{"id":396269,"date":"2024-07-10T16:43:04","date_gmt":"2024-07-10T15:43:04","guid":{"rendered":"https:\/\/southwarknews.co.uk\/?p=396269"},"modified":"2024-07-23T12:42:06","modified_gmt":"2024-07-23T11:42:06","slug":"hundreds-of-affordable-homes-are-being-built-in-london-with-no-one-to-take-them","status":"publish","type":"post","link":"https:\/\/southwarknews.co.uk\/area\/london\/hundreds-of-affordable-homes-are-being-built-in-london-with-no-one-to-take-them\/","title":{"rendered":"Hundreds of affordable homes are being built in London with &#8216;no one to take them&#8217;"},"content":{"rendered":"\n<p class=\"has-medium-font-size\"><strong>Hundreds of affordable homes are being built in London with \u201cno one to take them\u201d, as housing associations are less able and willing to buy them, City Hall was warned on Tuesday.<\/strong><\/p>\n\n\n\n<p>The London Assembly was told by one of the capital\u2019s biggest home builders that the system used by private developers to deliver affordable homes is \u201ccreaking at the seams\u201d.<\/p><script type=\"text\/plain\" data-tcf=\"waiting-for-consent\" data-id=\"69959\" data-bid=\"1\" data-placement=\"448384\" data-no-track=\"impressions\">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<\/script>\n\n\n\n<p>Syreeta Robinson-Gayle, head of affordable housing at Barratt London, told assembly members that this was due to \u201ca lack of capacity\u201d among housing associations which are dealing with high costs and a tough economic outlook.<\/p>\n\n\n\n<p>She cited one recent example where Barratt had been building 100 affordable homes as part of a development in Southwark, including 58 homes for social rent \u2013 but had no registered provider to take them.<\/p><script type=\"text\/plain\" data-tcf=\"waiting-for-consent\" data-id=\"68153\" data-bid=\"1\" data-placement=\"448385\" data-no-track=\"impressions\">PGRpdiBpZD0ic291dGgtMTk2MzYyMTE5NSIgY2xhc3M9InNvdXRoLWNvbnRlbnQgc291dGgtZW50aXR5LXBsYWNlbWVudCIgc3R5bGU9Im1hcmdpbi1sZWZ0OiBhdXRvO21hcmdpbi1yaWdodDogYXV0bzt0ZXh0LWFsaWduOiBjZW50ZXI7Ij48IS0tICAvMTU0NzI1MDcwLDIyNjk0MTk2OTY5L3NvdXRod2Fya25ld3Mvc291dGh3YXJrbmV3cyAtLT4NCjxkaXYgaWQ9ImRpdi1ncHQtYWQtMngxIj4NCjxzY3JpcHQ+DQpnb29nbGV0YWcuY21kLnB1c2goZnVuY3Rpb24oKSB7IGdvb2dsZXRhZy5kaXNwbGF5KCdkaXYtZ3B0LWFkLTJ4MScpOyB9KTsNCjwvc2NyaXB0Pg0KPC9kaXY+ICAgICAgICAgIDwvZGl2Pg==<\/script>\n\n\n\n<p>Last month we also highlighted a case in Bermondsey where a developer was wanting to scrap all affordable housing in an unfinished block where apartments have sold for up to \u00a3660,000.<\/p>\n\n\n\n<p>Bombay Development Limited had applied for permission from Southwark Council to sell six shared ownership flats in an apartment block under construction in Bermondsey at full price.<\/p><script type=\"text\/plain\" data-tcf=\"waiting-for-consent\" data-id=\"71156\" data-bid=\"1\" data-placement=\"448386\" data-no-track=\"impressions\">PGRpdiBpZD0ic291dGgtMTcxMzI2NjE4MiIgY2xhc3M9InNvdXRoLWluLWFydGljbGUtbXB1OSBzb3V0aC1lbnRpdHktcGxhY2VtZW50Ij48IS0tICAvMTU0NzI1MDcwLDIyNjk0MTk2OTY5L3NvdXRod2Fya25ld3Mvc291dGh3YXJrbmV3cyAtLT4NCjxkaXYgaWQ9ImRpdi1ncHQtYWQtbXB1OSI+DQo8c2NyaXB0Pg0KZ29vZ2xldGFnLmNtZC5wdXNoKGZ1bmN0aW9uKCkgeyBnb29nbGV0YWcuZGlzcGxheSgnZGl2LWdwdC1hZC1tcHU5Jyk7IH0pOw0KPC9zY3JpcHQ+DQo8L2Rpdj4gICAgIDwvZGl2Pg==<\/script>\n\n\n\n<p>The \u2018shared ownership\u2019 flats in the Bermondsey block have been on the market for eighteen months. But the developer has been unable to find a housing association to take them on.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-southwark-news wp-block-embed-southwark-news\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"38C5kDQvix7TNGmAPtfS0RUXpG7VZyfDcqKeB6H1u2KMtrzgdnblw1WPhBYNThwy3LsgvJzo4qk\"><blockquote class=\"wp-embedded-content\" data-secret=\"bVsFO3x2IN\"><a href=\"https:\/\/southwarknews.co.uk\/area\/bermondsey\/developer-wants-to-scrap-all-affordable-housing-in-an-unfinished-bermondsey-block\/\">Developer wants to scrap all affordable housing in an unfinished Bermondsey block\u00a0<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Developer wants to scrap all affordable housing in an unfinished Bermondsey block\u00a0&#8221; &#8212; Southwark News\" src=\"https:\/\/southwarknews.co.uk\/area\/bermondsey\/developer-wants-to-scrap-all-affordable-housing-in-an-unfinished-bermondsey-block\/embed\/#?secret=HM2QZKGPfF#?secret=bVsFO3x2IN\" data-secret=\"bVsFO3x2IN\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/span>\n<\/div><\/figure>\n\n\n\n<p>When councils grant planning permission for new private housing to be built, they will generally do so only after striking a deal with the developer, known as a section 106 agreement \u2013 which will usually require a portion of the homes to be classed as \u2018affordable\u2019.