Leeds Affordable Housing Growth Partnership Action Plan 2022 to 2025

Joint Statement from the Partners

Having a safe, warm, and affordable home is crucial for everyone if they are to have positive life outcomes, in terms of health, education, employment and wellbeing. Delivery of new affordable homes plays a vital role in meeting the City Ambition of tackling poverty and inequality and improving the quality of life for everyone who calls Leeds home. Increasing the supply of sustainable, affordable housing supports health and well-being outcomes for residents and communities, addresses the increasingly important issue of household energy costs and supports the city’s journey towards zero carbon. This action plan and the outcomes it seeks will play a key role in delivering the City Ambition for Leeds.

In overall terms housing growth has been a real success in Leeds since the last economic downturn. The city is consistently one of the top three local authority areas nationally for overall housing delivery - since 2010 32,500 new homes have been delivered corresponding to a population increase of c8% over this period, enough homes for over 80,000 people. In 2020-21 housing delivery was equivalent to 2.2% of England’s total supply. But aff ordable housing has only been a small proportion of this delivery and whilst new supply is starting to show a positive trajectory in the city, with a 10-year record of 595 new affordable homes delivered in 2020-21, in the current economic conditions we know that it will be increasingly diff icult to maintain this and increase supply further to meet a backlog of unmet need in the city, which has arisen due to constrained housing supply over many decades.

This challenge is not unique to Leeds and while there is no ‘target’ for aff ordable housing supply set nationally, in line with our city ambition and inclusive growth ethos, we know more can be done to meet housing needs. As a city we have the ambition to scale up delivery of our affordable homes to meet the overall housing need of 1,230 new aff ordable homes per annum.

The challenge is also not purely about scale and pace of delivery. We also want to ensure affordable homes meet a range of housing needs, support a diverse population, and offer true choice and affordability. This means focusing part of our collective effort to support the delivery of specialist housing and the most aff ordable types of accommodation in a housing market characterised by rising build costs and land values and increasing costs to occupiers.

As partners we will continue to do more for the city, align our eff orts and tools, and strive to meet the growing demands and housing needs of our tenants, both existing and new. This alignment is already starting to show a positive outcome and we have a housing pipeline of c750 new affordable homes per annum over the next 3 years (2022-25), with the collective ambition and financial resources to do more.

We welcome this partnership approach and know that we are stronger, acting collectively to influence policy and drive forward positive change and innovation. This action plan sets our direction of travel on our joint ambition over the next 3 years.

1. Introduction

Our Vision is for Leeds housing market to meet the needs of all its residents, providing homes that are safe, warm and affordable, supporting positive life outcomes for everyone.

Our ambition is to deliver 1,230 affordable homes per year to meet housing needs, promoting independence and creating sustainable communities to make Leeds the best place to live.

Housing growth has been a success in Leeds since the last economic downturn. The Leeds Local Plan 2017-33 sets a requirement for 51,952 new homes to meet demand in the city and has a strong 5-year housing land supply. The city regularly meets its annual overall housing need of 3,247 homes per annum and over the last 5 years 16,249 homes have been delivered in the city, which in 2020-21 delivery equated to 2.2% of England’s total housing supply. The significant majority of this has been achieved on brownfield sites in the most sustainable locations.

However, as a city we fall short of meeting our full identified needs for 1,230 new affordable homes per year. This position is not unique to Leeds with a lack of affordable housing widely documented across the country. Over the last 5 years Leeds has delivered an average of 484 affordable homes per year, which meets in-year needs as well as delivering a higher proportion of the most affordable social rented homes compared to the national average.

Consistent with our ambitions for Inclusive Growth and the knowledge that good quality, affordable housing is a key determinant of health and wellbeing, there is a need to do more to address the issues of aff ordable housing supply within the Leeds housing market.

This means ensuring homes are of the right size, type, (including bespoke and specialist) affordability (across different affordable tenures), and in the right places in line with the Local Plan. This, in turn, supports the achievement of genuinely mixed and inclusive communities and allows all our residents to benefit from growth and to prosper. Moreover, the provision of the right type and tenure of homes will play a critical role in supporting the city’s economic recovery from COVID-19.

There is recognition that growing the supply of affordable housing in an economic climate where cost inflation is at its highest for 40 years will be challenging. Yet these challenges and the soaring cost of living make affordable housing more important than ever for our residents.

This Affordable Housing Growth Partnership Action Plan is the culmination of engagement with the Affordable Housing sector between October 2021 and March 2022 through a series of 1-to-1 discussions through our Affordable Housing Delivery Group, which is made up of Registered Provider (RP) partners on the Leeds Affordable Housing Framework. There has also been ongoing engagement with Homes England and West Yorkshire Combined Authority (WYCA) throughout this period, as well as discussions with developers that work closely with RP partners in the city and wider city region.

This engagement is recognition that the challenge of affordable housing supply requires a multipartner approach, with the tools and responsibilities sitting with a range of organisations who can provide an aligned response in the city.

Collectively we can also do more to promote the relevant policy changes required, both locally and nationally.

This document sets out our delivery ambition for the city alongside opportunities for a real step change in pace and scale of development to meet the housing needs of the residents of Leeds. The Action Plan details where we need to do more to unlock delivery and the policy changes that are required to realise our collective ambitions for the city.

2. Meeting our Housing Needs

It is widely recognised that the UK has an unbalanced housing market which has been failing to meet need and demand for new homes across tenures.

