1. What is the council doing about the
housing crisis?
Well,
the first thing to note is that we’re building new council homes ourselves, and
we are doing it in large numbers.
Our
council housing build programme will deliver around 2,500 new council homes
over the next 8 years. More than 600 of them have been built so far, and over
95% of the sites within that building programme are brownfield sites.
This
is an important step for us – it’s the biggest council house building programme
in Wales and has a budget of around £450 million.
By
building ourselves, on land we already own, we can set our own standards,
focusing on quickly moving towards a net zero carbon standard.
That’s
important for two reasons: firstly it ensures we reduce carbon emissions from
our programme, secondly, it also helps tackle fuel poverty and reduces bills
for our future tenants.
We
can also make sure that we build the right homes in the right areas – tackling
housing need and delivering the more specialist homes that we need, but that are
not delivered in large numbers through more traditional routes – things like
flexible homes for older people to help support independent living, larger
family homes to help tackle overcrowding, more adapted houses for disabled
people and supported housing schemes.
But
when private housebuilders submit planning applications for new developments we
also negotiate for a percentage of new affordable homes on each scheme.
Ensuring that further affordable homes are delivered across the city and that
we meet the targets for affordable housing set out in our current Local
Development Plan. Where developments cannot accommodate the affordable homes on
the site, within a block of flats for example, we would seek a financial
contribution from the developer to put towards new affordable homes.
On
top of that, we also support the development programmes of Housing Associations
to ensure that they can deliver new affordable homes in volume.
Then
there are the houses being built by private developers around Cardiff,
particularly on the strategic sites set out in our current Local Development
Plan – build rates on these sites are now high, with a mix of affordable
housing, flats and larger family homes. The latest figures from our LDP
monitoring report show that 3,650 homes were completed on these sites from
2018/19 to 2020/21 and that as of April this year 2,196 homes were under
construction. Without this increased supply the cost of housing could
potentially climb even higher.
2. What does affordable housing actually mean? Affordable for who?
When
we talk about affordable housing, what we are talking about is properties where
there are mechanisms in place to ensure that it is accessible to those who
cannot afford market housing (private housing for sale or rent, where the price
is set on the open market), on the first occupation and subsequently.
That
could mean homes that are available for social rent from the council or a
housing association, or it could be what are known as ‘intermediate rents’ - where
the rent is above that of social rent but below market rent. Some Housing Associations
deliver intermediate rented properties.
We
also include affordable homes to buy for first time buyers within the
definition of affordable housing. These homes are available to first time
buyers who are registered on our ‘Assisted Home Ownership’ scheme and would
otherwise be unable to afford a new home at market value. New homes under this
scheme are made available at 70-80% of the market value, with the council
retaining the 30% or 20% equity share. When a property bought under the scheme
is sold, we find a buyer from our list of applicants and another person gets an
affordable home.
So,
a council home, available for social rent direct from the council is
‘affordable.’ The rents are much lower than rents in the private rented sector,
and it’s secure because if a tenant moves out, it remains accessible to other
people needing a home - a new council tenant moves in.
These
council homes, available to rent, make up the majority of what we are building
ourselves. As we said, our programme will deliver around 2,500 new council
homes for social rent.
3. But you’re selling some of the homes you
build privately. How does that help fix the housing crisis? Surely they’re just
bought up by landlords who then rent them out at high rents?
Then
there’s our award-winning Cardiff Living Partnership – delivering mixed tenure,
tenure neutral homes on the majority of our sites has been really successful in
ensuring that new homes for sale are prioritised, and are affordable, for
people within the local community who may want to buy a new home.
For
example on the Captains Walk and Captains View development in Llanrumney over
85% of the new homes for sale were sold to residents of the local area. A 2 bed
home here sold for £155,000 typically, and a 3 bed home for £180,000 - ensuring
that they were affordable for the local market.
But
what is important to note is that we want all the homes we build to meet
extremely high standards, on size, quality, and sustainability – ensuring our
entire build programme moves towards net zero carbon.
So,
our programme will deliver 2,500 new council homes but it will also deliver a
further 1,400 homes for sale. Although these additional properties wouldn’t
fulfil the criteria of being ‘affordable’ the profit they generate is then reinvested
in building more council homes.
Plus,
it’s important to remember that there is a lack of housing supply in Cardiff.
Yes, Cardiff needs more affordable homes, but it also just needs more homes.
4. Okay, so Cardiff needs more housing. But
does it have to be on greenfield sites? Can’t we just build on brownfield
sites?
Well,
there are a few important points to make in answer to this – the first being
that the overwhelming majority of homes the Council is directly building are
being built on brownfield sites - 95% of our sites in fact.