<\/p>\n\n\n\n<p>The affordable houses built are then typically sold to and managed by a \u2018registered provider\u2019, which is usually a housing association.<\/p>\n\n\n\n<p>But speaking at a meeting of the Assembly\u2019s planning and regeneration committee, Ms Robinson-Gayle said: \u201cCurrently, the Section 106 system is kind of creaking at the seams.<\/p><script type=\"text\/plain\" data-tcf=\"waiting-for-consent\" data-id=\"71157\" data-bid=\"1\" data-placement=\"448387\" data-no-track=\"impressions\">PGRpdiBpZD0ic291dGgtMTUyNzk5MzMwMyIgY2xhc3M9InNvdXRoLWluLWFydGljbGUtbXB1LTEwIHNvdXRoLWVudGl0eS1wbGFjZW1lbnQiPjwhLS0gIC8xNTQ3MjUwNzAsMjI2OTQxOTY5Njkvc291dGh3YXJrbmV3cy9zb3V0aHdhcmtuZXdzIC0tPg0KPGRpdiBpZD0iZGl2LWdwdC1hZC1tcHUxMCI+DQo8c2NyaXB0Pg0KZ29vZ2xldGFnLmNtZC5wdXNoKGZ1bmN0aW9uKCkgeyBnb29nbGV0YWcuZGlzcGxheSgnZGl2LWdwdC1hZC1tcHUxMCcpOyB9KTsNCjwvc2NyaXB0Pg0KPC9kaXY+ICAgICA8L2Rpdj4=<\/script>\n\n\n\n<p>\u201cThere is a lack of capacity from registered providers to take the number of affordable homes that are currently in [the] planning [process].<\/p>\n\n\n\n<p>\u201cSo we will be in an unusual position where developers will be building out affordable homes and there will be no one to take them.\u201d<\/p>\n\n\n\n<p>She added that the issue was affecting several developers and needs resolving \u201curgently, because it will start to act as a collar on development\u201d.<\/p>\n\n\n\n<p>Approached for comment, Fiona Fletcher-Smith, chair of the G15 group of London housing associations, told the Local Democracy Reporting Service: \u201cG15 members have significantly reduced our purchases of section 106 homes due to soaring costs, economic pressures, and the critical focus we are putting on building safety and investment in existing homes and services.\u201d<\/p>\n\n\n\n<p>The focus on repairs to existing homes has intensified following the passing of \u2018Awaab\u2019s Law\u2019 last year. The law was named after two-year-old Awaab Ishak, who died in Rochdale in 2020. The coroner found that the boy \u201cdied as a result of a severe respiratory condition due to prolonged exposure to mould\u201d.<\/p>\n\n\n\n<p>The new law requires social housing landlords to investigate hazards within 14 calendar days, and to begin repair works in seven calendar days if the hazard could pose a significant risk to the health or safety of tenants.<\/p>\n\n\n\n<p>Ms Fletcher-Smith, who is also chief executive of L&amp;Q housing association, added: \u201cQuality, design and high service charges are also concerns, especially when housing associations are involved late in the section 106 design process.<\/p>\n\n\n\n<p>\u201cHowever, we are unwavering in our commitment to delivering affordable housing and are proactively seeking solutions with developers and the new Government to tackle this challenge head-on.\u201d<\/p>\n\n\n\n<p>The capital\u2019s borough authorities meanwhile said they were also aware of the issue and were equally \u201ckeen to work with the new Government on stabilising social housing finances as a matter of urgency\u201d.<\/p>\n\n\n\n<p>A London Councils spokesman said: \u201cThis extremely frustrating situation is further evidence of the worsening funding crisis in London\u2019s social housing sector.<\/p>\n\n\n\n<p>\u201cWe\u2019re facing record levels of homelessness and there is a desperate need for more affordable homes in the capital. However, the squeeze on social housing resources is so tight that providers are finding themselves unable to afford newly built properties made by private developers under section 106 agreements.