Woodside proposals
Homes for Our Children?
A 15-year wait?
• Sheffield Property Shop (paper advertising
council vacancies) last week (21.2.07)
• 2 3-bed houses on Earldom – Arches, at
affordable rents
• One for priority applicants only
• Other 15 year minimum waiting time!
How did we get here?.........
Sheffield House Prices
• House prices in Sheffield have more than trebled
in the past decade
• The 2004 Housing Needs Survey found that
58% of Sheffield households could not afford the
cheapest available housing at £62,000
• The cheapest housing today is around 50%
more expensive
• NHF predict rises well ahead of inflation and
wages to continue 2007-12 (another 50%)
Priced Out
• The 2004 Housing Needs survey found
that around 35,000 Sheffielders were
inadequately housed and unable to afford
private housing (rent or freehold)
• The 2007 survey is likely to find a much
higher figure
S3 Housing Market
• Current prices for a 1-bed property in S3
averages £104,721
• Average property price in S3 is over 6X
average income (£19,000)
• 51% of S3 residents live in social rented
housing (34% in S4)
Falling supply
• In the early 1980s there were around
95,000 council properties in Sheffield
• Today there are around than half that
number
• Most sold under Right-to-Buy. 8,000+ due
to demolition – like Woodside
Demolition
1600
1400
1200
1000
800
600
400
200
0
96/7
97/8
98/9
99/00
00/01
2001/2
2002/3
2003/4
2004/5
2005/6
Total demolition 1996/2006 7,994 homes.
Over 1,000 of these in Burngreave ward
The local plans
• Woodside – 200 new homes. I5%
affordable. “About 17” for rent. Once over
400 homes.
• Shirecliffe 10-20% “affordable”. About 18 out of 90. But
none of these for rent (most 75% of market value ie NOT
affordable)
• Upwell Street. 50 homes. 0 affordable
• Ellesmere. 50 homes. 15% affordable “mix” – ie about 8
• Earl Marshall. 53 homes. 20% affordable – ie about 11.
Total for Burngreave ward
• Altogether 443 new homes. About 71 affordable.
About 20-30 of these for rent
• This gives us 20-30 affordable rented properties
in return for 1,000+ former council properties.
• Plus 40-50 for sale or “shared equity” many of
which not genuinely affordable.
Is this “mixed”? How much of this provides
for the children of local people?
Waiting List Gridlock
• Active Housing
waiting list figures
• Historical comparison:
March 1992 – height
of repossessions
crisis – 39,305
This is a crisis.
Nat Housing Fed “The housing
situation in Yorks and
Humberside is a timebomb…
Housing lists are rising faster
than anywhere in England”
60,000
50,000
40,000
Mar-01
Dec-04
Jan-07
30,000
20,000
10,000
0
March 2001
14,301
Dec 2004
41,679
Jan 2007
57,712
Lower turnover
• The 2005 Supply and Demand Review
highlighted another new trend. Reduced
stock turnover, due to fewer council
tenants moving out.
• Last four years available properties down
8,000 to 4,000
• Also, many vacancies taken up due to
demolition
Waiting List system
• Before 2005, Housing allocated on a 50/50
system. 50% for priority need. (Often
legally required to house)
• Too many in priority need plus less stock
meant priority applicants often waiting 6
months (4-week target)
• Today on 75/25 system.
• Once again priority waiting time 6 months
Two cases
• Bernard. Lives with wife and two children
(boy 7 mnths, girl 4) in a 1-bed flat. Earns
£7ph on nights. 4 mnths to get on priority
list. Then 6 mnths to wait while bidding.
Beccy has three sons. Lives in a 3-bed
property. Eldest is 19, and has been on
waiting list for 18 months. She wants to
know when he’ll get housed. ???
Gone from 50% of 8,000 to 25% of 4,000 for GWL…. 1,000pa with 57,000
looking
What needs to happen
• The 2004 Housing Needs Survey
calculated a need for 415 new affordable
homes per year.
