Presentation on theme: "Promoting the Private Rented Sector Chris Jones. Covering Local And Regional Context – Need and Demand and Economy Policy Enabling PRS Development Case."— Presentation transcript:
Covering Local And Regional Context – Need and Demand and Economy Policy Enabling PRS Development Case Study
National Context – The Montague Review “a combination of recent tax changes and wider market conditions have cleared the way for this market to grow. The challenge right now is to secure a step change on a faster timescale….. …to give a significant boost to house building now”.
Demand Nationally people privately renting has almost doubled in last 10 years 1 in 4 households in London privately rent in Wandsworth 1 in 3 Average Rent around £1,156 per month Demand driven by: – Homeownership affordability/availability of loans – Population growth patterns and urban population profile (20-34s) Wandsworth: – Borough with highest percentage population between 25-45 – Singles and couples – Working/professional – Highly mobile
Strategic Housing Authority Policy Context Policy approach underpinned by refreshed SHMA published in 2012 (HOSC 13-160) Concluded PRS “overheating” Focus: – Build in quantum and sustain development – Diversify housing offer available to local residents – Look to promote structured arrangements that gain access for local residents and workers – Income Generator?
Policy Approach “Proactively support development of structured forms of PRS” (Paper No. 13-375): – Member “endorsement” and “support” for PRS development (with conditions) – Financial assumptions to be fed into financial appraisals where PRS provided for fixed period – Require the marketing of PRS initially to local residents and Borough workers – Agree tenancy terms that provide security and a level of stability – management, rent, length – Consider design and size standards (more smaller units, en suites, storage) – “No net loss of affordable housing” but creative in delivery – Indirectly support delivery through Wandsworth Grant
Case Study Christies Auction House 510 units, 15% Affordable, 42% intermediate and 68% Affordable Rent. £10m commuted sum 114 “structured” PRS units being provided.
Case Study Christie’s Approval PRS secured for a minimum of 15 years Managed by RP 46% 1 bed, 49% 2 bed – separate cores & ensuites local marketing plan with prioritization of lettings to Wandsworth residents and workers who meet landlord’s requirements longer tenancy terms of up to 5 years are offered Agreement of the approach to be used to rent reviews to provide “certainty” Identification as to how family units will be let and marketed to family households
Now and Future Limited agreements reached to turn some “higher value” RP disposals to PRS Promoting intermediate rent as alternative to shared ownership (Dolphin Square model) Key focus stability of management - recognise that flexibility may be preference on both sides PRS as Council investment and income generator