New London Architecture

Delivering Affordable Housing

Tuesday 21 March 2023

Steve Partridge

Director, Affordable Housing Consultancy
Savills

Steve Partridge of Savills reflects on our latest webinar discussing the current industry outlook and features projects that highlight best practice across London.

The webinar was chaired by Harriet Shone from the London Communications Agency, who set the scene by introducing the key challenges facing the affordable housing sector, from the current economic climate to the ever-present climate-crisis. 
 
Steve Partridge summarised the research undertaken by Savills that had been commissioned by the GLA in 2022.  Steve presented an overview of the challenge in the London Plan – to deliver 26,000 new affordable homes ever year, whereas currently delivery is running around 17,000 a year.  Challenges are not only in terms of numbers, but also a need to prioritise genuinely affordable rented homes when compared to the current delivery mix which tended more towards LAR and shared ownership.  When looking at development costs against what can be financed from future rents, the total subsidy gap is £3.8billion a year, with average unit subsidy at £220,000 – a significant increase on current GLA rates.  Steve also highlighted that ramping up delivery would require the recruitment and training of significant additional industry capacity – perhaps up to c20,000 new employees.
 
Melissa Dowler from architects Bell Phillips and Alex Luria from Jestico and Whiles presented a couple of excellent case study examples of affordable housing schemes that are being delivered to a high quality.  
 
Melissa talked through the affordable housing development at the Jazz Yard for Waltham Forest’s housing company Sixty Bricks, highlighting that despite the tight constraints on the site, it has been essential to focus on ensuring that affordable housing dovetailed with the wider scheme masterplan, particularly on communications and transport, and the need to provide for high quality larger family accommodation.  
 
Alex talked through the 100% affordable regeneration scheme at St Vincent’s Canning Town, again focusing on integrating the development of affordable housing within an overall strategic scheme masterplan, and highlighting the need for larger homes.  It has been essential to the success of St Vincent’s to date to gain community buy-in to the plans through extensive consultation and engagement and targeting lower profit margins for the development.
 
Harriet then chaired a Q&A panel discussion with Steve, Melissa and Alex, joined by Jacqueline Esimaje-Heath from L&Q and Debra Richards from Tower Hamlets.  Jacqui noted that many RPs, L&Q included, are prioritising investment to existing stock, for fire and building safety, for energy efficiency and in the light of recent regulatory focus on damp, mould and condensation. Debra highlighted some of the challenges arising from rising development costs and how the council is keen to maintain a positive programme despite the challenges.
 
Questions to the panel were varied, ranging from the detail of working on specific schemes to wider affordable housing programmes.  Alex emphasised the critical point that having a permanent presence on site at St Vincent’s is paying dividends in terms of community engagement. 
 
Several delegates asked about the importance of positive relationships with local authorities, with the Panel agreeing that a more “joined up” approach between the housing, planning and regeneration teams at each authority was essential to enable effective delivery.
 
In response to several questions around inflation and the level of subsidy required, the panel noted that a focus on effective partnerships was an essential factor, not necessarily to reduce costs but to control cost pressures and prevent them increasing to a point where schemes become unviable.
 
Many delegates asked questions around the planning process and all panel members agreed this had become harder, with many more reports required and councils wanting more affordable housing, larger homes and better design. Inevitably, the panel agreed, there will need to be pragmatism and balance in the process.
 
Finally, the panel touched on the government’s proposed planning reforms and agreed that they were very unlikely to lead to an increase in affordable housing provision.  Whether they would reduce delivery, the jury is very much “out”.
 
To conclude, Harriet excellently summarised the key points of the session to include financial and capacity challenges, with push towards opportunities for better engagement, stronger partnerships and goal of building great relationships with local authorities.


Steve Partridge

Director, Affordable Housing Consultancy
Savills


Housing

#NLAHousing


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