Government has an ambition of 300,000 new homes per annum by the mid-2020s, though the National Housing Federation (NHF) estimates that around 340,000 new homes are needed in England each year, of which 145,000 should be affordable (c40%). However, national housing delivery has averaged 228,140 per annum over the last 5 years, with affordable supply within this averaging 51,488 (23% of overall delivery).

The Levelling Up and Regeneration Bill (2022) recognises the need for fundamental changes across the sector to meet our housing challenges, as well as longer term fundamental reforms to level up the country and places a legal duty for the government to report on these.

Reforms to the planning system are set to change the ‘broken s106 payments system’ and introduce a new locally set infrastructure levy, which the Government have stated ‘will see big developers contribute far more of the money they make from development towards building better local roads, rail, schools, hospitals, and more affordable housing’. Measures also include legislation changes to Compulsory Purchase Order powers to make them easier to use and support to those in private rented accommodation and social housing, including ending section 21 ‘no fault’ evictions and extending the Decent Homes Standard to the private rented sector.

The detail of the Bill will develop over the next year and any changes are unlikely to have significant impact in the next 3 years, and therefore the timeframe for this action plan. However, longer term the impact of the Bill and systematic changes brought in will need to be factored into future action plan updates as part of subsequent reviews.

Following the Planning White Paper (2020), the Government moved quicky to introduce First Homes requirements in May 2021, which supports first-time buyers through the provision of discounted home ownership and is to be provided as a new form of affordable housing secured through planning obligations on permissions for residential development. This action plan will need to consider and respond to the impact of First Homes on the ability to achieve other affordable housing outcomes through obligations on permissioned schemes.

Homes England is the Government’s housing and regeneration agency, having a key role in creating prosperity of places, the affordability of homes and the sustainability of communities. More recently, a renewed focus on place and regeneration has been set out for the agency in the Levelling Up White Paper (2022), which recognises housing as physical ‘capital’, with emphasis on supporting renters on paths to home ownership and reducing non decent homes across the country, alongside the provision of more genuinely aff ordable social housing and a renewal of housing regulation, in both the Social and Private Rented Sector.

This is framed within the context of Homes England doing more to support Levelling up and the ambitions of places alongside Local Authorities and local partners, which is welcomed by the city.

The Homes England Affordable Homes Programme (AHP) is a key tool in addressing the undersupply of affordable housing. The current national funding programme aims to allocate £7.39 billion grant funding to developers (outside of London) with 50% aimed at securing homes at discounted rent and 50% at delivering affordable home ownership. Homes England has established Strategic Partnerships with RPs across the country that focus on the delivery of significant new affordable housing, providing greater grant funding certainty to allow medium to long term business planning.

The West Yorkshire Mayoral pledge for 5,000 affordable and sustainable homes also recognises the need to increase the supply of affordable homes to meet housing needs. This includes a commitment to 500 community led homes that are currently planned across the region. The Mayoral office is focusing funding, resources and lobbying for policy changes to meet this ambition, with People Powered Homes supporting the delivery of affordable community-led housing across the region.

The West Yorkshire Housing Partnership (WYHP) has been established to support affordable housing delivery across the region, made up of key RP’s based in the region and local authorities that are actively developing their own new stock (including Leeds City Council), as well as representation from West Yorkshire Combined Authority and Homes England. This partnership has an active work programme to support the affordable housing sector in the region, unlock collective opportunities and investment, and assist the mayor in achieving affordable and sustainable housing pledges.

Leeds context

While the overall new housing supply has been positive in the city, the housing market remains difficult to access for many of our residents on lower or average incomes, a story that is similar throughout the UK with some areas having significantly greater affordability pressure than Leeds. Meeting wider supply needs in the city has not yet resulted in homes becoming more affordable for our residents.

A study comissioned by the council in 2020 “Affordability of Market Housing to those in Housing Need” (Arc 4: 2020) found that for an individual on median income, 30% of earnings would be needed to pay an average rent and a mortgage multiplier of 6.3 x income needed to buy an average property in the city.

For the lowest 25% (lower quartile) of earners in the city, 45% of their income would be needed to rent a property in the lower quartile of the rental market, and a mortgage multiplier of 8.5 x income needed to buy at lower quartile value. (2020 data on income multipliers: Arc 4).

An above average income is needed to access many of the renting and buying options in the city, and many housing options only become affordable for lower income individuals and families when a subsidy is applied (i.e. provision for social or affordable rent, or lower cost home ownership such as Shared Ownership or Help to Buy).

There are currently over 26,000 individuals* applying for affordable housing through the Leeds Homes Register (LHR) which captures demand across the city and prioritises applicants, with band A/ A+ being highest priority. Over the last 5 years the number of applicants in the most acute need has increased significantly. The time taken to rehouse applicants has more than doubled over the same period due to the increased pressure of demand and the constrained supply, which is compounded by an average annual loss of 600 social rented homes from Council stock through tenants exercising their Right to Buy.

Moreover, there are bespoke and specialist housing needs in the city that the Council supports through Children’s and Families, and Adults and Health commissioning services that should also be considered alongside affordable general needs housing.

Housing Need in the city is captured in the Leeds Strategic Housing Market Assessment (SHMA) (2017) which has helped to inform the Council’s Local Plan and Housing Strategy. It includes an assessment of affordability, population growth, and demand data in line with Government guidance.

