Agenda item

As resolved at the Environment Select Committee meeting on 7 November 2023, the Committee are to receive an update.

Please note: this report will follow as an Agenda Supplement.

Councillor Phil Alford, Cabinet Member for Housing, updated the Committee on the Wiltshire Housing Development Partnership alongside Richard Walters, Head of Service for Major Projects, and Claire Moore, Housing Enabling Lead.

It was explained that the vast share of affordable homes were delivered through large scale housing developments with the provision of those homes therefore coming through the Section 106 agreement. As such, the Council was beholden to market forces such as the impact of inflation and interest rates on homes which led to developers considering delaying the supply of homes in order to retain the values for the consumer while ensuring that supply was sufficient, and costs were met.

Members were reminded of the roles of the Housing Enabling Team, the Housing Development Partnership, and the role of Registered Providers of Affordable Housing (RPs). It was confirmed that 532 Affordable Homes were delivered in Wiltshire in 2023/24, with 61% being rented accommodation and 39% being Affordable Home Ownership. Despite being below the annual average target of 650 homes per year, it was explained that this reflected a fall in the overall number of housing units delivered in Wiltshire. The importance of the Housing Development Partnership was emphasised, with Paragraphs 9 through 15 of the report being outlined.

Finally, officers stated that they were confident that, subject to the continued commitment of the Council and RPs, the Partnership offered the potential to continue to assist the Council in working towards its key priorities.

During the discussion, points included:

• The definition of affordable in relation to Affordable Homes was explained, and it was noted that Affordable Rented Accommodation was viability tested through the Council’s Local Plan and the evidence base as part of the Council’s Core Strategy suggested that officers should focus on negotiating further Affordable Rented Accommodation on Section 106 sites.
• It was explained that officers held developers to account in delivering the Affordable Housing percentage with the mix that was suggested by the Strategic Housing Market Assessment. As such, officers aimed for a 60/40 split between Affordable Home ownership and Private Rented accomdation. It was further explained that in terms of viability, the Housing Allocations Policy allowed the Affordable Housing percentage to decrease if there was an agreed viability, with 4 units lost in 2023/24 due to either viability or vacant buildings credit.
• It was confirmed that the average annual target was gross and not nett figures and so it did not account for properties which were disposed of by Housing Associations (HAs). However, it was highlighted that the number of disposals was included within the report with reasons being noted as Right to Buy Purchases or Shared Ownership properties where owners have staircased their percentage of ownership up to 100%.
• It was explained that it was not within the remit of the Housing Enabling Team to consider acquisitions of former Ministry of Defence properties, and that this would be considered by the Development and Estates Team.
• With regard to comparisons between other similar Local Authorities, the challenges within the national housing market were highlighted, with Members being reassured that the initial target accounted for loss through schemes such as Right to Buy and that officers were satisfied with delivery to date.
• It was further explained that as RPs acquired the homes that could be used for Affordable Housing, they were subject to the same elements of constraint and market conditions in the current climate, and it was noted that it was mostly Section 106 units that were being acquired through new developments.
• It was acknowledged that officers were beholden to developers delivering units to therefore be acquired by the RPs for Affordable Housing. It was further noted that there were changes in policy around rental incomes which could lead to RPs not having the financial confidence to acquire properties. However, it was highlighted that officers annually reported Wiltshire’s Housing Statistic which looked at the number of final planning consents granted for Section 106 units. It was confirmed that although the figure did not include those units delivered by RPs or funded by Homes England, 556 units had been granted final planning consent in 2023/24 which officers reassured Members was a positive figure in terms of delivery moving forward into 2024/25.

At the conclusion of the discussion, it was:

Resolved:

The Committee:

a)    Noted the contents of the report and performance of the Housing Development Partnership.

Requested an updated on the Housing Development Partnership in 2025.