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The Cabinet considered the two private appendices relating to
Item 11 - Social & Affordable Housing - Supply Programme.
 
Cabinet Members requested that further engagement with Ward
Members be undertaken regarding the sites considered for the
implementation of the programme.
 
Resolved:

1.   
That the ‘Housing Supply Programme’ capital budget of
£4.779m for the first 2 years of the programme (2026/27 and
2027/28) be approved;

2.   
That the commitment to working towards a cumulative £25m
budget for the 5-year programme, this includes identifying funding
via switching out capital schemes, funding by prudential borrowing,
external grants and working with partners in relation to match
funding be agreed;

3.   
That delegated authority be given to the Director of Economy &
Place, in consultation with the Portfolio Holder for Regeneration
and Housing, expenditures relating to 2026/27 and 2027/28 of the
Programme, and to complete such works as advance the programme
outlined within this report;

4.   
That it be agreed that an annual updating report is submitted with
detail on progress, and that further detail on specific site
development is provided as required in order to obtain the
necessary approvals [to progress works and further the project
aims];

5.   
That the ongoing due diligence work to identify suitable
sites to prioritise  for the delivery of affordable housing
 which will include engagement with the relevant Ward Members
be agreed and it be noted that a further report will be submitted
to cabinet for a decision in relation to the sites.

6.   
That delegation to the Director of Economy & Place, in
consultation with the Portfolio Holder for Regeneration and Housing
be agreed, to allow for the use and/or disposal of specified
Council-owned land for affordable housing to Registered Providers
of Social Housing;

7.   
That the Assistant Director of Legal, Governance and Coroners be
duly authorised to undertake necessary legal work, including any
procurement and contracting in connection with the scoping of the
Programme, and to execute such documents on behalf of the Council
in line with the Council’s constitution.
 
Reason for decision:
National & Regional Context:
Both nationally and locally there was
an evident housing crisis. Within the last 12 months there were a
number of significant events and pending changes within the system
which the Council should respond to through a coherent Programme
focussed on affordable housing delivery.
The Mayor of Greater Manchester had
launched, along with Greater Manchester Combined Authority (GMCA) a
‘Housing First’ project, to tackle housing supply,
housing standards and better supporting GM residents. The 10 GM
Local Authority Leaders approved a plan to work together to deliver
better quality and better value temporary accommodation. The wider
Housing First project was part of movement towards devolved powers
and devolved funding which directly affects Rochdale Council and
its ability to deliver in concert with RPs affordable housing.
 
GMCA was currently working on an
internal plan for the delivery of the 75,000 new homes target
within the current parliament. It would involve a new partnership
with the government to provider greater flexibility in funding and
capacity to accelerate the supply of new homes, including social
housing. Of the 75,000 new homes there was a commitment to build at
least 10,000 affordable, net zero homes across the region. It was
imperative that Rochdale Council is at the forefront of partnership
working with GMCA to ensure the attraction of relevant capacity and
funding, and the maximisation of opportunity for the residents of
our Borough. A stated Mayoral aim was to attract a wider £10
billion of investment to the region, which illustrated both the
need and ability to bring forwards affordable housing alongside
economic growth within our communities, if sufficient engagement is
realised. New development and regeneration needed to be at the core
of reducing homelessness and providing a secure pathway into safe,
affordable permanent accommodation for residents of the Borough of
Rochdale.
 
GMCA Brownfield Programme Funding: The
GMCA Brownfield Housing Funding initiative provides financial
support, including through the Local Authority, to develop housing
on previously developed (brownfield) sites within the GM area. This
funding aimed to unlock brownfield land and boost the delivery of
new homes, including affordable housing, and support local economic
growth. Strategic Housing (Property) had been involved to date,
with the funding now entering year 3. The funding was such that
once grant became available the sites which were successful in
bidding were those which were ‘shovel-ready’ (i.e.
sites surveys and investigations have been completed and planning
permission obtained). The funding scheme heavily prioritises social
rent properties, with a minimum requirement of over 25%, with an
expectation to 85% or above. To be able to access this fund in an
agile manner a pipeline of sites needs to be available and brought
forwards in an efficient manner, as timely deliverability is the
key prioritisation metric. Some of those sites listed in Appendix A
have been identified as potentially suitable but will need to be
brought forwards quickly if they are to be eligible for this
funding. It is anticipated that the scheme will continue, and that
it will therefore be significant to financially unlocking sites for
affordable housing within the Borough.
 