Alongside the National Planning Policy Framework and related guidance, the SHMA is a key piece of evidence that supports the city’s planning policy framework for the delivery, mix and location of affordable housing. The Leeds Local Plan sets the housing requirement for the period 2017-33 of 51,952 new homes to meet demand in the city, equating to 3,247 homes per annum.

The assessment highlighted an affordable housing need of 1,230 homes per annum (as part of the overall housing requirement) over the next 10 years. This is made up of 434 homes to meet housing need generated each year, and 796 homes per year to meet the backlog of unmet/underlying affordable housing need.

Planning Practice Guidance (PPG) recognises that affordable housing need can be a considerable proportion of overall need and councils are expected to take positive steps to help meet affordable need through the delivery of affordable housing as part of market schemes and through council housing and RP building programmes.

In addition, the SHMA indicates that a tenure split of 67.2% rented and 32.8% intermediate tenure is required across the city. There is a proportionally higher requirement for affordable rented homes in the inner and city centre areas, where the highest proportion of households in need are located.

Moreover there is an identified need for specialist/accessible accommodation based on demographic projections and profiles, such as provision for older people’s accommodation and for sheltered and extra care homes, while ensuring that market housing that is built is to the right accessibility standards.

The proportion of affordable housing required as part of annual delivery is detailed in Local Plan policy H5 and is secured in-part through planning obligations on market housing schemes via s106 legal agreements. The proportion required through the development of each site varies by Housing Market Area (HMA) based on viability of delivery. Market housing schemes are expected to provide 7% of each development as affordable in the defined inner/city centre areas, 15% in the East/South of the city, and 35% in outer areas.

Planning Policy (H5) also requires a mix of tenures to be delivered in line with housing needs identified in the SHMA. Within the affordable housing requirement, there is a split of 60% Social Rented affordable and 40% ‘intermediate products’ required, which includes affordable home ownership, shared ownership and affordable rent.

The fulfilment of policy requirements from market housing schemes will not meet all of the city’s identified affordable housing need, and it is recognised that delivery of homes through planning obligations is just one of several routes to deliver affordable housing. The Local Planning Authority is obliged to ensure that affordable housing can be viably delivered on market-led housing sites, which limits the proportion of affordable homes secured through this route.

In Leeds the provision of affordable homes via s106 agreement is secured through a discount to the market sales value when transferred to an RP, to ensure affordability. This is set through a prescribed Benchmark Transfer Value (BTV) that regulates the price at which an aff ordable home is sold from a developer to an RP (or delivered for discounted market rent within Build to Rent developments). This BTV is factored into the viability modelling of the Local Plan.

Within the s106 planning obligations there is a requirement for RP partners to offer Nominations Rights to the Council for the occupancy of the affordable housing, ensuring that homes are made available to meet prioritised demand on the Leeds Homes Register and that the most pressing housing needs in the city can be met.

3. Our affordable housing supply

Over the last 10 years delivery of Affordable Homes through s106 agreements equated to c25% of overall delivery, with the remaining 75% made up through direct delivery by RPs (c50%) and the Council (c25%).

There is a diverse partnership, funding and financing environment in which delivery takes place. In addition to on site s106 delivery, aff ordable housing is supported through grant support, which includes Homes England’s Affordable Homes Programme (AHP), use of Right to Buy replacement programme receipts, use of the Council’s Housing Revenue Account to support council direct delivery, and targeted use of affordable housing commuted sums that are generated through the Planning process and pooled for use by the Council if affordable housing cannot be delivered on site. RP’s are also increasingly able to access commercial finance and use their own balance sheet funding to support scheme delivery.

As with any form of housing development, delivery of affordable housing is dependent on market conditions, development costs, the availability of funding and the supply of sites. As such new supply figures fluctuate over the years.

Over the last 5 years, 484 affordable homes have been delivered on average per annum, with delivery peaking last year at 596 homes. Delivery in Leeds over the last 5 years equates to c1% of the national supply of new affordable housing supply.

The under supply of affordable housing is not unique to Leeds; there is a national market failure in delivery. Compared to other Core Cities, Leeds delivers at the average in terms of affordable housing as a proportion of overall delivery. In terms of quantum of affordable housing supply over the last 5 years Leeds has the second highest number of affordable homes delivered of all core cities, just behind Birmingham.

Over the last 10 years the largest amount of housing growth has been located in those areas of the city with the lowest level of planning obligations to provide affordable housing as part of market housing schemes. In the City Centre HMA a large amount of Build to Rent housing is coming forward, some of which is providing below the 7% policy level affordable housing normally required, following agreed viability positions.

There are however, a number of large greenfield sites in the 35% HMA that are proportionately expected to deliver more affordable homes at scale over the coming years.

Delivery of affordable housing is not purely about the quantum of new supply; it is also crucial that a broad range of tenure options and housing types are built to meet the diverse needs of families and households with a range of incomes and social needs. While the Council focuses on delivering aff ordable rental products alongside intermediate housing options such as shared ownership, rent to buy and other intermediate options that help support those in work but on average incomes. Leeds has delivered a greater proportion of the most affordable social rented homes compared to the national average, which is in line with meeting the city’s housing needs as set out in the SHMA.

