This document summarizes a presentation on meeting affordable housing needs in Swansea. It covers the local authority's duties around housing, policies used so far like Section 106 agreements and an empty homes strategy, constraints like declining grants and viability issues, and future challenges around welfare reform. Metrics on grant funding declines and Section 106 delivery are provided. Options discussed include building new council homes, increasing land for affordable housing, and bringing empty properties back into use.

1. Meeting Affordable Housing Need
in the City & County of Swansea
Stronger Safer Communities
Scrutiny Board
24 th September 2012

2. Presentation Contents
The presentation will cover:-
 LA Duties & Powers in relation to affordable housing
 Policies and Strategies used to address affordable
housing so far
 Impact of policies so far
 Constraints on providing affordable housing
 Future Challenges
 New Council House Building
 New innovative solutions

3. Local Authority Duties
 To review housing needs and conditions (Housing Act
1985)
 To produce housing strategies to address housing issues
in the area (Local Government Act 2003)
 Make appropriate provision for affordable housing in
Development Plan policies. Identify requirements, viable
targets and site thresholds and monitor provision (PPW
2011 and TAN 2 2006)

4. Local Authority Powers
 Section 106 Agreements
 Strategically direct RSL spend via SHG
 Compulsory Purchase Orders
 Disposal or leasing of land to RSLs for
affordable housing construction
 Suspension of the Right to Buy
 Local Authority Mortgages
 Bring back Empty Properties e.g. via loans
scheme, etc

5. Council Policies and Strategies to
Deliver Affordable Housing
 Maximising SHG Allocation from WG
 Utilising Section 106 Agreements/
Percentage Affordable Housing dictated
by the Housing Market Assessment
 Use of Commuted Sums
 UDP – Thresholds
 Empty Property Strategy

6. Impact of Current Policies so far
 Limited – due to recession and housing
market downturn
 Adopted policy reflects latest national
guidance
 SPG provides strong basis for negotiation
 No significant change to numbers
delivered
 Very little success in rural areas

7. Constraints on Affordable Housing
Supply
 Declining Social Housing Grant from
Welsh Government
 Depressed housing market results in
fewer Planning Applications / Section 106
Agreements /viability issues
 Complexity of planning application
process
 Land acquisition – unrealistic expectations
of landowners
 Access to finance

8. Declining Social Housing Grant
 2007/08 - £6.9m
 2008/09 - £3.9m
 2009/10 - £6.2m
 2010/11 - £3.1m
 2011/12 - £3.2
 2012/13 - £3.1m
 2013/14 - £2.7m

9. Delivery through Section 106
Agreements
 2009 – 11 Units
 2010 – 21 Units
 2011 – 9 Units
 2012 – None as yet

10. Future Challenges
 Welfare Reform Proposals
 Those over occupying a property will get less
benefit
 Single room rent increased to people up to 35
 The affect of Universal Credit
 Big reduction in benefit payments big increase in
demand for 1 bedroom properties
 Viability of sites to deliver affordable housing

11. Building New Council Homes
 Legally this is allowed
 Conflict with using finances to achieve
Welsh Housing Quality Standard
 RSLs could deliver more properties with
same money than Council due to financial
rules

12. Increasing Affordable Housing –
Current Options
 Reducing SHG funding to RSLs for particular schemes
 Local Authority Mortgages
 Maximising affordable housing via Section 106
Agreements
 Leasing of Council land for affordable housing
 Promotion of Exceptions Policy in UDP
 Bringing back Empty properties into use
 Review thresholds through LDP/include site specific
indicative targets
 Welsh Housing Partnership

13. Conclusions
 Difficult to increase affordable housing
levels due to economic climate
 New initiatives being developed by the
Welsh Government that could be utilised
 Housing Market Assessment will give
more detail regarding the level of A.H.
need