Planning for Intermediate Housing Cornwall Council - Amazon Web ...
Planning for Intermediate Housing Cornwall Council
Louise Dwelly Strategic Affordable Housing Manager
Working well ?
Conflicts and Barriers • • • • • •
Traditional and outdated policy frameworks Meeting local need Politics (or officers ????) Breadth of PPS3 and definitions DPA Intermediate products – don’t align with affordability
Conflicts: the national products Homebuy • Affordability in rural areas • Valuations • Eligibility policies • Staircasing and recycling receipts • Rental and service charges • Creating cross subsidy ? First Buy • A different role
Conflicts:
• • • • • • •
Length of cascades Lenders and MIP Liaison between Homebuy agent and LA officers IT systems – ability to assess local connection Secondary markets DPA New localism agenda
Conflicts: affordability • • • • •
High value areas Valuation methodology Percentage charged on rent Assumptions about shares in schemes Negotiating with developers on s106 sites and cross subsidy • £60 k income cap • Lending rates for shared owners • Other costs for buyers
Conflicts: coping with changes in market conditions • Cornwall – undergoing significant change in market conditions • Dealing with falling values • MIP and repossession, secondary markets • Marketing strategies and low demand • Lending conditions • Tenure switches
THE CORNWALL EXPERIENCE 1. resources
• New Council ! • Team based within Planning Service • 18 staff including 3 affordable housing planners • Limited capital programme £5 million • Delivery 800-1000 homes, 20-25% intermediate • 123 elected members, 213 parishes
A new relationship with 213 parishes Cornwall had to get it right early
THE CORNWALL EXPERIENCE 2. Managing a changing market
Past trends: • Traditional low-medium value market • The average house price rose from £53,736 in April 1996 to £ 210,322 in April 2008, a staggering 391% increase in twelve years. • Affordability hot spots of up to 30% • Prime market for intermediate housing • Flexible lending • Growth in intermediate products Low cost sale Land trusts and self build Private equity mortgages
Managing a changing market Post 2008 House price falls Lenders left the low cost sales market Greater scrutiny of s106 clauses Concern about trapped purchasers Tenure switching Loss of political support
Housing need in Cornwall – home ownership is still an important part of the local market... Housing register data (19,000)
rented housing potential purchasers
THE CORNWALL EXPERIENCE 3. Solutions • Solve the legal issues and make lending more attractive • New products to respond to market conditions • Build new relationships (IFAs/lenders) • More flexibility in rural areas
THE CORNWALL EXPERIENCE 3. Solutions Review of s106 agreements • Model clauses published on the website • Review of cascade periods • New MIP clause • Endorsement from HCA • New protocol for processing Deeds of Modification / revocation • Fast track for single dwellings
THE CORNWALL EXPERIENCE 3. Solutions Rural areas • Not easy to achieve • DPAs lifted but not in all cases • Departures / cross subsidy policy to fund schemes without grant
THE CORNWALL EXPERIENCE 3. Solutions Flexibility on new products • • • •
First buy Rent to buy Private equity loans LA equity loan
THE CORNWALL EXPERIENCE 3. Solutions LA equity loan Developed with the HCA Variant on First Buy How to deliver if o no appetite for mortgages o limited funds to invest Uses planning gain Delivers open market homes at a specified discount Council is conveyed a second charge
What we want from providers • Enhanced market intelligence – New strategic information sources
– Understanding the customer profile (size and mix of dwellings houses with gardens !!) – Marketing strategy
• Time to innovate? – Deposits – Rent to buy schemes – Equity loans – Need to review rural homebuy (limited demand / high values local community conflicts around cascades and affordability) • Greater focus on secondary markets • Future of homebuy agents
Louise Dwelly Strategic Affordable Housing Manager
Working well ?
Conflicts and Barriers • • • • • •
Traditional and outdated policy frameworks Meeting local need Politics (or officers ????) Breadth of PPS3 and definitions DPA Intermediate products – don’t align with affordability
Conflicts: the national products Homebuy • Affordability in rural areas • Valuations • Eligibility policies • Staircasing and recycling receipts • Rental and service charges • Creating cross subsidy ? First Buy • A different role
Conflicts:
• • • • • • •
Length of cascades Lenders and MIP Liaison between Homebuy agent and LA officers IT systems – ability to assess local connection Secondary markets DPA New localism agenda
Conflicts: affordability • • • • •
High value areas Valuation methodology Percentage charged on rent Assumptions about shares in schemes Negotiating with developers on s106 sites and cross subsidy • £60 k income cap • Lending rates for shared owners • Other costs for buyers
Conflicts: coping with changes in market conditions • Cornwall – undergoing significant change in market conditions • Dealing with falling values • MIP and repossession, secondary markets • Marketing strategies and low demand • Lending conditions • Tenure switches
THE CORNWALL EXPERIENCE 1. resources
• New Council ! • Team based within Planning Service • 18 staff including 3 affordable housing planners • Limited capital programme £5 million • Delivery 800-1000 homes, 20-25% intermediate • 123 elected members, 213 parishes
A new relationship with 213 parishes Cornwall had to get it right early
THE CORNWALL EXPERIENCE 2. Managing a changing market
Past trends: • Traditional low-medium value market • The average house price rose from £53,736 in April 1996 to £ 210,322 in April 2008, a staggering 391% increase in twelve years. • Affordability hot spots of up to 30% • Prime market for intermediate housing • Flexible lending • Growth in intermediate products Low cost sale Land trusts and self build Private equity mortgages
Managing a changing market Post 2008 House price falls Lenders left the low cost sales market Greater scrutiny of s106 clauses Concern about trapped purchasers Tenure switching Loss of political support
Housing need in Cornwall – home ownership is still an important part of the local market... Housing register data (19,000)
rented housing potential purchasers
THE CORNWALL EXPERIENCE 3. Solutions • Solve the legal issues and make lending more attractive • New products to respond to market conditions • Build new relationships (IFAs/lenders) • More flexibility in rural areas
THE CORNWALL EXPERIENCE 3. Solutions Review of s106 agreements • Model clauses published on the website • Review of cascade periods • New MIP clause • Endorsement from HCA • New protocol for processing Deeds of Modification / revocation • Fast track for single dwellings
THE CORNWALL EXPERIENCE 3. Solutions Rural areas • Not easy to achieve • DPAs lifted but not in all cases • Departures / cross subsidy policy to fund schemes without grant
THE CORNWALL EXPERIENCE 3. Solutions Flexibility on new products • • • •
First buy Rent to buy Private equity loans LA equity loan
THE CORNWALL EXPERIENCE 3. Solutions LA equity loan Developed with the HCA Variant on First Buy How to deliver if o no appetite for mortgages o limited funds to invest Uses planning gain Delivers open market homes at a specified discount Council is conveyed a second charge
What we want from providers • Enhanced market intelligence – New strategic information sources
– Understanding the customer profile (size and mix of dwellings houses with gardens !!) – Marketing strategy
• Time to innovate? – Deposits – Rent to buy schemes – Equity loans – Need to review rural homebuy (limited demand / high values local community conflicts around cascades and affordability) • Greater focus on secondary markets • Future of homebuy agents