• This based on underestimate of price
increases and overestimate of supply
• 2007 Housing Needs Survey, due this
year, likely to calculate a much higher
figure
What is happening?
• Between the 2004 and 2006 financial
years the council has built a total of 404
new homes defined as affordable, 267 for
rent.
• This is under half of the target set by the
2004 Housing Needs Survey
• Meanwhile another 2113 council homes
demolished
Why the shortfall
• HNS % target – 30% of all new build
• SSR % target – 30-39%
• Council target 15-25% (15% in HMR areas)
July 2006 Affordable Housing – Interim Planning Guidance (para 7.16)
“Members should be aware that setting the affordable housing
requirements at the levels suggested may not deliver the numbers of
affordable homes required to meet identified needs. It is also significantly
below the level being suggested in the draft Regional Revised Spatial
Strategy..However, in setting the required level of developer contribution, a
balance has been made between delivering the numbers of affordable
homes needed and the need to maintain overall levels of house
completions..required to support economic growth. The Council has also
submitted an objection to the proposed affordable housing requirement..
because of the likely impact on economic regeneration (my italics)
What can we afford?
• In just the 3 years 2003/4 to 2005/6
Sheffield Council took a total of over £121
million in Right-to-Buy receipts. 75% of
this is taken from HRA by Government.
• Under law introduced by Thatcher in 1980
none of our RTB receipts can be used to
fund new housebuilding. (£45bn)
• £121 million could pay for 1200 new
homes at £100k each (ie quality homes)
What can we afford? 2
• Council housing can pay for itself as loans
can be repaid from rental income. The
state can borrow cheaper than any private
firm. This is called “prudential borrowing”
• The Government has had to increase HB
payments to private landlords since 1980
by more than the amount saved in grants
to Council housing (HB up about £6bn
1980/1 to 2002/3)
What can we afford - 3
• “Moonlight Robbery”. About one third of
HRA budget is devoted to “Historic debt”.
But this hasn’t been reduced
proportionately with falling number of
tenants.
• Comprehensive Spending Review –
promises to allocate money for housing.
Recognising problem but never enough
(unlike budget for Trident and Iraq War)
Who else is saying this?
• For the last 3 years Labour’s conference
has demanded changes to the rules which
prevent council’s from borrowing and
using RTB receipts. DCH campaign.
• Last year unanimous
• Last year government conceded a review.
• NHF lobbying for step-change in funding in
Comp Spending Review 2007
• Should we be passive onlookers?
Labour Party 2006
• Passed unanimously:
Conference believes that decent, affordable, secure and accountable
council housing can make an important contribution to tackling growing
housing need and that there is strong support… for direct investment to
improving existing council homes and estates as well as enabling local
authorities to build new homes.
(This should involve) ring-fencing all the income from tenants rents, capital
receipts, as well as equal treatment on debt write off..
What is “realistic” and affordable
• Two starting points here:
• Either, we start from what is realistic and
affordable for social housing delivered by private
developers
• Or, we start from what is realistic and affordable
for people of Burngreave
• “Unrealistic” from this point of view is anything
that refuses to acknowledge the housing crisis
facing people in this community
Affordability
• Useful definition of “affordability” is 25% of
disposable income (HNS 2004)
• £90,000 home requires household income of
£40,000
• £300pcm housing cost requires income of over
£20,000
• Council’s “affordable” category doesn’t meet this
definition (eg Bernard, 25% is £50pw)
• Govt definition separates “affordable” category
from “low-cost market housing”. Sheffield blurs
it. (eg “affordable sale at £105,000)
Our demands? Suggestions:
• Firstly , 15% not enough
• Affordable means affordable (HNS definition)
• Redevelopments should at least reflect make up
of local community. (51% social rented)
• If RTB receipts released could build first-class
sustainable council estates
• Support NHF call for more funding and DCH call
for removing restrictions on Councils
Where next?
• Need to raise profile of issue in every way
possible.
• Keep adding to petition…
• “Our Land Not For Sale” festival?
• Elections… May council elections. Could
BCAF arrange a Housing Debate/hustings
and invite candidates from all parties
taking part?