Leonora House: Leeds City Council

What went in

Budget

£12 million, comprising:

• Homes England - £3.7 million
• Commuted Sums - £670,000
• Brownfield Housing Fund - £1.5 million
• Asset finance and reserves from the social landlord £5.9 million

Other resource needed

• Caddick Construction – contractors
• Brewster Bye – architects
• Council support on Brownfield Housing Fund application

What came out

• A five storey block of 58 flats including 28 x one bed, 25 x two bed, five x three bed.

As a Council, we are proactively working collaboratively with our Registered Provider (RP) partners to increase the scale and pace of affordable housing delivery in Leeds through an ambitious and agile delivery programme which responds to new land and funding opportunities as they arise. 

We utilise our limited land assets to support affordable housing delivery and generate a capital receipt to strengthen the Council’s challenging financial position through ring-fenced disposals to RPs. 

In addition, we have a strategic approach to targeting commuted sums to promote inclusive housing growth in the city centre and fringes where affordable housing has not been delivered through direct development of market-facing schemes. To respond to significant affordability challenges, the deployment of commuted sums has been prioritised to support social rent schemes. 

The case study provides a specific scheme example – Leonora House, named in memory of Leeds born suffragette, Leonora Cohen. It demonstrates both the use of Council land (the former Yorkshire Rider Club) and the use of commuted sums to enable affordable housing delivery.

In the last five years over 2,800 new affordable homes have been completed in Leeds, through the Council’s own direct development and acquisitions, the activities of Registered Providers (RPs) and third sector partners and through the implementation of planning policy provision of affordable homes through s106 agreements. This is a higher number of affordable homes delivered than any other core city. Despite this, the total number of applicants on the Leeds Homes Register continues to grow.Housing Leeds has continued to see an increase in demand - at the end of 2024/25 Quarter 3 there were 28,144 households on the Leeds Homes Register, 19 per cent were in urgent housing need (Band A and A+).

The Council’s recently updated assessment of housing need (through the Strategic Housing Market Assessment – SHMA) has increased to 2,136 new affordable homes required each year (74 per cent increase since the 2017 SHMA). This figure represents a considerable increase and reflects the pressure on housing resulting from the cost-of-living crisis and the increased cost of private renting. The 2024 SHMA confirms a requirement for 80 per cent affordable homes for rent, including 53 per cent for social rent, therefore this scheme is critical to address need. 

Leonora House demonstrates both the use of Council land and the use of commuted sums to enable affordable housing delivery. The scheme has been delivered by 54North Homes, a subsidiary of the Karbon Homes Group (formed following a merger of Leeds and Yorkshire and York Housing Associations in December 2022).

54North Homes were selected as preferred bidder through a ringfenced site disposal to RPs, bringing forward a five-story apartment block of 58 flats including 28 x one bed, 25 x two bed, five x three bed apartments, which includes one x two bed flat to full wheelchair standards. The development is energy efficient with connection to Leeds PIPES District Heating scheme, exceeding building regulations, using techniques to limit heat loss, installing Solar PVs to the roof, and supplying electric vehicle charging and cycle parking for every flat. The location, adjacent to the city centre is highly sustainable and accessible.

All 58 apartments are subject to 100 per cent nomination rights for first lets and 60 per cent for subsequent lets. 

Challenges

Brownfield sites often come with significant costly remediation requirements. Significant challenges on this scheme have been confirming a comprehensive funding package, given the significant increase in build costs from 2020, reflecting the COVID-19 pandemic, Brexit and rising interest rates. 

As well the impact of remediation costs on viability, construction costs have increased significantly over the last three to four years which has impacted borrowing costs and scheme viability. In August 2022, interest rates on borrowing for housing growth was in the region of 1.72 per cent but has since increased to 4.75 per cent and is predicted to go higher. The impact is that borrowing costs on £1 million spend have increased by around £600,000 over that period. 

The scheme also needed to generate a capital receipt for the Council to support its capital programme which was supported through the provision of commuted sums.

Leeds has a strong track record working with partners at the West Yorkshire Combined Authority (WYCA) to access Brownfield Housing Fund. Whilst positively Leonora House secured £1.5 million devolved funding through the Brownfield Housing Fund (BHF), this process was lengthy and onerous and the Council supported the application with significant input to the strategic case element. This grant is very welcome, but a contribution of commuted sums was vital to ensure the full funding package could deliver the outcomes required. As set out in the Council’s Affordable Housing Asks, long term flexible funding is needed to secure efficient provision of affordable housing without ‘cliff-edges’ in delivery programmes due to a lack of long-term funding. 

Planning was eventually secured in April 2023 and work began immediately in Spring 2023, with practical completion in November 2024. 

