Major increase set for more ‘affordable’ homes

On Wednesday, Warwick District Council’s executive agreed for the authority’s officers to identify both council and third party-owned land on which to build homes and to bring forward proposals in February for the creation of a council-owned company to press on with a building programme.

Over the last two years, 100 affordable houses have been built in the district although the council’s joint venture with Waterloo Housing has a programme of work which could lead to more being built at a faster rate.

However, despite 855 affordable homes being let over the period of March 2012 to March 2014, there is still a waiting list of some 3,300 names.

At the meeting, council leader Andrew Mobbs (Con, Kenilworth Abbey) stressed the need to deliver the required amount of housing “here and now” and said the council should “press on” with the plans “at all speed”.

Last year the Coventry and Warwickshire Joint Strategic Housing Marketing Assessment included an assessment of affordable housing across Warwick district, which identified the need for 268 new affordable homes each year between 2013 and 2031.

This would be the equivalent to a total of 4,288 affordable homes to be provided over that period.

Cllr Norman Vincett (Con, kenilworth St John’s), the executive member responsible for policy on housing and property, said: “The executive recognises the current and future need for the provision of additional council-owned housing stock. Our own Home Choice waiting list data coupled with the forecast growth of the district as indicated in the merging Local Plan forming the basis of our assertion. While developers will be required to make provision for affordable rented properties through shared ownership and housing association affordable rent schemes there will still be a further requirement for those people needing subsidised council housing at social rent levels.

“Having bought itself out of the old housing revenue account arrangement with the Government, the council now retains all of its social housing rent income. This annual revenue stream, while useful in small-scale new build acquisition, is insufficient to finance early delivery or larger scale building programmes and with limits set by the Government on the amount of further monies provision it’s necessary to find a mechanism which will allow us into the market to finance such.

“The report to the executive has asked that housing and property services be allowed to continue with its programme of investigations so it can bring back a recommendation for council approval which will allow us to start early build and in numbers that will ease the burden on those residents urgently in need of social housing.

“We contracted Price Waterhouse Coopers to undertake an assessment of options available to us. This indicated that the vehicle to achieve our goal was via the formation of a council housing company owned by the council and with the specific role of providing council houses.

“While of course we can get on and do things now through the council’s current structures, this alone will not enable us to meet our aspirations or those of residents.”

Right to buy schemes, which allow council tenants to buy the properties they are renting further down the line, will be considered by the authority as part of the plans.

Compared to other nearby areas, Warwick district currently has the highest house prices with the ‘entry level’ price for a two bedroom house being £140,000.

The joint housing market assessment has also shown that entry-level private rents were highest for all sizes of homes.