house prices relative to incomes in recent years has been

marked. At the start of the decade there were areas where house prices

were very high but this was largely confined to London, the South East

and a few regional hot spots. By 2005 the position had changed

significantly and house prices had increased across the nation. There are

still many areas where house prices remain high despite the recession and

where, as a consequence, many people are finding it very difficult to buy a

home. Inflated house prices increases demand for more social rented and

intermediate housing.

Planning Policy Statement 3 (PPS3) was published in response to the

Barker Review, setting out the Governments commitment to improving

affordability and increasing the supply of housing. PPS3 aims to ensure

that the planning system is more responsive to changing needs by

releasing more land to meet current and future demand. Affordable

housing targets should therefore be based on the results of strategic/local

housing market assessments, which specify the type/size of affordable

housing required together with current and future demand.


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Regional

The regional context is not dissimilar. Improving access to affordable

housing is a major priority within the North West Regional Housing

Strategy (NWRHS). It seeks to address the impact of the credit crunch on

housing markets and tackle the shortage of affordable homes in areas of

the North West where demand for additional housing is high, and where

this impacts adversely on social inclusion and economic growth.

Falling house prices and rising unemployment in recent years has affected

the delivery of new homes. Nevertheless, demand for affordable housing

has not subsided and the importance of housings role in tackling

exclusion remains high. The NWRHS provides a framework for the five

sub regions to shape their housing strategies to meet their objectives, by

utilising data from Strategic Housing Market Assessments.

Local

The next five years is likely to be a particularly challenging time for the

delivery of affordable housing in Bury. Whilst we need to build as many

homes as we can, we need to plan for the eventual upturn, most probably

against a background of reduced public expenditure.

The Bury Plan 2008 2011 sets out our corporate priority areas for

action. The Affordable Housing Strategy is a key delivery element of this

Plan and will help to contribute to the following priorities:

Choice of Quality Housing - Affordable housing on new

developments provides a choice of quality housing to complement

the improving environment and make the Borough a better place to

live. It increases opportunities for home ownership and offers

greater flexibility to those who rent.


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A Place to live in Greater Manchester - The AHS recognises the

importance of the provision of affordable housing for people on

lower incomes. The Affordable Housing Policy requires a quarter of

all properties on larger housing developments to be affordable.

Putting Customers First - The Affordable Housing Policy gives

priority for housing to residents of the Borough.


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Key Local Issues

The lack of affordable housing in the Borough can be attributed to a

number of different factors:

House Prices and Affordability

House prices and affordability raise considerable challenges for all local

authorities and Bury is no exception. Between December 2000 and

December 2007 the average house price in Bury (based on sales and

valuations) rose from 60,000 to 155,000, a massive increase of 158%.

However, by March 2008 they started to fall as a result of the economic

downturn. Nevertheless the fall in house prices has been insufficient for

people on low incomes and it has become increasingly difficult for many

people, particularly first time buyers to find a home they can afford. The

graph below shows the average property price over time for all types of

housing in Bury.


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The lower quartile price is currently 94,600 (based on sales and

valuations over the last three months - Feb 2010), compared to a regional

average of 97,500 (Hometrack, 2011). In terms of affordability based

on typical mortgage lending at 3.5 times joint income, households in Bury

would need an average income of 27,000 to get on the property ladder.

However, a large proportion of people living in the Borough currently earn

less than 27,000 and would not be able to purchase an average starter

home (see map in figure 1 below). This suggests that there is a

considerable need for intermediate affordable housing, particularly in the

townships of Bury, Radcliffe and Whitefield.


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(Figure 1 - Median household incomes by postcode).


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Average House Prices to Earning Ratio (Hometrack Data Sources Jun

2010)

For a single person in full time employment the average price for all house

types to earnings ratio in Bury is currently 4.9:1, based on data from the

latest Annual Survey of Hours and Earnings and sales and valuations over

the last 12 months. The regional house price to earnings is 5.7:1. Even

for cheaper housing in Bury the price to earnings ratio is currently 4:1

compared to a regional average of 5.3:1.

The affordability of home ownership is just one part of the affordability

equation. Table 1 below shows an estimate of the likely housing costs for

each of the different tenures. There is a significant gap between social

rents and private rents and between private renting and full ownership.

The cost of intermediate affordable housing is somewhere in the middle.

Whilst much of the Boroughs private housing is considered too expensive

for people on low incomes, social rented accommodation is in short

supply. During the period 2009/10, an average of 124 council houses

became available for re-let each month. However, in that same period

258 new applications were received by the Council (LHMA, 2008 andInternal Performance Indicator 2009/10).


