Opportunities (and Challenges) for Affordable Housing in London

David OrrChief Executive National Housing

Federation

London’s Challenges

• The affordability challenge• The demographic challenge• The homelessness challenge• The overcrowding challenge• The backlog challenge• The supply challenge• The demand challenge• The economic challenge

Affordability Opportunities

• At 50% the most ambitious target on affordable housing

• Strong partnership between LAs, developers and associations and effective use of s106 to create balanced communities

• Strong and mature Low Cost Home Ownership sector benefiting from high levels of funding for intermediate homes

To maximise the opportunities we need to…

• Be flexible to reflect local circumstances and ensure balanced communities in deciding where to site affordable housing

• Ensure the planning system enables rather than deters development

• Secure the financial position of housing associations carrying out LCHO

• Review the range of LCHO products to ensure they meet the widest range of needs

• Strike a balance between new LCHO and affordable rented accommodation

Demographic Opportunities

• A young and growing population provides a dynamic potential workforce

• High levels of immigration demonstrate net economic benefits

• A diverse workforce can be more flexible and deliver a better service to diverse community

• A history of economic success can be a beacon to new communities

To maximise the opportunities we need to

• Ensure a match between young people’s skills and the economy’s needs

• Break cycles of worklessness already emerging in some communities

• Extend the success of many new migrants and some existing BME communities to those doing less well

• Ensure that as employers and procurers we are inclusive and effective

Opportunities to tackle homelessness

• Strong partnership between local authorities and housing associations

• A record of success dealing with rough sleeping

• Housing Options• A vibrant private rented sector and

associations providing temporary accommodation

• The hostel improvement programme • An emerging consensus on supply

solutions

To maximise the opportunities we need to…

• Build on existing partnerships to maximise housing options through mobility and choice

• Make better use of alternative and affordable sources of settled moves

• Break the poverty trap of HB tapers• Increase the availability of move-on

accommodation• Move to a supply specification based

on requirements rather than deliverability

Opportunities to tackle overcrowding

• An ambitious new target on larger homes

• A greater emphasis on people housed rather than a units-only numbers game

• A flexible affordable housing sector able to respond

• A more comprehensive understanding of the problem than exists elsewhere

• Agreement from all sides on the need for more larger homes

To maximise the opportunities we need to…

• To view the higher target as a first step and keep reviewing the type and mix of homes in all sectors

• Reinforce the move to targets based on people not properties and shift the political discourse

• Ensure that we don’t hamper HAs flexibility to alter products quickly

• Further work to identify smaller ‘hidden households’ within overcrowded families

Opportunities to increase supply and tackle the backlog

• A consensus on the need for more homes• A competitive set of affordable providers• Continuing healthy demand in the private

sector• Growth Areas, in particular the Thames

Gateway• Infrastructure investment (at last)• The ‘Olympic Effect’• The ‘London Premium’• The strongest regional economy in Europe

To maximise the opportunities we need to…

• Build a partnership for delivery as strong as the campaign for more homes

• Maintain the diversity of providers (including specialists) and provision

• Scenario planning for a change in market conditions

• Look at how we unlock the potential efficiencies of MMC and volume programmes without compromising on quality

To maximise the opportunities we need to…

• Invest in ‘place-making’ and diversity in the Growth Areas, particularly the Thames Gateway

• We’re all iN business for neighbourhoods• Use existing infrastructure and take in situ

communities with us• Have a broad rather than narrow

infrastructure agenda, which has sustainability at its heart

• Make the Olympics a true legacy – this is not a forgone conclusion

• We use the ‘London Premium’ wisely

Should we seek opportunities to tackle demand?

• Is the continued growth of London at current levels sustainable or desirable?

• Are there measures by which we could and should be seeking to manage demand within the capital?

• Should we be looking more closely at regional policies to shift demand from London and the Greater South East

Economic Opportunities

• The overall economic picture remains highly favourable

• New employment nodes are being developed at Stratford and Elephant and Castle, meanwhile Canary Wharf continues to expand

• Public and private infrastructure and capital investment provide huge opportunities

• All the above provide a context to maintain healthy demand for housing and build sustainable communities

To maximise the opportunities we need to…

• Give all Londoners the ability to participate in economic success, particularly those in affordable housing

• Develop additional employment nodes in East London – building mixed use communities and avoiding dormitory towns

• Ensure a higher quality of master planning around future infrastructure investment

• Have a focus on regeneration of existing communities too

A City of Opportunities

• A unique consensus• A unique availability of land and

labour• A unique level of prosperity• A unique challenge• A unique responsibility