Over the last 10 years delivery has been in line with tenure needs i.e. 67% of affordable homes to be rented (Affordable Rent and Social Rent) and 33% of homes of intermediate tenures), with 33.5% being delivered for Social Rent. This is a higher proportion of the most affordable social rented homes compared to the national average of such delivery of 21.7%. Over a 5 year period this gap widens to 30.9% being delivered for Social Rent in Leeds and 13.1% nationally, with more homes falling into the Aff ordable Rent and Shared Ownership categories both in Leeds and nationally.

The supply of social rented homes plays a fundamental role in supporting those most in need in our communities and alongside support services, it is essential in addressing the most acute need evidenced through homelessness. The Council Housing Growth Programme has been set up specifically to provide homes for those most in need and aims to deliver 1,500 new Council homes by 2025. More bespoke and specialist housing provision also supports our communities to thrive and is needed to deliver some of the Council’s core services provided by Adults & Health and Children’s & Families.

4. Case Studies: Illustrating Our Delivery

Beeches and Nevilles, Gipton

Fifty-nine new council homes were built across 5 sites in Gipton and Osmondthorpe and completed in July 2020. The Nevilles Scheme has provided 32 new homes across three sites in Osmondthorpe, and 27 more new homes have been delivered on two sites in Gipton, at The Beeches.

The developments include 2 and 3-bedroom family homes, bungalows and fully adapted properties to meet households with specialist needs. All new council homes are delivered to the ‘Leeds Standard’, ensuring homes are designed to meet both tenants’ current and future needs. Homes are also built to support the wellbeing of tenants through good use of space and energy efficient designs which reduce running costs contributing to reducing fuel poverty.

"It had literally changed our lives for the better, the kids have so much space to play and their bedroom is so roomy. We have a garden now and we are now able to grow our own vegetables. The kids can play in a safe and secure environment. We have safe parking space for our cars. This has been a positive experience for all of us"

- Tenant of Beech Rise

Connect Housing, Passivhaus Standards

Connect Housing’s homes on Boggart Hill Road, north Seacroft, delivered in 2018, show how affordability and sustainability can be delivered in a single scheme in Leeds.

The scheme includes 10 x semi-detached two-bedroom properties, certified to the Passivhous Institute’s Low Energy Building Standards (LEBS), built using timber frame off-site construction methods, designed to have a low air pressure rating, reducing the energy requirements of the property. The properties were also fitted with mechanical ventilation with heat recovery systems (MVHR), to ventilate the homes while retaining the energy used to heat home, reducing energy requirements further.

Leeds Brownfield Land Programme

The Leeds Brownfield Land programme was established in 2017 through a Development Agreement between Leeds City Council, Keepmoat and Strata. The aim of the programme was to deliver new homes on 13 sites across Seacroft, Halton Moor and Osmondthorpe, with a focus on supporting a functioning housing market in these locations. Planning permission was secured for the delivery of just under 1,000 homes.

To date 694 new homes have been delivered, 138 are under construction and a further 138 are in the pipeline. Delivery is ahead of programme, which is in part due to the tenure diversification of the scheme since planning permission was granted. Work has started on the final site Rathmell/Kendal Drive in Halton Moor and the first completion is forecast for Spring 2023.

Planning permission included obligations for 49 homes to be delivered as affordable (as per the HMA requirement at 5%), but an additional 130 homes have been delivered as affordable due to the acquisition of homes by Registered Providers and the Council. This has created a more balanced tenure mix of high-quality new build homes in the neighbourhoods, meeting housing needs and retaining the original aspirations of the programme. The 179 affordable homes equate to 28% of overall delivery.

Spring Wood Park, Bramhope

Yorkshire Housing’s Section 106 scheme at Spring Wood Park, Breary Lane in Bramhope is progressing well as part of Miller Homes’ development. Yorkshire Housing are in contract to purchase 90 homes - 43 as part of the S106 agreement and 47 additional homes through Homes England Strategic Partnership grant funding. With a mix of 2 and 3 bedroom homes for social rent and shared ownership, 38 homes have been handed over so far. The final homes are expected to complete in Spring 2023.

Supporting Our Communities

Specialist accommodation to support vulnerable, homeless people

Don Robins House; St George’s Crypt

Specialist accommodation to support vulnerable, homeless people.

The council provided Right to Buy Grant funding and a loan facility for St George’s Crypt’s development of Don Robins House for 24 one and two bedroom flats for vulnerable, homeless people. The scheme completed in June 2021.

Don Robins House gives people a safe and stable home where they can live receiving support from a wide range of sources within the development’s dedicated training area, covering everything from nutrition to health and wellbeing giving people to confidence and ability to return to independent living and ultimately employment.

Move on Accommodation

Rough Sleeping Accommodation Programme (RSAP)

The Council has RSAP funding to deliver 72 new homes with partners by 2024. The homes are for people who have previously been rough sleeping. Support is provided to enable people to manage their tenancy and when the time is right, to facilitate a move to a permanent home. The programme includes the following which is a welcome addition to our housing offer:

• Council purchase and refurbishment of a number of one bedroom homes
• Together Women scheme providing 15 homes with support
• Clarion Homes delivering a modular housing scheme with support provided by St Georges Crypt to link people to employment and permanent housing in the future
• Turning Lives Around delivering four homes with support services
• Safe to Stay scheme which provides emergency accommodation in self-contained homes with on site 24:7 support for women

Repurposing Empty Homes

Leeds Action to Create Homes (LATCH) refurbishes derelict properties to create good quality, energy efficient homes for people in housing need. Residents are supported to ensure tenancies are successful and that tenants move towards independent living. LATCH have received Right to Buy grant funding for 4 programmes previously with successful completion of 3 programmes including 28 properties. LATCH has housed over 750 people who were homeless, or at risk of homelessness, and have recently completed their 100th property which is now let.

