Meeting documents
Co-operative Executive
Wednesday 10 September 2003
Balancing Supply and Demand for Housing
1 Background
1.1 Sheffield has long recognised the need to develop comprehensive strategies for tackling failing housing markets and balancing supply and demand as part of its overall approach to creating successful and sustainable neighbourhoods in the city. In addition to addressing wider strategies of failing markets within the South Yorkshire Pathfinder project, and attracting additional investment in Council housing consequent upon the outcomes of the local option appraisal (Neighbourhood Commission) process, a range of activity to balance supply and demand is also progressing. Together these strategies aim to transform the quality and choice of homes in Sheffield.
1.2 Key challenges include responding to and encouraging mixed tenure housing, using properties in different ways taking account of needs of modern families, opening up areas to new community groups and more active marketing of the rented sector as well as a limited amount of stock reduction. Major regeneration projects including Parkhill, Newstead/Sowerdon/Weaklands and those in the north of Sheffield will be monitored for their impact on supply and demand balance. Work with the Housing Associations and Developers is also addressing supply and demand issues to improve and match availability of property to needs existing and emerging.
1.3 By 2005 we will have a clear forward plan which, sets out how failing housing markets in Sheffield will be renewed, tracks progress of major regeneration schemes and establishes the investment streams for achieving decent sustainable homes in the city. In advance of this, however we need to progress some specific activity to prepare for regeneration and improve the supply/demand ratio in particular localities.
1.4 In agreeing its 3 year stock reduction programme in September 2002, it was acknowledged that during the period it may be necessary to re-examine and revise proposals in light of changing circumstances.
This report seeks to amend the existing proposals in advance of the strategic review in 2005 due to additional resources being identified and approval being sought to address local regeneration strategies in the following areas.
This report seeks to amend the existing proposals in advance of the strategic review in 2005 due to additional resources being identified and approval being sought to address local regeneration strategies in the following areas.
2 Skye Edge and Manor Boot houses
2.1 The View block at Skye Edge comprising 230 properties has become increasingly difficult to let and unpopular. 102 properties are currently empty.
2.2 There are 290 Boot houses on the Manor estate which benefited from the SRB "Keep in rent" scheme in the late 1990's to extend their life in the short term. 91 are currently empty. Full details of this scheme and the issues relating to the sustainability of these properties were included in the September 2002 stock reduction report to Cabinet. The addresses are shown at Appendix A.
2.3 The remaining residents in both areas are pressing for action to be taken mainly as a result of the extent of nuisance caused by having so many properties remaining empty. Despite the concerted efforts of the Area Housing staff and the police the problems persist. In addition to the high investment needs of these properties, it is becoming increasingly difficult to sustain a reasonable quality of life for the remaining tenants.
2.4 The Council agreed that consultation should be carried out with residents on Skye Edge and the Manor Boot houses about the future of their homes in October 2002. This is now underway and the full report will be prepared for consideration by the Area Housing Meeting in the autumn.
2.5 It is proposed that the decision to demolish the 230 Skye Edge and 292 Keep in Rent properties is delegated to the Executive Director and Cabinet Member, Neighbourhoods, on consideration of the outcome of this consultation.
3 Foxhill bungalows
3.1 In October 2002 Council approval was given to consult with the 5 remaining tenants living in the 11 bedsit bungalows at Foxhill Crescent. Demand for these small bungalows has fallen significantly.
Two of the 3 blocks have suffered from serious vandalism; numbers 16,18,20 and 22 Foxhill Crescent have been so severely vandalised that a decision was made in May 2003 to demolish under health and safety grounds. The vacant bungalows next door to tenanted properties have also been vandalised.
3.2 In October 2002, Council approved the demolition of 11 blocks of flats and maisonettes at the bottom end of the New Foxhill estate, adjacent to the bungalows. The tenants living in the flats and maisonettes have now been rehoused. This has left the tenants living in the bungalows at Foxhill Crescent isolated and vulnerable. Council originally agreed to consultation taking place with the five remaining tenants living in the bungalows. Since approval was given, two tenants have moved and four bungalows have been demolished under health and safety grounds. This leaves three tenants remaining and four of the bungalows empty, see Appendix B.
