Decision details

1.

Title of Item/Report

Accelerating Affordable Housing Delivery ('A quality home for all')

2.

Record of the Decision

Consideration was given to a report on Accelerating Affordable Housing Delivery ('A quality home for all').

A previous report was presented to Cabinet (12.9.2024) which outlined the Governments ambition to increase the delivery of quality affordable and social housing and to bring forward investment to help deliver “the biggest increase in affordable housing building in a generation”, whilst also acknowledging the role affordable housing has in supporting economic growth and as a key enabler for local leader to manage local housing pressures.  The September 2024 Cabinet report also highlighted that the Council, like most local authorities was experiencing increased demand for affordable housing at a time of limited supply and this was impacting on the ability to prevent homelessness and support vulnerable adults and care leavers to secure independent accommodation.  Cabinet subsequently agreed to support an option appraisal which would consider the potential opportunities available to the Council to accelerate affordable housing delivery in the Borough. This was accompanied by a scrutiny review which was reported to Cabinet in April 2025.  The report details the outcome of this appraisal and seeks approval for next steps.

The report highlighted the following key areas:-

- Current challenges

- Key headlines

- Accelerating Affordable Housing Option Appraisal

- Affordable housing sites (initial phase)

- Commuted sum monies

The provision of a mixed tenure affordable housing offer (which will provide ‘a quality home for all’) would be considered as an integral part of the Councils regeneration ambitions across Central Stockton, North Thornaby, Billingham Town Centre and the Care and Health Innovation Zone).  However potential sites would also start to come forward through the ongoing work to rationalise council building / assets (as referenced in paragraph 15 of the report).  Given the current housing needs and the limited additional units projected to come forward via third parties in the immediate future, it was imperative that the Council moved forward with the Hybrid Delivery Model as quickly as possible.  On this basis Cabinet was asked to approve ‘in principle’ an initial phase of smaller sites for the purpose of affordable housing delivery these were:

(a)      Raleigh Road (vacant potential in-fill site)

(b)      Londonderry Road (vacant potential in-fill site)

(c)      Stirling House (once vacant)

(d)      Parkside House (once vacant)

(e)      Thornaby Baths (once vacant/following the opening of the Thornaby Pavilion & Pool)

It was estimated that the release of the above sites for affordable units would deliver an initial phase of  between 67-114 new homes.  Subject to Cabinet approval, work would commence to explore the quantum of the affordable housing that could be delivered on each site (in terms of specification, type, tenure and density), site feasibility work and engagement with potential partners.  This would inform which of the Hybrid Delivery Models was best placed to successfully bring the site forward.

The principle of using council land for the delivery of housing was set out in the Strategic Asset Management Plan which was agreed by Cabinet in December 2024 (decision record  CAB77/24). The Strategic Asset Management Plan sets out the decision making framework for all vacant Council assets and established housing as a priority consideration. Not all sites would be suitable for housing and there were competing priorities for the development of land for economic, community or council use. As noted in paragraph 13 of the report the acceleration of the delivery of housing was a key objective of the Council’s wider regeneration ambitions and the delivery of blueprints for North Thornaby, Central Stockton and Billingham. The Council would continue to promote residentially driven town centre regeneration using council land, working with public sector partners and with private sector developers to ensure that growth across the Borough delivered mixed tenure, good quality housing which meet the needs of residents. This included increasing the number of affordable homes delivered but also needed to consider affordability for people across a wide range of income brackets (delivering a ‘A quality home for all’).

Work undertaken by Place Select Committee and the Affordable Housing Option Appraisal had identified that the market was not at this time responding to address the Boroughs housing needs (in terms of the number, specification, type and tenure of affordable housing units being delivered).  Given the Councils landownership and economic & regeneration ambitions there was an opportunity as outlined within the body of the report to step into this space and ensure the delivery of a pipeline of affordable units (type, specification and tenure) which directly addressed housing need, which was not reliant on a third party.  The delivery of affordable units would also make a significant contribution to the Councils residential and town centre regeneration ambitions and the annual housing planning target.

In addition to the next steps detailed within the report, the Council was also forging relationship with both Homes England and the Tees Valley Combined Authority to ensure the Council was best placed for future funding as / when announcements were made.

RESOLVED that:-

1. The outcome of the accelerating affordable housing option appraisal, specifically the Hybrid Delivery Model be supported (as detailed in paragraph 11 of the report).

2. The initial phase of sites outlined within paragraph 13,14 and 15 of the report for delivery of affordable housing be approve ‘in principle’.

3. The use of S106 commuted sum monies (as detailed in paragraph 16 and 17 of the report) be approved to deliver urgently needed affordable housing (generally smaller self-contained accommodation units).

4. Delegated approval be given to the Director of Regeneration and Inclusive Growth in consultation with the Cabinet Member for Housing and Regeneration to approve the preferred direct purchase model to secure additional affordable homes (as detailed in paragraphs 16 and 17 of the report).

3.

Reasons for the Decision

Both the Stockton-on-Tees Plan and the Powering Our Future programme affirm the Councils commitment to driving economic growth to support community prosperity and well-being.  The delivery of good quality, affordable housing in well-connected neighbourhoods is integral to this.  Increasing the delivery of affordable housing (both in terms of type and tenure ‘a quality home for all’) will not only support the Government housing ambitions it will also enable the Council to address the boroughs’ local housing need (current and projected) whilst also  addressing some of the budget pressures faced across Adult and Children’s services, when appropriate independent accommodation is not readily available.

4.

Alternative Options Considered and Rejected

None

5.

Declared (Cabinet Member) Conflicts of Interest

None

6.

Details of any Dispensations

None

7.

Date and Time by which Call In must be executed

Midnight, Friday, 20 June 2025