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Table 1 Comparative Housing Costs by Tenure (per week)

Tenure

Township Social

Rent

Intermediate

Affordable

Housing

Private

Rent

Owner-

Occupation

Bury

1 bedroom 49 74 98 (144)

2 bedrooms 57 83 110 144

3 bedrooms 66 99 133 198

4 bedrooms 76 190 - 304

Prestwich

1 bedroom 49 82 115 (190)

2 bedrooms 57 95 133 190

3 bedrooms 66 108 150 2364 bedrooms 76 228 - 380

Radcliffe

1 bedroom 49 74 98 (141)

2 bedrooms 57 83 110 141

3 bedrooms 66 99 133 182

4 bedrooms 76 190 - 304

Ramsbottom

1 bedroom 49 82 (114) (190)

2 bedrooms 57 86 114 190

3 bedrooms 66 102 138 228

4 bedrooms 76 209 - 342Tottington

1 bedroom 49 74 (114) (190)

2 bedrooms 57 83 114 190

3 bedrooms 66 99 138 220

4 bedrooms 76 220 - 365

Whitefield

1 bedroom 49 82 115 (175)

2 bedrooms 57 95 133 175

3 bedrooms 66 108 150 220

4 bedrooms 76 228 - 380

Source Bury LHMA, 2008 combination of data sources1.

Table 2 below illustrates entry level purchase prices for different sizes of

private accommodation in the Borough. The Bury and Radcliffe townships

have been identified as regeneration areas and, whilst the values of these

properties are significantly lower, they would still require an average 38%

1In the owner-occupied sector costs have been estimated based on a repayment mortgage at an

interest rate of 5.75% (brackets denotes the cost of a two bedroom property, where information for

one bedroom properties was limited).


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discount in order to reach the implied price of intermediate affordable

housing which is around 60,000 for a two bedroom property. The level

of discount required in the rest of the Borough is closer to 46% which is

extremely high (LHMA, 2008).

Table 2 Entry Level Purchase Prices in Each Township, by

Size of Dwelling

Township 2 bedrooms 3 bedrooms 4 bedrooms

Bury East & West 95,000 130,000 200,000

Prestwich 125,000 155,000 250,000Radcliffe 93,000 120,000 200,000

Ramsbottom 125,000 150,000 225,000

Tottington 125,000 145,000 240,000Whitefield 115,000 145,000 250,000

(Source: Survey of estates and Letting Agents, 2008)

Lack of Available Mortgage Finance:

Prior to the recession, mortgage finance was easy to obtain and many first

time buyers were able to secure a mortgage without the need for a

deposit. However, since 2008, mortgage finance has been severely

impacted by the credit crunch, with mortgage lenders tightening lending

criteria in the wake of the recession. Although the number of first timebuyers remains relatively unchanged according to investors, many of the

best deals are only available to buyers who have a 25% deposit.

Furthermore, the recent fall in house prices means that many homes are

worth less than their mortgage value. Consequently those who want to

sell their first home and move up the property ladder are unable to do so,

which further restricts the supply of affordable housing (Money Facts

2010).

Falling house prices and the instability of the housing market has seen a

significant decline in the number of new homes being built. As a result,

the demand for social rented accommodation and intermediate affordable

housing has increased significantly.


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Reduction of Social Housing through Right to Buy (RTB) and Right

to Acquire (RTA).

The introduction of the RTB in 1980, allowing

council tenants to purchase their homes, has

had a huge impact on the availability of

Council Housing across the Borough.

According to a RTB Analysis report in 2009,

there are currently 8,131 council properties

within the Borough and over 3000 people on the waiting list.

The graph below shows the number of properties sold through RTB since

1981.

(Graph 1 Source: HSSA 2010)

To date, 4,735 properties have been sold out of 13,044 original Council

owned dwellings. On some estates in Prestwich and Tottington, more

than 75% of the original stock has been sold. In April 2005, the Council

transferred the management of the majority of their stock to an ALMO

(Arms Length Management Organisation) Six Town Housing. The

remaining properties (316 in total) are managed by Springs Tenant

Management Cooperative.


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Key Issues:

House prices and affordability.

Lack of available mortgage finance.

Reduction of social housing through the Right to Buy

and Right to Acquire initiatives.

Empty properties.