Canopy Housing is a self-help, community housing project based in inner city Leeds that renovates derelict and empty houses to create decent homes for people that are homeless. Through its practical work, Canopy brings together volunteers from the local community to learn skills, increase confidence, break down barriers and improve local neighbourhoods with volunteers helping new tenants to paint, decorate and furnish their new home. Canopy has completed 5 homes using Right to Buy grant funding and are nearing completion of their second programme which will bring 11 properties back into use.

Extra Care

Extra Care – enabling residents to access housing with care and retain independence - has been a key part of the Better Lives Strategy since 2013. Executive Board approval in 2017 included a £30 million budget to deliver up to 200 new Council Extra Care homes. Package 1 is currently delivering four new schemes by Home Group, including Amblers Orchard, Tingley (opened December 2021), Greenmill Gardens, Seacroft (opened August 2022), Windlesford Green, Rothwell (scheduled to open in 2024), and Farrar Lane (TBC subject to planning). Package 2 being delivered by Housing Leeds includes Gascoigne House in Middleton, Middlecross in Armley and Cartmell Drive in Halton Moor, scheduled to come to market in 2023 and 2026 respectively. These two phases compliment any wider market development within the independent affordable housing market.

Bespoke Properties Programme

The Council has supported specialist accommodation provider Habinteg Housing Asociation to deliver 29 new homes, accessible for wheelchair users, utilising a combination of Right to Buy (RtB) receipts and commuted sums as well as Council owned land for these developments. These homes, completed in 2018, supported families in housing need in the city, where their existing accommodation was unsuitable.

Within the Bespoke Properties Programme, the Council provided RtB grant funding for 3 M4(3) wheelchair bungalows and 6 accessible and adaptable M4(2) houses at Kentmere Avenue, Seacroft. All are accessible and highly thermally efficient.

Further schemes have been delivered across the city such as a former garage site at Chatsworth Road, Harehills which provided one accessible three-bedroom (five person) bungalow, in curtilage car parking, carport and generous amenity space.

5. Our Affordable Housing Pipeline 2022-25

Over the next three years (2022-25) it is projected that c 750 affordable homes will be delivered per year, subject to planning, securing all sites in the pipeline and managing delivery risk.

Details of the delivery pipeline at Appendix 1, included some schemes where RP partners have asked us not to share details at this point, amounting to 192 homes over the three-year period.

It is projected that over the next 3 years 80% of delivery will be via RP partners and the Council, with 20% from s106 delivery. However, it should be noted that only s106 schemes that have identified RP delivery partners are included at appendix 1 (Delivery Pipeline) and it is anticipated that there will be more homes delivered via s106 over this period.

While the scale of delivery via s106 is hard to predict as it requires starts on site from planning permissions granted, based on historic build out trends it is estimated that this could deliver c650 additional affordable homes over the three-year period.

Additionally, there is ambition to do more where the Council and its partners have the resources to deliver but require suitable, viable sites. Land supply and the availability of funding to address challenging sites will be crucial to unlocking and realising this ambition, with availability of land being cited as one of the key constraints to delivery by partners.

Our case studies demonstrate the mix of funding and financing solutions required to unlock and provide certainty to affordable housing delivery. Although there will continue to be access to Homes England Affordable Homes Programme, Strategic Partnership funding, and the Council’s Housing Revenue Account and Right to Buy receipts, construction cost inflation makes it is increasingly likely that additional funding will be needed to unlock affordable housing growth.

This will place increasing reliance on tools or approaches such as the Brownfield Housing Fund, use of Commuted Sums, and Homes England’s new approach to placebased regeneration to deliver the outcomes for our communities to meet local housing needs in line with the Levelling Up agenda. This is essential for the affordable housing sector to ensure that cost inflation is not passed onto customers and that homes remain truly affordable for residents. 

The Brownfield Housing Fund, managed through WYCA, will be a key delivery tool over the next 3 years. Approvals are already in place to support the delivery of 641 affordable homes in Leeds (out of 1,928 homes overall), with bids underway for a further c500 affordable homes (out of 1,893 homes overall) that are subject to business case approvals and funds being available.

While there is room for optimism with delivery projections improving, there is still more to do and several challenges to overcome if aff ordable housing delivery is to increase to meet the affordable housing need of 1,230 homes per year. The action plan shows our collective ambition for a step change in meeting affordable housing needs in the city.

6. Case Studies: Our Future Schemes

Leeds City Council - Council Housing Growth Programme

This programme is being delivered through the Council’s Housing Revenue Account and Right to Buy replacement programme. The Council set itself an ambitious target in June 2019 of delivering 300 new homes each year as its contribution to the overall delivery of affordable housing in the city and aft er 3 years of the programme over 565 homes have been completed or are in construction with a similar number at feasibility stage or forecast to be complete or in delivery by March 2025.

a. Throstle Road, Middleton

LCC Council Housing Growth Programme
Due to complete Nov 2023

The Council is delivering a major general needs and Extra Care scheme at Middleton. Work started on site in 2021 to deliver 116 general needs homes (including 16 wheelchair accessible bungalows) and 60 Extra Care units. The scheme will be energy eff icient and utilise air source heat pumps for all homes. The first homes will be handed over from the contractor in March 2023.

b. Middlecross, Armley

LCC Council Housing Growth Programme 
Due to complete Summer 2025

Design of the first Extra Care scheme in Armley is currently underway. Plans are to deliver a 63-homes Extra Care scheme on a former community day centre site with a mix of 1 & 2 bed apartments. Facilities will include a hair salon, activity room, orangery and communal dining/relaxing areas both indoors and outdoors. A key driver is to deliver a ‘no gas boiler’ solution. This scheme is being funded through the Council’s Housing Revenue Account. Planning approval is expected in April 2023 with construction due to start in January 2024.

