Affordable Home Ownership
Affordable Home Ownership Sarah Ward Assistant Director Housing and Contracts Exeter City Council
Introducing Exeter •
•
• •
Housing costs are high: –
Average house price for a 3-bed is £210,000, around ten times the average income of £21,956
–
Rent levels are joint highest in SW – 46% take home pay
A huge 38% of households rent: – –
62% owner-occupied 21% privately rented
–
17% social rented
Housing benefit is received by only 18% of households So more than half the households currently renting (10,000) should be able to buy?
Exeter’s strategic approach The Council’s strategy is to: • increase the number of homes in the city –
450 homes a year built in Exeter since 2008 on average
•
increase the number of social rented homes in the city – 90 social rented homes built in Exeter each year on average
•
increase the % of owner occupied homes against private rented homes –
2007: 66%; 2010 : 62%
Housing Need in Exeter Our priority is social rent……… •
Social rent – is considered to be the greatest housing need in Exeter – 43% of new build
•
Right to buy – reduces existing social rented stock – We invest heavily in enabling and building new social rented products
•
HRA reform – Enables council own build again – Now able to retain additional RTB receipts for investment in new affordable rented homes
Housing Need in Exeter …but Affordable Home Ownership is important – Overall requirement for 5,294 units of housing – 16.6% (877) for intermediate housing – Affordable home ownership is not as affordable as some intermediate products – Yet clear demand : 380 applicants registered
Affordable Home Ownership - Our Role • Right to Buy
– Discounted purchase of social rented stock
• S106 sites
– Delivery of affordable housing – 30% of the affordable housing provision to be intermediate housing (including affordable home ownership)
AHO activity as a proportion of other housing activity
Right to Buy Trends
Shared Ownership Trends
Threats……. •Growth and Infrastructure Bill – no outstanding consents in Exeter •NIMBYism - Not In My Borough Yet •s106 delivery wholly dependant upon developers bringing forward sites – no development appraisal at 25% plus two year cap •Demand affected by limited mortgage availability and increased deposit requirements ?!
…. And opportunities •
Exeter developers offering Firstbuy: £280m extension of the FirstBuy equity loan scheme helps support overall site viability
•
s106 sites: In 2012, planning permission granted for 109 shared ownership units on 7 sites
•
£8m Exeter & East Devon Growth Point Local Infrastructure fund
Exeter: Stronger Together • • • • •
Cross-party commitment to new development and affordable housing Strategic management team focussed on development – New Homes Bonus helps! Excellent joint working between planning and housing teams Investment in skills and capacity of enabling team Exploring new financial and operational models to overcome barriers
Introducing Exeter •
•
• •
Housing costs are high: –
Average house price for a 3-bed is £210,000, around ten times the average income of £21,956
–
Rent levels are joint highest in SW – 46% take home pay
A huge 38% of households rent: – –
62% owner-occupied 21% privately rented
–
17% social rented
Housing benefit is received by only 18% of households So more than half the households currently renting (10,000) should be able to buy?
Exeter’s strategic approach The Council’s strategy is to: • increase the number of homes in the city –
450 homes a year built in Exeter since 2008 on average
•
increase the number of social rented homes in the city – 90 social rented homes built in Exeter each year on average
•
increase the % of owner occupied homes against private rented homes –
2007: 66%; 2010 : 62%
Housing Need in Exeter Our priority is social rent……… •
Social rent – is considered to be the greatest housing need in Exeter – 43% of new build
•
Right to buy – reduces existing social rented stock – We invest heavily in enabling and building new social rented products
•
HRA reform – Enables council own build again – Now able to retain additional RTB receipts for investment in new affordable rented homes
Housing Need in Exeter …but Affordable Home Ownership is important – Overall requirement for 5,294 units of housing – 16.6% (877) for intermediate housing – Affordable home ownership is not as affordable as some intermediate products – Yet clear demand : 380 applicants registered
Affordable Home Ownership - Our Role • Right to Buy
– Discounted purchase of social rented stock
• S106 sites
– Delivery of affordable housing – 30% of the affordable housing provision to be intermediate housing (including affordable home ownership)
AHO activity as a proportion of other housing activity
Right to Buy Trends
Shared Ownership Trends
Threats……. •Growth and Infrastructure Bill – no outstanding consents in Exeter •NIMBYism - Not In My Borough Yet •s106 delivery wholly dependant upon developers bringing forward sites – no development appraisal at 25% plus two year cap •Demand affected by limited mortgage availability and increased deposit requirements ?!
…. And opportunities •
Exeter developers offering Firstbuy: £280m extension of the FirstBuy equity loan scheme helps support overall site viability
•
s106 sites: In 2012, planning permission granted for 109 shared ownership units on 7 sites
•
£8m Exeter & East Devon Growth Point Local Infrastructure fund
Exeter: Stronger Together • • • • •
Cross-party commitment to new development and affordable housing Strategic management team focussed on development – New Homes Bonus helps! Excellent joint working between planning and housing teams Investment in skills and capacity of enabling team Exploring new financial and operational models to overcome barriers