A recent Government announcement of
£2 billion new investment would likely see an estimated
£1.2bn to £1.5bn becoming available through the Homes
England Social Affordable Homes Programme (‘SAHP’).
Whilst the Council cannot directly access those grant monies,
further devolution of the SAHP and related programmes is being made
by Homes England within the next period to GMCA. It will therefore
become even more important for the Council to be able to work in a
dynamic and time-efficient manner to be able to support RPs to
access land and schemes for the development of affordable
housing.
 
The GM ‘Places for
Everyone’ framework forms part of the Borough’s
development plan and as such sets relevant targets and guidance,
including an annual average target of 616 additional dwellings. The
Borough would shortly develop a new Local Plan which would need to
work both in synthesis with those ambitions and noting the new
central Government target of 918 new homes each year. Currently the
Borough was delivering 609 homes per year on average. It therefore
becomes clear that a period of acceleration of delivery of homes
was required, and of this the related acceleration of affordable
housing units would become significantly more important.
 
National Spending Review: This sets the
Government’s spending plans for a minimum of 3 years and is
happening in two phases. Phase 1 completed in the Autumn Budget
2024 and it was anticipated that Phase 2 would conclude shortly.
The Government had stated it would prioritise the delivery of key
goals including ‘the decade of national renewal’. The
direct and immediate relevance to Local Government and particularly
RPs had been to pause and/or decelerate affordable housing supply
delivery schemes. The current lack of certainty and risk within the
financial markets and affordable housing supply chain has been such
that delivery has slowed very significantly within the last 12
months, causing risk to some existing projects. Once the Spending
Review has been fully outlined there will have to be a swift
regional and local response, in terms of ensuring that available
funding is secured. To ensure that RPs are assisted with this, and
crucially to ensure the right mix of housing and tenures is being
developed, the Council needs to adopt a holistic and agile approach
to all aspects of affordable housing delivery.
 
Affordable Homes Programme (AHP): The
AHP 2021-2026 was the central capital funding grant system to cover
some of the capital costs of development of affordable housing,
accessible to Registered Providers of Social Housing (RPs). Funding
is allocated on a rolling basis through the Continuous Market
Engagement (CME) route, meaning bids for specific schemes are
reviewed and funded [to the end of the AHP]. There is a potential
that the new/replacement SAHP may include regeneration and empty
homes funding. Therefore, the Autumn Budget is another significant
driver within the current and future affordable housing delivery
context.
 
Principle Constraints on RPs: The key
to increasing delivery of affordable housing is through our RP
partners, who are not-for-profit organisations who have immediate
responsibilities to their existing tenants. It is a reality within
the last 5 years that a significant downward shift in developing
affordable housing has occurred. The reasons for this are complex
but include increased costs, shifting priorities towards existing
homes, and concerns about economic uncertainty. RPs are also
balancing a need for affordable social housing with the realities
of rising construction costs and potential government policy
changes. Particular enactments, such as the Social Housing
(Regulation) Act 2023 (‘Awaab’s Law’) require
social landlords to address damp and mould hazards with specific
timetables. An inevitable effect of this have been substantially
increased costs and significant capacity issues. It therefore is a
relevant driver which needs to be addressed by the Council, when
determining the need for and delivery of a new affordable housing
programme.
 
Decent Homes Standard Consultation: The
Government is planning a consultation on the Decent Homes Standard
(DHS) (a set of minimum standards for the quality of social housing
in England), which is anticipated to commence very shortly. The
consultation will focus on extending the DHS to the private rented
sector and is part of ongoing efforts to improve the quality of
housing in the UK. What is less clear is how the private rented
market may be affected by any new standards being brought in, and
whether this will affect the supply and affordability of private
rented sector homes, which could see a further demand placed on
social housing if the sector becomes even more
‘squeezed’. It may also be that central Government uses
the opportunity to further tighten the DHS for social housing,
which will inevitably reduce financing for RP affordable delivery
programmes. There is therefore both a need and opportunity to
ensure that the Council is taking an active interventionist
approach within the affordable and wider housing market.
 
Local Context:
The number of people relying on the
Council’s Housing Register to obtain suitable social housing
is circa 20,000. Individuals and families, depending on
circumstance, could be waiting in excess of 5 years for social
housing. The waiting time for social housing is not static and is
set to increase considerably over the next five years onwards.
 
On the 18th of October 2023 Rochdale
Council at a full council meeting passed a motion to declare a
housing emergency. There is an immediate and ongoing need to
increase a varied supply of affordable housing for the future.
 
To create a pathway to achieving the
above, and to deal with the long-term impacts of the housing
crisis, Strategic Housing (Property) recommends increasing the
Council’s development of affordable housing, with a need for
greater control and flexibility, including through home ownership
options.
 
The Council has core statutory housing
duties, particularly relating to the provision of housing as per
Part VII of the Housing Act 1996 and the Homelessness Reduction Act
2017. The number of individuals and families at risk of
homelessness or who are homeless is currently over 650 as an
immediate snapshot. This figure is rising every quarter.
 
Currently there are circa 20,000
persons on the Housing Register for social housing. Of those nearly
7,500 individuals’ application met the statutory
‘reasonable preference’ criteria meaning they are the
highest priorities for re-housing.
 
The demand for social/affordable
housing is critical amongst younger people, making up over half of
the current demand. On this basis alone the need for affordable
housing will rise at an accelerated rate as those individuals
remain un-housed or inappropriately housed, with the next
generation inflating demand still further.
 
Currently there are circa 430 children
living in Temporary Accommodation due to homelessness and the lack
of permanent accommodation to move them to.
 
The demand by applicants with some form
of special categorisation (most notably medical/disability needs)
continues to rise, with 300+ individuals/families with disabilities
in housing need which is not being met by the social or private
housing sectors, either in terms of number of homes available or
the type of homes available, particularly those with
adaptations.
 
There is an increasing demand for
larger properties, which are not being delivered by Registered
Providers, notably for viability reasons and/or where their current
operating models are focussing on 2–3-bedroom properties. The
highest demand by quantum is for 1-bedroom accommodations. The
highest demand in terms of scarcity however is 4 + bedroom
properties.
 
In 2024 there were 813 social
properties let via the Housing Register, which represents just over
15 properties per week. Typically, there may be in excess of 3000
cumulative bids per week for those 15 properties.
 
Of the 813 social properties let in
2024 only 15 in total were 4+ bedroom properties. Larger families,
particularly those with disabled children, are the cohort most
likely to wait the longest for suitable accommodation, if it
becomes available at all. Due to lack of adapted housing some
families with disabled members may never achieve suitable
housing.
 
The private market is not accessible in
most cases for reasons of affordability. The social housing market
in terms of RP deliverability is currently unable to meet either
the current or future need.
 
Alternatives considered and
rejected:
Maintain status quo: This is not a
viable option as the existing housing market failure, both private
and social, are directly attributable to the position in which the
Council currently finds itself in respect of the acute and chronic
shortage of affordable and accessible housing. The current budgets
relating to work on affordable and accelerated housing will be
fully utilised by the end of the current financial year (2025/26)
and not to progress a fully funded Programme will mean reduced
interventions within the affordable housing market. In turn this
will lead to increased homelessness, use of Temporary
Accommodation, rising cost to the authority and potentially
statutory failings.