Housing in Salford

Working with partners and stock options.

Sarah Clayton, Head of Housing Strategy and Enabling

Housing context

• Changes in population – 8% increase ’01-’11.• Changes in tenure of choice – PRS increased by 6.6%

Census 01-11

• Number of properties bought/sold on the open market – peak in 2003 = 5537, down to 2017 in 2008.

• Average house prices £130,044 in 2011 – reduction of 11% from peak.

• Number of new homes build ’09 = 699, ’12 =513(Gross new build

homes only

• Average number of bids for social housing = 28.53 (Salford

home search 2012)

How do we deliver?

• Not possible for the Council to deliver the priorities in it’s own.

• Therefore, Strategic Housing Partnership made up of key partners from Salix Homes, City West Housing Trust, Great Places Housing Group, Together Housing Group, Symphony Homes and developers

Private Sector 75,307

Registered Provider  (Housing association)

20,891

ALMO  (LA Owned)

10,519

Total 106, 717

Source HIP 2010

Housing Partnership working

• We have agreements with Salix and City West – more later.

• The other registered providers in the City work with us to help deliver the priorities.

• More than just housing ? Work together on safeguarding, police and crime reduction, neighbourhood management and community engagement.

How do we deliver affordable houses ?

• Between 2007/08 and 2013/14 Salford and its partners have secured £70.6m funding to develop 1,399 new affordable homes, helping to creating employment and training opportunities for local businesses and people.

• 101 new Council houses developed across the City – £8m grant funding- unlikely for funding to be available to continue the development programme.

How is affordable housing funded• The Homes and Communities Agency provides funding

for new homes through contracts with the Registered Providers.

• The grant rates have been cut by over half – no assurances of what will happen after 2015.

• The balance of the costs of development is funded through RP reserves and borrowing.

• This is funded through rents – now ‘affordable rents’ can be charged which is up to 80% of market rents, on new properties and a number of properties that turnover.

• Council gets nomination rights.

Decent Homes and InvestmentCity West Housing Trust• Now own the properties previously owned by the

Council, in the west of the City.• Launched in October 2008, governed by a Board• Regulated by the Homes and Communities Agency• Promises made to tenants prior to transfer.• Investment programme £235m in first 5 years• Not in Council control• Partnership working.

• Properties still owned by the City Council• Governed by a Board• Contract with City Council to deliver housing

management and investment services• Promises made to tenants• Investment programme £70m over 5 years• Partnership working.

Decent Homes and InvestmentSalix Homes

Arms Length Management Organisation – ALMOManagement fee/SCC

Governance structures – Independent Board

10,500 properties (8,500 post PFI)

Challenging issues/2007 stock condition – still high level of non decency disengaged staff and customersservice charges/service reviews

Customer focus / scrutiny / co-regulation

Investment to date

Additional investment secured – fuel poverty and energy efficiency

Welfare reform challenges

Stock options process

• AC 2* excellent prospects (2010)• Decent Homes funding• Tower block improvements • Upper quartile performance across the board• High level of customer satisfaction• Creating local work and training opportunities• Nationally recognised

– Customer scrutiny– Sustainable landlord– Equality & Diversity– ASB services

Key Achievements

Housing Stock OptionsYOUR HOMES YOUR SAY

Salford City Council had put in place a mix of solutions for its housing stock.

• Salix Homes arms length management organisation (ALMO) with an original bid for Government funding of £69m. This was reduced to circa £57 m.

• City West Housing Trust was set up in 2008 and 15,000 properties were transferred to it, it required gap funding – delivered £180 million investment to date.

• Pendleton PFI – will deliver improvements to 1250 homes and build 1600 new homes.

Why is the Council doing an options appraisal ?

So what’s changed?

• Decent Homes Funding – less funding, still have a backlog.

• The rules for HRA self financing has set a cap on how much can be borrowed

• To deliver the right levels of investment at the right time, there is a gap of £63m and the Council would need to borrow a peak debt of £133.5m – Salford is at it’s debt limit of £71m.

• Current estimate show that at least £700m (capital and revenue) is needed to invest in the stock over the next 30 years

• Therefore, the Council needs to look at the options.

A test of opinion has been carried out, with all tenants living in Council stock (except PFI area). Good response rate and useful results.

The Customer Panel considered this and other evidence and concluded its recommendation to the Council is ‘approve the options of transfer to all remaining non-PFI Council owned homes in Salford to be progressed to the next stage’. Mayor decision taken to develop an offer to tenants

Preferred partner to be identified by July ’13. Any proposal would have to be subject to Tenant Ballot.