Use of council assets and in partnership with RPs

St Cecilia Street & Railway Street: With the aspiration to create mixed communities, particularly in the city centre, the Council’s disposal of these sites has been ring-fenced to Registered Providers and restricted to schemes providing 100% social housing. These sites will be supported though Commuted Sums and Homes England Strategic Partnership funding.

a. St Cecilia Street - Legal & General Affordable Housing

c78 social rented homes to be delivered in a mid-rise city centre character scheme within the Quarry Hill cultural quarter, alongside prime PRS developments, subject to planning with an application submitted in Autumn 2022.

b. Railway Street - Leeds and Yorkshire Housing Association

58 social rented aff ordable homes to be delivered on this site on the eastern edge of the city centre, with planning permission granted in September 2022 and works due to start on site in Spring 2023. 

c. Westminster Crescent, Halton Moor 

The council has disposed of a small site to Leeds Federated Housing Association to complement their existing new development and deliver a further 12, 2 & 3 bed affordable homes. Phase 1 of the development is now complete with phase 2 started on site in July 2022.

Points Cross Residential Scheme

The Guinness Partnership’s Points Cross development is the first scheme in West Yorkshire to benefit from devolved Brownfield Housing Fund support, administered by West Yorkshire Combined Authority. It will deliver 928 mixed tenure homes starting with an initial 311 energy eff icient, affordable homes, making a vital contribution to the exciting regeneration of the South Bank. The development includes high quality public space and is also possible thanks to Homes England Strategic Partnership funding.

The Points Cross scheme supports national, regional and local policy, focusing on ‘brownfield first’ and sustainable growth principles and local housing need to deliver mixed tenure aff ordable housing set out in the Leeds Core Strategy. The scheme seeks to meet ambitious people-focused design principles established in the South Bank Redevelopment Framework with a focus on high quality place-making. Points Cross clearly delivers against the Leeds City Region Strategic Economic Plan priorities - delivering high quality green infrastructure, building homes and creating jobs and apprenticeships and supporting good growth.

Kirkstall Road - Latimer

To deliver over 1,400 homes along the Kirkstall Road corridor to include 503 affordable homes, representing a third of the development. The development will include high quality greenspace, creating a riverside park and public connectivity over the River Aire. The development will be constructed to high environmental standards.

Latimer and Clarion are working in partnership with Leeds City Council, Homes England and West Yorkshire Combined Authority to bring forward the development. The development will be supported through Homes England Strategic Partnership grant and Brownfield Housing Fund, administered by WYCA. To note this development is not captured in the pipeline for 2022-25, with completions projected for 2025/26.

Chapeltown Co-Housing (ChaCo)

The Chapeltown Co-Housing (ChaCo) scheme is a community housing development including 29 co-housing dwellings, 3 self-build plots plus 30 affordable rented apartments delivered by Unity Housing Association for older people.

In March 2019 the Council sold the land on a one-to-one basis at market value to ChaCo and Unity. The Council secured Homes England’s Housing Infrastructure Marginal Viability Fund of over £1.3m to remediate this challenging brownfield site (the first such grant in the country). A Council loan has also supported the scheme, addressing a gap in short-term development finance. Homes England Affordable Homes Programme has been utilised to support the delivery of the affordable housing.

Unity have now completed their scheme and ChaCo’s scheme will complete in early 2023.

Stonewater Housing Association

Stonewater are working with Vistry Partnerships to deliver 152 affordable homes on the former Horsforth College site on Calverley Lane. The scheme is the largest gas free residential development in West Yorkshire, with all homes using environmentally sustainable Air-Source heat pumps. Stonewater are utilising their Strategic Partnership funding from Homes England to deliver this development. The first properties are due to handover in April 2023 with final handover in early 2026.

Office Conversion: Arthington House

This scheme completes the conversion of LFHA’s previous head office on Westfield Road to residential use. This will deliver an additional 22 1 & 2 bed flats to the existing 16 already converted. Funding was secured through LFHA’s strategic partnership with Homes England and is due to be completed in May 2023.

S106 Homes: Timeless, Seacroft Hospital

Yorkshire Housing are in contract to purchase 33 homes as part of Keepmoat’s development of land to the rear of Seacroft Hospital. The scheme will offer a mix of 27 flats and 6 houses for a tenure mix of social rent, intermediate rent and shared ownership. Yorkshire Housing have taken handover of 6 homes so far, with final completions expected in November - December 2023.

Supporting Community Housing

Leeds Community Homes have secured planning permission to deliver 34 affordable homes in Armley, a priority neighbourhood. This is a community housing scheme that will provide homes in line with local identified needs. Subject to funding confirmation the project is due to start on site in late 2023.

7. Our challenges and opportunities: An action plan for growth

Affordable housing providers in Leeds recognise the imperative to increase the scale and pace of delivery to meet the housing needs for all and welcome the opportunity to work in collaboration to overcome barriers and realise opportunities.

