Part 1
ITEM NO.
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REPORT OF THE STRATEGIC DIRECTOR FOR SUSTAINABLE REGENERATION
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TO THE LEAD MEMBER FOR HOUSING ON 7 JUNE 2010
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TITLE: HOUSING MARKET RENEWAL FUNDING OPTIONS IN SEEDLEY &
LANGWORTHY
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RECOMMENDATIONS:
That Lead Member Approves:
1. To spend £3.147million Housing Market Renewal Funding identified for
Environmental Improvements and Developer Gap Funding to progress Block
Improvement Schemes within Seedley & Langworthy, subject to the approval
of the relevant funding partner.
2. The expenditure of £250,000 for environmental schemes in Seedley South
and the wider renewal area.
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EXECUTIVE SUMMARY:
1. The current Housing Market Renewal (HMR) scheme approval for Seedley
and Langworthy 2008-11 includes £3.467m investment in the Seedley south
neighbourhood via linked Sustaining Neighbourhoods and Developer Support
interventions. The allocation is split between £2.735m for environmental
improvements and £732k for developer support to bring forward new build
redevelopment on assembled sites.
2. However, there is no existing developer partner in place in Seedley &
Langworthy and no current interest from developers in the Seedley South
sites. The impact of the current financial market has made private sector
interest and their ability and/or willingness to invest within this neighbourhood
unlikely within the 2009 -11 timescale.
3. By 31st March 2010 only £70,000 has been spent on environmental
improvements. On this basis there is an opportunity to reallocate the
remaining £3.397 million HMR funding within Seedley & Langworthy for 201011 and this report sets out the options and recommendations for ensuring the
drawing down of the maximum funds by the end of March 2011.
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BACKGROUND DOCUMENTS:
Seedley & Langworthy Renewal Area Declaration 2nd June 2000
Seedley and Langworthy Block Improvements report to SEEDLEY AND
LANGWORTHY PARTNERSHIP BOARD MEETING, 19th January 2005
Seedley South Neighbourhood Strategy report to SEEDLEY AND LANGWORTHY
PARTNERSHIP BOARD MEETING, 25TH June 2007
Housing Lead Member report 30th August 2007; Seedley South Neighbourhood
Strategy: Update on development appraisal of strategy options and the way forward
with delivery of project activity.
(Available for public inspection)
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KEY DECISION:
YES
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DETAILS:
1.0
Current Housing Market Renewal Funding Allocation
1.1
The current Housing Market Renewal (HMR) scheme approval for Seedley
and Langworthy 2008-11 includes £3.467m investment in the Seedley south
neighbourhood via linked Sustaining Neighbourhoods and Developer Support
interventions. The allocation is split between £2.735m for environmental
improvements and £732k for developer support to bring forward new build
redevelopment on assembled sites. The environmental improvements were
identified to also support new development by making improvements to the
street scene and environment in conjunction with the new housing
development.
1.2
There is no existing developer partner in place in Seedley & Langworthy. The
impact of the current financial market has made private sector interest and
their ability and/or willingness to invest within this neighbourhood unlikely
within the 2010 -11 timescale. On this basis the allocation of these funds have
been reprofiled into future years of the programme to facilitate developer
support and associated environmental improvements when there is an upturn
in the housing market.
1.3
It should be noted that there is currently uncertainty regarding the level of
resources that will be available beyond the end of this financial year, 2010-11.
1.4
However, this re-phasing of the planned programme also presents an
opportunity to review the proposed investment in the area with a view to
bringing forward schemes planned for future years to ensure the full take up
of available resources in the current year.
2.0
Options for Alternative HMR Schemes
2.1
An initial assessment of potential schemes which would be eligible for HMR
support highlighted that the main opportunities to spend the funding by 2011
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included new acquisitions, new block improvements across the wider Seedley
and Langworthy area and further environmental projects such as alleyway
resurfacing and alleygates. All of the schemes identified would complement
investment carried out to date; support the ongoing regeneration of the area;
stabilise ‘fragile’ areas; better position the area for housing market recovery;
complete commitments given to residents regarding future improvements to
properties, and; demonstrate public sector commitment to invest in the local
area.
2.2
However, new acquisitions do not form part of the existing masterplan
proposals and have not been consulted on with the community or elected
members. Acquiring properties at this stage would also leave the council with
the same problems it currently faces of further sites for redevelopment with no
developer interest. There is also a significant risk that owners would be
unwilling to sell and the funding could therefore still not be drawn down before
March 2011.
