DRAFT LONDON HOUSING STRATEGY Jamie Ratcliff, Assistant Director – Programme, Policy & Services 22 January 2014

HOMES FOR LONDON Increasing housing delivery of all tenures - more than 42,000 homes a year Increased focus on working Londoners – “who work hard to make this city a success”

THE MAYOR’S HOUSING COVENANT £1.25bn – 42,000 homes Bid by 10 March 2014 Most completions expected by March 2018, some flexibility for ‘trusted delivery partners’ dependent on bids Tenure mix expected to follow London Plan (60:40) Solely affordable housing (strategy wider)

PLANNING CONTEXT ‘FALP’ published 15 January – consultation until 10 April Increases London Plan target to 42,000pa homes (delivery identified in SHLAA) Identifies potential for increased delivery in town centres to get to requirement found by SHMA of c.49,000pa

SUPPLY CHALLENGE

INCREASING SUPPLY At least 42,000 new homes a year –with 15,000 affordable & 5,000 long-term PRS –double intermediate by 2020 and double again by 2025 The programme –40 per cent low cost home ownership –30 per cent at “capped” rents –30 per cent at “discounted” rents

DISCOUNTED RENT Expected to be set at 80% or LHA level Nominations by Boroughs – not intermediate rent Nominations must be to households not affected by household benefit cap (£350/500pw) Borough can use own resources to reduce In the absence of own resources rents can only be lower if balanced with increased capped rent 50% of all providers rented programmes

CAPPED RENT Capped at 50% of market rent (inc. s/c) but can’t be less than Target Rent (+ s/c). Expect most homes to be at or close to 50% (in reality low-value areas and schemes with high s/c will be Target Rent) In exceptionally high value areas can be 50% of LQ rents Boroughs can use own resources to reduce rents Rents could increase to balance discounted reduction 50% of all providers rented programmes

BOROUGH FRAMEWORKS Agreement of principles: Any desired balancing adjustment to capped & discounted rent levels Distribution of flexible home ownership and Affordable Rent (both capped and discounted) Confirmation of noms approach to discounted rent The approach to Flexible homeownership, including in relation to marketing cascades and income restrictions.

Exit strategy by 2016 on all GLA land Continue to encourage use of London Development Panel – optimal procurement A wider role for GLA on public land across the capital LAND

Some short-term constraints –Materials & labour Need existing players to maximise delivery –Not the time to sit on your hands Need new players –Large & small –Different models –‘Modern’ construction methods? DEVELOPMENT CAPACITY

All homes to meet LHDG standards & bespoke PRS design Retrofit every poorly insulated home by 2030 By 2016 All council landlords to be able to independently meet decent homes standard - £145m fund IMPROVING QUALITY

Relaxation of Local Authority borrowing for housing –Some movement in Autumn Statement Devolution of full suite of property taxes –Certainty for investment and freedom to use optimally LONG-TERM FUNDING

HARD-WORKING LONDONERS Improving the intermediate market Supporting home ownership Massively expanding shared ownership Rethinking allocations and mobility

London Rental Standard – accreditation and significant public campaign Encouraging longer tenancies and increased professionalisation Optimising enforcement against criminal landlords New supply – encouraged through land release and planning PRIVATE RENTED SECTOR

Increase provision of purpose built homes for older people Halve the level of severe overcrowding in the social rented sector No second night out and no living on the streets THE MOST VULNERABLE

HOUSING ZONES Laterally applying concept of Enterprise Zones –Focusing attention & resources in areas where housing can rapidly delivered, at scale –What mix of incentives can achieve this? –Further thinking being developed

Up to £200 million for the London Housing Bank to deliver up to 3,000 homes –Soft/equity-linked loans repayable in c.10yrs –Increased capital support cf. grant –Flexibility on exit route for providers –Focus on large-phased sites Further details in due course – no opportunity to bid yet LONDON HOUSING BANK

TIMETABLE Publication of draft strategy25 November 2013 End of consultation period17 February 2014 Review responses/revise strategyFebruary - March 2014 Submission to London AssemblyMid March 2014 Submission to Secretary of StateEnd April 2014 Publication of final strategyLate June 2014

Concerted effort required by all to deliver homes London needs Significant resources available to London in Longer-term certainty would enable much, much more to be done SUMMARY