The
second being that the Council actually proposed and consulted on a
‘brownfield-only’ Local Development Plan back in 2009. This proposal was
withdrawn in 2010 after the Welsh Government and the Inspector appointed to
examine the plan raised concerns about the lack of range and choice of land
available for housing.
So,
houses are currently being built by private developers on a number of strategic
greenfield sites identified under the current Local Development Plan.
Greenfield development does have some advantages - the main one being that
because the land is cheaper, more affordable homes can be built – more than
1,000 of them have been built under the current LDP. But it’s also worth noting
that whilst building on greenfield sites may sound worse for biodiversity, in
reality this is not necessarily the case. Much farmland, for example, is often
not great for biodiversity - whereas some brownfield sites can be rich with
diverse wildlife.
We’re
in the process of replacing the current Plan. There’s a long way to go before
the new plan is finalised, but the vision and objectives for the replacement
plan state that it will look to ensure “development is promoted in the most
sustainable locations and land is efficiently used with a ‘brownfield-first’
priority.”
5. But none of those homes that private
developers are building are affordable. How do new luxury homes address the
issue of a lack of affordable housing?
Well
that’s not strictly true. In fact, over the last three years 1,267 affordable
homes have been built under the current Local Development Plan, on privately
owned land. The council negotiates for these homes through the planning
process. By way of example, the Plas Dŵr Development in west Cardiff has
planning permission for up to 6,000 homes - 30% of these homes are required to
be affordable.
But
that said, it is true that not all homes being built by developers are
affordable for everyone. Developers build what they believe they can sell for
the biggest profit – they’re driven by the market. If there wasn’t demand for
those houses, they wouldn’t build them.
However,
as a general rule, prices go up when demand outstrips supply, and that’s the
position we’re currently in in Cardiff. More supply, of the right type of homes,
is needed.
6. But surely you need to make developers
build more affordable homes? Can’t you take a stronger position with them when
you’re negotiating Section 106 contributions?
With
more than £100,000,000 of Section 106 contributions negotiated since 2016/17 we
do pretty well on that front already, with money agreed to pay for things like schools,
roads, surgeries and playing fields, as well as affordable housing.
Currently
planning policy requires 30% affordable homes to be delivered on greenfield
sites and 20% on brownfield sites.
Private
developers can only provide what they can afford, and the cost of land and the
cost of materials have risen significantly in recent years.
In
such cases, we require developers to provide evidence that their scheme
wouldn’t be able to go ahead if they made the financial contribution we
initially asked for.
It’s
important to remember that we don’t just take developers word for it – in fact
any evidence they provide is independently verified. Furthermore, if the
development cannot accommodate essential infrastructure, the applications would
be rejected, whether they were viable or not.
We
talked about this in more detail in a Q&A we did on planning earlier this
year. You can read it here: https://www.cardiffnewsroom.co.uk/releases/c25/26663.html
7. Right, well how does your Cardiff Living
Partnership with private developer Wates work then? When they privately sell
houses they build as part of the partnership, does that contribute to the cost
of the development?
In
a way, yes. One of the key things about the Cardiff Living partnership is that
we can develop small sites, sites that wouldn’t normally be economically viable
for a developer on their own as the profit margins would be too small. These
sites are cross subsidised by the larger more attractive sites. And as we have
already said we recognise that the larger sites we deliver should be mixed
tenure.
But
the profit generated by the homes for sale through Cardiff Living is shared
between Wates and the Council, which helps to subside the building of new
council homes. We have also set very high standards for all the houses
delivered through the partnership, so it helps improve the quality of homes for
sale as well. They all have to meet much higher energy efficiency standards and
we have piloted some very innovative build methods such as PassivHaus, Modular
and low-carbon – reducing the carbon impact of our developments and reducing
fuel bills for new residents.
By
working together, our partners know that a certain percentage of the properties
(which varies from site to site) must be delivered as council homes. That
removes some of the risk for them and ensures we get the much-needed affordable
homes delivered fast, at good value for money.
8. Okay well what about private sector
rents? Can’t they be capped
The short answer is, not by the council.
Rent capping was ended in 1988 with the introduction of Assured Shorthold Tenancies. These new tenancy agreements were introduced to try to give more flexibility to the rental market.
The
reintroduction of rent-capping would require Welsh Government legislation.
9. Can’t you at least bring some of the empty and derelict properties around Cardiff back into use? Do you even know how many there are?
Right
now there are 1355 privately-owned homes in Cardiff which have been empty for
more than 6 months.
And
we are trying to bring them back into use – in fact, since 2018/19 we’ve done
just that with 252 homes, using a combination of advice, assistance and
enforcement action.