Consultation has been carried out directly with two of the remaining tenants and both wish to move. It has not been possible to establish the views of the third tenant who is very elderly but her family are keen for her to move nearer to them.
3.3 The bungalows are extremely unpopular due both to their size, and condition. Insufficient demand exists to sustain these properties.
3.4 Therefore it is proposed that the 7 bungalows are demolished.
4 Wensley Court
4.1 The Wensley estate is a mixed development of houses, flats and bungalows, consisting of 312 properties, of which 215 are flats. Wensley Court comprises 49 one bedroom flats. The addresses are listed at Appendix C.
4.2 The flats were built in the early 1970's and are situated on Hinde House Crescent opposite local shops and next to a former sheltered scheme. The flats are on four levels with both lift and stair access to the upper levels. All the flats are connected to the district heating system.
There is currently no demand for the flats on Wensley Court. There are currently 31 applicants registered on the rehousing list for one bedroom flats on the Wensley estate but none of these are interested in moving onto the Wensley Court complex.
Out of the 49 flats, only 14 are currently occupied. The remaining tenants are all in favour of proposals to demolish the block, as are the local TARA and local elected members. A recent Area Housing Meeting also agreed to the proposals. A public meeting held earlier in the year was very well attended. Opinion was very much in favour of demolition.
4.3 The properties require considerable investment. In order to ensure that they are of a modern standard the kitchen and bathroom units in most of the flats will need replacing as they show signs of wear and / or damage and are generally in poor condition. New internal and external doors are also required to many of the properties. Although some flats have new uPVC window units, a full window replacement programme is likely to be required in the near future. At current prices, it is estimated that the cost of the repair and improvement work required, including the installation of new windows, internal and external doors and new kitchen and bathroom units would be in the region of £359,000.
4.4 In addition, the district heating system is likely to require upgrading or renewal in the near future. Consideration may need to be given to providing individual heating systems, which would increase the level of investment needed.
4.5 The Area Housing office has also investigated the possibility of installing door entry systems to the blocks of flats in an attempt to restrict access by non-residents. The cost of installing a fob-operated door entry system would be at least £100,000. In addition, advice received from South Yorkshire Fire and Rescue Service indicates that due to fire safety requirements and the 'open plan nature of the premises', the installation of a door entry system would be unlikely to successfully prevent unauthorised access.
4.6 Taking these factor together with views of local residents, it is proposed that the 49 Wensley Court flats are demolished.
5 Manor Park
5.1 At its meeting in October 2002 Council approval was given to demolish 64 flats at Manor Park, along with 40 maisonettes and flats at Seaton Crescent and 84 maisonettes at Harborough Rise/Road.
As part of the Manor Park demolition proposals, Council approved the transfer of three of these blocks to Manor and Castle Development Trust (MCDT) at nil consideration. MCDT had developed plans to change their use and refurbish into additional accommodation for use by MCDT, and as office space to further develop local employment and community businesses.
5.2 Manor and Castle Development Trust are no longer in a position to carry out these plans. It is therefore proposed that the 12 flats listed at Appendix D, are demolished. Staff from the Area Housing Office have met with Manor Park TARA to discuss the future of the 3 blocks and they indicated that they are in favour of demolition.
6. Woodside Community Centre
6.1 This purpose built centre has not been in use since summer 2002 due to severe vandalism of the building. The repair cost was estimated at £37,000 at the time but since then further vandalism will have increased this cost significantly.
6.2 The Neighbourhoods Health and Safety Officer has advised that the building presents a serious health and safety hazard in its current condition.
6.3 The existing Woodside Project Group, set up to discuss issues relating to the clearance programme, has given full support to the demolition of the building. It has stated that the community centre is serving no purpose to the community and is an attraction for anti-social behaviour on the estate.
