▪Defining Affordable Housing ▪The housing need for Kingston ▪Influencing the delivery of Affordable Housing Delivering Affordable Housing in Kingston Darren Welsh- Head of Housing Andrew Donaldson – Lead Officer,Housing Development

The population in Kingston is expected to grow by ( 23% ) by 2030 A few key facts Average earnings in Kingston is £30,035 pa Lower quartile purchase price in Kingston 1 Bed £225k 2bed £ 250K 3 bed£ 400k Lower quartile private rental price in Kingston per month 1 bed£898 2bed £1173 3bed £1323 Percentage of earnings allocated to housing is 30% There are currently around 8500 applicants on the housing register 558 Affordable housing units were built in the borough in the past 3 years 190 Affordable housing units were built in Kingston Town in the past 3 years 2

Defining Affordable Housing Social Rent Housing owned by local authorities and Registered Providers, for which guideline target rents are determined through the national rent regime. Rents are typically set at around % of local market rent. Affordable rent Rented housing let by registered providers of social housing at no more than 80 per cent of the local market rent. ‘ ’Affordable housing includes social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not met by the market ’’ National Planning Policy Framework, 3

Intermediate Housing at prices and rents above those of social rent, but below market price. Shared ownership Fixed equity Discounted market sale Starter Homes Defining Affordable Housing ( contd ) 4

A home as being newly-built, for first-time buyers under the age of 40, and to be sold at a discount of at least 20% of the market value. The price of these homes has been capped at £450,000 in London and £250,000 across the rest of England. Starter Homes to be built on Brownfield sites not currently identified for housing The 20% reduction is to be retained for five years following the initial sale, after which the property will be sellable at full market rate. What is a Starter Home? 5

Affordable Housing need Number seeking a 1 bed 4547 Number seeking a 2 bed 2525 Number seeking a 3 bed 1169 Number seeking a 4 bed 273 Number seeking a 5 bed + 47 Total number on Register

The Affordable Housing mix Increasing the number of affordable homes is reliant on various activities of which no single opportunity is likely to provide the solution. The key is getting the mix right. Private Developers Registered providers Estate Regeneration Council New Build Property Acquisition Affordable Housing Pipeline (new sites) 7

Estate Regeneration The estate regeneration programme could help us improve the quality of homes and the wider environment. The Council is reviewing whether additional homes can be provided on its housing estates. This will also consider if provision of market housing could cross-subsidise the provision of new affordable housing. Engaging with private developers The Council takes a robust approach to engaging with developers to maximise the delivery of Affordable Housing. We commission independent viability assessors and quantity surveyors to determine the validity of viability appraisals. Improved Delivery through Registered Providers (RP’s) RPs are having difficulty competing with developers for land acquisitions. RBK can assist with grants from RTB receipts. 8

Creating a RBK New Build programme The Council is looking to build homes on land it owns. A development sites register has been created. Funding of new build is a challenge as resources are limited. Disposal of some Council owned sites will generate funds to pay for the delivery of AH units. Acquisition of property Acquiring property on the open market is an option. We can use funds from the sale of Council homes to finance these purchases. It is all a drop in the ocean when considered against the level of housing demand we experience in Kingston. 9

Affordable Housing sites in Kingston Town Completed in the past 3 years SiteTotal no of unitsTotal no of AH units Turks Boatyard569 Kingston Power Station35956 Waters Sq2020 Total43585 = 19.5% AH Schemes with Planning approval SiteTotal no of unitsTotal no of AH units The Alexandra, Park Rd100 Thameside Wharf970 Cowleaze Rd2621 Eden Hse, Eden St41 8 Total = 16% AH 10

Affordable Housing sites in Kingston Town Projected development schemes SiteTotal no of unitsTotal no of AH units Latchmere Lane8934 Hotel Antoinette79 9 Former Post Office Hampden Rd31 4 Hickman & Bishop, 15 Coombe Rd25 0 Fighting Cocks, Old London Rd8 0 Eden Walk Shopping Centre385 0 Total = 10% AH 11

Key features of delivering affordable housing ❖ Maintain a robust approach when approving development applications. ❖ Negotiate financial contributions where on site schemes are not viable. ❖ Ensure that RPs see tangible benefits from partnering with RBK. ❖ Generate capital receipts from the sale of HRA sites. ❖ Establish the Sites Register as a work in perpetuity. ❖ Create a Council self build programme. Further information regarding the delivery of Affordable Housing is within the new Housing Strategy. 12