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Housing Strategy 2012 – 2015 Oldham and Rochdale

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WelcomeWe’re delighted to introduce our new Housing Strategy for Oldham and RochdaleHaving worked together for many years on the Housing Market Renewal Programme and other major regeneration schemes, we recognise that both boroughs share similar challenges and opportunities. Access to housing remains a priority for our residents and we are determined to find news ways to deliver improvements.Whilst there are significant challenges ahead, we look forward to responding to these in a positive and innovative way. This Strategy, and the ongoing work with our partners to deliver it, is of fundamental importance in meeting those challenges.We believe that housing will play a crucial role in our economic regeneration in terms of new development, construction jobs and improving the quality of existing homes and neighbourhoods.This is a new type of strategy which we hope sets out clearly and simply our vision and priorities. We want to work with partners and residents to improve the quantity, quality and access to housing for both Oldham and Rochdale.

Councillor David HibbertChair of Oldham Housing Partnership

and Cabinet Member for Housing, Transport and Planning

Councillor Terry LindenPortfolio Holder for Housing and Regulatory Services

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Our Housing Strategy

Oldham and Rochdale are neighbouring boroughs in the North West and home to around 420,000 people. Both boroughs are part of 10 local authorities which make up Greater Manchester. With a population of 2.6 million and a travel-to-work commuter population of over 5 million, this makes Greater Manchester the second largest conurbation in the UK.

We share similar economic, social and housing challenges and have a successful track record of joint working to improve our economies and quality of housing. We believe a joint strategy will better enable us to maximise economic growth, increasing the prosperity and economic development of the boroughs, and make a telling contribution to the overall quality of life for our residents.

Economic growth is the key priority for Greater Manchester. It is vital for Oldham and Rochdale to contribute to the growth of the sub-region by maximising investment into the Boroughs and improving access to employment and training opportunities for our residents.

The recession and subsequent withdrawal of funding for the Housing Market Renewal Programme from April 2011 has left challenges in our ability to help stimulate new housing development, improve the quality of existing homes and provide housing services as we’ve done previously.

This Housing Strategy sets out

· Our challenges

· What we’ve done recently to address them and

· Our vision and priorities for the next 3 years

In Oldham, the strategy will be backed up by a more detailed annual delivery plan setting out how we will work with partners to ensure to ensure our key priorities are delivered. In Rochdale, it will be linked to a three year borough-wide strategy and action plan which will address the key challenges and priorities set out in this document.

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Rochdale

Oldham

2 Our Vision

For OldhamOur ambition is to establish a co-operative future for Oldham, one where the council works alongside partners, businesses and residents to realise our ambitions. We want to capitalise on our current offer – our excellent location, convenient transport links and our history and heritage, so that Oldham plays a greater role in Greater Manchester. Our ambitions for high quality housing for both new and existing residents are central to this. We want all members of the community to play an active part in building our vision.

For RochdaleRochdale is the birth place of the co-operative movement and in line with the principles of this movement our strategic vision for housing involves working in co-operation with partners and residents to support the creation of balanced and sustainable communities. We wish to see the development of a mix of property types and tenures which will support economic growth and high quality homes that will meet the needs of current and future generations. We will strive to provide the opportunities for everyone to able to reach their potential regardless of where they live.Housing vision for Oldham and RochdaleOver the next three years, we will tackle our economic and social challenges to improve the quantity, quality and access to housing for Oldham’s and Rochdale’s citizens.We will do this by focussing on 5 key priorities: · Supporting development that meets economic need· Making better use of existing homes· Addressing fuel poverty and energy efficiency · Preventing homelessness and supporting communities· Improving neighbourhoodsThese are set out in more detail in Section 7.

