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1 Subject: Director/Head of Service: Decision Issues: Decision type: Classification: CCC Ward(s): Summary: To Resolve: Next stage in process Kent and Medway Housing Strategy Head of Planning and Regeneration These matters are within the authority of the Executive Non-key This report is open to the public. All The draft Kent and Medway Housing Strategy has been circulated for consultation to all local councils in Kent and Medway. The document was commissioned by Kent Economic Board. It reflects their Framework for Regeneration. New housing is viewed as critical for prosperity and economic growth in Kent. The draft Kent and Medway Housing Strategy acknowledges that district councils are responsible for housing and planning. It presents a menu of recommendations and actions, which districts may adopt according to local circumstances. That Canterbury City Council responds positively to the consultative draft Kent and Medway Housing Strategy and explains that some of the recommendations identified in this report may not be appropriate for the circumstances of the district. Inform Kent County Council of Executive s decision SUPPORTING INFORMATION 1. Introduction 1.1 The Kent and Medway Housing Strategy was commissioned by the Kent Economic Board (KEB), under the auspices of the Kent Partnership and Kent County Council s Regeneration Framework. A Housing Task Group was formed by KEB to direct the work on the Strategy with representation from the Kent and Medway authorities. 1.2 The Strategy has been developed between Kent County Council, district councils, Medway Council, Kent Partnership, KEB, Kent Housing Group and other public and private sector organisations with an interest in housing. 1.3 Collection of evidence for the strategy began in June This included production of a Kent and Medway Strategic Housing Market Assessment (SHMA), which is based on the existing sub-regional SHMAs (including the East Kent SHMA, which covers Canterbury district). A series of task and finish groups looked at key single issues such as homelessness, young people and housing for those with mental health needs. Three stakeholder events and Member briefings have been held and versions of the draft strategy have been discussed by the Leaders of all Kent and Medway councils. 2. Detail

2 2.1 The draft strategy is about 60 pages long and seeks to articulate a co-ordinated approach to housing growth across Kent and Medway as a means of securing investment. The document acknowledges that district councils are responsible for housing, planning and deciding on housing growth numbers. It is not a one size fits all document and leaves it open to individual authorities to decide which elements of the strategy are appropriate for their locality. 2.2 The Kent and Medway Strategic Housing Market Assessment (SHMA) identifies challenges that are no surprise to the council, as our own East Kent SHMA was one of the source documents: An ageing population. Growing inequality in household incomes within Kent, with the disparity between people who commute to London and those who work locally. Comparatively poor housing conditions in the private sector, particularly in coastal towns. Declining affordability of home ownership. Increasing proportion of households unable to meet their housing needs within the market. The need for more new homes, including rural housing. Regeneration and renewal. Improving the energy efficiency of existing homes. Housing-related support services for vulnerable people. 2.3 In response, five themes form the basis of the draft strategy. The implications for the council are: Theme 1 Managed growth and infrastructure 2.4 New housing and infrastructure are seen as critical elements for successful regeneration and economic growth. The draft strategy recognises that district councils will be responsible for deciding housing numbers. It proposes bringing together the locally determined requirements for housing growth and infrastructure into a single growth ambition for Kent and Medway, which will be important for the success of the Local Economic Partnership. 2.5 The Government intends to abolish the South East Regional Spatial Strategy and its development targets. The forthcoming Localism Bill will give district councils the responsibility for determining housing numbers. The council will need to commission a new study into the amount of housing required to meet local housing needs and support the growth of the local economy. 2.6 The draft Kent and Medway Housing Strategy suggests that housing numbers should be collated through a newly-established Housing and Planning Futures Group for Council Leaders. The City Council will wish to ensure that the proposed arrangement conforms to the structures that emerge from the Kent Recommitment discussion and the council s own governance arrangements. 2.7 There is also a proposal that the public sector prioritises development strategies that take more risk but have potentially more reward from the proposed development. This would require a careful assessment of risk and may not be appropriate given the council s capital commitments. Theme 2 Place making and regeneration

