Opportunities (and Challenges) for
Affordable Housing in London
David Orr
Chief Executive
National Housing Federation
London’s Challenges
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The affordability challenge
The demographic challenge
The homelessness challenge
The overcrowding challenge
The backlog challenge
The supply challenge
The demand challenge
The economic challenge
Affordability Opportunities
• At 50% the most ambitious target on
affordable housing
• Strong partnership between LAs,
developers and associations and effective
use of s106 to create balanced
communities
• Strong and mature Low Cost Home
Ownership sector benefiting from high
levels of funding for intermediate homes
To maximise the opportunities we need
to…
• Be flexible to reflect local circumstances and
ensure balanced communities in deciding where
to site affordable housing
• Ensure the planning system enables rather than
deters development
• Secure the financial position of housing
associations carrying out LCHO
• Review the range of LCHO products to ensure
they meet the widest range of needs
• Strike a balance between new LCHO and
affordable rented accommodation
Demographic Opportunities
• A young and growing population provides
a dynamic potential workforce
• High levels of immigration demonstrate net
economic benefits
• A diverse workforce can be more flexible
and deliver a better service to diverse
community
• A history of economic success can be a
beacon to new communities
To maximise the opportunities we need
to
• Ensure a match between young people’s
skills and the economy’s needs
• Break cycles of worklessness already
emerging in some communities
• Extend the success of many new migrants
and some existing BME communities to
those doing less well
• Ensure that as employers and procurers
we are inclusive and effective
Opportunities to tackle homelessness
• Strong partnership between local authorities and
housing associations
• A record of success dealing with rough sleeping
• Housing Options
• A vibrant private rented sector and associations
providing temporary accommodation
• The hostel improvement programme
• An emerging consensus on supply solutions
To maximise the opportunities we need
to…
• Build on existing partnerships to maximise
housing options through mobility and
choice
• Make better use of alternative and
affordable sources of settled moves
• Break the poverty trap of HB tapers
• Increase the availability of move-on
accommodation
• Move to a supply specification based on
requirements rather than deliverability
Opportunities to tackle overcrowding
• An ambitious new target on larger homes
• A greater emphasis on people housed
rather than a units-only numbers game
• A flexible affordable housing sector able to
respond
• A more comprehensive understanding of
the problem than exists elsewhere
• Agreement from all sides on the need for
more larger homes
To maximise the opportunities we need
to…
• To view the higher target as a first step
and keep reviewing the type and mix of
homes in all sectors
• Reinforce the move to targets based on
people not properties and shift the political
discourse
• Ensure that we don’t hamper HAs
flexibility to alter products quickly
• Further work to identify smaller ‘hidden
households’ within overcrowded families
Opportunities to increase supply and
tackle the backlog
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A consensus on the need for more homes
A competitive set of affordable providers
Continuing healthy demand in the private sector
Growth Areas, in particular the Thames Gateway
Infrastructure investment (at last)
The ‘Olympic Effect’
The ‘London Premium’
The strongest regional economy in Europe
To maximise the opportunities we need
to…
• Build a partnership for delivery as strong
as the campaign for more homes
• Maintain the diversity of providers
(including specialists) and provision
• Scenario planning for a change in market
conditions
• Look at how we unlock the potential
efficiencies of MMC and volume
programmes without compromising on
quality
To maximise the opportunities we need
to…
• Invest in ‘place-making’ and diversity in the
Growth Areas, particularly the Thames Gateway
• We’re all iN business for neighbourhoods
• Use existing infrastructure and take in situ
communities with us
• Have a broad rather than narrow infrastructure
agenda, which has sustainability at its heart
• Make the Olympics a true legacy – this is not a
forgone conclusion
• We use the ‘London Premium’ wisely
Should we seek opportunities to tackle
demand?
• Is the continued growth of London at
current levels sustainable or desirable?
• Are there measures by which we could
and should be seeking to manage demand
within the capital?
• Should we be looking more closely at
regional policies to shift demand from
London and the Greater South East
Economic Opportunities
• The overall economic picture remains highly
favourable
• New employment nodes are being developed at
Stratford and Elephant and Castle, meanwhile
Canary Wharf continues to expand
• Public and private infrastructure and capital
investment provide huge opportunities
• All the above provide a context to maintain
healthy demand for housing and build
sustainable communities
To maximise the opportunities we need
to…
• Give all Londoners the ability to participate in
economic success, particularly those in
affordable housing
• Develop additional employment nodes in East
London – building mixed use communities and
avoiding dormitory towns
• Ensure a higher quality of master planning
around future infrastructure investment
• Have a focus on regeneration of existing
communities too
A City of Opportunities
• A unique consensus
• A unique availability of land and
labour
• A unique level of prosperity
• A unique challenge
• A unique responsibility