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Housing in London – the Mayor’s new role. Alan Benson - GLA. Overview. The strategic drivers Housing need and supply The devolution of housing powers Towards the Mayor’s Housing Strategy . The strategic drivers . The case for London . - PowerPoint PPT Presentation
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Housing in London – the Housing in London – the Mayor’s new roleMayor’s new roleAlan Benson - GLA
OverviewOverview
• The strategic drivers • Housing need and supply • The devolution of housing powers • Towards the Mayor’s Housing Strategy
The strategic drivers The strategic drivers
The case for London The case for London
•London’s economy drives Britain’s economy - is not in competition with it
•Housing is a threat to London’s economic growth and social wellbeing
•Need to increase supply and improve quality
•Need for investment in infrastructure to maximise major opportunities
London population 1901-2001
0
2
4
6
8
10
1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001
Pop
ulat
ion
& h
ouse
hold
s (m
)
0
1
2
3
4
5
Ave
rage
hou
seho
ld s
ize
Population Households UK AHS
London’s demography London’s demography
New home buildingNew home building
3+ bed new homes 3+ bed new homes 1991/2 2003/4London 26% 19%South East 49% 58%South West 49% 63%East 50% 69%West Mids 59% 63%East Mids 64% 76%Yorks+H 67% 65%North West 71% 70%North East 75% 79%
Homelessness Homelessness Supply, demand and temporary accommodation
20,00025,00030,00035,00040,00045,00050,00055,00060,00065,000
1991/ 9
2199
2/ 93
1993/ 9
4199
4/ 95
1995/ 9
6199
6/ 97
1997/ 9
8199
8/ 99
1999/ 0
0200
0/ 01
2001/ 0
2200
2/ 03
2003/ 4
Num
ber o
f hou
seho
lds
Homeless households in TA Homeless acceptances New social lettings
OvercrowdingOvercrowdingSevere overcrowding
0.00
0.50
1.00
1.50
2.00
2.50
1981
1991
2001
Perc
enta
ge o
f ho
useh
olds
London Rest of England
Affordability ratiosAffordability ratios
Income inequality Income inequality Income distribution of Londonerson UK quintiles (AHC) - 2000/ 01
0%
20%
40%
Bottom fifth Next fifth Middle fifth Next fifth Top fifthNational income quintiles after housing costs
Climate change Climate change
Housing need Housing need and supplyand supply
Housing need Housing need • Need 35,400 new homes per annum• 66% should be affordable • Social housing• 42% of new social should be 4 bed plus
• Market • 34% of new market should be 3 bed plus
• Intermediate• little demonstrable “need” – requires policy steer
London’s housing capacityLondon’s housing capacity
The London Plan The London Plan London Plan targets• 30,500 homes• 50% affordable (70/30 social:intermediate) • 100% lifetime, 10% wheelchair accessible
London Plan delivery of new homes- 1999: 17,000 - 2005/6: 24,000 (new) 28,000 (total)
Affordable homes - 1999: 6,000 - 2005/6: 8,000 (new) 12,000 (total)
But concerns over mix and size
Residential land pricesResidential land prices
012345678
Aut83
Spr85
Aut86
Spr88
Aut89
Spr91
Aut92
Spr94
Aut95
Spr97
Aut98
Spr20
00
Aut200
1
Spr20
03
July2
004
Jan20
06
Mill
ions
England and Walesexcluding London
Inner and Outer London
South East England
Source: VOA
The planning pipeline The planning pipeline
10000
20000
30000
40000
50000
6000019
87
1989
1991
1993
1995
1997
1999
2001
2003
2004
/5
Year
Net A
dditi
onal
Dwe
llings
Approvals Completions
Residential constructionResidential constructionLondon's residential construction sector,
1995-1999Barratt12%
Fairview12%
Bellway6%
St George8%
Berkeley (exc St.George)8%Next Five Largest
19%
35 Others35%
Ownership of land with residential planning permission by number of schemes with private units
Devolution of housing powersDevolution of housing powers
The road to housing devolution The road to housing devolution
• Feb 2003: Communities Plan • Introduced regional housing strategies• Set up Regional Housing Boards
• Jun 2003: LHB set up and first London Housing Strategy published
• Mar 2004: HMT Barker Review - recommends merging regional housing and planning
• Nov 2006: GLA Bill - Review of Mayor’s powers
• Oct 2007?: New powers commence
Review of Powers - other areas Review of Powers - other areas
• Planning• Power to ensure local development plans are in compliance with London Plan• Positive powers on strategic planning applications
• Other strategies • Adult skills strategy • Energy and climate change strategy • Health inequalities strategy
New housing powersNew housing powers
• The responsibilities of the London Housing Board will transfer to the Mayor • Mayor will publish a statutory Housing Strategy and Strategic Housing Investment Plan• Mayor will decide the broad distribution of the affordable housing part of the Regional Housing Pot
Strategic powersStrategic powers
• Local housing strategies will be required to be in general conformity, includes:• “any strategy [or] other statement of the local housing authority’s policies or proposals related to housing”
• Implementation model is existing statutory strategies not London Plan• Need to clarify “reach” • Need to consider sub-regional position
Investment powers – the RHPInvestment powers – the RHP
(1) Apportioning the overall pot
£2,300m The Mayor will have the same powers as the LHB
(2a) The council decent homes programme
£420m The Mayor will not be involved
(2b) The HC affordable housing programme
£1760m The Mayor will make decisions on the broad allocation
(2c) Other funding: estate regen, private sector renewal etc)
£120m The Mayor will have the same powers as the LHB
(Based on 2006/8 figs)
Strategic Housing Investment PlanStrategic Housing Investment Plan
• Drawn up and agreed by all key agencies - (GLA, LDA, HC, EP, TfL, LTG DC, GOL, LCs)
• Ambitious aims:• Cover all housing related investment • Set out common priorities• Align the activities of public sector investors • Maximise private sector leverage • Co-ordinate housing and infrastructure investment • Framework for innovative delivery models
TimetableTimetable
Nov 2006 - Queen’s SpeechNov 2006 - “Towards the Mayor’s Housing Strategy” Feb 2007 - Consultation on this closesMay 2007 - GLA Bill gets Royal Assent Jun 2007 - Draft (non-statutory) Housing Strategy Jul 2007 - Strategic Housing Investment Plan Aug 2007 - Comprehensive Spending Review Oct 2007 - GLA Bill commencement 2007/08 - Statutory consultation on Housing Strategy and Strategic Investment Plan
Housing structures Housing structures
• Strategy• Renewed Mayor’s Housing Forum• Sub-groups to engage wider specialists • Equalities Standing Group
• Investment• Housing Investment Panel• Developer engagement
• Scrutiny - London Assembly
Towards the Mayor’s Towards the Mayor’s Housing StrategyHousing Strategy
Key issues for new strategy Key issues for new strategy
• Putting people first • delivering housing’s enabling role
• Building more homes • tackling the barriers to delivery
• The right homes in the right places• shifting the mix – spatial/tenure/size
• Creating places where people want to live• design led development
Key issues for new strategy Key issues for new strategy
• Reviewing intermediate housing • is it giving us what we want?
• Promoting choice and mobility • better matching need and demand
• Tackling climate change • top priority for change
• Other issues • list is not exhaustive
[email protected]@london.gov.uk