Housing in Salford Working with partners and stock options. Sarah Clayton, Head of Housing Strategy and Enabling

Housing context Changes in population – 8% increase ’01-’11. Changes in tenure of choice – PRS increased by 6.6% Census Number of properties bought/sold on the open market – peak in 2003 = 5537, down to 2017 in Average house prices £130,044 in 2011 – reduction of 11% from peak. Number of new homes build ’09 = 699, ’12 =513( Gross new build homes only Average number of bids for social housing = (Salford home search 2012)

How do we deliver? Not possible for the Council to deliver the priorities in it’s own. Therefore, Strategic Housing Partnership made up of key partners from Salix Homes, City West Housing Trust, Great Places Housing Group, Together Housing Group, Symphony Homes and developers Private Sector 75,307 Registered Provider (Housing association) 20,891 ALMO (LA Owned) 10,519 Total 106, 717 Source HIP 2010

Housing Partnership working We have agreements with Salix and City West – more later. The other registered providers in the City work with us to help deliver the priorities. More than just housing ? Work together on safeguarding, police and crime reduction, neighbourhood management and community engagement.

How do we deliver affordable houses ? Between 2007/08 and 2013/14 Salford and its partners have secured £70.6m funding to develop 1,399 new affordable homes, helping to creating employment and training opportunities for local businesses and people. 101 new Council houses developed across the City – £8m grant funding- unlikely for funding to be available to continue the development programme.

How is affordable housing funded The Homes and Communities Agency provides funding for new homes through contracts with the Registered Providers. The grant rates have been cut by over half – no assurances of what will happen after The balance of the costs of development is funded through RP reserves and borrowing. This is funded through rents – now ‘affordable rents’ can be charged which is up to 80% of market rents, on new properties and a number of properties that turnover. Council gets nomination rights.

Decent Homes and Investment City West Housing Trust Now own the properties previously owned by the Council, in the west of the City. Launched in October 2008, governed by a Board Regulated by the Homes and Communities Agency Promises made to tenants prior to transfer. Investment programme £235m in first 5 years Not in Council control Partnership working.

Properties still owned by the City Council Governed by a Board Contract with City Council to deliver housing management and investment services Promises made to tenants Investment programme £70m over 5 years Partnership working. Decent Homes and Investment Salix Homes

Arms Length Management Organisation – ALMO Management fee/SCC Governance structures – Independent Board 10,500 properties (8,500 post PFI) Challenging issues/2007 stock condition – still high level of non decency disengaged staff and customers service charges/service reviews Customer focus / scrutiny / co-regulation Investment to date Additional investment secured – fuel poverty and energy efficiency Welfare reform challenges Stock options process

AC 2* excellent prospects (2010) Decent Homes funding Tower block improvements Upper quartile performance across the board High level of customer satisfaction Creating local work and training opportunities Nationally recognised –Customer scrutiny –Sustainable landlord –Equality & Diversity –ASB services Key Achievements

Housing Stock Options YOUR HOMES YOUR SAY Salford City Council had put in place a mix of solutions for its housing stock. Salix Homes arms length management organisation (ALMO) with an original bid for Government funding of £69m. This was reduced to circa £57 m. City West Housing Trust was set up in 2008 and 15,000 properties were transferred to it, it required gap funding – delivered £180 million investment to date. Pendleton PFI – will deliver improvements to 1250 homes and build 1600 new homes.

Why is the Council doing an options appraisal ? So what’s changed? Decent Homes Funding – less funding, still have a backlog. The rules for HRA self financing has set a cap on how much can be borrowed To deliver the right levels of investment at the right time, there is a gap of £63m and the Council would need to borrow a peak debt of £133.5m – Salford is at it’s debt limit of £71m. Current estimate show that at least £700m (capital and revenue) is needed to invest in the stock over the next 30 years Therefore, the Council needs to look at the options.

A test of opinion has been carried out, with all tenants living in Council stock (except PFI area). Good response rate and useful results. The Customer Panel considered this and other evidence and concluded its recommendation to the Council is ‘approve the options of transfer to all remaining non-PFI Council owned homes in Salford to be progressed to the next stage’. Mayor decision taken to develop an offer to tenants Preferred partner to be identified by July ’13. Any proposal would have to be subject to Tenant Ballot.