3 Our PartnersPartnership working is at the heart of the development and delivery of this Housing Strategy. Our partners include -

· The residents of Oldham and Rochdale· Registered Providers (RPs), previously known as housing associations · Government agencies including the Homes and Communities Agency (HCA)· The Voluntary sector · The Association of Greater Manchester Authorities (AGMA) · Developers· NHS Oldham and NHS Rochdale· Private Landlords

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4 The National and Greater Manchester context

4.1 The Economy For nearly four years, Britain has been experiencing severe economic downturn which has impacted on the housing markets of Oldham and Rochdale. Limited borrowing available from banks has affected funding for new housing and the ability of householders to access mortgages and finance to buy or improve homes. The reduction in Government funding has also had a major impact on investment in new and existing homes. Notably, this includes –· Housing Market Renewal – loss of £16 m funding in 2010/11 for the renewal

programmes in Derker and Werneth in Oldham, East Central Rochdale and Langley

· Loss of Regional Housing Capital funding for private sector funding (was £3 m in Oldham and Rochdale in 2010/11)

· Reduction in funding for Supporting People Service – This will have a significant impact on the services provided to vulnerable people across both boroughs

The economic situation isn’t just affecting housing - residents are having to face reduced income and job prospects against increasing food, fuel and energy costs.

4.2 National Housing ContextThe Government has developed a number of initiatives to generate new housing development and delegate greater responsibilities to councils and communities, which will shape our strategy.National Housing Strategy - In November 2011, the Government launched its new Housing Strategy: ‘Laying the Foundations’, which sets out its approach to addressing the housing shortage. The Strategy aims to tackle the housing shortage, boost the economy, create jobs and help people on to the housing ladder. The Strategy sets out a package of reforms to -

· Get the housing market moving again · Create a more responsive, effective and stable housing market · Support choice and quality for tenants · Improve environmental standards and design quality· reinvigorate right to buy

Localism Act The Localism Act sets out the Government’s plans to shift power from central government back into the hands of individuals, communities and councils. In terms of housing, this includes greater flexibility around how social housing is allocated, changes that allow homeless families to be housed in the Private Rented Sector and the introduction of fixed term tenancies.

Affordable Rent Registered Providers can now let new tenancies at a higher rent of up to 80% of the open market rent, known as ‘Affordable Rents’, with this money to be used to help fund the development of new affordable homes. The main issues for both Councils to address in relation to affordable rents include:

· Ensuring that revenue raised is used to fund the delivery of new affordable housing in each borough.

· Assessing the impact of potential rent increases on affordability for local residents in housing need.

The Green Deal The Green Deal, due to be launched in autumn 2012, intends to reduce carbon emissions by improving the energy efficiency of properties. It provides a means for home owners and landlords to secure capital upfront for energy efficiency measures, which will be paid back by future savings through energy bills. This will mean:

· All households will be able to access installation of energy saving measures without having to find upfront capital.

· An ‘Energy Company Obligation’ will offer further financial support for vulnerable households and hard to treat homes.

Welfare Reform The Welfare Reform Bill introduces a wide range of reforms designed to make the benefits and tax credits system fairer and simpler and improve financial incentives to work.The main challenges for landlords’, tenants and the Council to consider include:

· Household cap on benefits· Housing benefit for working age claimants in the social rented sector· Limits for households deemed to be under-occupying· Local Housing Allowance and the housing element of Universal Credit· Increased age threshold from 25 to 35 years under which single claimants are entitled only to the shared room rate

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4.3 Greater Manchester ContextIn April 2011, the 10 councils of AGMA created a ‘Combined Authority’ to co-ordinate key economic development, regeneration and transport functions. Specific to housing, a range of funding and strategy issues are now being developed at a Greater Manchester level. These include:

· Delivering the objectives and priorities in the Greater Manchester Strategy and the Greater Manchester Housing Strategy 2010 to drive economic growth

· Delivering the objectives identified in the Greater Manchester Local Investment Plan. This document sets the direction for the delivery of key aspects of the ‘Creating Quality Places’ strategic priority of the Greater Manchester Strategy

· Overseeing and prioritising funding programmes, including the Affordable Homes Programme and bids to address empty homes

· GM Domestic Retrofit programme to improve the energy efficiency of homes

· Developing a Local Authority Mortgage Scheme aimed at helping first time buyers get on the property ladder

· Working on new models of investment as a way of stimulating new housing growth, especially high quality housing for private rent

In addition, a Local Enterprise Partnership (LEP) became operational in April 2011 and is responsible for a range of initiatives to ensure the economic growth of Greater Manchester. This includes co-ordinating:

· Bids for the Regional Growth Fund to deliver investment and jobs within the Private Sector