2.3
The original masterplan report in January 2001 was adopted by the Seedley &
Langworthy Partnership Board and formed the foundation of the vision for the
future of Seedley and Langworthy. It set out a broad framework to encourage
community sustainability, revitalise the failing housing market and enhance
the local community facilities. One of the main findings and recommendations
of the report was the retention and improvement of much of the existing
residential stock, 1727 properties were identified for improvement in the
report. Following the works in 2009 to properties in Seedley South the total
number of properties to benefit from improvements stood at 848 broken down
as follows:
302 – Langworthy North phase 1-6;
20 – Langworthy Road;
169 – Seedley South;
108 – Seedley West phases 1 & 2;
38 – Seedley West phase 3;
66 – West of Seedley Park Road phases 1 & 2;
145 – West of Seedley Park Road phases 3 + 4.
2.4
There is an aspiration within the community in Seedley & Langworthy that
further block improvements would be carried out should funding become
available. The Seedley & Langworthy Partnership Board and community were
consulted on a list of priorities drawn up for the neighbourhood which has
been updated since the works have been completed on Langworthy Road and
Seedley South. Block Improvements therefore represent the best option for
alternative HMR schemes within the neighbourhood.
3.0
Future Block Improvement Schemes
3.1
The sequencing of proposed block improvements reflects the priorities agreed
by the Seedley and Langworthy Partnership Board in August 2005. The
priorities targeted the main corridor routes through the area. This investment
would make a much needed improvement to visually and environmentally
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poor properties along Langworthy Road, Fitzwarren Street and Seedley Park
Road. This work would safeguard investment in earlier phases of
improvement, enhance the new developments at Chimney Pot Park,
Fitzwarren Street and Langworthy Road and complement future investment
including the PFI scheme in Pendleton.
3.2
With the exception of the neighbourhood south of Liverpool Street, where the
masterplan recommended no block improvement action was required, the
proposed schemes would complete a large proportion of the identified
outstanding block improvements. The table below confirms that a some
funding commitment would be required in future years to complete all the
work in the Buile Hill neighbourhood. It is clear that this funding may not be
made available in future years. Therefore further work is currently being
undertaken to determine the most appropriate streets in this neighbourhood
which should be prioritised. This exercise can also inform how future
improvements should be sequenced should further funding become available.
3.3
Salix Homes and Urban Vision have considered the timescales and discussed
capacity with the council’s partner contractors. While the timescale for delivery
is certainly challenging we are comfortable that the timescales identified to
progress additional block improvement projects can be taken forward and
delivered. It is therefore worth noting at this stage that while the timescales to
complete are achievable, as time passes these will become more difficult to
achieve.
4.0
Proposed Schemes and Costs
4.1
The following table reflects the priorities agreed by Seedley and Langworthy
Partnership Board in August 2005. A copy of this report and map outlining the
priorities are attached. The priorities were agreed following a survey of
unimproved properties across Seedley & Langworthy. The report identified 7
areas for improvement in order of priority. Since the report, improvements
have been completed to some of the properties on Langworthy Road,
Liverpool Street and in Seedley South. This satisfies some of the priorities on
areas 1-4 and the table below shows the priorities of the remaining
neighbourhoods with the exception of South of Liverpool Street. This
neighbourhood has not been considered as there would be insufficient
funding for any work here.
4.2
Unit costs are based on a block improvement “facelift” specification to improve
the front elevations only in line with the council’s Private Sector Housing
Assistance Policy 2006 (as amended). A number of properties are garden
fronted and renewal of the front boundary walls would be over and above the
existing policy allowance but would be in keeping with other recent schemes
both in Seedley & Langworthy and the wider Central Salford area. It should be
noted that these costs are based on recent scheme comparisons and further
detailed surveys will be carried out to determine costings for each phase of
the scheme, subject to Lead Member approval.
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Proposed improvements
to retained stock (IRS)
Area 1: 271-293 Langworthy Road
Area 2: 20-68 Langworthy Road, 549 Brown Street and 42-50 Blodwell
Street
Area 3: 96-154 Fitzwarren
Street/135-193 and 154 Highfield
Road
Area 4: Buile Street neighbourhood
– Further work is required to
complete an environmental
assessment of the properties within
this neighbourhood as there is
insufficient funding to carry out
improvements to all the streets in
the area.