The sector faces several challenges over the coming years to turn the existing pipeline and ambitions beyond this into much needed homes for our residents. There is a need for a more fundamental shift in the way we deliver homes which may require reviewing and refreshing our policy tools and well as considering new delivery approaches and mechanisms.

The affordable housing delivery models report completed by Cushman & Wakefield provides a series delivery options, some of which have been fed into the action plan, with others to be considered as specific site or partnership opportunities to which they relate, arise.

This action plan summarises our collective commitment to Affordable Housing Growth in Leeds. There is no single solution, but by addressing a combination of different tools, policies and delivery levers this plan will assist the city in meeting its affordable housing needs and supporting the life outcomes of our residents so that everyone can prosper.

The final section of this action plan sets out the challenges and opportunities under four themes as shown below. It also identifies actions and commitments required from the council and partners to deliver a step change in affordable housing delivery.

Theme 1: Land opportunities and new housing markets

Challenge/opportunity

Whilst the city has enough land allocated for residential development to meet its overall housing targets, access to this land at the right value for the delivery of new aff ordable homes is challenging, particularly whilst market interests remain prepared to purchase land at high and oft en speculative prices.

There are significant opportunities within the city centre and its periphery for housing growth on brownfield land, yet affordable housing delivery in these areas is not being optimised due to changes in market delivery models (i.e. BtR and s106 flexibilities), service charges and affordability, and risk appetite by partners given changes to building and safety regulations.

The affordable housing sector needs to come together to address this challenge and support the delivery of a mixed tenure city centre neighbourhood.

Action and commitment

1. Land Availability - Use of public sector land to support affordable housing growth objectives (within the Council’s regulatory and budgetary framework), alongside discussions with government.
2. Innovation in Delivery Models - Secure opportunities for collaborative work with market interests to de-risk developments through public funding and advance commitments to above-policy levels of affordable housing - this may include partnership and Joint Venture opportunities to bring forward mixed tenure sites.
3. Site Intelligence Sharing and Unlocking Joint working between LAs/ WYCA/HE and RP sector to unlock brownfield delivery, utilising statutory powers as required, and working through the emerging Strategic Place Partnership.
4. Levelling Up and Priority Neighbourhoods - Explore opportunities in priority neighbourhoods and local centres to develop affordable housing aligned with area-based regeneration opportunities. This includes opportunities for conversion of underutilised assets to affordable residential.
5. Consideration of Planning Policy Changes - this could be considered in the longer term to address the availability of land (see below). This might need more explanation here. (see Affordable Housing policy section over page).

Theme 2: Carbon neutral homes

Challenge/opportunity

Aligning the city’s affordable housing delivery with the Council’s target for Leeds to be a Carbon Neutral city by 2030, ensuring a range of high-quality housing choices, while continuing to ensure homes are truly aff ordable over the lifetime.

There is a need to manage the upward pressure of build costs in ensuring tenants combined rents and energy bills remain affordable.

The affordable housing sector is leading the way in use of green technologies and welcomes a focus on delivery of sustainable homes and the future homes standard. There is a need to rapidly learn from exemplar sustainable housing schemes, to scale up and mainstream production and delivery to realise the long term environmental and cost benefits to developers and tenants of affordable homes.

Action and commitment

1. Promoting Modern Methods of Construction and Sustainable Technologies:
   
• MMC pipelines to be developed across the region to support delivery at scale and pace.
• Promote use of MMC and carbon zero technologies on public sector site disposals for aff ordable housing, balanced with regulatory and budget requirements.
• Develop and promote best practice sustainable technologies regionally, exploring opportunities to work in collaboration through West Yorkshire Housing Partnership and members of the Leeds Affordable Housing Framework.
2. Supporting Green Jobs - Support WYHP workstream to look at creation of green industries and jobs that support tenants and residents in most deprived communities into jobs and training.
3. Local Plan Update to consider policy changes to move towards net zero homes, putting sustainable methods of construction and development of new technologies at the heart of delivery, supporting green supply chain growth.

Theme 3: Affordable housing policy

Challenge/opportunity

There is a need to ensure systemic alignment of affordable housing related policies and that the policy framework in which we work is up to date and relevant to ensure affordable housing growth is maximised in line with our City Ambition.

Planning Policy has a crucial role to play in setting an enabling regulatory and delivery environment for affordable housing delivery, reflecting local housing needs and national planning legislation. There are several levers that can be pulled within planning policy to change how we deliver affordable housing and respond to needs. However, these take time to change and adapt and the Affordable Housing sector welcomes a discussion with the Local Planning Authority on how we can best use planning powers to meet our ambition.

Key challenges raised for consideration include:

• Planning determination - managing planning risk and timely determination linked to construction programmes
• S106 and Benchmark transfer prices - impact on proportion of affordable homes that can be delivered
• First Homes - impact on other s106 deliverability and meeting needs
• City centre market - how we secure and maximise affordable delivery in this part of the city
• Build to Rent and Co-Living - securing and maximising affordable delivery in newly emerging tenures
• Local Plan sustainability policies - how we can work with the LPA to increase standards and support sustainable, affordable homes
• Land supply - opportunities for the affordable housing sector to influence future local plan updates
• Meeting diverse needs - ensuring we meet the needs of all in our communities and delivery considers quality and choice as well as scale. This includes meeting bespoke and specialist needs in the city and supporting the commissioning of services that the Council provides.
• Community led housing/self-build - how we meet identified demand, support the sub-sector and diversify the housing offer in the city

Moreover, there is a need to work with Department for Levelling Up Housing, and Communities (DLUHC) and Homes England to target policy and investment to support regeneration and aff ordable housing growth within our communities to support the levelling up agenda, inclusive growth and the life outcomes for all. This means targeting resources and policies where they are most needed and promoting investment and funding tools that make sense for our city and the wider region.

