Using partnership working to secure affordable housing for key workers, those on the council's housing register on a site which previously didn't have any.
At a glance
What went in
Priority area addressed: This was a difficult site with planning history and no affordable housing expected until the intervention of Metropolitan Thames Valley Housing (MTVH) and the council.
Budget: Homes England Strategic Partnership funding of £15 million and a MTVH contribution of circa £42 million.
Other resource needed: Officer time from MTVH and the council. Also, consultants and contractors’ input in order to take forward the development and agree all planning parameters
Timeframe to completion: Currently under construction, first completions due late Summer 2025, completion anticipated Summer 2027.
What came out
178 affordable homes
Executive summary
This development has had a chequered history. It is an allocated site which anticipated 345 dwellings. From the outset, the owners submitted viability assessments indicating no on-site affordable housing was viable. None was therefore anticipated; ordinarily 40 per cent would comprise affordable housing.
Challenge and context
The Council has supported its partner Registered Providers (RPs) in maximising affordable housing. Most notably, developments that are policy compliant would require 40 per cent of the dwellings to be affordable housing. Through its partnership working, the RPs are delivering such sites as 100 per cent affordable housing. Including this development, in excess of 1000 affordable homes will be delivered.
Station Quarter is an excellent example of such an initiative.
The allocation of the site in our Local Plan suggested a development of circa 345 dwellings. However, this was high density with high proportions of flats/apartments.
Consent was secured without any on site affordable housing due to the submitted Viability Assessment. The site was marketed for some considerable time. During this period, informal discussions took place between the Council and MTVH who attempted to secure a proportion of the homes as affordable housing.
However, insufficient interest was secured and no party came forward to acquire the site. This was likely due to the nature of the proposal and inappropriately high number of flats.
The owners reviewed the position and submitted a new application; this also did not include any on site affordable housing but just a contribution for off site affordable housing. The application was for 178 homes, most of which were houses; once approved the site was again marketed.
What we did
Based on the revised planning consent, MTVH began negotiations with the site owners. With the assistance of Homes England grant of £15 million and MTVH resources of £42 million, in principle agreement was reached based on the following mix comprising 100 per cent affordable housing
| Type of flat | For affordable rent | For Rent to Buy | Total |
|---|---|---|---|
| One bed | 8 | 0 | 8 |
| Two bed | 12 | 0 | 12 |
| Two bed house | 4 | 57 | 61 |
| Three bed house | 4 | 51 | 55 |
| Four bed house | 16 | 26 | 42 |
| Total | 44 | 134 | 178 |
At this stage, MTVH approached the Council, a Memorandum of Understand (MoU) was agreed and in due course the Council provided its approval to the proposals having discussed them with Members.
The site is well located, being within walking distance of the train station. It is also within walking distance of Hinchingbrooke Hospital, Hinchingbrooke School and Hinchingbrooke Police HQ.
The MoU has established that this is an opportunity to target Key Workers as well as addressing the needs identified from the Council’s housing register. There will also be a review to consider whether some of the Rent to Buy homes can convert to Shared Ownership.
The difference
A difficult site in which no affordable housing was anticipated will now provide 178 affordable homes. The joint working of the parties and the resources secured are going to make a significant impact in helping those who cannot afford market housing.
We hope to help Key Workers as well as addressing the priority need for affordable housing for rent for those on the Council’s Housing Register.
Lessons learned
To a significant degree the strategy of supporting RPs in such initiatives has been vindicated. As referred to previously, similar approaches on other developments have resulted in 100 per cent affordable housing development (this being the largest).
The Council does not lose sight of the need to ensure such developments are sustainable and promotes Local Lettings Plans which ensures a diverse group of people are housed including those who are more economically active.
Contact
Frank Mastrandrea, Policy and Enabling Officer