Agenda item
PANEL RECOMMENDATIONS TO THE COMMISSION
To receive and discuss the Expert Panel’s recommendations to the Housing Policy and Affordability Commission.
Minutes:
The Chair, Councillor Blake, asked the Expert Panel for their comments on the recommendations to the Housing Commission which are attached at Appendix 1.
Dan Hopewell, Bromley By Bow Centre, advised that London Borough of Tower Hamlets (LBTW) needs to have a co-ordinated housing plan with neighbouring London Boroughs as the solution to the housing problem extended beyond Tower Hamlets. He stated LBTH needs to identify who the target population was around affordable housing, as the increasing demographic of Tower Hamlets was now more like inner London in his opinion. He added the need for LBTH to work with other landowners, including other social landlords to secure marriage values particularly given the volume of land available.
Mayor Biggs stated he believed everybody deserved an affordable home. He added that the Borough could do with teachers living in the Tower Hamlets and near the schools they teach at but due to the cost of property, this was not currently possible. He was also concerned about conditions in the private sector with the growth of poor quality Houses in Multiple Occupation.
Councillor Sirajul Islam asked whether affordable shared ownership could be an option to addressing the housing need. He stated he believed that the aspiration of our children should not just be to be able to own an affordable home but to benefit from an affordable Council home which once was seen as a positive option.
Dan Hopewell responded and advised that the average London first time buyer was now 40 years old and that buyer will possibly be living at home until they were at least in their 30s. He said social housing was now only for those with the greatest need, and in some places, renting a home all of your life is seen as normal, therefore LBTH needs to make the case for social housing and that it is not a bad thing.
Sarah Sackman, Barrister, said whether people are on a low income or not, there is a real need for affordable housing – and the danger is that in trying to please everyone then LBTH will please no-one. She added, LBTH must meet the needs for those who are homeless and in the greatest need. With regards to recommendation one, Ms Sackman said, it was important the first recommendation is developed and the question asked by LBTH ‘who is the affordable home for?’
With regards to recommendation two, she stated if Tower Hamlets doesn’t strive to produce social rented housing on Council owned sites then it cannot expect the private developers to do it. Tower Hamlets needs to take the lead.
Finally, with regards to recommendation seven, Sarah Sackman said she believed there needed to be a full capacity audit of Council owned land and social landlord, Transport for London and NHS owned sites, and the audit should look at land assembly and how each site could be developed either by Tower Hamlets or by another provider.
In order to look at options of solving the housing problems, Ms Sackman added that Tower Hamlets should look for applications at equity stake – even if other providers are developing housing, and it is equally important for LBTH to exercise some control on its formerly owned land ( through its planning processes).
Councillor Rachel Blake asked about the Tower Hamlets plan and the London Plan. Sarah Sackman advised that the Tower Hamlets Local Plan had to fit into the London Plan. Ms Sackman added that in regards to affordability, what is affordable to somebody will not be affordable to others. The Commission heard that the income of key workers such as teachers needed to be taken into account.
Jackie Odunoye, LBTH, advised that the local ‘affordable’ rent was based on income. It was discussed whether linking income to market rent (MR) was an option. Ms Odunoye said Tower Hamlets would prefer to break the link to MR and link rents to incomes with 30% cited as affair rate. The Commission noted that one other London Borough was looking at having two levels of rent.
Councillor Islam stated he believed LBTH should champion social housing but it was regrettable that so much housing was lost through the Right to Buy, as a mortgage could be cheaper than rent or vice versa.
Councillor Blake suggested an income cap – with different employment categories – but it was noted that this could be flawed and prone to change with the need to update the categories and add new jobs.
Sarah Sackman added, the plan had been to expand Housing Association developments – as this should be a building haven and charged at social rent. She said that the major issue was trying to keep up with demand and to accommodate different income levels.
Mayor Biggs raised the issue if people became ill, lost their job or were affected by benefit changes which meant they could not afford to remain living in affordable properties. The Mayor asked whether LBTH should look at fixed length tenancies as housing is a scare resource – particularly within social housing. Sarah Sackman stated she believed fixed tenancies would be mandatory for new social housing tenants via an amendment in the Housing and Planning Bill., The idea of a council house for life was reduced with to the Localisation Act 2011. If LBTH introduced fixed tenancies, it was advised that it would be in line with the national Government.
Public Questions:
One member of the public asked about linking rent to incomes and whether it was worth LBTH looking at. It was noted that Saville’s had produced work on this and was asked whether such a model could work with regards to bandings in LBTH. The same member of the public advised that on fixed tenancies the law allowed local authorities to choose the length but it was not enforced – The Housing and Planning Bill will enforce but not means test – (aside from households earning more than £30k/£40k). Martin Ling, LBTH advised that could be more aimed at under occupied households, not high earners.
Another member of the public mentioned the work Dolphin Square Foundation had done which looked at affordable discount homes. The Mayor stated he wondered what proportion of affordable homes should be aimed at lower rent.
Glen, from Tower Hamlets Renters asked if LBTH had free land how much would it cost to knock down and rebuild. As LBTH should look at the longer term and build in a longer term financial model.
With regards to recommendation nine, Councillor Blake, stated more family homes in Tower Hamlets are becoming HMOs. She added if LBTH can create better HMOs – the council might lure people out of the older properties and free up dwellings. Jackie Odunoye said those on low income but working were the kind of people living in HMOs at the moment. Sarah Sackman suggested LBTH considered buying property to use as HMOs.
Mayor Biggs raised the possibility of a temporary housing scheme to keep people in the community. He added, the Council had promoted work assistance for homelessness families, including those who can encounter difficulties getting back to work single mums and those who were victims of domestic violence.