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5.0 Evidence of Need for Affordable Housing

Before we can make provision for new

affordable housing, it is important that we

find out the level of need in the Borough. A

range of data including a Local Housing

Market Assessment (LHMA) has been used to

provide an overview of affordable housing

need and aspirations across the Borough. A

list of documents and data sources is

attached at Appendix 1.

In accordance with national guidance the LHMA bases its information on a

variety of sources including a survey of local households and interviews

with estate and letting agents. The results indicate that the overall level

of need for affordable housing in Bury (derived from the CLG Needs

Assessment Model) is 315 additional dwellings per annum.

The main findings from the assessment confirm public perceptions of the

market:

there is a potentially large requirement for social rented and

intermediate housing including discount market housing;

the Black and Minority Ethnic (BME) Community and special needs

households are more likely than average to be in need ofaffordable housing;

in terms of townships, households located in Radcliffe and Bury

East and West are most likely to be in need of affordable housing,

whilst those in Tottington are least likely.


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The demographic profile of those in need of affordable housing is largely

due to two main factors affordability and vulnerability which can be

broken down into the following groups3:

Black and Minority Ethnic Housing Needs (BME).

According to the Census 2001, Bury has a population of 181,900 of whom

6% are from BME communities. The Asian population represents the

biggest ethnic group (4%) with the Pakistani category being the largest

individual category within that group at 3%. This represents a doubling in

size since the 1991 Census.

Evidence suggests that BME households tend to be vulnerable and areoften found to be living in poor quality accommodation. Bury East is

home to a predominantly large Asian community who occupy high levels

of poor quality housing. The majority of council owned dwellings in this

locality are one and two bedroom properties which are largely unsuitable

for extended Asian families.

Therefore, we recognise the requirement for affordable housing with a

minimum of three bedrooms in this locality, and will work closely with our

partners and private developers to meet the housing needs of the BME

community. The housing needs of this group will also be considered in

greater detail in a separate strategy for vulnerable people which is

currently being developed.

Table 3 below shows that White British are the largest numerical group in

need but there are higher proportions of BME households compared topopulation sizes.

3 Affordability problems occur when households cannot obtain adequate housing they can afford within

their local area because of insufficient income, high house prices and rents, or a combination of these

factors. A person is considered vulnerable if they experience prejudice or are in need of community

care services by reason of mental or other disability, age or illness.


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Table 3 Affordable Housing Need by Ethnic Group

Need requirement

Ethnicgroup In need Not in need

Total

Number of

hholds

% of

hhold

type inneed

As a %

of those

in need

White

British 1,957 69,116 71,073 2.8% 83.0%

White Irish 7 1,520 1,527 0.5% 0.3%White

Other 140 1,362 1,502 9.3% 5.9%

Asian 135 1,766 1,901 7.1% 5.7%

Other 119 1,378 1,497 8.0% 5.1%

Total 2,358 75,143 77,500 3.0% 100.0%(Source: Bury LHMA 2008)

Supported Housing and Special Needs Housing

Supported housing is aimed at helping people to live independently in

their homes. Some projects offer 24 hour care packages and there are

sheltered housing schemes for older people. Supported housing is

available to people with a wide range of care or support needs such as:

people with mental health and learning issues;

people with disabilities; young people leaving care and those setting up home for the first

time;

older people;

people with alcohol and/or substance misuse problems;

people fleeing domestic violence;

homeless people in temporary accommodation.

Many people with special needs have low incomes and often have difficulty

finding housing that is safe, affordable and permanent. They may also

require housing that is matched with accessible support services which is

often expensive. Therefore, we will work with our partners to encourage

the development of specialised housing and supported housing schemes,

to ensure that the housing needs of this group are met.


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Table 4 shows that special needs households, particularly those with a

disability are more likely to be in need of affordable housing than

households without special needs. Special needs households comprise

more than a quarter of the (total) need for affordable housing in Bury.

Table 4 - Affordable Housing Need (Special Needs Households)

Need requirement

Special needs In needNot in

need

Total

Number ofhholds

% of

hholdtype in

need

As a % of

those inneed

Special needs 640 14,914 15,554 4.1% 27.1%No special

needs 1,718 60,228 61,946 2.8% 72.9%TOTAL 2,358 75,143 77,500 3.0% 100.0%

Source: Bury LHMA 2008 (Combination of Data Sources)

Older Peoples Housing Needs

Older person households tend to be smaller than average although the

homes they occupy are often larger than their needs, leading to high

levels of under occupation. According to our Housing Strategy for Older

People, older person households tend to have much lower incomes than

other households and cannot afford to maintain their existing homes.