Whilst engagement with the Local Planning Authority was productive, the length of time to secure planning consent was protracted, with the application being submitted in October 2021, but not fully approved until April 2024 following all conditions being discharged. During the planning process, Plans Panel considered a position statement in June 2022 which whilst extending the timescales to determination, proved helpful in exploring with members the key issues of concern including housing mix (particularly the low number of three bed flats), amenity space and highways. Following minor revisions, Plans Panel reconsidered the application in September 2022 and agreed to delegate to officers for final approval, pending resolution of the housing mix and amenity issues being addressed. As per the Council’s Affordable Housing Asks resourcing within the planning authority continues to be challenging. The quality of planning advice has been noted by the applicant as really helpful, but resource pressures continue to impact along with delays in statutory consultee responses. 

Leonora House now forms a critical part of Leeds’ affordable housing delivery. Of note is the fact that the scheme offers 100 per cent social rented homes, addressing significant housing need in the city, reflected in the c28,000 residents on the Leeds Housing Register. 

Leeds declared a climate emergency in 2019 and set an ambition to make the city carbon neutral by 2030. Housing accounted for 27 per cent of CO2 emissions in Leeds in 2019. These new energy efficient homes, play an important role in supporting the city’s carbon zero ambitions and influencing other housing providers operating in the city to reach the same standards and to a non-gas solution which provides cleaner energy.

Not only do these schemes contribute much highly needed energy efficient affordable housing, but they also strongly align with the three pillars, which are at the centre of the Leeds Best City Ambition: 

• Supporting communities and tackling fuel poverty, improving housing quality and standards.
• Promoting sustainable and inclusive economic growth.
• Reducing carbon through the improved insulation of the Council’s housing stock.

The scheme has been popular with customers, with many of the flats being occupied before Christmas 2024 and as of March 2025, only one flat remains to be let. Anecdotal feedback from residents who have recently moved into their homes at Leonora House has been positive. 

More formal tenant satisfaction data will be collected over the course of the next few months. 

54 North Homes has been impressed with the performance of Caddick as contractor and they have demonstrated their commitment to supporting jobs and businesses in Leeds by letting 80 per cent of all work packages to local companies. The contractor has also confirmed through this development contract that they can sustain a minimum of four apprenticeships. 

Leonora House has showcased successful delivery of 58 much needed homes for social rent in a highly sustainable location. However, the delivery timeframes have been elongated, taking 6 years from marketing of the site in November 2018 to tenants moving into their homes in December 2024. Whilst acknowledging that the development period followed the impacts of Brexit and included delays caused by the Covid-19 pandemic, there are nonetheless lessons to be learned. 

Funding

Expectations around the timescales of the Brownfield Housing Fund are now better understood and the Council is better placed to respond quickly to such funding opportunities. Tri-partite relationships and communication with the combined authority have been improved. However, such funding and its administration would benefit from being much more flexible and market facing. 

As set out in the Council’s affordable housing ‘Asks’ document, longer term funding certainty, with more flexibility and the ability to mix funding streams would be welcomed to more efficiently support schemes such as Leonora House. 

Planning

In response to the challenges of this scheme and other affordable housing scheme (both Registered Provider led and Council Housing Growth direct delivery) securing planning in a timely manner, the Council has worked closely with elected members on Plans Panels to increase their awareness and understanding of affordable housing need, delivery mechanisms and challenges, especially viability. This has been supported by Registered Providers, Homes England, the combined authority and representatives from the development sector and has been welcomed by members. It is hoped that this programme has increased understanding of planning balance in considering affordable housing planning applications. 

Partnership working with RPs

Leeds City Council has established close working relationships and Key Account Management (KAM) arrangements with RPs and third sector organisations throughout the city. KAM support offers open and honest early advice on delivery opportunities, access to local market knowledge and planning and funding concerns. Those partners on the framework can benefit from regular engagement through RP forum’s such as the Affordable Housing Delivery Group, enabling knowledge sharing and identification of barriers to delivery and solution focused discussions with wider RP partners, and representatives from LCC Regeneration and planning policy services. The relationships established through this framework have been crucial in supporting and driving the delivery of the Leonora House scheme.

The framework also allows the circulation of development/auction opportunities for any sites that come for sale through LCC direct, or via other RPs who may be disposing of their own stock. Affordable Housing providers who sit within the framework, also commit to adhering to the LCC nomination process, whereby for any new stock delivered, 100 per cent allocations will be made to those on the LCC housing waiting list, reducing to 60 per cent allocations after three years (or the first let, whichever comes later) to the LCC housing waiting list. This agreement demonstrates the commitment of partners to work closely with LCC to provide affordable housing for those in need. 

In addition to the Framework, partners have signed up to the Leeds Affordable Housing Growth Partnership Action Plan (LAHGPAP), to demonstrate their commitment to working together to influence policy, drive forward positive change and promote innovation within the sector to scale up delivery across the city.