Summary
This report updates Executive members on the main proposals contained in the Mayor’s draft London Housing Strategy, published on 25 November 2013. It makes a series of recommendations which will form the basis of London Councils response to the London Housing Strategy.
The draft Housing Strategy is predicated on an annual household increase of 42,000 and has the objective of facilitating the delivery of 420,000 new homes by 2025. Of which 220,000 homes would be for open market sale, 150,000 homes will be affordable housing to rent or buy and 50,000 for purpose built longer term rental properties.
Overall the Mayor has an aspiration to deliver 250,000 shared ownership homes by 2025.
The mayor’s ambition to deliver 42,000 new homes a year includes 15,000 affordable homes a year funded through the affordable housing programme of which:
• 40% will be for low cost home ownership
• 60% will be Affordable rent of which
- 50% will be ‘capped’ at lower than affordable rent level
- 50% will be ‘discounted’ at up to 80% market rent
Overall the strategy promotes the view that a longer term infrastructure approach needs to be taken with respect to the delivery of housing supply, funding as well as increasing capacity within the house building industry and in doing so reflects the thrust of London Councils growth Deal proposals on housing.
Recommendations
The Executive is asked to agree that the following points are made in London Councils response to the Mayor’s draft Housing Strategy
1. London Council’s concern that the Mayor’s overall new housing supply aspiration will not fully address housing need in London.
2. In principle support for the inclusion of a ‘capped’ element within the 2015/18 affordable rent programme, however raising borough’s concern over the potential for a diminution in the number of new ‘truly’ affordable homes boroughs will be able to access from registered providers.
3. That the boroughs are closely involved in the development of housing zones in London with the objective of ensuring that any housing zones that might be established, address both regional and local housing delivery and affordability priorities. As well as reflecting locally accountable governance arrangements and that housing zones work in a way that complements the housing aspirations contained within London’s Growth Deal bid.
4. Qualified support for the Mayor’s aspiration to increase housing densification in inner London suburbs, town centre and transport hub, in a way that both reflects wider housing need in London and local housing and planning priorities.
5. A continued emphasis that borough’s solely make decisions concerning the use and level (if the borrowing cap was removed) of their HRA borrowing capacity, and that the extent of any future removal of individual borough borrowing caps should not be conditional on a decision made by the Mayor. We continue to argue the case for the financial and wider devolution for London within our Growth Deal proposals.