The Overview and Scrutiny Committee of Barking and Dagenham Council met on Wednesday, 2 April 2025, to discuss the impact of new build developments and review the Council's work programme. The committee noted the progress on delivering new homes and provided input into the new Inclusive Growth Strategy.

Impact of New Build Developments

The committee received a report detailing the impact of the Council's Housing Delivery Programme, which has seen the completion of 2,774 new homes, with over 1,400 more under construction. The majority of these homes, 86%, are designated as affordable housing, including various tenures such as Target Rent, London Affordable Rent (LAR), London Living Rent (LLR), Discounted Market Rent (DMR), and Shared Ownership. Funding for Target Rent, LAR, and LLR homes is supported by grants from the Greater London Authority (GLA), while Right to Buy (RTB) receipts have been used to support DMR properties.

Councillor Cameron Geddes, Cabinet Member for Regeneration & Economic Development, explained that Target Rent is equivalent to social rent, with homes typically costing between 50-60% of market rent. He noted that these tenures help remove households from the housing waiting list. Rebecca Ellsmore, Strategic Head of Place and Development, clarified that the GLA reviews the Council's viability model before issuing funding and will not support proposals below Target Rent. The viability model is designed to ensure borrowing is repaid within a 52-year loan period without risking the General Fund.

The committee discussed the potential for delivering more Target Rent properties to reduce the need for temporary accommodation, which is a significant funding pressure for the Council. While more affordable homes could alleviate this, the Council must balance the costs. It was noted that since the establishment of Reside, approximately 60 households a year have been removed from the housing register, though the Council also loses around 200 properties annually due to Right to Buy.

Regarding infrastructure to support population growth resulting from new developments, the Council has a good record of building schools. However, improvements are needed in transport links with Transport for London (TfL) and with the police. The NHS infrastructure remains challenging due to national pressures, with the borough experiencing one of the lowest population-to-General Practitioner (GP) ratios in the country. Discussions are underway with a university to potentially open a dentistry teaching facility in the borough.

The Local Plan dictates the requirements for different bedroom sizes in new homes. There is a higher demand for one and two-bedroom homes compared to three and four-bedroom properties. The GLA's focus on housing numbers rather than unit size, with consistent grant levels regardless of bedroom count, presents challenges for the long-term viability of larger homes. The Gascoigne East 3B development scheme aims to address this by delivering three and four-bedroom homes, with all 34 four-bedroom units planned as LAR properties. The Council currently has 112 four-bedroom properties across its portfolios, all occupied and under various affordable tenures.

The committee was informed that approximately 10% of all housing schemes, whether Council-led or private, are built to be adaptable. While planning laws require the replacement of social housing during estate regeneration, some social housing was lost during the first phase of the Gascoigne Estate redevelopment before the no net loss requirement was in place, due to the aim of providing a mix of tenures and building a substantial school.

The funding for new build developments is expected to result in cost avoidance for the Housing Revenue Account (HRA), as some existing properties would have been too costly to bring up to standard. The Council is the freeholder of the new build properties, with Reside acting as the operator/leaseholder.

The Strategic Director Inclusive Growth highlighted that while there are no restrictions on placements from other boroughs in the private market, boroughs are required to inform the Council. However, the Council can prevent placements in Reside properties. The Council has explored various funding models, but the borough's low house prices make cross-subsidisation through property sales less effective than in other areas. The Council remains confident that borrowed funds will be repaid within the 52-year period.

To manage affordability, tenancies are assessed to ensure they are affordable for residents before they move in. There is a maximum income threshold for Discounted Market Rent (DMR) properties to prevent them from being allocated to those who can afford full market rent, and tenants should not spend more than 40% of their income on rent. Reside offers support services to tenants. It is hoped that building 200-300 new properties annually will help reduce the Council housing waiting list.

Challenges with the Underground Refuse System (URS) bins on the Gascoigne Estate have led to fly-tipping and required significant resources for cleanup. The Council is partnering with a neighbouring authority for waste collection from these bins, as standard refuse vehicles are not equipped. The Council is reassessing the future use of URS bins. The Council has not yet utilised available GLA grant funding for acquisitions, as it only covers 40% of costs, requiring the Council to fund the remaining 60%.

The committee noted the progress on new home delivery and its impact on the borough, as well as the development of the new Inclusive Growth Strategy.

Work Programme

The committee noted the Council's work programme for 2024/25.