· Growing Places Fund to ensure new jobs and housing through loans

· Developing a Local Authority Mortgage Scheme aimed at helping first time buyers get on the property ladder

· Working on new models of investment as a way of stimulating new housing growth, especially high quality housing for private rent

Greater Manchester city dealThe City Deal for Greater Manchester was announced by Government in March 2012 and provides a platform for a radical devolution of powers from central Government. The deal sets out a range of bespoke agreements geared towards accelerating growth, boosting skills and encouraging local decision-making and increased self-sufficiency. The City Deal provides a package of housing related measures and builds upon the strong partnership between Government, AGMA, Housing providers and developers. It includes the establishment of a Housing Investment Board to use national funding, local investment and public land assets to boost housing development.

5 Oldham and Rochdale’s key housing challenges

5.1 Economic challenge Reduced Government funding – The Government has cut funding for Housing Market Renewal and private sector housing. This is in part being replaced through Growing Places Fund and other initiatives, which place an emphasis on loans rather than grants to promote new development, bring empty homes back into use and encourage economic growth. Decrease in working households – The UK experienced an increase in unemployment of 10.1% over the year to December 2011. Unemployment in the North West increased by 13.4% during this time and by 15.3% in Greater Manchester, where it accounts for 81, 974 people or 4.7 %.This has led to a decrease in the number of working households in Oldham and Rochdale.Slow down in housing development – There’s been a 40% decline in housing construction, with 1099 homes built in both boroughs in 2006/7 and only 641 in 2010/11. This has impacted with a loss of jobs in the local construction industry and slow down in economic growth. Access to home ownership – First time buyers are struggling to get access to mortgages. Banks often require a deposit of 25%, which means home ownership is out of reach for many residents. Even the cheapest homes in Oldham and Rochdale would require a deposit of over £12,000. This has led to an increase in demand for private rented and social housing and also overcrowding as young people stay living at home longer. Fuel poverty – Across both boroughs, an estimated 21% of households are living in fuel poverty, meaning that they have to spend more than 10% of income heating their homes. This figure is predicted to rise due to increasing energy prices.Property Prices - Property prices in both boroughs remain significantly lower than the rest of the Greater Manchester average. However since 2011 prices have risen slowly and by early 2012 average prices were £119,662 in Oldham and £123,032 in Rochdale

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5.2 Housing OfferHousing types – Oldham and Rochdale have the highest proportions of pre 1919 terraced housing in Great Manchester (42%). Feedback from residents and developers is that residents want a greater choice of different types of homes. Also there is a shortage of higher value housing in both boroughs, with only 1.05 % of homes in Council Tax Bands G and H compared to the regional average of 2.1% and a national average of 4.1%.Quality of housing – In both boroughs many homes in the private sector are in poor condition (30% in Oldham (in 2010) and 50 % in Rochdale (in 2007)). Many of these houses suffer from disrepair, lack modern facilities, have poor accessibility and aren’t energy efficient. Empty homes – the number of long term empty homes across the two boroughs has fallen over the past 5 years, still nearly 3000 private sector homes currently remain vacant for over 6 months.

5.3 PeopleAn ageing population – The number of people aged 65 years is anticipated to increase from 63,600 in 2008 to 82,000 in 2025 across both boroughs. The current population of 28,800 people aged over 75 years is set to rise to 41,700 by 2025. This will increase demand for housing related support to enable residents to remain in their own homes and for specialist supported housing. BME Population – By 2021 is it expected that the BME population will increase to about 27 % of the population in Oldham (compared to 19.5% in 2009) and in Rochdale about 23% of the population (compared to 17.2% in 2009). This increase is mainly because of the relatively youthful age structures of the Pakistani and Bangladeshi heritage communities.Growing numbers of households and younger people – Both boroughs are experiencing rising numbers of younger people. Oldham’s population is expected to grow by 10,900 by 2022. Although most of this increase is from within the older age groups, an increase of 9.5% is also projected in the 0 – 16 age group to 49,800. Rochdale’s 0 -19 population is expected to rise from 54,100 to 55,400 by 2022 (an increase of 2.4%), with the 0-14 population rising to 42,900, an increase of 4.9%.Health and Housing – There are major health inequalities within each borough. Life expectancy for residents varies by 12 years for residents living in different wards.There is a known link between poor housing and ill health. These include issues relating to cold homes, poor property condition (such as damp and mould), risk of trips and falls, overcrowding and homes that aren’t suitable for disabled people.

