Agenda item

The Head of Housing and Health submitted a report on the draft East Herts Housing Strategy 2022 – 2027. Members were advised that the current East Herts Council Housing Strategy for 2016 to 2021 now required replacement and new Strategy for 2022 to 2027 had been drafted to respond to new legislation, changing market conditions and evolving trends in housing need.

The Head of Housing and Health said that it was not statutory requirement for a local authority to have a housing strategy, but there were a number of benefits of having a housing strategy. These benefits include allowing oversights of the need for affordable housing development, housing demand among people with special needs, and the measures which could be undertaken to improve housing standards and sustainability.

The Head of Housing of Health referred to the four strategic priorities of the housing strategy within the report, as well as the set of objectives associated with each strategic priority. He highlighted a number of key issues including increasing the supply of new homes at the lower end of affordable rent spectrum, the need to focus on housing need in rural communities, and working with partners to tackle issues such as housing support for rough sleepers.

Councillor Goldspink asked if the Executive Member had investigated the statement from the Local Government Association (LGA) in relation to seeking more funding to provide additional homes for social rent, as there was insufficient affordable housing for social rent in this area.

The Head of Housing and Health said that the Housing Strategy recognised the need to increase all forms of affordable housing, including homes for social rent. He said that this matter had been identified as a strategic priority within the strategy and a detailed set of actions would be prepared in due course, as outlined in the report.

The Head of Housing and Health said that the LGA had promoted the case for more funding to be made available to Homes England to support affordable housing development. Members were advised that all forms of funding were being explored and at present, almost all affordable housing developments in East Herts were funded though planning agreements. The Homes England grant for affordable housing was not available in these circumstances, as the subsidy was provided by the private developer.

Councillor Goldspink asked if the Council could provide some pre-fabricated housing units, sometimes referred to as pods, for homeless people. Other Councils had provided low cost separate individual units of this kind for homeless people. The Head of Housing and Health said that the Council was always open to considering methods for increasing accommodation for homeless households. An additional 17 self-contained units had been acquired and provided in East Herts during the past 12 months, with a further two self-contained temporary accommodation units were being developed in Ware.

The Head of Housing and Health said that homeless households often required packages of care and support, and homeless people needed to feel part of the wider society. He said that the use of bed and breakfast accommodation could set people apart from communities and the use of pods could be seen as segregation or stigmatisation of those most in need of support.

Councillor Brady asked what steps, if any, were open to the Council to control the spiralling cost of housing in the area, and if those steps were being actively pursued. The Executive Member for Financial Sustainability said that the housing market was subject to free market movement with house prices and private rents being determined by a complex range of social and economic factors. He said that local authorities had very few mechanisms to control the housing market.

The Executive Member for Financial Sustainability said that it was important that the Council did all it could to influence the supply of affordable homes with lower levels of rent. He referred to the Affordable Housing Supplementary Planning Document and the wording in the Tenancy Strategy that stipulated that registered provider rent should be no higher than the prevailing Local Housing Allowance rates and certainly no higher than 80 per cent of local rents.

The Executive Member for Financial Sustainability said that shared ownership homes were a form of affordable housing and Millstream provided homes at the lower level of the rents in the private rental market. He confirmed that the Council was looking at how best to use its resources to bring forward properties for social rent.

Councillor Wyllie, on behalf of Councillor Redfern, asked if the Council could raise Council Tax rates on second homes or introduce legal requirements, as was the case in Wales and Cornwall, in order to control or restrict second home ownership which might help control spiralling house prices in the area.

The Executive Member for Financially Sustainability said that English Authorities did not have powers to raise Council Tax on second homes. He said that the Council had used its powers to reduce the Council Tax discount to zero on second homes and the Council Tax payable on empty homes was subject to an increasing scale of fees where a property was empty for two or more years. Members were reminded that the number of second homes in East Herts was low.  The level of Council Tax on second homes in East Herts would be unlikely to unduly affect the open market.

Councillor Goldspink asked if the Executive Member for Neighbourhoods would consider the establishment of a cross party working group to explore what steps the Council can take to provide more homes for social rent.

The Head of Housing and Health relayed the thoughts of the Executive Member for Neighbourhoods in that he would be considering the next steps to be taken to develop the detailed action plans that were needed to deliver the strategy. Members were advised that the suggestion from Councillor Goldspink would be considered as part of those next steps.

Councillor Symonds referred to the Equality Act 2010 and the Council’s obligation to meet a diverse range of housing including the needs of people with protected characteristics. She said that there was not much in the way of housing for people in wheelchairs. Councillor Symonds asked what the Council could do to persuade the biggest housing providers in East Herts to allow people to move into supported housing usually designated for older people when under the age of 55.

