Presentation on theme: "Meeting the challenge of housing growth in Birmingham"— Presentation transcript:
1 Meeting the challenge of housing growth in Birmingham Clive Skidmore – Head of Regeneration and Development, Birmingham City Council
2 The Birmingham Position New council-owned homes at Merritts Hill in NorthfieldProjected increase in population up to 2031 of 100,000Birmingham Development Plan requires at least an additional 80,000 new homes by 2031New homes completions in Birmingham have fallen from 4,000 in to 1500 inIncreasing demand for social and affordable housing as result of economic conditionsHousing waiting list at 26,000
3 The economic case for housing Birmingham achieves one full time apprentice for every £1M of contract valueThe economic casefor housingHousing development contributes 3% to GDP - the impact of changes in the housing market contributed to around a third of total fall in UK GDP from 2007 to 2009.£1 million of construction work supports 12 jobs in the building and supply chain industries90p of every £1 spent on construction remains in the UK
4 What are we doing?The Council is building new homes itself through the Birmingham Municipal Housing TrustWe have developed a Housing Growth Plan to accelerate housing developmentWe are working with developers and Housing Associations to bring forward identified sites in the SHLAA
5 The Birmingham Municipal Housing Trust First BMHT homes occupied by September 2010The Birmingham Municipal Housing TrustnBirmingham Municipal Housing Trust (BMHT) set up in January 2009 to lead the development of the Council’s new build housing programme.The Council has successfully attracted £28M in HCA funding to build new 1360 homes for rent and sale through a number of programmes including Local authority new build, Public Land Initiative, Local Land Initiative and Affordable Rent Programme.The programme has already created 200 jobs and apprentice places.The BMHT has already completed over 650 new homes since 2009 – generating activity worth approximately £70m in the construction industry;
6 The Birmingham Municipal Housing Trust The number of new homes built by the BMHT has steadily increased annually since 2009;* 375 completions (rent and sale) projected in ; 700 completions projected in ;* currently 1300 BMHT homes in development on 20 sites across the city;* scale ranges from less than half a dozen to many hundreds.Already building up to 25% of the city’s new homes – goal to increase that to 50%;
7 How it worksxThe council’s integrated design team develop schemes with properties for rent and sale and secure planning approvalConsult with developers at an early stage to inform design processThe council tenders a contract for developers to both build the rented homes and to build and sell the market sale properties. The sale homes are built according to the Council’s planning approval with materials conditioned for sign-off by the CouncilLandscape design is carefully controlled by an explicit design guideAll BMHT homes for rent are built to Code for Sustainable Homes Level 4
8 Key Principles The key principles are – Homes in Bartley GreenKey PrinciplesThe key principles are –Using the Council’s land as leverage;Reducing the “up front” risk to the private sector;Sharing the sales risk.Since July homes have been sold on through this model;Most sales have been to first time buyers - First Buy and now Help to Buy have been critical to successful sellingHomes on some sites have been sold “off plan” and for others there is a waiting list of potential buyers.
9 The Housing Growth Plan Purpose of the PlanTo set out how the Council will increase housing delivery in the city;To support the Birmingham Development Plan;To set out an Action Plan which ensures that we meet the housing needs of the city
10 Key themes within the Plan – risk How can we incentivise partners to build the new homes that we need?Revising the affordable housing policyPotentially using an element of the New Homes Bonus to incentivise developmentEnsuring flexibility in the Planning systemConsidering if the Council could assist potential owners to purchase homesMarketing the housing offer in BirminghamFinding ways to Incentivise the private rented sectorBuilding quality homes at higher densityDeveloping new partnership models with the private sector
11 Finding the land Birmingham is a landlocked city, heavily developed Shortage of land has been an issue since the 1960sSo how do we find the land?Developing surplus Council sites – large and smallBuilding quality homes at higher densityDeveloping new partnership models with the private sectorContinuing to identify and release surplus land and work with private developersProviding new homes outside BirminghamDeveloping some of the Green beltEnsuring that all viable sites in the city are identified and developed
12 The SHLAASHLAA (Strategic Housing Land Availability Assessment 2012 recently published and on the websiteProjects that 45,000 plots will be available for housing development up to 2031;35,000 of these sites are already identified;11,000 already have outline or detailed Planning Permission;
13 Being proactiveHow do we ensure delivery of the SHLAA sites?Encouraging land owners to bring SHLAA sites forward for development where these have Planning PermissionMaking developers aware of the SHLAA sitesEncouraging Housing Associations to bid for SHLAA sites in the Affordable Homes Programme;Joining up developers and HAs with the sites in the SHLAA
14 Conclusions Local authorities cannot build all the homes we need; Local authorities acting as developer can make a real difference though direct delivery;Local authorities need to be proactive in driving forward housing growth both through policy changes and by acting as enabler.