Housing Strategy & the Economy Housing Services Forum March 2011

Background Neighbourhood Services Housing Strategy For January 2005 Having a new Housing Strategy is the right thing to do –We have to have a strategic direction for Housing Legal Duty to produce a Housing Strategy –Local Government Act 2003 Last Housing Strategy produced in 2005 –It’s out of date now Milton Keynes Strategic Housing Partnership –Set up in January 2010

Objectives of the MK Strategic Housing Partnership

Vision The Vision of the Strategic Housing Partnership is as follows: Right Home, Right Place, Right Person, Right Time It’s all about trying to “get it right” The Vision will be a key part of the Housing Strategy

The Objectives & Vision summarised into “3 Themes” 1) Building New Homes –Core Strategy target = 1,750 new homes each year 2) Making the Best Use of Existing Homes –Standards currently being developed 3) Supporting Our Residents –2.7% of households have health problems and their homes are unsuitable for them

The new three part Housing Strategy Three Documents will make up the Strategy: 1.Housing Strategy –A short document that sets out the Vision, Objectives etc 2.Housing Strategy Action Plan –Updated regularly and reported back to the Strategic Partnership 3.Local Investment Plan –Sets out the resources available for delivering the Strategy

So what has Housing Strategy got to do with the Economy? Housing is often seen as a barometer for the state of the economy 1 The type and quality of housing in an area can have a significant impact on the health and wealth of places The ability of a place to attract and retain people and provide support for those who need it relies on: –Good housing and –Attractive and inclusive neighbourhoods This what the Housing Strategy is all about 1 “Housing & Economic Development” Housing Corporation and Centre for Cities, November 2008

Housing Strategy and economic prosperity Getting the right housing (including affordable housing) will attract and retain people with the right skills Having the right people with the right skills is crucial for the economy This will then encourage inward investment Inward investment helps to create and maintain jobs Investment projects to the value of £1bn are currently underway in Milton Keynes 2 2 Source: Invest Milton Keynes

Housing is also an economic activity Housing can be a powerful economic activity in itself; for example: –Jobs created by building new homes, or refurbishing existing ones –Jobs supported (such as DIY stores) –Tax income (such as stamp duty) Local housing markets –Income from property transactions –Job creation e.g. estate agents –Supports labour movement

But Housing can have a negative effect on the economy Global credit crunch UK Housing Market – traditional pattern of continuing demand outstripping supply Rising house prices Banking collapse Sep 2008 (Lehman Brothers) –Remember the “subprime mortgages” problem in the United States? “Credit crunch” (a crisis caused by banks being too nervous to lend money to each other or to people/businesses) More expensive & fewer mortgages

What do you think? Any Questions? Paul Gibson Housing Policy & Development Officer Tel: E Mail: The New Housing Strategy