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Agenda item

New Homes Delivery Plan

Report of the Executive Director, Place.

Decision:

9.1

The Executive Director, Place submitted a report setting out the broad principles and proposals for a programme for achieving, on average, 2,000 new homes per annum in the areas of Sheffield where they are needed over the next five years, and a longer-term pipeline to sustain this level of delivery. 

 

 

9.2

RESOLVED: That Cabinet:- 

 

 

 

(a)

approves the New Homes Delivery Plan November 2018 – March 2023 as attached to the report and approves the proposals for a five year funded programme (and pipeline for the next 10 years) that will contribute to achieving, on average, 2,000 new homes per annum in the city; individual business cases for each element of the programme will be approved via the Council’s governance and financial approval processes and implementation of any of the initiatives identified may be the subject of further executive decision making in accordance with the Leader’s Scheme of Delegation;

 

 

 

 

(b)

notes that the Council is seeking to secure investment from the “Housing Infrastructure Fund” (HIF), which could provide the funding for the activity identified in the report;

 

 

 

 

(c)

notes that in the absence of HIF investment being sufficient for the activity identified, a further Cabinet report will be produced to set out and authorise alternative investment options;

 

 

 

 

(d)

delegates authority to the Chief Property Officer, in consultation with the Director of Housing and Neighbourhood Services and the Director of Legal & Governance, to negotiate and agree terms for the acquisition of properties for the purpose of shared ownership as described in the report; and

 

 

 

 

(e)

requests the Director of Housing and Neighbourhood Services, in consultation with the Cabinet Member for Transport and Development, to present a further report in 2019 setting out proposals for a new Affordable Housing Strategy, including Quality Standards and 5 Year Programme which will be reviewed annually by Cabinet.

 

 

 

9.3

Reasons for Decision

 

 

9.3.1

With further investment it is anticipated that the following outcomes could be achieved (subject to project / programme specific approvals). The Council can undertake a number of interventions as outlined in the New Homes Delivery Plan, to build approximately 2,000 new homes as a minimum in the next 5 years. For example:

 

  • The Council will build a minimum of 1600 affordable new homes, through the HRA Stock Increase New Build Programme and will aim to increase this further through securing external funding from Government and a review of the HRA debt cap regulations.
  • A further 11 Council owned sites could be developed by the Council or marketed, accelerating over 400 new homes in the next 5 years and 1000 new homes across all tenures. 
  • Sheffield Housing Company could accelerate the delivery of a further 350 new homes in this period.
  • Strategic acquisitions will commence on a rolling programme in the city centre housing zone, to unlock sites with the potential for 500 homes in the next 5 years.  
  • Provide the opportunity to work in partnership with Rotherham to develop the pipeline for the Sheffield/ Rotherham corridor that could achieve over 18,000 homes over the next 20-30 years.
  • The pace of new build will be a combination of directly working with the private sector and simplifying advice for the private sector to get on and deliver new homes.

·         The proposed investment is estimated to generate the equivalent amount of increased income to the Council.

 

  • A greater supply and variety of houses to help balance the citywide shortfalls.

·         With a dedicated Housing Growth Delivery Team there will be opportunities to enable and accelerate housing growth through the private sector, by promoting site opportunities, problem solving on stuck schemes and promoting the city as a place for housing investment. 

 

 

9.4

Alternatives Considered and Rejected

 

 

9.4.1

The main alternative considered was to not develop the Delivery Plan. This was rejected because:

·         Without interventions the delivery of housing by the private and public sectors is forecast to fall significantly short of the scale of new homes delivery needed in the city. 

·         Without interventions the narrow types and tenures of housing currently being delivered by the private sector are expected to remain and continue to fail to meet the housing needs of current and future households in Sheffield.

·         General uncertainty in the housing market could reduce delivery.

·         Fragmented land use patterns make it difficult to deliver a co-ordinated package of infrastructure solutions necessary to support new communities. The strategic acquisition of land as one of the programme interventions being proposed will help to address this issue.

 

·         The lack of resources to co-ordinate proposals and the lack of strategic funding means that future infrastructure solutions could continue to be delivered in isolation and infrastructure solutions fail to impact positively. The delivery of physical infrastructure solutions as one of the programme interventions being proposed will help to address this issue and enable, unlock or accelerate housing delivery.  

