Decision Maker: Cabinet

Outcome: Recommendations approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: August 21, 2025

Purpose: To outline a strategic flexible approach for the next 5 years for affordable housing supply delivery and to grant relevant budget and delegated powers to put that programme into effect.

Content: The Cabinet considered a report of the Director of Economy and Place which sought approval of the Social Affordable Housing – Supply Programme.   The Cabinet Member for Regeneration and Housing delivered a brief summary of the report’s key points.   The Head of Strategic Housing (Property) was in attendance to present the information and to address the questions and the comments of the Cabinet Members.   The Cabinet noted that there were two appendices to be considered in the private session of today’s meeting. Hence, the recommendations below would be approved in principle, subject to any amendments deemed necessary, following consideration of the private appendices.   Resolved: 1.    It be agreed that the points below be agreed in principle, subject to any amendments deemed necessary, following consideration of the private appendices included in Item 13 of today’s agenda; 2.    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; 3.    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; 4.    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; 5.    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]; 6.    That the prioritisation of specified Council-owned land (as detailed in Appendix 1 to the report) for the delivery of affordable housing be approved; 7.    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; 8.    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.