6.4 It is proposed that the community centre is demolished.
7. Strategy for resultant vacant sites
7.1 Foxhill
Proposals for the future use of the site at Foxhill Crescent will be considered as part of the Foxhill Neighbourhood Strategy.
7.2 Wensley
As Fir Vale is in a priority area for the South Yorkshire Housing Market Renewal Pathfinder, it is further proposed that the site of Wensley Court is transferred to the City Council's regeneration partner, South Yorkshire Housing Association, as part of plans to develop and deliver a regeneration strategy in the area. Authority is sought to negotiate the transfer at market value subject to the plans of the SY Pathfinder funding. Plans for the future use of the site at Wensley Court will be agreed in consultation with the community, as part of a wider masterplanning process supported by the Pathfinder funding.
7.3 Manor Park
Given there is now no proposed use for this site it is recommended that the ownership of the land remains with the Council. The site is within the South Yorkshire Pathfinder boundary and its future use of the site will be considered as part of plans to develop and deliver a regeneration strategy in the area and proposals brought back to Cabinet.
7.4 Manor Keep in Rent and Skye Edge
Subject to the outcome of consultation with residents, any sites created as a result of demolition will be considered as part of plans to develop and deliver a regeneration strategy in the area, as part of the South Yorkshire Pathfinder Strategy. Proposals will be brought back to Cabinet.
8. Woodside
8.1 Approval to demolish 369 houses, flats and maisonettes on the Woodside Estate, including 4 shops at Pye Bank Close was given by Cabinet on 4th March 2002.
8.2 The Council is in discussion with Burngreave New Deal for Communities and the South Yorkshire Low Demand Pathfinder to ensure that the demolition is accelerated that a quality temporary use for the land at Woodside is achieved.
8.3 BNDfC funding has been sought to accelerate the demolition programme to ensure completion by March 2004, thus reducing the negative effect the derelict estate is having on the area. Between June and September 2003, the Council will demolish 81 properties under the Stock Reduction Programme. The proposal is for BNDfC to fund the demolition of the remaining 293 properties between September 2003 and March 2004
8.4 Housing Market Renewal funding of £190,000, in 2003/4, has been approved, in principle, to create a quality temporary use for the site prior to its eventual redevelopment. This will enhance the perception of the area, raising market values and encouraging the future regeneration of the site. A bid for a further £60,000 will be made to the South Yorkshire Housing Market Renewal Pathfinder to maintain the park for a 3 year period and to meet the cost of some additional facilities on the site.
8.5 Work to create the temporary area will follow the current process of landscaping cleared Stock Reduction Programme sites involving Sheffield Wildlife Trust. However, it will be to a higher standard, designed by landscape architects. It can be carried out on a gradual basis as demolition is completed. The design will include seating, children's play area, sport and recreation areas, wildlife and nature reserve for educational purposes.
8.6 A master planning exercise is to be conducted during 2003/4, funded by Housing Market Renewal Pathfinder, which will inform development activity at various sites in the area including Woodside. In later years, subject to the master planning and when the property market has sufficiently matured, the site will be redeveloped, probably offering new housing for sale. The Council will work in partnership with the community to consider proposed redevelopment options for the land, and to appoint partner developers as appropriate.
8.7 The Council is in discussion with BNDfC, with regard to how the asset value of the cleared land could be re-invested in the area for the benefit of the community. The land has a value and SCC has to achieve best value in disposing of the site. At the same time, it aims to develop sustainable neighbourhoods in partnership with local people. It would clearly be in the best long term interests of the City Council to ensure that City Council resources in the Burngreave area are used in a way that helps both the City and BNDfC to achieve comprehensive regeneration.
8.8 The intention of the City Council is that the contribution of New Deal funding from Burngreave would be taken forward as part of the partnership approach recently strengthened by the Advancing Together proposals. While no specific binding commitment is being entered into at this point in time, the Council should commit to reinvesting the resources used for demolition back into Burngreave at some point in the future. This will be done in consultation with the Burngreave NDC. This reflects the general principle that the work would in the normal course of events be undertaken by Sheffield City Council at some point in the future, but that the availability of NDC funding allows the project to brought forward in time. This better meets the aspirations of NDC, but in turn the City Council in this case is prepared to acknowledge that the most equitable way forward would be to make a compensating additional level of funding available at some stage in the future. Various options for re-investing the demolition costs contributed by BNDfC are being investigated, and these will need to be considered more fully before gaining implementation.