 

 

9.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

9.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

9.7

Respective Director Responsible for Implementation

 

 

 

Laraine Manley, Executive Director, Place

 

 

9.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Safer and Stronger Communities

 

 

 

Minutes:

9.1

The Executive Director, Place submitted a report setting out the broad principles and proposals for a programme for achieving, on average, 2,000 new homes per annum in the areas of Sheffield where they are needed over the next five years, and a longer-term pipeline to sustain this level of delivery. 

 

 

9.2

RESOLVED: That Cabinet:- 

 

 

 

(a)

approves the New Homes Delivery Plan November 2018 – March 2023 as attached to the report and approves the proposals for a five year funded programme (and pipeline for the next 10 years) that will contribute to achieving, on average, 2,000 new homes per annum in the city; individual business cases for each element of the programme will be approved via the Council’s governance and financial approval processes and implementation of any of the initiatives identified may be the subject of further executive decision making in accordance with the Leader’s Scheme of Delegation;

 

 

 

 

(b)

notes that the Council is seeking to secure investment from the “Housing Infrastructure Fund” (HIF), which could provide the funding for the activity identified in the report;

 

 

 

 

(c)

notes that in the absence of HIF investment being sufficient for the activity identified, a further Cabinet report will be produced to set out and authorise alternative investment options;

 

 

 

 

(d)

delegates authority to the Chief Property Officer, in consultation with the Director of Housing and Neighbourhood Services and the Director of Legal & Governance, to negotiate and agree terms for the acquisition of properties for the purpose of shared ownership as described in the report; and

 

 

 

 

(e)

requests the Director of Housing and Neighbourhood Services, in consultation with the Cabinet Member for Transport and Development, to present a further report in 2019 setting out proposals for a new Affordable Housing Strategy, including Quality Standards and 5 Year Programme which will be reviewed annually by Cabinet.

 

 

 

9.3

Reasons for Decision

 

 

9.3.1

With further investment it is anticipated that the following outcomes could be achieved (subject to project / programme specific approvals). The Council can undertake a number of interventions as outlined in the New Homes Delivery Plan, to build approximately 2,000 new homes as a minimum in the next 5 years. For example:

 

  • The Council will build a minimum of 1600 affordable new homes, through the HRA Stock Increase New Build Programme and will aim to increase this further through securing external funding from Government and a review of the HRA debt cap regulations.
  • A further 11 Council owned sites could be developed by the Council or marketed, accelerating over 400 new homes in the next 5 years and 1000 new homes across all tenures. 
  • Sheffield Housing Company could accelerate the delivery of a further 350 new homes in this period.
  • Strategic acquisitions will commence on a rolling programme in the city centre housing zone, to unlock sites with the potential for 500 homes in the next 5 years.  
  • Provide the opportunity to work in partnership with Rotherham to develop the pipeline for the Sheffield/ Rotherham corridor that could achieve over 18,000 homes over the next 20-30 years.
  • The pace of new build will be a combination of directly working with the private sector and simplifying advice for the private sector to get on and deliver new homes.

·         The proposed investment is estimated to generate the equivalent amount of increased income to the Council.

 

  • A greater supply and variety of houses to help balance the citywide shortfalls.

·         With a dedicated Housing Growth Delivery Team there will be opportunities to enable and accelerate housing growth through the private sector, by promoting site opportunities, problem solving on stuck schemes and promoting the city as a place for housing investment. 

 

 

9.4

Alternatives Considered and Rejected

 

 

9.4.1

The main alternative considered was to not develop the Delivery Plan. This was rejected because:

·         Without interventions the delivery of housing by the private and public sectors is forecast to fall significantly short of the scale of new homes delivery needed in the city. 

·         Without interventions the narrow types and tenures of housing currently being delivered by the private sector are expected to remain and continue to fail to meet the housing needs of current and future households in Sheffield.

·         General uncertainty in the housing market could reduce delivery.

·         Fragmented land use patterns make it difficult to deliver a co-ordinated package of infrastructure solutions necessary to support new communities. The strategic acquisition of land as one of the programme interventions being proposed will help to address this issue.

 

·         The lack of resources to co-ordinate proposals and the lack of strategic funding means that future infrastructure solutions could continue to be delivered in isolation and infrastructure solutions fail to impact positively. The delivery of physical infrastructure solutions as one of the programme interventions being proposed will help to address this issue and enable, unlock or accelerate housing delivery.  

 

 

 

Supporting documents: