To debate a Motion submitted by the Opposition Group in accordance with Rules 11 and 13 of the Council’s Constitution. The debate will last for a maximum of 30 minutes.

 

8 – Opposition Motion by the Conservative Group regarding affordable housing in Tower Hamlets

 

Councillor Andrew Wood moved and Councillor Peter Golds seconded the motion as printed in the agenda.

 

Councillor Rachel Blake moved and Councillor Sirajul Islam seconded the following amendment to the motion to be debated as tabled:

 

Added text underlined

Deleted text scored out.

 

The Council notes:

 

The results of the 2018 Tower Hamlets Annual Residents' Survey show that the second highest concern for residents was a lack of affordable housing  with 37% concerned.

 

This council further notes:

 

That the Chancellor Philip Hammond has announced that the Housing Revenue Account cap that controls local authority borrowing for house building will be abolished from 29 October 2018 in England, a welcome move which has long been called for by local authorities.

 

In response to the scrapping of the cap, Polly Neate, chief executive of homelessness charity Shelter, said: “Scrapping the borrowing cap lays down the gauntlet to local authorities to bring forward home-building plans – no more excuses.”

 

Polly Neate also wrote this year that ‘our country is in the grip of a worsening housing crisis as homelessness rises, and millions of people struggle to contend with the high-cost and deep insecurity of private renting.’

 

As well as working with Registered Provider partners to deliver the highest numbers of new affordable homes in the UK over the last 3 years, Tower Hamlets Council has its own ambitious plans to provide 2,000 new council homes.

 

The majority of our programme to deliver 2,000 new council homes is funded by the use of Right To Buy receipts and borrowing, and the Government’s own rules about use of RTB receipts do not allow these receipts to be combined with GLA grant funding within the same property.

 

It is because of this that the Council only bid for GLA grant for a small proportion of our overall housing programme.

 

That the Mayor of London on the 23^rd October 2018 released £1,029 million of government grants to build new affordable housing in London.

Tower Hamlets only received £13 million from the Mayor of London, the fifth lowest number across London Boroughs in a warmly welcomed announcement.

 

By contrast our five neighbours will each receive:

 

Newham £107 million

Southwark £89 million

Hackney £45.6 million

Lewisham £37.7 million

Greenwich £32.6 million

 

This is despite Tower Hamlets currently having has the highest housing targets in London (2^nd highest targets in London when new London Plan approved)

 

The government funding, announced in the Government’s Budget for 2017, is part of the provision of over £44 billion of new financial support for housing between 2017-18 and 2022-23although the Budget document and supporting documents themselves clarified that only £15.3bn of this was ‘new’ money.

 

That the Government’s flagship Housing & Planning Act merely exacerbated the housing crisis, and many of the measures announced within it have been indefinitely delayed or abandoned.

 

This council further notes:

 

The Council has committed to building 2,000 new Council homes but and a Council response to an Overview & Scrutiny question defined new council homes as including highlighted that the delivery of new council homes includes:

 

·         The new build programme

·         Purchase of s106 properties

·         Buy backs of former council homes

·         Delivery of modular homes

·         Conversion of community buildings for temporary accommodation

 

Also, that mMany residents believe that affordable housing is unaffordable, It is extremely difficult to actually find information on the Councils website to get a full understanding of the different rent levels and service charges so that they have a proper understanding of the actual costs of new affordable housing. and the Mayor’s Housing Policy & Affordability Commission looked closely at this issue. Following the Commission, new rent guidance was issued for newly built affordable homes, which means that some families will be nearly £6,000 better off.

 

This Council believes:

 

That the lifting of the HRA cap provides an opportunity to review our affordable housing targets and to build more new homes

 

That buying s106 properties already with planning permission or already built former Council homes is not delivering new Council homes (it just changes the ownership of homes being occupied by residents of Tower Hamlets)

 

That by competing with housing associations to purchase s106 properties mean less money being spent on new affordable homes within Tower Hamlets as housing associations will instead purchase new homes elsewhere

 

That only the delivery of new homes which would not otherwise be built and at affordable prices will deliver what residents need

 

That homes bought from the private market by the Council meet local housing needs and enable us to relocate homeless families out of poorer quality, less secure and more expensive nightly paid temporary accommodation;

 

That acquiring affordable homes through s106 agreements can accelerate the pace of delivery and ensure that assets are not only retained to meet long term local needs but also deliver revenue returns that are invested locally.

 

The Council’s diverse approach – building new homes on Council land, converting redundant Council buildings into homes, buying homes on the private market, acquiring from developers through s106 agreements – ensures continued delivery across a portfolio of programmes, spreading risk and acting flexibly to take advantage of opportunities as they arise.