Consequently, 54.4% of older person households expecting to move

within the next two years stated a preference for social rented

accommodation (LHMA, 2008).

The number of older people living in the UK is on the increase. The graph

below shows that between 1983 and 2008 the number of people over the

age of 65 increased from 15% to 16% (1.5 million people). During the

same period, the proportion of people aged 16 and under fell by 2%. In

2008 1.3 million people were 85 and older and this is expected to reach

3.2 million by 2033, accounting for 5% of the population.


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(Graph 2 - Mid-year population estimates, Source: ONS 2008)

On a local level, the table below shows that by 2021 the numbers of

people in Bury aged 50 and over will have increased significantly but,

more importantly, there will be a huge rise in the numbers of people aged

over 70.

Table 5 - Forecast population change by age band in Bury,

2006 - 2021

Source: Bury LHMA 2008


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Jewish Housing Needs

The Jewish community represents one of the largest minority groups in

the Borough, accounting for 5% of the total population. Members of both

the Orthodox and non-Orthodox communities are found predominantly in

the Prestwich Township to the south of the Borough and Broughton Park

in Salford. This group is the largest Orthodox Jewish community outside

London (Census, 2001).

A study commissioned by Salford Council in 2008 to increase awareness of

the housing needs of the Orthodox community in north Manchester

identified an average household size of 5.9 persons, significantly higher

than the overall average of 2.5 in the North West. Affordability is a

significant issue in the Orthodox Jewish Community. Land Registry data

shows that house prices in this locality are 48% higher than the average

in Bury, with a four bedroom property costing in the region of 300,000,

compared to an average household income of 27,000. As a result,

16.7% of Orthodox Jewish households in Bury are overcrowded, compared

to 4.9% in the community as a whole (Orthodox Jewish Community

Housing Needs Study, 2008).

Table 6 - % of Overcrowding in the OJ Community compared

to council area as a whole

(Source: Jewish HNA, 2008)


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While ensuring that we do not show any undue bias to meeting the needs

of any particular section of the community when making decisions

regarding the provision of affordable housing in the Prestwich area, we

will be mindful of the likely increased demand for larger properties.

The specific Jewish housing needs have been raised with the Council

through contact from community leaders, the Jewish Housing Association

and the Jewish Federation (formerly Heathlands). In addition, the Council

is in regular contact with colleagues in Salford and Manchester as the

community extends into these areas. The housing needs of this group will

also be considered in greater detail in a separate strategy for vulnerable

people currently being developed.

Housing Needs of Homeless People

One of the most visible needs for affordable housing is homelessness.

People are believed to be homeless if they have nowhere to stay or will

have nowhere to stay in the next twenty eight days. There are many

reasons why people become homeless. These include loss of employment,

lack of suitable affordable housing, divorce, long-term illness and many

other factors. Since access to private housing depends upon the ability to

pay, homeless people can become excluded because they cannot pay a

deposit or afford rent without Housing Benefit.

We have recently updated our Homelessness Strategy and will work

closely with our partners to increase the range of housing options and

develop more preventative services.

Housing Needs of Gypsies and Travellers

A report from the Race Equality Foundation states that there are an

estimated 300,000 Gypsies and Travellers in the UK, with 5,000 families

currently living on unauthorised sites. According to the report, 90 per

cent of planning applications for Gypsies and Travellers sites are turned

down to avoid angering local residents. Many are forced to move into

flats and experience high levels of discrimination from neighbours and

local services (Inside Housing, July 2009).


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Bury has a population of 1,097 Gypsies and Travellers, some of whom

have taken up residence on a Gypsy and Traveller Caravan Site at Every

Street, Bury. There are 17 pitches, 10 of which are single and 7 are

double. The remainder tend to be living in the poorest quality housing as

alternative accommodation/land is often unaffordable. A Gypsy and

Travellers Accommodation Assessment (GTAA) was carried out by the

Association of Greater Manchester Authorities (AGMA) in 2008 to

determine the accommodation requirements for Gypsies and Travellers.

The assessment indicated an additional requirement of 40 pitches within

the Borough up to 2016.

Housing Needs of Travelling Showpeople

In addition, local authorities are also obliged to ensure that the housing

needs of Travelling Showpeople are met. National guidance clearly states

that local authorities should make provision for Travelling Showpeople

where there is evidence of need. This guidance is primarily contained in

Circular 04/2007 Planning for Travelling Showpeople.

