To receive a report on commissioned research into housing delivery models in other local authorities.

The committee considered a report on commissioned research into housing delivery models in other local authorities by Three Dragons.

The Chairperson introduced the officers and representatives from Three Dragons to present.

The principal points of the discussion are summarised below:

1. The Service Director, Economy & Growth noted that there was an item on delivery models around delivery of affordable housing around the county at October’s meeting. It was noted that a final report be brought back to the committee to review the key findings before final recommendations are made to Cabinet.

2. The Chairperson asked the representatives from Three Dragons what the possible sources of funding are that the council should be looking at to deliver the suggested pilot site for housing.

3. In response, Lin Cousins (Three Dragons) noted that with development companies, the other local authorities have used their own funding to start with on the basis that over time there will be a return.

4. In response to a question about how registered providers (RPs) can be helped who are under financial pressure and why are registered providers cautious about involvement in section 106 schemes, Lin Cousins noted that RPs are cautious about s106 schemes because they sometimes have issues around the types of units they are asked to pick up from the developers and because they are usually not eligible for any grant funding from Homes England. When they develop their own sites (100% affordable housing), they are then eligible for Homes England funding.

5. In response to a question about the impact of the Budget on Homes England spending plans, Lin Cousins noted that the direction of travel looks like there will be a priority given to social rent units rather than affordable rent units and there is more money for the tail-end of the current programme and an allowance for the next programme.

6. Laura Easton (Three Dragons) added that if the council were to go down the s106 route on one of those sites, talking to the RP early on would be useful to ensure that the council would be developing the type of units that they would want to take. 

7. The Interim Head of Housing Development noted that in terms of RPs being interested in s106 agreements, there are certain rural locations where they do not have resource and therefore struggle to manage and maintain those properties. In terms of type, they are reluctant to take on one-bedroom properties of which there is a demand for those types of properties in Herefordshire.

8. The Chairperson asked whether the council has come across any ways to encourage developers to build one-bedroom units.

9. In response, the Interim Head of Housing Development commented that one-bedroom units are problematic for developers and in terms of innovative solutions, the council is going for affordable market rent in locations where there is a planning application that has come in with an affordable housing requirement. However, the council is unable to get a RP to take those plots and therefore is letting the developer to rent  ...  view the full minutes text for item 28