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-southwark-news wp-block-embed-southwark-news\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"BwSfN2P7XTKmj90lZq\"><blockquote class=\"wp-embedded-content\" data-secret=\"hBO528s8WP\"><a href=\"https:\/\/southwarknews.co.uk\/area\/southwark\/southwark-council-approved-just-sixteen-council-homes-last-year-claim-lib-dems\/\">Southwark Council approved just sixteen council homes last year, claim Lib Dems<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Southwark Council approved just sixteen council homes last year, claim Lib Dems&#8221; &#8212; Southwark News\" src=\"https:\/\/southwarknews.co.uk\/area\/southwark\/southwark-council-approved-just-sixteen-council-homes-last-year-claim-lib-dems\/embed\/#?secret=tW9jTzxYpb#?secret=hBO528s8WP\" data-secret=\"hBO528s8WP\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/span>\n<\/div><\/figure>\n\n\n\n<p>At Tuesday\u2019s meeting, Tory assembly member Lord Bailey told Ms Robinson-Gayle it would be \u201chorrific for those homes to be developed and nobody to take them on\u201d, and he asked what the solution could be.<\/p>\n\n\n\n<p>Ms Robinson-Gayle cited one recent example where Barratt had been building 100 affordable homes as part of a development in Southwark, including 58 homes for social rent \u2013 but had no registered provider to take them.<\/p>\n\n\n\n<p>She said that it was only due to Barratt\u2019s large size that the company was able to start building the homes without a housing association already signed up, but that smaller home-builders would not have been able to start construction without knowing that the housing had a buyer, due to the costs involved.<\/p>\n\n\n\n<p>\u201cWe\u2019re big enough that we carried on building, and we got to 60 per cent of the way through before we were able to find a [housing association] partner, but if you were smaller, you just wouldn\u2019t be able to keep building those homes,\u201d said Ms Robinson-Gayle.<\/p>\n\n\n\n<p>She added: \u201cI understand that the GLA [Greater London Authority] is looking at it [as a problem], but I suspect it\u2019s going to overtake us if we\u2019re not very careful, [and] that we will have lots of homes that are getting towards completion without registered providers to take them.\u201d<\/p>\n\n\n\n<p>Jonathan Seager, policy delivery director at BusinessLDN, said: \u201cThe new Government has rightly set out its stall to boost housebuilding, and there is nowhere in the UK that needs this more than London.<\/p>\n\n\n\n<p>\u201cThe plans set out so far are positive but what will get spades in the ground quickly is finding ways around log-jammed systems such as the delivery of affordable homes through section 106 agreements.\u201d<\/p>\n\n\n\n<p>He said one \u201cquick fix\u201d could potentially involve allowing councils \u201cto receive the cash equivalent of the affordable homes from the developer\u201d, which local authorities could then use to support their own affordable housing schemes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hundreds of affordable homes are being built in London with \u201cno one to take them\u201d, as housing associations are less able and willing to buy them, City Hall was warned on Tuesday. The London Assembly was told by one of the capital\u2019s biggest home builders that the system used by private developers to deliver affordable [&hellip;]<\/p>\n","protected":false},"author":18957,"featured_media":396282,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"sfio_featured_image":false,"sfio_embed_code":"","jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"Housing associations are less able and willing to buy them, City Hall was warned","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"1","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"13549","hide":""},"jnews_social_meta":[],"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[13549,800,13602,8341],"tags":[18187,190,1329],"class_list":["post-396269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing","category-london","category-news","category-southwark","tag-give-me-perspective","tag-housing","tag-london-assembly"],"_links":{"self":[{"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/posts\/396269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/users\/18957"}],"replies":[{"embeddable":true,"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/comments?post=396269"}],"version-history":[{"count":0,"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/posts\/396269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/media\/396282"}],"wp:attachment":[{"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/media?parent=396269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/categories?post=396269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/southwarknews.co.uk\/wp-json\/wp\/v2\/tags?post=396269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}