The Overview and Scrutiny Committee of Barking and Dagenham Council met on Wednesday, 2 April 2025, to discuss the impact of new housing developments. The committee reviewed the progress of the Council's Housing Delivery Programme, noting that nearly 3,000 new homes have been completed, with over 1,400 more under construction. Discussions also covered the various affordability types of these new homes, the challenges of providing larger family homes, and the impact on local infrastructure and services.

Impact of New Build Developments

The committee received a report detailing the significant progress of the Council's Housing Delivery Programme, which has seen the completion of nearly 3,000 homes, with a further 1,413 in the pipeline. These developments include a range of tenures, with 86% classified as affordable housing, defined as being at or below 80% of market rent. The report highlighted that homes designated as Target Rent, London Affordable Rent (LAR), London Living Rent (LLR), and Shared Ownership are supported by grants from the Greater London Authority (GLA). Discounted Market Rent (DMR) properties are supported by Right to Buy (RTB) receipts.

A key point of discussion was the definition and provision of target rent, which was explained as being equivalent to social rent, typically falling between 50-60% of market rent. Councillor Cameron Geddes, Cabinet Member for Regeneration & Economic Development, noted that both social and target rent properties enable households to be removed from the housing waiting list.

The committee explored the viability model used by the Council, which is reviewed by the GLA before funding is issued. This model is designed to ensure that borrowing is repaid within a 52-year loan period without jeopardising the Council's General Fund. Concerns were raised about whether delivering more target rent properties could reduce the reliance on temporary accommodation, which is a significant funding pressure for the Council. While acknowledging the potential for affordable housing to alleviate this, the Council must balance the costs of temporary accommodation against the expense of building more affordable homes.

The report indicated that 669 new homes had been allocated directly to households on the housing register. However, it was estimated that only around 60 households per year are being removed from the housing register since the establishment of Reside, while the Council is losing approximately 200 properties annually due to the Right to Buy scheme.

The rapid population growth resulting from new housing developments was also a focus. While the Council has a good record of building schools to support infrastructure, improvements are needed in areas such as Transport for London (TFL) and policing. The provision of NHS services, particularly General Practitioners (GPs), remains a challenge due to national strains, with Barking and Dagenham having one of the worst population-to-GP ratios in the country. Discussions are underway with a university to establish a dentistry teaching facility within the borough to address access to dental care.

The committee noted that the Local Plan sets out requirements for different bedroom sizes in homes, with a higher demand for one and two-bedroom properties compared to three and four-bedroom homes. The GLA's focus on total housing numbers rather than the size of units, with grant levels remaining the same regardless of bedroom size, was seen as a challenge to the long-term viability of housing provision. The Gascoigne East 3B development scheme aims to address this by delivering more three and four-bedroom homes. It was clarified that all 34 four-bedroom homes in this development will be London Affordable Rent (LAR) units, with the hope of reducing the number of households on the housing register. An existing portfolio of 112 four-bedroom properties are all occupied and under various affordable tenures.

The provision for adaptable homes within new developments was confirmed, with approximately 10% of all housing schemes being built to be adaptable. The Council is required by planning laws to replace social housing when regenerating estates, although some social housing was lost during the first phase of the Gascoigne estate redevelopment before the no net loss requirement was in place.

The committee heard that funding for new developments results in cost avoidance for the Housing Revenue Account (HRA), as some properties would have been too costly to refurbish. Regarding placements from other boroughs, while there are no restrictions in the private market, boroughs are required to inform the Council of any placements. The Council can, however, prevent placements in Reside properties.

The possibility of cross-subsidising new developments by selling houses was discussed, but it was noted that Barking and Dagenham has one of the lowest house prices in London, making this model less effective than in other boroughs. The Council remains confident that borrowed money will be repaid within the 52-year period.

The committee was informed that managing changes in tenants' circumstances includes ensuring tenancies remain affordable, with maximum income thresholds for DMR properties and an affordability criterion that tenants should not spend more than 40% of their income on rent. Reside provides support services to tenants. The Council hopes that building between 200-300 new properties annually will help reduce the housing waiting list.

The Council was confirmed as the freeholder of the new build properties, with Reside acting as the operator/leaseholder. The committee was informed that decanted properties are used for temporary accommodation. The Government's housing targets for the borough have recently been reduced, although they remain challenging to meet.

Regarding the Underground Refuse System (URS), the Council is reassessing its use due to challenges with waste collection and fly-tipping. The Council has relied on the London Borough of Tower Hamlets for waste collection and is considering purchasing its own waste collection vehicles.

The Council has not yet utilised grant funding from the Mayor of London's council housing acquisition programme, as the funding only covers 40% of the acquisition cost, and the Council has been unable to secure the remaining 60%.

The committee noted the progress on new home delivery and its impact on the borough, as well as the development of a new Inclusive Growth Strategy aimed at maximising the positive impact of new homes.

Work Programme

The committee noted the work programme for the upcoming year.