Delivering greater numbers of affordable homes at scale through partnership working, through using council owned land, in a way that leaves new affordable homes less at risk of being lost through Right to Buy.
At a glance
What went in
Priority area addressed: Significant unmet need for truly affordable housing. Similar numbers being lost through RTB as the number of new social rent homes being delivered each year. No agreed development plan (until February 2025) suppressing all new housebuilding, including truly affordable homes.
York’s affordability gap has continued to widen in recent years as house price inflation has exceeded wage inflation, with house prices comparable with south east England.
Please note: All references to ‘affordable’ in this submission, in relation to land sold to RPs, refers to what we consider truly affordable – at social rent level rather than 80 per cent of market rent.
Budget: Transfer of land at lower than market value to deliver 100 per cent affordable homes (commercially sensitive information).
Other resource needed: Officer time - legal, housing, property services within City of York Council.
Timeframe to completion: Ongoing. Aim to release all disposable land to RPs by end of 2026.
What came out
Sites suitable for housing earmarked for development to deliver 100 per cent affordable housing on land that falls outside the current Housing Delivery Programme (HDP) schedule. The HDP is an ongoing programme of housing development led by City of York Council, using capital borrowing.
Executive summary
The council has a relatively modest Housing Delivery Programme (based on existing financial headroom to deliver 100 per cent affordable housing - predominantly social rent - on its own land).
Sites have been allocated both within the HDP and separately that are outside the current capacity of the staff team and council finances to develop out within a reasonable timeframe. The decision has therefore been made to soft market test and then offer land to RPs at lower than market value rates, for social housing of mixed tenure, to bring forward delivery of a significantly larger number than could be delivered by the council alone.
Challenge and context
York has a significant shortfall in affordable housing, as identified by its Local Housing Market Assessment. It hasn’t had a Local Plan for almost 70 years until a Plan was approved in February 2025, which has stifled new housebuilding for many years. It has also lost approx. 60 homes every year to RTB without the funding for like for like replacements.
The administration considered how it can deliver greater numbers of affordable homes at scale through partnership working, through using its own land, in a way that leaves new affordable homes less at risk of being lost through RTB. Through discussion with RPs, we have been able to find a way of affordable homes being delivered that doesn’t rely solely on the council’s constrained financial capacity.
City of York Council has become a member of the York and North Yorkshire Housing Partnership, strengthening existing relationships with RP partners in the region.
What we did
A political commitment was made that where council land is to be disposed of, the priority is to enable 100 per cent affordable housing delivery. All council owned land assets were reviewed to understand their capacity to enable affordable housing delivery. From this, an initial six sites have been identified for disposal to RP partners to enable them to deliver affordable housing.
The land is disposed of at a value which takes account of the future affordable housing use, which helps to support the financial viability of the approach. Sites range from those capable of delivering around 10 homes up to larger sites enabling around 50 new affordable homes.
Where possible, grant funding is utilised to unlock sites which require some initial works to make them ready for house building. Affordable homes are under construction at the first site disposed of, with others currently in the design stages.
Example: Sturdee Grove, York
Other examples - decisions to proceed with disposal of land for affordable housing on other sites: Lowfield Plot B; Castle Mills; Morrell House Decision - Update on the Housing Delivery Programme including making strategic use of land assets
HDP Team – also working on disposals to RPs, as well as delivery of the sites.
Site specific issues existed but we also needed to test the appetite of RPs to take on land for 100 per cent affordable rather than market sale, shared ownership and social rent developments.
Political agreement that it was an administration priority, before soft market testing of each site – determining level of capital receipt the council is willing to accept vs market value disposal. Procurement then followed – tendering and legal agreements.
The difference
The disposals will deliver additional affordable housing in the city that is less likely to be lost to RTB. At present the housing waiting list is for around 1,500 homes and these additional homes will help provide good quality affordable housing for families across the city.
Lesson learned
The programme has been a success with the first affordable homes being constructed through the disposal programme with many more in the pipeline.
Some of the challenges have been around RPs seeking greater security around grant funding than has been available. In addition, the amount of procurement and legal resource required to enact disposal decisions needs to be carefully planned
Contact
Cllr Michael Pavlovic, Executive Member for Housing, Planning and Safer Communities