3 2.8 This section addresses creating balanced communities, high quality new homes and bringing empty properties back into use. 2.9 The council supports the creation of balanced communities and played a leading role in the development and implementation of the Kent Housing Group s Sustainable Communities Protocol. The council supports good design and already requires all new homes to meet Level 4 of the Code for Sustainable Homes The number of empty homes in the district is relatively small when compared to other areas of the county. Excluding holiday homes there are 1382 homes empty, equating to 2.2% of the total housing stock, the majority in the private sector. This compares well against the South East average of 2.32% and the English average of 2.87% Many of the properties vacant for less than six months are for sale, undergoing repair or renovation or subject to probate. Of greatest concern are dwellings that have been vacant for more than six months, which make up 1.07% of the total housing stock. Nearly all long-term empty homes are within the private sector Experience shows that many of the long term vacant homes are actually second or holiday homes, leaving about 200 properties as a source of concern. Owners have been reluctant to respond to attempts to improve the stock or accept equity loans. Compulsory purchase is being pursued in a couple of instances. These persistent cases are resource-intensive and in 2009 limited resources were re-focused on homelessness prevention instead. Theme 3 Affordability and choice 2.13 The draft strategy contains a commitment to promote home ownership and broaden the choice of tenures. It recognises the need for rural housing to support rural communities and businesses. It shares our experience that a shortage of sites is the most common and important barrier. It seeks more choice in social housing through Kent Home Choice, of which the council was a founding member. It also proposes the expansion of the private rented sector by attracting institutional investment, which might provide an additional source of investment for the regeneration sites in the city However, a proposal to explore options for increasing affordable mortgage finance and the potential to create a modest fund to support investment across Kent and Medway to broaden housing choice may not be appropriate in the current financial climate or accord with the council s current capital strategy. Theme 4 Estate renewal 2.15 The heading of this theme is a misnomer because it focuses on improving the energy efficiency of existing homes in all tenures, which is an aim that is already shared by the council An idea for local authorities to consider how to procure an attractive energy tariff for residents and create an energy efficient retrofit fund may help to reduce fuel poverty. However, it might be difficult for local authorities to resource such a large procurement exercise in the current financial climate. Such a scheme would also have to place the onus for informing the public onto the preferred energy supplier. Theme 5 Housing need

4 2.17 This theme too seems misnamed, as it is about the housing-related support needs of vulnerable people. The proposed responses are all build on existing joint working arrangements, particularly through the Joint Policy and Planning Board for Housing and Health, and Supporting People Commissioning Body. 3. Relevant Council Policy/Strategies/Budgetary Documents Canterbury District Housing Strategy Canterbury District Local Plan Capital Strategy 4. Consultation planned or undertaken 4.1 Kent County Council has consulted widely during the preparation of the draft strategy through briefings for Portfolio Holders, presentations to council Leaders and stakeholder events for officers. 4.2 The document has been circulated to Planning Policy and the Head of Housing, Community Safety and Environmental Services. 5. Options available with reasons for suitability 5.1 Reject the draft Kent and Medway Housing Strategy. This would potentially isolate the City Council from other Kent councils. It may also weaken the council s influence in the Local Economic Partnership, which needs a common approach to housing in supporting prosperity and economic growth. 5.2 Accept the draft Kent and Medway Housing Strategy without reservation. This would not serve to highlight any reservations that the City Council may have about the document. 5.3 Accept the draft Kent and Medway Housing Strategy in principle and explain that some of the recommendations may not be appropriate to the circumstance of the district. 6. Reasons for supporting option recommended, with risk assessment 6.1 Paragraph 5.3 is the preferred option because it will enable the council to continue to influence the process. 6.2 The risk to the council is minimal. The document allows the council to adopt only those elements that are appropriate for the district. 7. Implications (a) Financial Implications There are no financial implications in accepting the draft strategy. Financial implications occur only if elements of the strategy are put into action. This would happen only if they fit in with the council s strategic objectives and would be subject to the usual budgetary controls and risk assessment. (b) Legal Implications

5 Other implications (c) Staffing/resource (d) Property Portfolio The council may wish to consider the proposals in the draft strategy regarding the use of council land for building new homes. (e) Environmental/Sustainability The draft strategy promotes good housing design. (f) (g) (h) (i) (j) Planning/Building Regulations Human Rights issues Crime and Disorder Biodiversity Safeguarding Children (k) Energy The draft strategy promotes energy efficiency in existing and new homes. 8. Conclusions 8.1 The council has engaged actively in the process of preparing the draft Kent and Medway Housing Strategy by providing access to the East Kent SHMA, attending stakeholder events and Member briefings. 8.2 This draft responds to the concerns of district councils by acknowledging that districts are responsible for housing and planning functions. 8.3 The document is not intended to be one size fits all. Most of the recommendations are broadly in line with the council s position, but it is open to individual authorities to decide which elements of the strategy are appropriate for their locality. 8.4 This strategy reflects current arrangements. If regeneration and the wider growth agenda are to be pursued through the Local Economic Partnership, housing numbers are an integral part of that process and will have to be taken into account when considering local planning issues and the replacement for the Local Development Framework. Contact Officer: Gary Peskett Telephone:

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