Councillor Kabir Ahmed, Cabinet Member for Regeneration, Inclusive Development and Housebuilding, introduced the first item, and presented an update on the target for delivering 4000 new affordable homes between 2022 and 2026.

Members were informed of the economic challenges, the private sector delivery and Council led housebuilding, with the latter requiring significant resources to deliver and expand the programme.

Councillor Kabir Ahmed noted that housing build starts across all tenures decreased by 24%, and new building regulations for new buildings over 18 metres are now required to install secondary staircases. This has meant that certain programmes were required to return to the planning stage to accommodate this.

The 40% inflation rise has also affected developers. Both the Council’s Planning and Housing Delivery teams are currently working with developers to assist in the completion of programmes. Housing providers are also reluctant to start new programs, due to the cost of extensive repairs for existing properties.

Further to questions from the sub-committee, Councillor Kabir Ahmed and Officers;

·       Confirmed that a written brief detailing the  breakdown of the 459 affordable units completed in 2023-24 will be presented to the sub-committee for review.

·       Clarified that development completion is dependent on the size of the site. As an example, the initial planning application for the former News International site in Wapping took place in 2012. The completion of the project is still ongoing.

·       Clarified the four sites as; The Great Eastern Enterprise Centre, South Bay Plaza, Poplar Transformation Centre, Union Bridge TSC building and Spire London, Hertsmere House. Members were informed that these sites contain all tenured units.

·       The GLA definition of affordable housing is any social rented, affordable rented and intermediate housing provided to eligible households, whose needs are not met by the market.

·       Clarified that tenders went out in April and the selection questionnaire process will then determine who is selected for detailed evaluation. A report will be submitted to Cabinet by the end of the year and details of preferred contract holders will be confirmed by February 2025.

·       Explained that there are approximately 10,000 homes that could receive planning permission and are at various stages of development. Some are awaiting the completion of section 106 agreements; some have gone through Committee stage and some awaiting approval at Committee. Among these homes, approximately a quarter of them are classified as affordable across all tenures, as per the GLA definition.

·       Confirmed that the Planning, Capital delivery and Housing Delivery teams are working with housing providers on joint ventures to reduce issues that could delay progress, such as assistance with registered providers (PR) or receiving a PR. Work is also ongoing to mediate in these instances. Consideration is also being given to invest with housing providers through buyback schemes as well as GLA match funding.

·       Clarified that the term delivery means when properties are officially signed off by the Building Control team as completed. At present there are 30 sites currently undergoing construction which will deliver 2,519 affordable homes in the borough once completed.

·       Explained that there are two types of programs available for Council owned property delivery, funded and unfunded. The unfunded list of schemes can commence once government opportunities, Section 106's instalments, buybacks and grants are available.

·       Confirmed that the former London Chest Hospital site is a live planning application, which will be heard at the Strategic Development Committee on 16 July meeting. The application proposes 276 homes with 121 of those a variety of affordable rented and intermediate units.

·       Clarified that the Council is committed through the Mid Term Financial Strategy (MTFS), to purchase up to 600 new homes with assistance from the GLA's match financing scheme.

·       Acknowledged that there are challenges with direct delivery funding, as it can slow down the process, due to the section 106 contracts between planners and developers. Once funding is released, unfunded programs can then receive funds.

·       Acknowledged that there are other challenges in terms of legislation changes that have pushed back the delivery for social housing providers and joint ventures with private developers. There have been financial issues with PR’s, as previously stated. However, the Council is committed to reaching the target to provide affordable homes.

The Housing and Regeneration Scrutiny Sub-Committee RESOLVED:

1.    That a written brief detailing the breakdown of the 459 Affordable units completed in 2023-24 be presented to the sub-committee for review.

2.    That a written brief outlining the breakdown of Council housing schemes in development from 2021 to early 2022, a progress report on those schemes and updates on new Council schemes or buybacks thereafter.

3.    That the presentation be noted.