The options obvious at present are:
· The costs incurred on the demolition could be used to fund agreed work in the Burngreave Area at some point in the future. This might take the form of a cash contribution to Burngreave NDC, work undertaken by the City Council or by a third party, and would count as matched funding to the NDC programme..
· An investment approach where the benefits of increasing land values are recognized, and again funding from the City Council is made available for additional activity.
· An agreed re-development and business plan where some of the site could be used to develop community assets or meet community priorities. The land value foregone by the City Council could then be treated as matched funding in kind to the Burngreave NDC programme.
8.9 The Council has made a submission to The South Yorkshire Market Renewal Pathfinder to commission a consultant to investigate all options with the aim of ensuring that increasing value can be recycled into the community as part of a longer term plan. At present that money is not likely to be available until 2004/5. A joint brief for the work will be agreed between BNDfC and the Council. The consultants will be
procured jointly.
8.10 The proposal for funding acceleration of clearance through the support of Burngreave NDC was put to their Board on 30 July and was approved. The Board is happy to work in partnership with the City Council to achieve a more speedy demolition and to play an active part in working up plans for both temporary and permanent use of the cleared land. The Board expressed concerns about the impact of demolition work on local residents, on those being rehoused, and general safety on site. They sought, and were given, assurances that they could continue to be closely involved in the project by attendance at Project Groups and Housing Theme group. They also indicated that they wished to monitor progress of the demolition, and that they could offer the support of the Housing Theme Group Manager or Board representatives to advocate on behalf of individual tenants and residents. They confirmed that they would wish to be involved as a key stakeholder in plans for regeneration of the area.
8.11 Cabinet are asked to approve the principle that the resources in the land at Woodside are used in a way that helps both the City and the BNDfC to achieve comprehensive regeneration, and that we work with BNDfC to ensure that their contribution to the demolition costs is considered as an investment as set out above. A further report to Cabinet will set out the outcome of future negotiations and seek authorities as necessary.
9. Shirecliffe regeneration strategy
9.1 Shirecliffe Housing Project group is a local consultative group representing tenants and residents of Shirecliffe, and is a recognized group within the long standing consultative framework of the Neighbourhood Strategies, to be considered by Cabinet in the near future. The group has met regularly for some time to consider the future of the area and to discuss options for redevelopment. The group is overseeing the development of regeneration projects, including:
· Resources to deliver a pilot remodelling of four 2 bedroomed homes into two 4 bedroomed refurbished homes, as part of the Housing Market Renewal Pathfinder Programme.
· The launch of homesteading in Shirecliffe.
· Refurbishment of Council properties, funded by SRB and Housing resources.
· Ongoing demolition of an approved stock reduction programme
· Planning and development work to deliver an Extra Care Housing Scheme at Busk Meadow. This has planning permission, but is still awaiting confirmation for subsidy from the Housing Corporation
9.2 In February 2003, the Group considered and agreed a local housing strategy. The group was concerned to ensure that any uncertainty about the future of Shirecliffe was lifted, and that local people could see long term improvement and stability. The Council wished to ensure that the area had a positive, deliverable strategy for the future which could be agreed by partner agencies, such as the Housing Corporation and the Housing Market Renewal Pathfinder, in order to achieve inward investment form public sector agencies, to complement that brought in via private investment.
9.3 The aims of the strategy are to :
· bring investment to the housing and environment in Shirecliffe
· enable those who want to stay to do so, and those who want to leave to do so
· enable Shirecliffe to become an attractive neighbourhood, with a buoyant housing market
· improve the mix and tenure of housing
· provide a secure foundation for other regeneration activity
9.4 The strategy confirms no further demolition of council housing in the area beyond that currently approved and subject to the city wide review in 2005. It acknowledges that tenure change can be a key driver in the regeneration of the housing market in Shirecliffe, and could help us bring private investment into the area in order to achieve decent homes and to address market failure.
