Housing Strategy & the Economy
Housing Services Forum March 2011
Background
• Having a new Housing Strategy is the right thing to do
– We have to have a strategic direction for Housing
• Legal Duty to produce a Housing Strategy
– Local Government Act 2003
• Last Housing Strategy produced in 2005
– It’s out of date now
• Milton Keynes Strategic Housing Partnership
– Set up in January 2010
Neighbourhood Services
Housing Strategy
For 2005-2008
January 2005
Objectives of the MK Strategic Housing Partnership
The Strategic Housing Partnership’s Strategic Objectives
1.
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5.
6.
7.
8.
The Council is an exemplar for the City in fulfilling its housing responsibilities.
We build and / or source the homes that current and future MK citizens need.
We have decent homes across all tenures.
We recognise the value of the private rented sector in the ongoing and sustainable
growth of the economy.
We regenerate those areas that need it.
Rented properties across all tenures are well managed, maintained and regulated.
We work across all traditional boundaries to create the resources we need to achieve the
outcomes the City requires.
We ensure that good design is at the forefront of our planning and delivers the highest
standards for the community.
Vision
• The Vision of the Strategic Housing Partnership is as
follows:
Right Home, Right Place, Right Person, Right Time
• It’s all about trying to “get it right”
• The Vision will be a key part of the Housing Strategy
The Objectives & Vision summarised into “3 Themes”
•
1) Building New Homes
– Core Strategy target = 1,750 new homes each year
•
2) Making the Best Use of Existing Homes
– Standards currently being developed
•
3) Supporting Our Residents
– 2.7% of households have health problems and their homes are
unsuitable for them
The new three part Housing Strategy
•
Three Documents will make up the Strategy:
1. Housing Strategy
– A short document that sets out the Vision, Objectives etc
2. Housing Strategy Action Plan
– Updated regularly and reported back to the Strategic Partnership
3. Local Investment Plan
– Sets out the resources available for delivering the Strategy
So what has Housing Strategy got to do with the Economy?
• Housing is often seen as a barometer for the
state of the economy1
• The type and quality of housing in an area can
have a significant impact on the health and
wealth of places
• The ability of a place to attract and retain people
and provide support for those who need it relies
on:
– Good housing and
– Attractive and inclusive neighbourhoods
• This what the Housing Strategy is all about
“Housing & Economic Development” Housing Corporation and Centre for Cities, November
2008
1
Housing Strategy and economic prosperity
• Getting the right housing (including
affordable housing) will attract and retain
people with the right skills
• Having the right people with the right skills
is crucial for the economy
• This will then encourage inward investment
• Inward investment helps to create and
maintain jobs
• Investment projects to the value of £1bn are
currently underway in Milton Keynes2
2
Source: Invest Milton Keynes
Housing is also an economic activity
• Housing can be a powerful economic activity
in itself; for example:
– Jobs created by building new homes, or
refurbishing existing ones
– Jobs supported (such as DIY stores)
– Tax income (such as stamp duty)
• Local housing markets
– Income from property transactions
– Job creation e.g. estate agents
– Supports labour movement
But Housing can have a negative effect on the economy
• UK Housing Market – traditional pattern of
continuing demand outstripping supply
• Rising house prices
• Banking collapse Sep 2008 (Lehman Brothers)
– Remember the “subprime mortgages” problem in
the United States?
• “Credit crunch” (a crisis caused by banks being
too nervous to lend money to each other or to
people/businesses)
• More expensive & fewer mortgages
Global credit crunch
The New Housing Strategy
What do you think?
Any Questions?
Paul Gibson
Housing Policy & Development Officer
Tel: 01908-253109
E Mail: [email protected]