The Head of Housing of Health said that one of the objectives of the strategy was to expand the range of housing options for people with special needs. East Herts Council was working with Hertfordshire County Council (HCC) to identify the housing needs of those with learning and physical disabilities. He said that the Council worked very closely with HCC on assessing the level of need coming forward for supported accommodation.

The Head of Housing and Health said that he had noted the comments of Councillor Symonds and one of the ongoing elements of the strategy would be year on year refining and reviewing of detailed action plans. He said that there was a balance between meeting the needs of those already in accommodation with the needs of others coming forward to apply for accommodation.

Councillor Curtis referred to tables one and two on page 42 and the minimum income required to purchase a property in East Herts. He commented on the unjust and unfair situation where the majority of his generation would struggle to have any hope of affording a detached or semi-detached home where they had grown up. He asked on what could be done with viability assessments to address what was a very inefficient market.

The Head of Housing and Health drew Members’ attention to table seven and the affordability of shared ownership accommodation allowing people to access an ownership product that was within their grasp. He said that the question of viability could be followed up with colleagues in planning and he commented on viability assessments and the advice that Officers had sought from external consultants.

Councillor Crystall questioned whether there were specific ideas in the strategy to achieve the objectives of ensuring good quality accommodation, energy efficiency and sustainable construction, in addition to what was already being done within Planning Supplementary Planning Documents (SPDs) and the District Plan. The Head of Housing of Health referred to the views of the Executive Member for Neighbourhoods in terms of detailed action plans that would be coming forward to support the Housing Strategy. He referred to the grants and loans regime in the Private Sector Housing Policy and talked about work with registered providers in respect of upgrades to their existing housing stock.

Councillor Crystall sought and was given an assurance that the wording on page 40 of the strategy document in respect of embodied carbon would be clarified with planning colleagues. Councillor Symonds thanked the housing team for the work that they do. She referred in particular to new accommodation in Stanstead Abbotts and the need for support for rough sleepers and for vulnerable people with particular needs.

Councillor Curtis commented on the challenge of steps that could be taken to level the playing field between large and small housebuilders to make the housing market more efficient. The Head of Housing and Health said that he and the Housing Development and Strategy Manager had been noting down the large scale and complex points that had been made in terms of whether these could be explored over the lifetime of the strategy.

Councillor Goldspink highlighted the problem that the cost of homes classed as affordable, based upon an affordability percentage, was still very expensive and way beyond the reach of someone on an average income. She suggested a change to the first of the four key priorities on page three of the strategy, to add ‘and more social rented homes’.

Councillors Curtis and Snowdon made a number of comments about the trade-offs between the overall quantity of affordable housing which was developed and the level of rents. Provision of homes at lower rents (social rent) could lead to a lower supply of affordable housing overall. Councillor Goldspink said that she would accept the trade-off as there really was a need for more social homes for rent.

Councillor Goldspink proposed and Councillor Brady seconded, a motion for a change to the first of the four key priorities on page three of the strategy, to add ‘and more social rented homes’. After being put to the meeting and a vote taken, the motion was declared CARRIED.

Councillor Goldspink proposed and Councillor Brady seconded, a motion for a new second bullet point on page 23 of the strategy to investigate all possible ways of financing the provision of homes for social rent.

After being put to the meeting and a vote taken, the motion was declared CARRIED.

There was a discussion about setting up a cross party working group to investigate possible ways to finance the provision of homes for social rent. Councillor Goldspink accepted that she should raise this matter later in the meeting as part of the discussion on the Overview and Scrutiny Committee work programme.

Councillor Curtis proposed and Councillor Snowdon seconded, a motion that the comments and observations of the Overview and Scrutiny Committee on the draft East Herts Housing Strategy for 2022 to 2027, be provided to the Executive Member for Neighbourhoods prior to the presentation of the strategy to the Executive.

After being put to the meeting and a vote taken, the motion was declared CARRIED.

RESOLVED – that (A) a change to the first of the four key priorities on page three of the strategy, to add ‘and more social rented homes’;

(B)   a new second bullet point be added to page 23 of the strategy: ‘to investigate all possible ways of financing the provision of homes for social rent’; and

(C)   the comments and observations of the Overview and Scrutiny Committee on the draft East Herts Housing Strategy for 2022 to 2027 be provided to the Executive Member for Neighbourhoods, prior to the presentation of the strategy to the Executive.