Action and commitment

1. Local Plan Update to Consider Affordable Housing in the Early Phases of Scope

• RP sector to engage with the Local Planning Authority to inform Local Plan update scoping.
• Consider scope to review affordable housing need and affordability across the city through commissioning a refreshed Strategic Housing Market Assessment (SHMA).
• Consider scope to review viability and effectiveness of the Benchmark Transfer Prices policy and First Homes to support affordable housing growth.
• Consider approaches to support affordable housing land supply in line with housing needs.
• Refresh approach to the nominations process and the role of the Leeds Affordable Housing Framework (as our preferred RP providers) to maximise nominations from the Leeds Homes Register and support the provision of specialist and bespoke housing through our partners in meeting wider housing needs in the city.

2. Support place outcomes and promote investment in regenerating our estates - Support the West Yorkshire regional call for regeneration funding to support the redevelopment of existing end of life low EPC rated stock to support the climate emergency targets, reduce fuel poverty, and improve the life outcomes for our residents.

Theme 4: Viability and unlocking delivery to deliver more homes

Challenge/opportunity

The current economic climate is putting significant pressure on viability, with the inflation rate currently over 10.5% (ONS: December 2022) and the construction sector reporting even greater rises in costs. This is in addition to land values increasing significantly the last 10 years.

This is putting strain on market delivery as well as aff ordable housing direct delivery and is in addition to the cost burden of existing planning policy requirements on quality and space standards, and before future costs of new requirements currently being consulted on to meet the climate change challenges, moving towards net zero, and the Future Homes Standards.

Whilst market housing schemes may be able to afford higher land values and cover cost increases to a point through achieving higher revenues for sales/rents, this cannot be done by the affordable housing sector if homes are to remain affordable for those in greatest need.

The use of funding and financing tools such as the Brownfield Housing Fund alongside affordable housing funding (commuted sums, Right to Buy receipts, Homes England Affordable Homes Programme and Strategic Partnerships) will play a significant role in enabling and unlocking delivery over the coming years.

It will be essential that governance and deployment of funding is agile and flexible to allow for unlocking of affordable homes, providing a step change in the supply of homes, and meet the challenges that the construction sector and economy faces.

Action and commitment

1. Effective and Timely Targeting of Resources - Agility in responding to market changes in the targeting of support to unlock affordable housing delivery across Leeds and the wider region in a timely way. This includes:

• Brownfield Housing Fund
• Commuted sums,
• Right to Buy receipts,
• Homes England Affordable Homes Programme and Strategic Partnerships
• WYCA devolution funds
• Future Homes England Place funding

Ensuring funding is blended to maximise affordable housing outcomes and also our challenges around the redevelopment of older housing stock to create new sustainable and affordable homes.

2. Promoting Affordable Housing Growth in the City and Wider Region - Representing the needs of Leeds (and the region) at a national level to address the affordable housing needs of the city, through tools such as the Strategic Place Partnership.

8. Monitoring of our actions: How we will be accountable

This is a partnership plan that is owned by all partners involved in the delivery of affordable housing growth in the city. We want to be accountable for our actions and ensure that we are on track to deliver a step change in the amount of affordable housing that is supplied in Leeds.

We also want to highlight challenges to partners and government if we are unable to deliver our ambitions due to blockages in the system or macroeconomic impacts.

Governance and management of our action plan will be as follows:

Operational management:

• Leeds Affordable Housing Delivery Group - This is a group made up of partners on the Leeds Affordable Housing Framework, the Council and Homes England. This group will be utilised to manage and monitor delivery against the action plan and will set and agree the detail behind the plan to ensure actions are owned and driven. Updates will also be provided to the West Yorkshire Housing Partnership as and when requested by partners.
  
• West Yorkshire Housing Partnership - report progress on an annual basis as a key district in the wider region to support delivery and unlocking of affordable homes.
• Leeds City Council Housing Growth and Choice Board (Leeds City Council Officer Governance Board) - Chaired by the Director of City Development, this Board will receive updates from the Leeds Affordable Housing Delivery Group and support the delivery of the action plan escalating issues where needed.
• Executive Member Infrastructure and Climate - Will be updated on the Action Plan on a regular basis and will ensure that other Members are aware of progress being made as and when required. The Executive Member may also request updates to Executive Board on a periodic basis.

Strategic management:

• Strategic Housing Board - The Affordable Housing Growth Partnership Action Plan forms a subset of the Leeds Housing Strategy under the theme of ‘Meeting Affordable Housing Needs’. An update will be provided on a bi-annual basis.
• Scrutiny Board (Infrastructure, Investment and Inclusive Growth) - To provide active check and challenge against delivery targets, to receive updates as and when requested over the action plan period and support plan development.
• Leeds City Council Executive Board - The Affordable Housing Growth Partnership Action Plan will be presented at the start of each 3-year period, with an annual update report (subject to approval from the Executive Member Infrastructure & Climate).