York City Council

1. City of York Council has held an open event for partner RSLs and developers plus funders etc. The event was designed to discuss the opportunities and limitations of the current economic climate and to seek input from partners about what would be deliverable. The event also considered new and innovative forms of delivery outside of the planning system.

2. City of York Council has taken a flexible approach to developments that have encountered difficulties in the current economic down turn. On a scheme of 39 properties that were planned for refurbishment and sale, the council required their usual 50% affordable provision. The scheme which had been in the planning process for some time was offering a much lower percentage. The Council arranged for an independent viability assessment, which confirmed that the scheme could only deliver a provision of 28% affordable housing in the current climate. As this is much lower than the Council’s target provision, a deal has been negotiated whereby the developer and City Council will enter into a profit sharing arrangement. An agreed developer profit level has been established based on the market values expected in the current climate. If the developer is able to sell properties at a higher level and increase the profit level within the scheme then the profit will be shared on a 50%/50% basis with the City Council. The Council will reinvest this sum in affordable housing provision.

3. City of York Council have successfully renegotiated the pepper-potting of a major housing development of 360 homes to allow the developer to begin building in the current climate. By retaining the principle of no more than two affordable homes to be together the homes have been redistributed along the build phasing route. This has allowed the developer to build, which has also stimulated sales and delivered the affordable housing.

Through working in partnership with the developer the scheme will begin to deliver the previously indefinitely delayed affordable homes in June 2009.

Harrogate Borough Council

The Council has been unable to confirm the financial viability of any level or mix of affordable housing in the current housing market as current conditions are unlikely still to be in place when the completed units come to the market and it would be unreasonable to fix a level of affordable housing dictated by the current slump in values when, at point of sale, it is reasonable to expect that the market will have recovered. 

Wakefield MDC

In Wakefield MDC, the authority was having financial viability issues within the current market. Schemes were being presented by developers without affordable housing provision at all, on the basis that they were not viable, despite having an evidence base through a Strategic Housing Market assessment that affordable housing could be delivered on eligible sites. 

York City Council

In York, developers were offering lower affordable housing provision that required. 

Also in York, the pepper potting of a scheme was stalling build.