 

This Council therefore recommends the following:

 

1.         To increase endorse the current housing targets in the light of the additional funding now available

 

2.         To change recognise the definition ofthat new Council homes should be called ‘new’ when a dwelling is now available as a council home where it wasn’t immediately previously. to mean new property that would otherwise not be built but still:

a.    Including modular homes like Place Ladywell as a way of speeding up delivery

b.    Including converting community buildings which does deliver genuinely new homes

That the definition of new Council homes does not include buying existing homes or those already with planning permission as that does not increase the total stock of homes in Tower Hamlets

 

3.         That in the next round of allocations by the Mayor of London that Tower Hamlets bids for more government grant better reflecting its status as the number one deliverer of new homes in London.

 

4.         That the Council will continue to submit to the government a bid for a large slice of the funds available in the Housing Infrastructure Fund from the GLA and MHCLG.

 

5.         To provide residents a better understanding of how affordable housing works and what it actually costs

 

The amendment was put to the vote and agreed.

 

Following debate, the motion as amended was put to the vote and was agreed.

 

RESOLVED:

 

The Council notes:

 

The results of the 2018 Tower Hamlets Annual Residents' Survey show that the second highest concern for residents was a lack of affordable housing  with 37% concerned.

 

This council further notes:

 

That the Chancellor Philip Hammond has announced that the Housing Revenue Account cap that controls local authority borrowing for house building will be abolished from 29 October 2018 in England, a welcome move which has long been called for by local authorities.

 

In response to the scrapping of the cap, Polly Neate, chief executive of homelessness charity Shelter, said: “Scrapping the borrowing cap lays down the gauntlet to local authorities to bring forward home-building plans – no more excuses.”

 

Polly Neate also wrote this year that ‘our country is in the grip of a worsening housing crisis as homelessness rises, and millions of people struggle to contend with the high-cost and deep insecurity of private renting.’

 

As well as working with Registered Provider partners to deliver the highest numbers of new affordable homes in the UK over the last 3 years, Tower Hamlets Council has its own ambitious plans to provide 2,000 new council homes.

 

The majority of our programme to deliver 2,000 new council homes is funded by the use of Right To Buy receipts and borrowing, and the Government’s own rules about use of RTB receipts do not allow these receipts to be combined with GLA grant funding within the same property.

 

It is because of this that the Council only bid for GLA grant for a small proportion of our overall housing programme.

 

That the Mayor of London on the 23^rd October 2018 released £1,029 million of government grants to build new affordable housing in London.

Tower Hamlets received £13 million from the Mayor of London, in a warmly welcomed announcement.

 

By contrast our five neighbours will each receive:

 

Newham £107 million

Southwark £89 million

Hackney £45.6 million

Lewisham £37.7 million

Greenwich £32.6 million

 

Tower Hamlets currently has the highest housing targets in London (2^nd highest targets in London when new London Plan approved)

 

The government funding, announced in the Government’s Budget for 2017, is part of the provision of over £44 billion of new financial support for housing between 2017-18 and 2022-23 although the Budget document and supporting documents themselves clarified that only £15.3bn of this was ‘new’ money.

 

That the Government’s flagship Housing & Planning Act merely exacerbated the housing crisis, and many of the measures announced within it have been indefinitely delayed or abandoned.

 

This council further notes:

 

The Council has committed to building 2,000 new Council homes but and a Council response to an Overview & Scrutiny question highlighted that the delivery of new council homes includes:

 

• The new build programme
• Purchase of s106 properties
• Buy backs of former council homes
• Delivery of modular homes
• Conversion of community buildings for temporary accommodation

 

Many residents believe that affordable housing is unaffordable,and the Mayor’s Housing Policy & Affordability Commission looked closely at this issue. Following the Commission, new rent guidance was issued for newly built affordable homes, which means that some families will be nearly £6,000 better off.

 

This Council believes:

 

That the lifting of the HRA cap provides an opportunity to review our affordable housing targets and to build more new homes

 

That homes bought from the private market by the Council meet local housing needs and enable us to relocate homeless families out of poorer quality, less secure and more expensive nightly paid temporary accommodation;

 

That acquiring affordable homes through s106 agreements can accelerate the pace of delivery and ensure that assets are not only retained to meet long term local needs but also deliver revenue returns that are invested locally.

 

The Council’s diverse approach – building new homes on Council land, converting redundant Council buildings into homes, buying homes on the private market, acquiring from developers through s106 agreements – ensures continued delivery across a portfolio of programmes, spreading risk and acting flexibly to take advantage of opportunities as they arise.

 

This Council therefore recommends the following:

 

1.    To  endorse the current housing targets in the light of the additional funding now available

 

2.    To recognise that new Council homes should be called ‘new’ when a dwelling is now available as a council home where it wasn’t immediately previously.

 

3.    That the Council will continue to bid for a large slice of the funds available from the GLA and MHCLG.

 

4.    To provide residents a better understanding of how affordable housing works and what it actually costs