Bury has a population of 19 Showpeople, many of whom have taken upresidence on a 20 plot site in School Street, Radcliffe. According to a

GTAA in 2008, there is requirement for an additional 10 permanent plots

within the Borough up to 2016.

Planning Policy and other Council Strategies will need to consider the

accommodation needs of these communities.


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Looking at affordable housing in terms of tenure and size, around 60% of

all demand is for owner occupation (which could include discount market

housing). A further 22% is for intermediate housing which includes

shared ownership and social rented accommodation as illustrated in Table

7 below.

Table 7 - Total Demand by Tenure and Size Required

Size requirement

Tenure 1 bed 2 beds 3 beds 4+ beds TOTAL

Owner-occupation 357 1,533 2,107 868 4,864

Private rented 303 543 426 186 1,457

Intermediate 571 588 407 141 1,708

TOTAL 1,230 2,664 2,940 1,195 8,029Source: Bury LHMA 2008 (Combination of Data Sources)

Table 8 shows affordability by township for all households in the borough

and illustrates some marked differences. More than 30% of households in

Prestwich, Whitefield and Radcliffe would be unable to afford private

housing, compared to only 7.5% of households in Tottington and 16.4% in

Ramsbottom4.

Table 8 - Affordability by Township

Township

Unable to

afford private

housing

Number of

households in each

Township

% of hholds

unable to

afford privatehousing

Bury East & West 7,791 28,895 27.0%

Prestwich 4,339 13,121 33.1%

Radcliffe 4,499 14,720 30.6%

Ramsbottom 1,111 6,782 16.4%

Tottington 356 4,777 7.5%

Whitefield 2,940 9,205 31.9%

TOTAL 21,036 77,500 27.1%(Source: Bury LHMA 2008 Household Survey Data)

4 Households are tested against the prices and rents in the area in which they currently live.


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6.0 Deliverability - How Demand Will Be Met

The need for more affordable housing is a nationwide concern and a key

priority for Bury Council. According to the Barker review of housing

supply in 2004, the number of households across the UK increased by 5

million between 1971 and 2001 due to natural population growth and

social change such as inward migration and people living longer. Although

developers have continued to build new homes, they have not been able

to build enough to keep up with demand5.

As demand increases, house prices are driven up and it has become

increasingly difficult for many people, particularly first time buyers to find

a suitable home they can afford. In Bury, this has been further

exacerbated by the loss of stock through the Right to Buy initiative (see

graph 3) and, more recently, the restriction of credit and tougher lending

requirements. Therefore, it is vital that we implement this strategy and

do everything we can to facilitate the development of new affordable

homes across the Borough.

The Affordable Housing Strategy will help us to make best use of the

opportunities that are becoming available and will also help us to plan for

affordable housing delivery in the longer term. A five year action plan has

been developed to reflect our goals and this will be reviewed annually by

the Housing Strategy & Enablement team in conjunction with the Councils

Planning Department.

Partnership working is central to the delivery of the strategy. The

objectives of this strategy are more likely to be achieved if there is strong

inter-agency working at a local level.

5Kate Barkers review of housing supply, 2004.


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We will seek to deliver affordable homes through:

Partnership Working.

Use of Communal Assets.

Government Initiatives.

Urban Renewal.

Planning.

Joint Commissioning Partnership.

In January 2008, the Council reviewed its Joint Commissioning

Partnership, selecting Great Places Housing Group, St Vincents Housing

Association and Johnnie Johnston Housing Trust to work with in order toprovide new affordable housing opportunities in the Borough over the next

five years. Since 2004, 129 affordable homes (a combination of special

needs and general needs housing) have been developed in the Borough

using a mixture of Government subsidy and our partners own funds (see

Appendix 2). All of these homes have been successfully allocated to

people in the Borough under the Nominations Process. In addition, Six

Town Housing has been given developer status and was allocated the

highest single National Affordable Housing Programme allocation in the

Greater Manchester region during 2010.

It is the Councils intention to work with these organisations to ensure an

open, collaborative and joined up approach to affordable housing

development in the Borough. By focussing activity through a small

number of organisations it is hoped that more effective, strategically-

evidenced bids can be submitted for external funding, such as the

National Affordable Housing Programme (NAHP). Similarly, a more

cohesive approach to the management of rented/shared ownership units

obtained through Section 106 Agreements will help to continue to improve

private developer confidence in the Councils Affordable Housing Policy.