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6. Building on our successesOver the last 3 years, we’ve worked with our partners and made much progress in improving housing in the two boroughs, including:

6.1 Oldham· Following the housing stock transfer of 12,000 homes to FCHO in February

2011, over £149m of investment will be made in homes, neighbourhoods and services in the next 5 years.

· The completion of a £130m investment in over 1,400 sheltered homes and improved extra care provision.

· Tackling fuel poverty by investing £9m in over 5,600 energy saving measures (such as loft insulation).

· An award-winning nationally-acclaimed Downsizing scheme, which has already freed up over 200 family homes.

· Over 500 empty homes brought back into use.· Reducing homelessness acceptances from 961 households in 2003/4 to

only 63 in 2010/11.· Signing of the £113m Gateways to Oldham contract which will see

investment in over 700 new and existing homes. · Clearing 880 homes to create sites for new development.

6.2 Rochdale· The building of over 1,000 new homes across the borough in the last three

years of which 457 were affordable homes · Preventing 241 households from becoming homeless through the Mortgage

Rescue Scheme· Bringing 528 empty homes back into use.· Obtaining £5.5m through the Governments Kickstart Initiative to fund the

development of the 153 new homes.· Through the Housing Market Renewal Programme the Council acquired

16 properties and demolished 90 properties in 2010/11 to make way for new homes. In addition 215 private sector homes benefited from improvements.

· Completing 11,701 jobs through the Handyperson Scheme and 352 major disabled adaptations.

· Tackling fuel poverty by investment £8.27m in 16,104 energy efficiency measures to 5,347 households across the borough.

· Preventing 1,444 households from potentially becoming homeless.· The transfer of the Council’s housing stock of 13,700 homes to Rochdale

Boroughwide Housing in March 2012 will ensure a £169 million improvement programme for homes and estates in the five years following the transfer.

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7 Our priorities Our Strategy reflects the objectives of the Greater Manchester Housing Strategy:· Achieving the right Quantity of housing· Continuing to raise the Quality of the existing housing stock· Connecting People to an improved housing offerWithin our objectives, there are 5 priority aims -

Aim One:Supporting development that meets economic needWe want to encourage a choice of homes that meets needs and aspirations of our existing residents and help attract new residents into the boroughs. We want to develop high quality new homes in locations where people want to live and that support economic growth.

Our priorities are to:

· Ensure housing supports economic growth and supports our wider plans to regenerate and improve the image of our boroughs

· Increase the choice of family sized homes· Improve access to home ownership · Develop new ways of stimulating housing growth including building homes

for the private rented sector

We will achieve this in the next 3 years by:

· Introducing ‘Local Authority Mortgage Schemes’ to enable first-time buyers to access the housing market. The ‘Oldham Mortgage Scheme’ was launched in April 2012 and will support around 50 first time buyers on to the housing market.

· Working with developers to encourage the development of higher value homes

· Establishing new ways of development, including using Council land to support housing provision and local employment and a co-operative housing model

· Working with Registered Providers to build 450 new affordable homes across both boroughs through the Affordable Homes Programme

· In Oldham, building a further 480 affordable homes through projects such as ‘Gateways to Oldham’

Aim Two: Making better use of existing homesBoth Council’s are committed to making the best use of all existing homes available across the Oldham and Rochdale boroughs, to support our objectives to connect people to an improved housing offer and to achieve the right quantity of housing. We recognise that there is the potential within the existing housing stock in both borough’s to help meet local housing need.