Sub total for IRS
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Number and
type of units
Cost per
scheme
Total
available Comments
12 units at
£11,000£13,500 per unit
includes
partnering & UV
fee costs
53 units at
£11,000 per unit
includes
partnering and
UV fee costs
61 units at
£7,000 per unit
includes
partnering and
fee costs
221 units/range
of property
types & unit
costs (see
comments)
£134,500
£134,500 start on site July/August 2010; 8 months on site;
completion March 2011
£583,000
£583,000 Includes 4 commercial units.
start on site July/August 2010; 8 months on site;
completion March 2011
£427,000
£427,000 Includes 4 commercial units.
start on site July/August 2011; 10 months on site;
completion June 2011
£1,069,000
£1,013,000
£2,002,500 134 bay fronted terraced £7-8,000 per unit
83 garden and bay fronted £11,000-15,000 per unit
start on site July/August 2010; 10 months on site;
completion June 2010.
£3,226,500
£3,147,000 All of the estimates are based on recent comparables
from other block improvement schemes, further
detailed surveys will be necessary to identify all the
costs involved in each scheme.
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5.0
Environmental Schemes 2010-11
5.1
There are still a number of environmental projects within Seedley &
Langworthy which have been identified by officers and residents through the
Neighbourhood Strategy and Seedley South Steering Group. These include
some further alleyway resurfacing and support for the current In Bloom
programme and encouraging further take up of In Bloom in newly improved
neighbourhoods.
5.2
There is also an existing commitment through the Seedley South
Neighbourhood Strategy to open up Iceland Street to create a link to Chimney
Pot Park following the demolition of 7 properties at this site. The allocation of
funding would enable consultation to develop a design for the improvement of
this land.
5.3
It is therefore recommended that some funds are retained for environmental
schemes whilst the majority of the HMR funds are allocated for block
improvements. £250,000 has been identified for environmental schemes
although it is recommended that some flexibility be retained in each element
in the event that there is an underspend or overspend within the programme.
6.0
Conclusions
6.1
The HMR funding is only certain up until March 2011. There is a clear need to
review and agree any virement and reallocation of funding at the earliest
opportunity. This report builds upon existing commitments and priorities to
complete aspirational block improvements within the Seedley & Langworthy
Renewal Area. This process would bring forward schemes that required
funding in future years to deliver.
6.2
Whilst the current position with developer interest is disappointing there is a
`need for a practical and realistic approach to delivering improvements in the
neighbourhood. Block Improvements will help to both support the existing
investment into the Renewal Area and further enhance the neighbourhood by
improving more properties and help meet expectations of the community. The
aspiration to develop new housing in Seedley South remains a priority and the
requirement for funding developer support and environmental schemes is still
likely to be required in future years when the market improves but the level of
funding required could change.
The MSP Board has given it’s in principle agreement to this change in activity.
They have delegated the decision to the Programme and Scrutiny SubCommittee subject to Housing Lead Member approval.
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6.3
KEY COUNCIL POLICIES: Housing, Regeneration
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EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS:- The Salix Homes Better
Neighbourhoods Function has had an Equality Impact Assessment. Diversity
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monitoring is carried out with customers on block improvement schemes.
Satisfaction surveys are also monitored by diversity strand so any adverse impacts
or negative feedback can be addressed.
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ASSESSMENT OF RISK:
Medium – There is a risk that Housing Market Renewal Funds will end as of 31st
March 2011. We are working with Urban Vision and the council’s partner contractors
to ensure they are geared up to start on site and ensure spend can be achieved but
based on current programme estimates there is a need for funding requirements in
2011-12. Poor winter weather conditions could delay the project further.
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SOURCE OF FUNDING: Housing Market Renewal funding is available within the
Private Sector Housing Capital Programme 2010-11.
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LEGAL IMPLICATIONS Supplied by;
Norman Perry, Legal Service: Land & Property Team, Law and Administration, 793
2325, Norman.perry@salford.gov.uk
The crucial phrase is “subject to approval of the relevant funding partner”. Without
that approval, these funds cannot be used for any purpose other than that for which
they were advanced.
Once approval has been given, there should be no difficulty in using the funds,
though the approval should be widely drafted to allow use of funds even if part of the
expressed use of the funds ceases to be advisable owing to unforeseen external
factors.
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FINANCIAL IMPLICATIONS Supplied by;
Peter Butterworth, Private Sector Housing Capital Accountant, 922 8791,
peter.butterworth@salford.gov.uk
There is provision within the 2010/11 Sustainable Regeneration Private Sector
Housing Capital Programme for the proposed Block Improvement and Environmental
schemes subject to approval to the revised programme of works.
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OTHER DIRECTORATES CONSULTED: None
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CONTACT OFFICER: Edward Sawford, Acting Better Neighbourhoods Manager,
Salix Homes, Edward.sawford@salixhomes.org TEL. NO. 0161 779 8950
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WARD(S) TO WHICH REPORT RELATE(S): Langworthy
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HMR Funding options HMR Funding options
board report.doc
map.pdf
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