A return to the 1970s? The potential for local authorities to deliver affordable housing By Paul Belton, Partner Carter Jonas (Cambridge)

From Lloyd George's promise of "homes fit for heroes" and the 1919 Addison Act, to the current Government’s target of 300,000 new homes being built each year to relieve the housing crisis, housing has been at the forefront of British politics for over a century.

Unfortunately successive Governments have failed to meet ambitious targets and the last time that over 300,000 homes were delivered was in 1977, when 143,920 homes (45%) were built by the private sector, 25,120 (8%) by housing associations and 145,070 (46%) by local authorities.

In 2019, 214,200 homes were built, of which 80% were delivered by the private sector, 18% by housing associations and under 2% by local authorities.

So can public sector step up an incredible 60%, in order to meet the figures last achieved for 45 years ago?

There is no doubt that local authority housing and planning departments are under considerable strain, but despite this, innovative partnerships with the private sector are producing some very positive results. From Scarborough to West Sussex and Maidenhead to Cambridge, Carter Jonas is involved in innovative partnerships and pioneering developments.

Carter Jonas is working with many local authorities as landowners on a variety of new housing led projects. Often, an options testing process is undertaken which determines an appropriate housing development model from a spectrum. At one end of the scale, the local authority has minimum risk, but also minimum involvement: the site is sold, then planning consent is achieved and the scheme is built by a developer. Moving along the spectrum, the next option is for the council to put in place a development agreement, which allows for a little more control over the masterplan and an agreement about the point at which financial returns are received. The spectrum then moves into the world of joint ventures. This might be a contractual or corporate arrangement with a private sector partner through which the council contributes the land and takes its returns at later stages in the development process. Finally at the end of the spectrum the council could set up its own wholly owned development company taking on all risk, along with the financial uplift.

Carter Jonas is currently conducting this decision-making process with Scarborough Borough Council. The Council owns ten sites, which range in capacity from four to 600 homes. The work initially comprised a portfolio review which highlighted the constraints and opportunities for each site. A shortlist of the most viable sites was drawn up and, based on an overarching objective of the Council to deliver affordable housing, we’re working towards selecting an appropriate partner.

In Cambridge, Carter Jonas is working with the Cambridge Investment Partnership (CIP) whose aim is to deliver 1,000 new council homes within Cambridge. CIP was established as a partnership between Cambridge City Council and local housebuilder Hill, in response to the ever-growing housing list which, bearing in mind local land prices, clearly wasn’t going to be solved by the private sector alone. The initial project completed with CIP was a site purchased through the open market which achieved policy compliant levels of affordable housing, at 40%. Since then, several projects have focused on sites already owned by the Council, many of which have been able to deliver 100% of the new homes as council homes.

Two further schemes, for which Carter Jonas achieved planning consent in November, will not only deliver 100% council housing, but have also been designed to Passivhaus standards. They include wheelchair-adapted, family homes, electric vehicle charging points and generous cycle storage.

These schemes exemplify the benefits of the public sector retaining an interest in its land, to the benefit of local residents. Councils have an unrivalled insight into its tenants’ needs and are uniquely placed to communicate effectively with tenants and help deliver the type of housing most in need.

Complementing this, the private sector, which in the case of CIP is led by Hill and assisted by Carter Jonas, provides the skills to navigate the planning system and advise on appraisals, construction schedules and the many technical issues. Carter Jonas’ advice on the site capacity, risk and opportunities helps shape the delivery of these exemplar new housing projects, ensuring the Council can make the most of its assets.

The CIP projects have been very successful, all receiving planning permission at the first attempt. Key to this success has been attention to detail and commitment to engagement. Listening to local residents and engaging with all interested parties and consultees plays an important role in de-risking the planning submissions. These successful Council-led projects have proved successful because they respond to local issues and have a clear focus on securing community benefits such as the delivery of new open spaces and new community facilities, as well as achieving high design standards and physical accessibility. Perhaps most importantly they also deliver new homes designed to meet specific local need.

Councils must also respond to social and environmental issues and Cambridge, one of the first councils to declare a climate emergency, must be seen to be leading the way in order to make this a requirement of the private sector. CIP has responded very positively to this climate emergency and places significant attention on delivering energy efficient and sustainable developments, consistently exceeding policy standards for energy and water consumption.

The model is proving very successful in combining the knowledge and insight of local authorities with the expertise of their development partners resulting in a very timely and positive uplift in the delivery of affordable housing. Many similar partnerships are now beginning to appear across the country. The benefits of combining expertise and experience means that this development model can undoubtedly be successful elsewhere.

In striving to meet the levels of council housing last achieved in the 1970s we are not proposing a return to the grey concrete "streets in the sky" that so characterised the decade, becoming havens of decay and antisocial behaviour soon after. This new breed of Council-led housing are architect-designed homes with environmental and social principles at their heart, set among landscaped communities which meet ambitious biodiversity goals. Not only are partnerships such as CIP providing much-needed homes, but are also delivering high quality neighbourhoods and much-needed inner city regeneration.