Our priorities are to:

· Reduce levels of overcrowding and under occupation· Ensure empty homes are quickly brought back into use· Address standards in the private rented sector· Offer support and advice to older people and those with disabilities

We will achieve this in the next 3 years by:• Ensuring £173 m is invested in improving social housing• Reducing the costs of supported accommodation and making best use of

our adapted and older people’s housing • Increasing Extra Care and developing specialist supported accommodation. • Increasing use of Equity Loans to fund improvements and adaptations• Bringing over 400 empty homes back into use across both boroughs• Operating downsizing schemes in both boroughs to release under

occupied homes• In Oldham, letting 350 homes through the new social lettings agency

Aim Three: Addressing fuel poverty and energy efficiencyOver £17 m has been invested in both areas over the last 3 years to improve energy efficiency of homes, but there are still residents who cannot afford to heat their homes to a healthy level. With continually rising energy bills and reduced household incomes, the problem is unfortunately getting worse. By improving the energy efficiency of homes, both existing and new, we will help to ‘fuel poverty proof’ homes and contribute to the reduction of carbon emissions at the same time.

Our priorities are to:

· Increase uptake of measures and raise awareness of the benefits of being energy efficient

· Improve the energy efficiency of housing stock (social, private and private rented)

· Help tackle fuel poverty

We will achieve this in the next 3 years by:

· Encourage residents to take up the ‘Green Deal’ · Insulate 75% of all lofts and cavity walls · Influence residents on the benefits of behaviour change · Delivery of the Greater Manchester Housing Retrofit strategy and

forthcoming action plan to reduce domestic carbon emissions · Raise awareness among the health sector of the impacts of fuel poverty and

how they can help· Work with Registered Provider’s to develop and deliver their own affordable

warmth strategies · Develop and improve the referral system for those living in fuel poverty· Maximising the number of new homes which achieve Code for Sustainable

Homes Level 6 by 2016.

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Aim Four: Preventing homelessness and supporting communitiesPartners in both boroughs have been successful in recent years in preventing homelessness and reducing the number of priority households in temporary accommodation. However, the current housing market, welfare benefit reform and cuts in funding continue to increase pressure on homelessness. We want to continue to support local people who are most at risk of homelessness and help people to live independently.

Our priorities are to:

· Keep levels of homelessness low and minimise the need for temporary accommodation

· Provide support for vulnerable and low income groups

We will achieve this in the next 3 years by:

· Working with partners to mitigate the impact of welfare reform· Continually improving housing advice services for our residents · Developing one access point for supported accommodation and

support services · Increasing the role of the private sector in preventing homelessness· Working together to meet the challenges faced by the transition to

a new provider for the asylum contract in the north west region

Aim Five: Improving neighbourhoodsAttractive neighbourhoods which are well designed and managed and support integrated communities offer greater opportunities both for individuals and for wider economic prosperity. Such places are more likely to be successful and attractive to new residents. We want neighbourhoods to be safe, attractive places to live. Residents want the local environment to be good quality and well maintained, and free from the fear of crime.

Our priorities are to:

· Increase the role of housing partners in managing neighbourhoods· Improve the environment and quality of our neighbourhoods· Work with residents to tackle anti-social behaviour · Develop activities that give residents pride in their neighbourhoods.

We will achieve this in the next 3 years by:

· Deliver activity to address worklessness in social-rented housing· Getting residents to play an active role in improving their neighbourhoods· Using private sector enforcement action to improve the environment

where necessary· Improving links to neighbourhood working. · Delivering more joined up services to provide management and support

and avoid duplication· Working with partners to address specific issues in priority neighbourhoods.

8 Next StepsHow the Strategy will be monitoredThis 3 year strategy is backed up by annual delivery plan in Oldham and a three year strategy and action plan in Rochdale.These set out and monitor in more detail how each priority will be achieved. The delivery of targets in the strategy will be supported by other local strategies (such as the Local Devel-opment Framework and the Corporate Plan) and action plans put together by both Councils and partner agencies.

9 ContactsRochdale Council Strategy and Policy UnitT: 01704 924042E: housing@rochdale.gov.uk

Oldham Council Housing Strategy Team T: 0161 770 5261 E: housingstrategy@oldham.gov.uk

Partners and agency websites

Rochdale Council Oldham PartnershipOldham Housing Investment Partnership (OHIP)Rochdale Housing Initiative NHS Oldham NHS Heywood, Middleton and Rochdale AWARM referralRochdale Development Agency

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Published April 2012 byOldham Housing Strategy TeamT. 0161 770 5261 E: housingstrategy@oldham.gov.uk

To obtain a copy of this document in an alternative format call 0161 770 5255.