Council increases affordable housing target
Manchester City Council has detailed its proposal to grow its affordable housing offer from 5,000 to 6,400 by 2025.
The report, submitted to the economic scrutiny committee, is in response to the increasing number of people on Manchester’s housing register, which currently has 15,000 households, 5,000 of which are classified as ‘in housing need’.
Social home turnover is at its lowest rate in recent years with only 2,500 new tenancies let between 2018 and 2019. This means that for prospective tenants, the waiting list to be rehoused could take a number of years.
The council has also identified the need to increase its overall housing offer, with Manchester’s population set to increase.
“Manchester is entering the second phase of its post-industrial economic restructuring with growth expanding beyond the city centre and the emergence of a new and diversified employment market. There are currently 390,000 jobs in Manchester, which is set to grow to 453,000 by 2038,” a report to the council’s economic scrutiny committee said.
The report recommends an increase in housing developments, upping its target of homes from 25,000 to 32,000, which includes raising affordable housing by at least 1,400.
Officers are also developing proposals for three additional council funded schemes:
- 75 social and affordable rented homes in North Manchester, which the council’s housing revenue account is expected to fund
- An LGBT affirmative extra care scheme of 89 homes with 77 for rent and 12 for sale in South Manchester. Funding options are currently being considered for this scheme
- 130 social rented homes are to be developed in Collyhurst as part of a mixed tenure development of up to 500 properties within the Northern Gateway regeneration programme. The properties are to be delivered through the council’s joint venture partnership with the Far East Consortium and consultation with the community and other stakeholders. A start on site is predicted for early 2021. The full timeline for the scheme is two years with the properties completed and occupied in 2023
The housing revenue account also has an additional two projects. This includes 19 social rented homes and an extra care scheme, with 60 homes at sheltered rent in Brunswick. These schemes are both set for completion by September 2020.
The report states that there are currently 1,061 affordable homes being built. This includes 80 affordable, 453 social or sheltered, and 528 shared ownership or rent to buy.
In addition to this, there are a further 969 affordable homes with land and funding secured that are set to be delivered by March 2021. This includes 215 affordable, 216 social or sheltered, and 538 shared ownership or rent to buy.
In order to deliver this scale of affordable housing, the city needs significant investment. £325m will be required to deliver the April 2019 to March 2021 programme of 2,030 houses. This requires a Homes England grant of £395m, which assumes a grant of £47,000 per property. It also requires a further £230m construction funding from housing associations. The report states that “it will be necessary to maximise funding from all these sources if Manchester is to deliver a minimum of 3400 new affordable homes by March 2025.”
The report forecasts that between April 2015 and March 2025, 32,000 homes will be completed in Manchester. The City Council’s local plan has a 20% affordable housing target.
The proposals will be discussed at the economic scrutiny committee meeting on 5 September.
The full report can be accessed here.