Affordable Homes ?
November 27th, 2007It’s worth looking at this in a bit more detail
The headline figures in the planning application talk about 57% of the development being affordable housing with only 43% being private use. This isn’t quite as good as it looks on the surface
From page 15 of the planning statement we are told
The tenure distribution is broken down into the following categories:
• general needs rented (25.4%);
• shared ownership; (5.4%)
• affordable LWI; (5.0%)
• general LWI; (21.3%) and
• private sale (42.9%)General needs rented, shared ownership and affordable LWI will be made permanently available as rented/reduced cost housing and as such are designated as an affordable housing against regional and local Policy. General LWI housing will initially be offered to specific Key Worker groups who neither can afford to compete for general market housing nor qualify under regular shared ownership schemes. However in the event that these units are not taken up as initially intended, they will then be offered for private sale. However, whilst not conforming to strict Policy guidelines, these units do provide ‘affordable’ housing and therefore the overall offer for the site equates to 57% of the overall provision.
So out of the 57.1% that is said to be ‘affordable’ only 35.8% actually complies with the official definition of affordable, the remaining 21.3% will ‘initially’ be offered to key workers but the developers are under no obligation to retain them for key worker use, or even sell them initially to key workers. Estimates by people who work in housing associations in London say that out of those who cannot afford to meet the costs of full market housing, only 7% of this group can afford to meet the cost of ‘intermediate’ housing (i.e. key worker housing schemes). So there is a very high chance that the majority of these so called ‘key worker’ homes will end up being sold on the open market due to the inability of those they are aimed at being able to afford them. Additionally under the rules of the London Wide Initiative (LWI) buyers can sell their house on the open market at any time and there is no mechanisms in place to ensure that these homes are continued to be made available to key workers/low income families
Setting that aside though, some might say, there’s still at least 35.8% of new homes which firmly meet the official definition of affordable homes. Yes this is good, but it’s actually way below the level that the local authorities should be providing. The Mayor of London in his London Plan has indicated that 50% of all new housing should be affordable.Lewisham’s record to date so far in this area (according to the latest monitoring report in Feb 07), shows that only 3.8% of new builds were socially rented/affordable which ranks as one of the worst out of all the boroughs in London. The provision of 35.8% of affordable housing from the greyhound site is commendable, however looking at the figures it’s clear that this provision is still miles away from what even the Mayor of London says they should be providing.
Additionally those who are able to qualify for the London Wide Initiative (LWI) proportion (i.e. the 21.3% of so called ‘affordable housing’) are allowed to buy the homes even if they have a combined household income of up to £60,000, so they are not exactly aimed at the lowest of the low paid.
Clearly Lewisham council doesn’t even try to hide the fact that it is not prepared to comply with the Mayor of London’s plan to achieve 50% ‘affordability’ of all new builds, and this can be seen from their own documentation:-
On page 73 of the Catford Town Centre Area Action Plan - Preferred Options report, it quite clearly states that the Mayor of London in his London Plan states that 50% of all new housing should be affordable.
On page 78 of the same report, Lewisham Council state that the percentage of affordable housing of the 11,700 new homes that are planned to be built in the borough between now and 2016 will be set at 35% (i.e. a lot less than the 50% target set by the Mayor)
However it gets worse, on page 13 of the Transport Assessment document it refers to 11,178 new homes being built in the period between now and 2016 (not sure why it’s 11,178 as it should be 11,700 per the other report). However it then states on page 14 that only 2,800 affordable homes will be made available in the period between now and 2016. That only represents 25% of total new builds.
So to recap, the mayor of london says 50% of new homes built should be affordable, Lewisham stick two fingers up to him and say they will only ensure 35% will be affordable, however digging in the detail reveals that actually only 25% is targetted to be affordable.
(edit: as the greyhound development is providing 35.8% of affordable homes and the overall target identified by Lewisham for the borough as a whole is 25%, the implication for the other developments in the area (which are sited in more attractive locations) is that the affordable housing provision for these will be even less than 25%, so even further away from the Mayor’s target of 50%)