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We also recognise that there are 17 housing associations with stock in the

Borough. As not for profit organisations, they can access private finance

to develop a range of affordable housing types. Organisations such as

Clough Homes (a recently established subsidiary of Prestwich & North

Western Housing Association) are seeking to develop new housing through

their own, non-grant funded initiatives. The Council will continue to

maintain strong relationships with such organisations individually and

collectively through the Housing Association Liaison Group.

Use of Communal Assets.

The Council has a substantial land and asset holding across the Borough.

Our overall approach to managing these land and asset holdings isoutlined in our Asset Management Plan 2007-2010. However, in the case

of Council owned garage colonies, a detailed study has been undertaken

to determine their future and plan for on-going maintenance and

management requirements. The study has identified potential garage

sites that may be suitable for new affordable housing development.

Delivering Affordable Housing through Government

Initiatives.

The Government have developed a number of initiatives to help

households into affordable home ownership:

HomeBuy Direct

HomeBuy Direct is the latest HomeBuy

product which is offered on selected new

build schemes, following an assessment

of bids from developers supported by the

Council. HomeBuy Direct is partly funded

by the Government and partly funded by

the developer in the form of an equity

loan. As a result, applicants would only require a 5% deposit for

mortgage purposes, compared to a 25% deposit if they were buying the

property privately.


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Bury Council is working in partnership with Plumlife (part of Great Places

Housing Group) to promote the scheme to Bury residents and facilitate

occupation of the new dwellings. Since the start of the scheme in 2008,

12 Bury residents have purchased a home through HomeBuy Direct.

Further information on the HomeBuy product can be found on the HCA

Website at www.homesandcommunities.co.uk/home_buy.

Kickstart

The Kickstart Housing Delivery Programme was announced in the 2009

Budget, to unlock sites which had stalled owing to the recession. The

package includes funding for HomeBuy Direct and affordable housing

grant in mixed tenure housing developments.

The Council recently supported a bid from Prospect GB for the

development of 27 two, three, four and five bedroom affordable homes in

the Pimhole area of East Bury. This is a real opportunity to transform the

Pimhole neighbourhood and create a sustainable community where people

will be proud to live. In addition, the Council supported another bid onbehalf of Persimmon Homes, for the development of 27 affordable homes

in Tottington. Both bids were successful and the new homes are currently

under construction.

Homes and Communities Agency Funding (HCA).

Whilst not being seen as an area in greatest need, Bury has strived to

develop strong relationships with the HCA (formerly the Housing

Corporation) and raise its profile in the region/sub region. This has

resulted in a number of schemes receiving funding in recent years.

National economic factors have seen these funds reduced significantly in

2011 and it is likely that this situation will continue for some years.

Despite this set-back, we will continue to work with the HCA to maximise

the availability of any funding opportunities which may present

themselves, as part of a wider menu of existing and new options for

providing affordable housing in the Borough.


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To date, 214 affordable housing units have been secured through the

planning process under Section 106 Agreements (see Local Policy

Achievements in Appendix 3). 96 are complete (14 on hold) and the

majority of these (80%) are occupied by households who would not have

been able to afford to occupy them otherwise. The remaining units are

currently available to applicants on the Affordable Housing Scheme. A

further 104 units are likely to come forward on sites that are currently

under construction or have an extant planning permission over the next 2

3 years. This will go some way towards meeting our target for

affordable housing in the Borough.

There are also a number of sites that have secured outline planning

consent. This means that the principle of residential development on

these sites has been established but the details (e.g. house numbers,

layout and design) have yet to be determined. Some of these sites are

large sites which have the potential to deliver a significant amount of

housing, including affordable housing. They include sites like the East

Lancashire Paper Mill, which could deliver up to 550 units and the Coney

Green School site, which could potentially deliver up to 330 units.

However, it should be noted that housing development across the

Borough, like much of the country, has significantly slowed down in recent

months. Therefore, many of the sites that have secured planning

permission may not come forward as quickly as they have done in the

past.

Commuted Sums

The legal obligation that secures affordable housing on a particular site

(normally a Section 106 Agreement) seeks to ensure that the affordable

housing units remain affordable in perpetuity. For example, households

purchasing an affordable housing unit with a 25% discount off the Open

Market Value (OMV) will have to sell the property with the same level of

discount at the point of sale. However, if an affordable housing unit is not

sold within ten weeks of completion, the developer may sell the property

on the open market and pay a commuted sum to the Council equivalent


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to 25% of the value. The Council has accumulated 477,084.50 in

commuted sum payments since the introduction of the Affordable Housing

Policy in 2004.

