1. Draft London Housing Strategy
& Funding Prospectus 2015-18
Alan Benson
GREATER LONDON AUTHORITY

2. Homes for London - overview
“This strategy aims to put in
place the resources to deliver
more than 42,000 homes a
year …. But I also want to
make sure that the homes we
build better reward those
who work hard to make this
city a success”

3. Identifying the challenge
• A population boom
− 9m by 2020 and 10m by 2030
• A changing tenure pattern
• An affordability crisis
• A growth in acute housing need
− Homelessness, rough sleeping & overcrowding all growing
• Housing is essential infrastructure
− Building homes creates jobs
− Supports London’s skilled workforce

4. Setting the ambition

5. Setting the ambition –
increasing supply, improving quality
• At least 42,000 new homes a year
– With 15,000 affordable & 5,000 long-term PRS
– Double intermediate by 2020 and double again by 2025
• The 2015-18 programme
– 40 per cent low cost home ownership
– 30 per cent at “capped” rents
– 30 per cent at “discounted” rents
• Improved design & stock improvement
– All homes to meet LHDG standards & bespoke PRS design
– Retrofit every poorly insulated home by 2030
– All council homes to meet decent homes standard by 2018

6. Delivering the vision

7. Delivering the vision finance, land and capacity
• A long term funding settlement for London
– Borrowing reforms and devolved property taxes
– New investment framework & London Housing Bank
• Bringing forward the land
– Housing Zones and focus on opportunity areas
– Public land, town centres, densification & non-housing land
• Finding the capacity
– Using PRS to drive supply
– Unblocking stalled sites and increasing competition

8. Fulfilling the covenant
London house prices
Tenure trends
Households in TA
Overcrowded households

9. Fulfilling the covenant –
supporting workers & meeting need
• Supporting workers
–
–
–
–
Improving the intermediate market
Supporting home ownership
Improving the PRS
Rethinking allocations and mobility
• Meeting housing need
– Increase provision of purpose built homes for older people
– Halve the level of severe overcrowding in SR
– No second night out and no living on the streets

10. The funding package
• Over £1 billion to support the delivery of 42,000 affordable
homes in 2015-18
• Up to £200 million for the London Housing Bank to deliver up
to 3,000 homes
• Around £145 million to improve the condition of 9,500
council-owned homes
• £120m for the Get Britain Building Fund to kick-start housing
delivery on 22 sites to deliver 2,755 homes up until 2015.
• At least £750m in aggregate from the Build to Rent
programme and the Help to Buy equity loans programme up
until 2016.

11. Funding - expected outputs
Tenure
2008/09 2010/11
2011/12Q2 2013/14
Q3 2013/14
- 2014/15
2015/16 2017/18
Rent (social and affordable)
First steps
Affordable rent to buy
Stock upgrade to council homes
Total new homes
Annual average new homes
per spending round
Annual average stock upgrade
per spending round
22,260
18,400
40,640
17,568
9,383
21,585
26,951
18,575
9,474
23,415
28,049
25,200
16,800
3,000
9,500
45,000
13,547
13,750
15,000
-
11,250
9,500

12. Timetable
Publication of draft strategy
End of consultation period
Review responses/revise strategy
25 November 2013
17 February 2014
February - March 2014
Submission to London Assembly
Mid March 2014
Submission to Secretary of State
End April 2014
Publication of final strategy
Late June 2014

13. Funding prospectus - overview
• Maximising supply and
supporting working Londoners
• High quality homes
• Over £1bn for 42,000
affordable homes in 2015-18
• London Housing Bank to
deliver 3,000 more
• 60:40 Tenure mix

14. Product offer
• Increased levels of flexible home ownership
• A differentiated Affordable Rent offer
− Rents capped at a low level for those most in need
− Discounted rents targeted at working households
− Providers required to deliver 50:50 mix
• Increased market provision (sale & rent)
• Maintained design standards
− Current approach maintained
− Compliance/certification will be same or less onerous
• Amended size mix
− 36% of discounted rent as larger homes
− but more smaller homes to address welfare reform

15. A framework with Boroughs
• Agreed set of principles with each Borough
−
−
−
−
−
The level for capped rent (target rent minimum)
Distribution of flexible home ownership and AR
Nominations to AR
Marketing intermediate
Where not agreed 25% noms retained by provider
• Allocations
–
–
–
–
–
All affordable home ownership via First Steps portal
All affordable rent nominations with boros
Sub-regional nominations ended
5-10% nominations for pan-London mobility
Providers retain 10% to 25% of nominations

16. Other issues
• Smaller providers consortia
– Expectation those delivering under 100 units will partner
– GLA will ‘match-make’ providers
• Clearer Section 106 rules
– 100% RP controlled sites not treated as ‘s106’
– The GLA will only consider for grant for a s106 scheme if it
is unviable and provides additional affordable homes
• Carrots and sticks
– Support on environmental retrofit
– Increased asset management flexibility
– Non participants lose ability to operate RCGF

17. Timetable
Publication of prospectus
December 2013
Deadline for provider bids
Midday 10 March 2014
Assessment and negotiation
Announcement of allocations
Partners in contract
2014/15 starts profiled on IMS
March – May 2014
Late June 2014
30 June 2014
31 December 2014

18. Questions?