Public Sector Keyworker Housing
Last updated: 07/09/2006 - 10:44
Four-Star Living for public servants? New plans fuel new hope on keyworker housing problem.
Changes to planning rules could open the door to more affordable homes for public servant 'keyworkers'. A new housing planning system aims to put an end to negotiated deals, behind closed doors, between developers and local authorities.
Replacing the old arrangements - criticised by the government's Committee on Standards in Public Life - will be an open and simpler community benefit policy, that sets out clearly the 'community contribution' developers will be asked to make, if planning permission is granted.
The provision of affordable homes is expected to be the main beneficiary of this approach, with commercial developers contributing, as well as housebuilders. One option suggested (in a consultation document) is that local planning authorities be allowed to allocate sites solely for affordable housing, where there is a clear need. The planning tariffs could then be used to finance the provision.
Development Pressures
"Development pressures, in some areas, are placing heavy burdens on the existing infrastructure, and especially on the supply of affordable housing for nurses, teachers, police officers and other key workers," said Stephen Byers, secretary of state for transport, local government and the regions. "Everyone agrees this is a very serious problem, that we need to tackle.
"Developers buying a piece of land currently have little idea of what a local authority might demand, in return for planning permission. Local authorities, in turn, sometimes don't know what to ask for. It makes purchases very risky.
"With these new proposals, developers will know exactly what they will be required to pay, before submitting a planning application, saving time, and tortuous negotiations. Planning obligation negotiations are often slow, and in private, leading to charges of impropriety, secrecy, and a lack of public involvement".
Under the new arrangements, developments that are very small, financially marginal - such as a development of an urban brownfield site - or which promote sustainable development, would be subject to a low, or nil tariff. Household developments (like home extensions) would be excluded, and small businesses could pay a reduced fee, or the tariff could be on a sliding scale.
Tariffs will be determined at the local level, in consultation with local businesses and local people. Each local planning authority would be required to set out the details of the standard tariff, and how it will be spent in its local development framework.
Affordable Homes for Public Servant "Keyworkers"?
A new housing planning system aims to put an end to negotiated deals, behind closed doors, between developers and local authorities.
Replacing the old arrangements - criticised by the government's Committee on Standards in Public Life - will be an open and simpler community benefit policy, that sets out clearly the 'community contribution' developers will be asked to make, if planning permission is granted.
The provision of affordable homes is expected to be the main beneficiary of this approach, with commercial developers contributing, as well as housebuilders. One option suggested (in a consultation document) is that local planning authorities be allowed to allocate sites solely for affordable housing, where there is a clear need. The planning tariffs could then be used to finance the provision.
Development Pressures
"Development pressures, in some areas, are placing heavy burdens on the existing infrastructure, and especially on the supply of affordable housing for nurses, teachers, police officers and other key workers," said Stephen Byers, secretary of state for transport, local government and the regions. "Everyone agrees this is a very serious problem, that we need to tackle.
"Developers buying a piece of land currently have little idea of what a local authority might demand, in return for planning permission. Local authorities, in turn, sometimes don't know what to ask for. It makes purchases very risky.
"With these new proposals, developers will know exactly what they will be required to pay, before submitting a planning application, saving time, and tortuous negotiations. Planning obligation negotiations are often slow, and in private, leading to charges of impropriety, secrecy, and a lack of public involvement".
Under the new arrangements, developments that are very small, financially marginal - such as a development of an urban brownfield site - or which promote sustainable development, would be subject to a low, or nil tariff. Household developments (like home extensions) would be excluded, and small businesses could pay a reduced fee, or the tariff could be on a sliding scale.
Tarrifs
Tariffs will be determined at the local level, in consultation with local businesses and local people. Each local planning authority would be required to set out the details of the standard tariff, and how it will be spent in its local development framework.
Starter Home Initiative
Over 11,000 key public servants are to receive government help to find homes in areas where high house prices are undermining recruitment and retention.
The £250m Starter Home Initiative aims to benefit 5,000 nurses, 3,500 teachers, 1,120 police officers, and 380 other key public workers across England. Public servants will be helped to find their first home, either though shared ownership schemes, or with interest-free equity loans, of up to £10,000.
Another 1,200 key workers will receive assistance from the Housing Corporation's Approved Development Programme, which funds the
provision by housing associations of new, affordable housing, for rent and home ownership.
Plans were unveiled by Stephen Byers, secretary of state for transport, local government and the regions.
"With record numbers of people in work," said Mr Byers, "there is a battle, for talented individuals, taking place between the public and private sectors. If we are to deliver high quality public services, in areas like health and education, we simply cannot afford to lose this battle for talent.
"Dedicated and essential staff, such as teachers and nurses, should not be priced out of their chosen professions, by high house prices in London, the south east, and elsewhere. The Starter Home Initiative will help 10,000 key staff buy homes in housing hotspots, and this is in addition to 1,200 key workers who will gain from the Housing Corporation scheme.
Affordable Housing
"The need for affordable housing is a growing issue, so I want to look afresh at our planning guidance. Successful local authority negotiations with private developers have already resulted in planning permissions for 30,000 more affordable homes, over the last two years. I believe we can do even better, and there is a range of options that I want to consider. These include encouraging local planning authorities to set, through their local plans, the proportion of affordable housing they will seek from housing developments, and providing more opportunities for key worker housing.
"In addition, I want to consider planning obligations on new commercial developments to require some affordable housing in the vicinity of the development. This will be included in a consultation document, on planning obligations, that I plan to publish later this year.
"We need to make sure that empty properties are brought back into use as soon as possible. For example, there are still some 30,000 privately owned long-term empty properties in London. Many local authorities and housing associations run schemes where they will manage and let such properties. We need to take positive steps to promote these measures to the owners of such properties."
Some £230 million of the Starter Home Initiative is to be allocated to 95 schemes, of which:
Bids for the Starter Home Initiative were assessed in conjunction with the Housing Corporation. The majority of the successful schemes will be run by registered social landlords, but a number of bids from other organisations, including private developers, have also been approved.
Interest-Free
A further 2,000 workers will benefit from interest-free equity loans of £10,000. The £20m scheme is expected to benefit 1,000 nurses and healthcare workers, 700 teachers, 220 police and 80 other key workers. This scheme will be available in housing hotspots outside London.
In order to tackle the essential issue, more affordable homes will need to be provided. Stephen Byers also announced possible changes to planning guidance, and bringing back into use empty properties to address this. In particular, he announced that a consultation document on planning obligations would be published later this year.
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