On
occasions when that approach is unsuccessful, and if it is deemed to be in the
public interest, there are a number of further options available to us –
including obtaining ownership of the property using a Compulsory Purchase
Order. This is something we have done recently, however the process is complex
and costly, and can take around three years from start to finish.
In
2019 we introduced a council tax premium for empty homes to encourage property
owners to bring their properties back into use. This premium, which means that
council tax is charged at 150% when a property has been unoccupied for a year,
is being used to fund the recruitment of additional staff to work on these
complex cases. Further funding is also being sought from Welsh Government to
underwrite the financial risks of taking these cases forward.
10. It’s good quality homes people need as well. You need to stop building all this student accommodation – it just ends up sitting empty and then being granted permission for a change of use, as low-quality housing.
We
agree. Good quality homes are exactly what people need, and that’s what the
council is building.
One
thing we haven’t built is any student accommodation blocks – while we don’t
think these blocks are necessarily a bad thing (it’s more sustainable - people
living in the city centre means more journeys can be made on foot or by bike, it generates more business for the
local economy, and the buildings themselves are generally safe, efficient, and
good quality – which is what most students want these days) - these projects
are proposed by private developers on land that they own. They then apply to
the council for planning permission to build.
Decisions
on planning permission have to be taken in line with planning laws. We cannot
simply turn an application down because people don’t like it. And as we said
earlier, developers are driven by the market, if they didn’t think there was a
market for student accommodation, they would not build it.
It is also untrue to say that these blocks are built and then converted into low-cost housing. A number of temporary change-of-use applications were granted during the Covid-19 pandemic as student numbers in the city were significantly reduced. The permission for these temporary changes expired in September 2021 and these premises have now reverted to their established use as purpose-built student accommodation.
If
any permanent changes of use were proposed for these buildings, we would
require a full planning application to be submitted, as there are no permitted
changes of use from Purpose Built Student Accommodation under Planning Law.
If
you’re interested in learning more about how planning works, this Q&A may
prove helpful: https://www.cardiffnewsroom.co.uk/releases/c25/26663.html
11. Well, another thing you’re not building
is any infrastructure to serve all these new homes. Where are the schools, the
GP surgeries, the bus routes etc?
Infrastructure
is being introduced to serve the new developments around the city. These
requirements are set out in the Local Development Plan, but it is built in
phases – until houses are completed and occupied, some facilities are not
required. You wouldn’t, for example, build a whole school for just a handful of
children – certain population thresholds need to be met.
The
delivery of this infrastructure is often captured in legal agreements between
the Council and the developer known as Section 106 Agreements. These are legally binding, and as we said
earlier – we’ve negotiated more than £100,000,000 of Section 106 contributions
since 2016/17.
12. What about climate change? How green are
these new houses?
We
can’t really speak for the new homes being built by private developers – some
will be more environmentally friendly than others – as a minimum, all will have
to comply with the up-to-date Building Regulations set by Welsh Government and
will generally be far more efficient than existing homes in Cardiff.
But
we’re working on making the new council homes as green as we possibly can – and
we’re working on getting as close to zero carbon as we can.
We
have recently adopted a Cardiff design standard which sets out the minimum
requirements our new council homes must meet. This ensures that we deliver new
homes that have a very efficient building fabric, reducing heat loss (and the
demand for heating) compared to a house built to standard building regulations
– in fact, the design standard achieves at least an 85% improvement against
current building regulations.
Also,
all of our new homes moving forward must provide EV charging points and maximise
on site renewable sources such as solar PV with battery storage, and ground or
air source heat pumps instead of gas boilers.
For
example, the homes being built through Cardiff Living on the site of the former
Eastern High school in Rumney will feature improved building fabric, photo
voltaic panels, battery storage, smart water cylinders, ground source heat
pumps, and electric vehicle charging points – all of which adds up to a 95%
improvement on building regulations and a monthly energy bill that should be
60% lower than the UK average and 35% lower than the average new build.
We
also prioritise new green infrastructure and Sustainable Urban Drainage Systems
(SUDS) in order to manage storm water run-off to limit the impact our schemes
will have on the existing drainage infrastructure, reduce localised flooding
potential and provide quality, attractive green spaces for residents.
13. And what about disabled people? What
percentage of these homes are going to be suitable for wheelchair users?
All
of our new council homes are built to lifetime homes standards and are able to
be easily adapted to accommodate a wheelchair user or someone who struggles
with mobility.
From
handover, our homes include a ground floor accessible shower, level access to
the front and rear doors and included a knock-out panel in the ceiling of the
lounge to install a through-floor lift.
We
are also building a large number of flexible and adaptable specialist
properties specifically for supported accommodation, older people or Children’s
Services.