9.5 To sustain the area, homes across a range of values need to be available, so that the area offers opportunity for people to trade up or down over time, rather than having to leave. Individual owners want to have the confidence to invest in their home, or to be able to sell when they choose to do so. It is important to attract back people who left to rent or buy elsewhere, and to attract a new set of people too. To do this requires a step change in the housing market in Shirecliffe. The strategy identifies active sale of a substantial number of empty council homes in Shirecliffe as a tool to drive the tenure change and to achieve private sector funded refurbishment. Sale could be both of single properties to individual owners via homesteading, or of groups of properties to RSL/Developer partners with a contractual obligation to refurbish and sell on at affordable prices.
9.6 Grouped sale ensures that a significant impact on tenure change and refurbishment can be achieved more quickly, in area of the estate where confidence in the market is low. A partner organisation would analyse the business case for taking part in the project, and would take any risk on themselves. So group sale can be used in a different way to homesteading where homes are only released for homesteading where we are confident of the sustainability of the local area, to minimise risk to individual, often vulnerable, owner occupiers.
9.7 To commence it is proposed to dispose of up to 50 properties to deliver refurbished homes for sale at affordable prices. Should this be successful, we may wish to extend the disposal to continue to work towards our strategic aims, and to deliver a workable balance between for rent and for sale in the area.
9.8 The Council would seek expressions of interest from developers and RSL's, against a specified brief for refurbishment and environmental works, in keeping with the standards of refurbishment of council properties. We will involve residents in selecting partners, and will ensure that the offers accepted are in the best economic interest of the City Council, in the context of the achievement of regeneration in Shirecliffe.
9.9 Requirements will be placed on partners to deliver refurbishment within agreed timescales and to sell at agreed sale values.
9.10 We will continue to consult with the Shirecliffe Housing Group to help ensure we achieve a scheme local people support.
10 Alterations to the Homesteading policy to help deliver regeneration
10.1 The homesteading scheme, approved by Cabinet in August 2001 allows the sale of specified types of properties as a means of bringing private investment to achieve refurbishment and use of low demand council housing. The first phase of homesteading in Shirecliffe has been launched and 3 homes are now in the process of being sold. Rather than using homesteading as a way of dealing with low demand housing, the driver for its use in Shirecliffe and other regeneration areas is a desire to achieve an active tenure change to towards sustainable owner occupation, and influx of private funds to refurbish to decent homes standard. It is proposed that we use homesteading as an active tool in achieving tenure change in the area. Given that homesteading can put risk onto low income householders who seek to purchase, the council wishes to reduce this risk to individuals by sticking to the principle that only properties in sustainable areas are sold via homesteading. Proposals referred to earlier to bring in private investment to enable the refurbishment of substantial numbers of neighbouring vacant homes via group disposal to either developers or RSLs will also help reduce the risk for homesteaders.
10.2 The Head of Housing Strategy already has delegated authority to determine the details of the Homesteading policy. It is proposed that the existing scheme be amended as follows to further support the Shirecliffe Strategy and other regeneration areas
· to homestead larger properties if appropriate to meet local demand,
· to alter the specification of works from minimal to decent homes standard and environmental works,
· and to offer properties which do not meet the low demand criteria, but which need substantial refurbishment works to bring them up to decency.
· and that the Head of Housing Strategy extends and varies the existing Homesteading scheme as necessary, to make this a viable element of balancing demand and supply of housing in all regeneration areas.
10.3 Sale of empty homes
Authority is also sought to develop and market a scheme to sell up to 50 homes in Shirecliffe in one or more groups to one or more partner RSL's/Developers, on the basis set out in this report. The exact terms and conditions of any final disposal would be subject to a further Cabinet report. Properties held for demolition will incur rent loss and there is also a cost of securing 50 vacant homes for a short period until disposal.
