Agenda item

Jeff Endean (Housing Strategy and Programmes Manager) and colleagues introduced the report. The following key points were noted:

·         Lewisham council’s council home building programme is part of a wider programme of delivering affordable housing in the borough – which includes providing more temporary accommodation and more new homes through housing regeneration.

·         More than 3,500 new affordable homes have been built in the last 10 years. The reduction of social rents by 1% for four years has, however, removed £25m of investment capacity.

·         The financial model for the delivery of 500 new council homes is based on each new home costing £190,000 to build. 30% of this cost can be claimed as a subsidy from right-to-buy receipts.

·         Around 120 council homes are sold every year in Lewisham under right to buy.

·         The tenure approach agreed by Mayor and Cabinet and is for 80% council homes and 20% private sale – with sale homes cross-subsidising the programme.

·         Out of the 500 new council homes planned, around 350 will be eligible for right to buy. There will be no right to buy with older people’s housing or with the Church Grove self-build project.

·         There are a number of different ways the Council is delivering more housing. This includes developing pockets of underused land (infill), providing further older people’s housing, widescale estate regeneration, intervention in the private rented sector with Living Rent, and further off-site construction developments like PLACE/Ladywell.

·         The proposed location for the second off-site construction development in Lewisham is in Deptford, on the site of a rundown ball court. PLACE/Deptford would provide around 35 new two and three-bed homes using the same off-site construction methods used at PLACE/Ladywell. It will be flexible accommodation, not just temporary accommodation.

·         Like PLACE/Ladywell, there will also be the option for community/commercial units on the ground floor. Officers are continuing to consult with the local community to find out what community/commercial space would be of most use. Ideas so far have included a nursery, art studios, and workspace for local businesses.

Jeff Endean (Housing Strategy and Programmes Manager) and colleagues answered questions from the Committee. The following key points were noted:

·         New homes at PLACE/Deptford will come with white goods, kitchen and bathroom already fitted. Grants will be available for furniture. The home will be of high quality – each will have a 60-year guarantee. The expected completion date for PLACE/Deptford is summer 2018.

·         PLACE/Deptford is expected to pay for itself within seven years. PLACE/Ladywell will pay for itself in 12 years (this includes the cost of one move at £800k).

·         PLACE/Ladywell features 6-month tenancies, which can be rolled over. It takes 2 years on average for someone in temporary accommodation to find a placement. PLACE/Ladywell resident are already making bids and moving out. There can be issues with repeatedly rolling over short-term tenancies where the nature of housing is permanent.  

·         Lewisham has not yet considered cooperative housing management models – the current focus has been on getting as many new homes built as possible. 

·         The large majority of households on the housing waiting list are families as opposed to individuals.

The Committee made a number of comments. The following were noted:

·         The Committee asked if officers could explain in all future reports the different types of affordable housing being referred to and the exact definition. The term affordable housing is not always clear.

·         The Committee asked if officers could share the formula for Living Rent.

Resolved: the Committee noted the update.