Delivering Affordable Housing in Kingston Defining Affordable Housing

Delivering Affordable Housing in Kingston ▪Defining Affordable Housing ▪The housing need for Kingston ▪Influencing the delivery of Affordable Housing Darren Welsh- Head of Housing darren. welsh@kingston. gov. uk 0208 547 5430 Andrew Donaldson – Lead Officer , Housing Development andrew. donaldson@kingston. gov. uk 0208 547 5148 1

The population in Kingston is expected to grow by 50000 ( 23% ) by 2030 A few key facts Lower quartile purchase price in Kingston 1 Bed £ 225 k 2 bed £ 250 K 3 bed £ 400 k Average earnings in Kingston is £ 30, 035 pa Percentage of earnings allocated to housing is 30% Lower quartile private rental price in Kingston per month 1 bed £ 898 2 bed £ 1173 3 bed £ 1323 190 Affordable housing units were built in Kingston Town in the past 3 years 558 Affordable housing units were built in the borough in the past 3 years There are currently around 8500 applicants on the housing register 2

Defining Affordable Housing ‘’Affordable housing includes social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not met by the market’’ National Planning Policy Framework, Social Rent Housing owned by local authorities and Registered Providers, for which guideline target rents are determined through the national rent regime. Rents are typically set at around 5060% of local market rent. Affordable rent Rented housing let by registered providers of social housing at no more than 80 per cent of the local market rent. 3

Defining Affordable Housing (contd) Intermediate Housing at prices and rents above those of social rent, but below market price. Shared ownership Fixed equity Discounted market sale Starter Homes 4

What is a Starter Home? A home as being newly-built, for first-time buyers under the age of 40, and to be sold at a discount of at least 20% of the market value. The price of these homes has been capped at £ 450, 000 in London and £ 250, 000 across the rest of England. Starter Homes to be built on Brownfield sites not currently identified for housing The 20% reduction is to be retained for five years following the initial sale, after which the property will be sellable at full market rate. 5

Affordable Housing need Number seeking a 1 bed 4547 Number seeking a 2 bed 2525 Number seeking a 3 bed 1169 Number seeking a 4 bed 273 Number seeking a 5 bed + 47 Total number on Register 8561 6

The Affordable Housing mix Increasing the number of affordable homes is reliant on various activities of which no single opportunity is likely to provide the solution. The key is getting the mix right. Private Developers Property Acquisition Affordable Housing Pipeline (new sites) Council New Build Registered providers Estate Regeneration 7

Estate Regeneration The estate regeneration programme could help us improve the quality of homes and the wider environment. The Council is reviewing whether additional homes can be provided on its housing estates. This will also consider if provision of market housing could cross-subsidise the provision of new affordable housing. Engaging with private developers The Council takes a robust approach to engaging with developers to maximise the delivery of Affordable Housing. We commission independent viability assessors and quantity surveyors to determine the validity of viability appraisals. Improved Delivery through Registered Providers (RP’s) RPs are having difficulty competing with developers for land acquisitions. RBK can assist with grants from RTB receipts. 8

Creating a RBK New Build programme The Council is looking to build homes on land it owns. A development sites register has been created. Funding of new build is a challenge as resources are limited. Disposal of some Council owned sites will generate funds to pay for the delivery of AH units. Acquisition of property Acquiring property on the open market is an option. We can use funds from the sale of Council homes to finance these purchases. It is all a drop in the ocean when considered against the level of housing demand we experience in Kingston. 9

Affordable Housing sites in Kingston Town Completed in the past 3 years Site Total no of units Turks Boatyard Kingston Power Station Waters Sq Total 56 359 20 435 Total no of AH units 9 56 20 85 = 19. 5% AH Schemes with Planning approval Site Total no of units The Alexandra, Park Rd Thameside Wharf Cowleaze Rd Eden Hse, Eden St Total 10 97 26 41 174 Total no of AH units 0 0 21 8 29 = 16% AH 10

Affordable Housing sites in Kingston Town Projected development schemes Site Total no of units Latchmere Lane Hotel Antoinette Former Post Office 2 Hampden Rd Hickman & Bishop, 15 Coombe Rd Fighting Cocks, Old London Rd Eden Walk Shopping Centre Total no of AH units 89 79 338 31 25 8 385 955 34 9 49 4 0 0 0 96 = 10% AH 11

Key features of delivering affordable housing ❖ Maintain a robust approach when approving development applications. ❖ Negotiate financial contributions where on site schemes are not viable. ❖ Ensure that RPs see tangible benefits from partnering with RBK. ❖ Generate capital receipts from the sale of HRA sites. ❖ Establish the Sites Register as a work in perpetuity. ❖ Create a Council self build programme. Further information regarding the delivery of Affordable Housing is within the new Housing Strategy. 12