Commuted sum payments are ring fenced for affordable housing provision

in the Borough. They can be used for initiatives that support the delivery

of affordable housing in accordance with the priorities set out in our

Housing Strategy, the Affordable Housing Strategy and other key

strategies such as the Empty Property Strategy and Older Persons

Strategy.

Implementation

The Council has developed an Affordable Housing Scheme to facilitate the

provision of intermediate affordable housing to individuals and families

whose needs are not met by the private housing market. Details of the

scheme (including the eligibility criteria) can be found in Appendix 4 of

this strategy.

Future Local Planning Policy

The UDP is currently in the process of being replaced by the Local

Development Framework (LDF) under new legislation. The emerging LDF

will include a new Affordable Housing Policy, which will replace the

existing UDP Policy H4/1. In effect, the DCPGN5 will no longer be

applicable. However, an updated supplementary planning document will

be developed to support the new Policy. Nevertheless, the mechanisms

outlined in this strategy for affordable housing delivery through Section

106 Agreements will still be relevant.

Economic Viability

One of the new key elements contained in PPS3 is the requirement that

local targets for affordable housing should reflect an assessment of the

likely economic viability of land for housing within the area, taking into

account the risks to delivery and drawing on informed assessments of the

likely levels of finance available for affordable housing, including public


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the target for social rented and intermediate affordable housing

should be split equally (50% each) as social rented housing has

more of an impact on viability issues7; and

any policy approach must continue to ensure an element of

flexibility as no two sites are the same and there will be different

viability issues on different sites. The onus is on an applicant to

demonstrate why the above targets cannot be delivered in their

scheme.

These targets will be reflected in the emerging LDF.

7 As part of the AHVS, LSH consulted with housing associations operating within the Borough. The

aim of the consultation was to establish the amount they could afford to pay for social rented andintermediate housing through Planning. They suggested that they could afford to pay no more than

35% of open market value for social rented accommodation and no more than 67% of open marketvalue for intermediate housing.

Key issues: Reduction in funding.

Decline in the number of new homes being built.

Emerging new Affordable Housing Policy.

Economic viability.

Empty properties.

Preventin re ossessions.


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7.0 Resources

The Council will continue to seek to maximise resources for the provision

of new affordable housing in the borough. Affordable housing units have

previously been provided through a mix of National Affordable Housing

Programme (NAHP) grant from the Homes & Communities Agency (HCA),

Section 106 agreements in conjunction with private developers, excellent

relations with social landlords forming Burys Joint Commissioning

Partnership (JCP) and through the use of Council owned land and

borrowing ability.

The following information summarises the resources we will use to help us

deliver the priorities of this strategy.

NAHP Grant

Bury has developed excellent relationships with officers from the HCA over

the last few years, raising awareness on a regional level of the importance

of affordable housing investment in the borough. After a period where

virtually no external funding was forthcoming, the last three years have

seen a return to levels of external investment which are close to those

observed in the late 1990s and early 2000s. The flagship scheme

attracting NAHP funding in recent years, is the 2.9m allocation for the

development of a 40-unit extra care scheme on the site of the former

residential care home, Red Bank in Radcliffe.

However, it is important not to become complacent over access to this

type of funding. Whilst Red Bank was one of the largest single allocations

nationally in 2010, and the single highest allocation in the Greater

Manchester region, there is a continuing need to champion the Bury

cause. Significant reductions in funding after the announcement of the

Comprehensive Spending Review will undoubtedly place increasing

pressure on Council resources. Coupled with the ending of funding for the

Housing Market Renewal Pathfinders and potential move towards a more


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open to all new delivery options if it is going to be able to discharge its

duties to people in the greatest housing need.

Key Challenges/Risk

The number of new homes being built has slumped to its lowest level

since the Second World War with just 123,000 built nationally in

2009/2010. Demand for affordable housing has risen sharply and the

number of people on housing waiting lists has almost doubled over the

last 13 years.

With mounting pressure on resources, there will be increasing demands

on how our assets are used. Therefore, it is important that the need for

affordable housing continues to be raised locally, and workable solutions

are identified for future use of assets.

The Localism Bill contains a radical package of reforms to affordable

housing, with a fundamental shift of power from Whitehall to councils and

local communities. The new measures include:

Flexible Tenancies

A new flexible tenancy will be introduced in April 2011 in an effort to drive

down social housing waiting lists. Councils and housing associations will

have the flexibility to offer new social housing tenants a minimum two

year fixed tenancy to make better use of the housing stock. The new

system is designed to protect the most vulnerable in society, ensuring

those in greatest housing need are given priority. However, a balance will

need to be struck between supporting those in greatest need and

maintaining stable communities. The Council would not wish to make

neighbourhoods unsustainable because of a high turnover of Council

tenants.


