Council calls for Boris to rethink housing targets

5.50.01pm GMT Sat 6th Feb 2010

• RICHMOND Council has voiced concerns that the Mayor of London's proposal to drop the 50 % target for affordable housing in new developments will lead to less affordable housing being built locally.

The Mayor's London Plan suggests that instead of the 50 % target a new approach where councils 'seek to maximise' the number of affordable homes built. Within the 'affordable' bracket the existing London Plan requires councils to seek 70 % 'social' priced housing and 30 % 'intermediate' housing. Richmond Council has adopted an 80:20 split, to maximise the number of homes built which can be afforded by local low income families. However, the Mayor of London now suggests this should be changed to 60:40.

Cllr Denise Carr, Cabinet Member for Adult Services, Health and Housing, said: "These two proposed changes give more leeway for developers to concentrate on private and intermediate priced housing, where they can make more profit. This is at the expense of housing that's within reach of the majority of people on the borough's waiting list who most urgently need it. The Mayor's plan expects 2,450 new homes to be built in the next decade, in our borough, but the plan will make it harder to achieve this and we have written to Mr Johnson calling on him to think again.

Within the London Plan, the Mayor has also issued draft strategies for economic development and transport.

The Council has told the Mayor more emphasis should be put on supporting business in outer London, as well as in zones one and two. It is also pressing for extra recognition of the tourism sector in Richmond upon Thames. The Council believes the plan should also give help to all town centres, and not just major metropolitan centres, or those which are underperforming.

The Council has already praised the Mayor's support for CO2 emissions related parking charges and promotion of cycling as ways to improve air quality and cut congestion. This scheme was first launched in Richmond upon Thames and has now been adopted by other councils around the UK. However, the authority has questioned the Mayor's call for a 60 % reduction in CO2 emissions by 2025 based on the 1990 level. It has questioned whether the use of such an old baseline is a worthwhile starting point.

• Notes:

Affordable housing includes social rented and intermediate housing, provided to specified eligible households whose needs are not met by the market.

'Social rented' housing is: rented housing owned and managed by local authorities and registered social landlords, for which guideline target rents are determined through the national rent regime. It may also include rented housing owned or managed by other persons and provided under equivalent rental arrangements.

'Intermediate affordable' housing is: housing at prices and rents above those of social rent, but below market price or rents. These can include shared equity products (e.g. HomeBuy), other low cost homes for sale and intermediate rent.

The Council's Affordable Housing guidance states that expenditure on housing for households in shared ownership homes should not be greater than 30 % of income after deductions and should be affordable to households with low to moderate incomes of up to £35,000 p.a. gross. The Mayor's London Plan states new intermediate homes should be affordable to households whose annual income is in the range £18,100 - £61,400. For homes with more than two bedrooms, which are particularly suitable for families, the upper end of this range will be extended to £74,000.