Set against this is the reduction in management and maintenance costs over time for 50 properties. There may also be a capital receipt due to the City Council on disposal, but the likelihood of this is not yet clear and will be represented to Cabinet in a further report which will identify the detailed terms of disposal.
Delivery of this disposal and refurbishment strategy will help place Shirecliffe in a better position to argue for public sector funds to support regeneration, on the back of inward private investment brought in to enable refurbishment.
11 Financial implications
11.1 Stock Reduction
The additional Revenue implications of demolition of Wensley Court and Foxhill Crescent bungalows are set out below
| | 2003/04 | 2004/05 | Full year |
| Additional revenue expenditure | £ | £ | £ |
| Net rent loss | 10,495 | 30,641 | 30,641 |
| Capital financing costs | 9,955 | 19,910 | 19,910 |
| Sub total | 20,450 | 50,551 | 50,551 |
| Less Repairs & maintenance savings | 13,667 | 34,895 | 34,895 |
| Housing subsidy - Capital financing - Housing subsidy | 9,955 22,614 | 19,910 57,758 | 19,910 57,758 |
| Net additional expenditure | - 25,787 | - 62,012 | -62,012 |
| Budget provision | 0 | 0 | 0 |
| Net additional cost(+)/saving (-) | -25,787 | -62,012 | -62,012 |
Capital costs
The estimated demolition and compensation costs are shown in the table below.
| Scheme | Compensation £ | Demolition £ | Total £ |
| Wensley | 47,600 | 124,000 | 171,600 |
| Foxhill | 10,200 | 26,400 | 36,600 |
| Manor Park | 0 | 30,000 | 30,000 |
| Woodside Comm Centre | 0 | 27,500 | 27,500 |
Funding from the South Yorkshire Market Renewal Pathfinder has been identified for the asbestos removal and for demolition costs for Wensley Court. Further SYMRFP resources will be sought to fund the demolition of the blocks at Manor Park and Skye Edge.
Resources have been identified within the 2003/04 Housing Development Programme to cover the cost of demolishing the bungalows at Foxhill.
Resources to fund the demolition of the Woodside Community Centre have been secured from Burngreave NDC.
11. 2 Home loss payments
Under a Regulatory Order issued in July 2003 the payments made under the Land Compensation Act 1973 have been increased from 1st September 2003. For eligible tenants the payment has increased from £1,500 to £3,100 and for eligible owners the payment is still 10% of the value of their property but the minimum payment has increased from £1,500 to £3,100. The financial implications are that the cost of meeting compensation payments associated with the 2003/04 stock reduction programme will be £600,000. This increase in costs will be contained within the approved Housing Development Programme for 2003/04.
12 Recommendations:
12.1 That authority to act upon the outcome of the consultation at Skye Edge and Manor Boot houses, be delegated to Executive Director, Neighbourhoods, in consultation with the Cabinet Member, Neighbourhoods.(para 2.3)
12.2 That the demolition of the properties listed in Appendices B and C at Foxhill and Wensley, and the Woodside Community Centre are approved.(paras 3.4, 4.7 and 6.4)
12.3 That rehousing points are awarded in accordance with rehousing policy. The phasing of rehousing and demolition is subject to available resources and will be determined by the Head of Housing Strategy.
12.4 That where tenants are displaced under these schemes, (i) discretionary home loss payments are made under Section 32 of the Land Compensation Act 1973 to tenants who have been in occupation for 12 months at the time of displacement, and, (ii) discretionary payments to cover any removal expenses are made under Section 26 of the Housing Act 1985.
12.5 The flats at Manor Park listed in Appendix D are not transferred to MCDT as originally planned and are demolished. (para 5.2)
12.6 That the principles set out in paragraphs 8.1 to 8.10, regarding the agreements with Burngreave NDC, are approved.
12.7 That the proposals set out with reference to the Shirecliffe regeneration strategy (paragraph 9.7) and the homesteading policy (paragraph 10.2) are approved.