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9.0 Glossary of Terms

Affordable Housing.

Housing which is available for either rent or shared ownership at below

market levels or, housing which is available for either rent or sale at adiscount compared to open market value.

Barker Review.

Dr Kate Barkers review of housing supply commissioned by H.M. Treasury

and the Office of the Deputy Prime Minister (ODPM) in 2004.

Dwelling

A self-contained unit of accommodation, where all rooms and facilities

available for the use of the occupants are behind a front door.

Empty Property StrategyAction directed at bringing empty properties back into use, this includes

commercial and residential properties.

Homes and Communities Agency (HCA)

The national housing and regeneration agency for England.

Household

One person living alone or a group of people who share common

housekeeping or a living room.

JCP (Joint Commissioning Partners).A group of selected social housing providers working with the Council to

achieve joint outcomes.

LDF (Local Development Framework).

The planning system that will deliver sustainable development in Bury

over the next 15 to 20 years.

PPS3 (Planning Policy Statement 3).

A document which underpins the delivery of the Government's strategic

housing policy objectives to ensure that everyone has the opportunity to

live in a decent home they can afford, in a community they want to livein.

Registered Social Landlord (RSL)

Technical name for social landlords that are registered with the HCA. Most

RSLs are Housing Associations.

Right to Buy (RTB)

A statutory right for local authority tenants to buy their home at a

discount based on the length of time they have been a tenant.

Section 106 Agreement

A legally binding agreement between the Council and a developerregarding matters linked to the proposed development.


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10.0 Appendices

Appendix 1 - Documents informing this strategy

Affordable Housing Viability Study 2009.

Communities and Local Government, Delivering Affordable Housing,

http://www.communities.gov.uk/publications/housing/deliveringaffordable

housing

Council Stock Analysis Report, 2009.

Development Control Policy, Guidance Note 5: Affordable Housing

Provision in New Residential Developments, Jan 04.

AGMA Gypsy and Traveller Accommodation Needs Assessment2007/2008.

HSSA (Housing Strategy Statistical Appendix), 2010.

Housing Association Stock Analysis Report, 2010.

Joint Strategic Needs Assessment for Bury.

Local Housing Market Assessment, 2008.

Making Housing Count, 2006 - 2007.

Planning Policy Statement 3 (PPS3).

Regional and Sub Regional Housing Market Assessments 2008.

Review of Housing Supply, 2006, Kate Barker.

Study of Jewish Housing Needs, 2007.

The Housing Green Paper, 2007.

Topic paper 2: Housing (June 2010).


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Appendix 2 - Local Achievements through Partnership Working

Our partnership working has been successful in delivering new affordable

homes since 2008. The table below illustrates the quantity and location of

the units.

Site Total Number

of Units

Comments

Tulle Court,

Prestwich.

12 All units are special care units.

Fir Street,

Ramsbottom.

9 All units are special care units.

Glaze Walk,

Whitefield.

4 All units are general needs social rented

properties.

Bolin Walk,

Whitefield.


properties.

Redbank 40 All units are extra care units.

Greenbrook Mill,

Bury.

27 6 shared ownership units and 21 general

needs social rented properties.

Spring Street,

Bury.


units.

Bridgehall Drive,

Bury.


units (4 units have moderate

adaptations).

Total 129


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Brandlesholme

Road, Bury.

off OMV. All units

complete.

Hutchinson Way,

Radcliffe.

70 18 (25%) Units to have 25%

discount off OMV. Site

yet to commence.

School Street,Radcliffe.

28 7 (25%) Units to have 25%discount off OMV. Under

construction.

North Street,

Radcliffe.

36 9 (25%) Units to have 25%


yet to commence.

Albert Place,

Whitefield.

15 4 (45%) Units to have 30% off

OMV. Site under

construction.

Dil Se

Restaurant,

Bury.

15 4 (25%) Units to have 25% off

OMV. Site yet to

commence.School St/Sion

Street, Radcliffe.

22 6 (25%) Units to have 25%


yet to commence.

Total 919 214

(23.3%)

(Table 3: Source Planning: Annual Housing Land Monitoring Report, June 2010).


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Appendix 4 Affordable Housing Scheme Details.

Appendix 5 Affordable Housing Action Plan.