Showing posts with label London Affordable rent. Show all posts
Showing posts with label London Affordable rent. Show all posts

Wednesday 8 February 2023

Kilburn Square – Brent must come clean on affordable housing!

 Guest post by Philip Grant in a personal capacity

 

From JLL’s Affordable Housing Statement for Kilburn Square, published 28 November 2022.

 

There are many reasons for objecting to Brent’s “infill” housing application (22/3669) for the Kilburn Square estate, but when I submitted my objection at the weekend, it was just about affordable housing.

 

Why would I object, when an updated and “Final” Affordable Housing Statement submitted by the Council’s planning agent, JLL, in late November clearly promised that for the 99 proposed “general needs” units ‘all proposed homes will be let at London Affordable Rent by Brent Council’? My reasons are set out in detail in an illustrated objection comments document, which I hope can be attached at the end of this post, for anyone to read if they wish to.

 

Two weeks before that Affordable Housing Statement was published, Brent’s Cabinet had approved a Report which proposed the conversion of homes, originally promised to be for rent at the genuinely affordable London Affordable Rent (“LAR”) level, to shared ownership (or even open market sale). Kilburn Square and Windmill Court were among the schemes where this would happen, but the actual numbers of LAR homes to be converted at each site were hidden away in an “exempt” Appendix.

 

Paragraphs about Kilburn Square from the Report to the 14 November 2022 Cabinet meeting.

 

Despite Brent’s New Council Homes team having known for at least three months now that they would not be delivering all 99 of their proposed “general needs” homes at Kilburn Square at LAR, no updated information on this has been supplied to Brent’s Planning Department. That information could make a difference between the application meeting Brent’s Local Plan affordable housing policy, BH5, or not meeting it.

 

The policy states that the “tenure split” for affordable housing should be 70% Social Rent or LAR and 30% ‘intermediate products’. Forty of the proposed 139 homes at Kilburn Square are for extra care accommodation, charged at Local Housing Allowance rent level, which is an ‘intermediate product’. This means that the split shown by the application (by unit) is 71.2% LAR and 28.8% intermediate, which would comply with Brent’s planning policy.




However, if the homes converted from LAR to shared ownership (which is also an ‘intermediate product’) were to be split proportionately between Kilburn Square and Windmill Court (the other two schemes would only involve two “conversions”), the split by unit for Kilburn Square would become 43.9% LAR and 56.1% intermediate. This would fail the BH5 policy test, and make it difficult for Planning Officers to recommend the Kilburn Square application for approval on the basis of its “public benefits”.

 

Conclusions from the Officer Report to Planning Committee on Windmill Court, March 2022.

 

When Brent’s Windmill Court planning application (21/4690) went to Planning Committee in March 2022, the fact that all of the proposed new homes would be for Social Rent (for existing tenants re-housed) or LAR was cited as a ‘substantial benefit’. This was used to justify several failures to comply with planning policy, which were 'considered acceptable' after taking into account that benefit.

 

Now some of those LAR homes will be converted to shared ownership (as has already happened at Watling Gardens). But that was because problems with viability only arose (or so it was claimed) after planning consent had been given. The situation over the proposed conversion of LAR homes to shared ownership at Kilburn Square is very different!

 

I will end this “introduction” to my objection comments with two paragraphs from them, setting out my views on the Kilburn Square position to Brent’s Planning Officers:

 

4.4 It currently appears that the applicant is knowingly withholding important information from the Local Planning Authority, in the hope that it can get its application approved on the basis that all of the 99 “general needs” homes proposed will be for rent at LAR level. It would then submit an application to vary the affordable housing condition in the consent given on that basis.

It would undermine the integrity of Brent’s Planning System, and reflect badly on the integrity of Brent’s Planning Officers and Planning Committee members, if such a blatant abuse of that system were allowed to occur.

4.5 I would argue strongly that, having been made fully aware of this situation, Brent’s Planning Case Officer should advise JLL that its client, the applicant, must submit its revised proposals for the tenure split of the proposed 139 homes at Kilburn Square, and that no decision on application 22/3669 can be made until that has been done.

 

We will have to wait and see whether any notice is taken of my affordable housing objection comments!

 

Philip Grant.

 

 

Friday 13 January 2023

Brent’s Wembley Housing Zone contract award – still too many secrets!

 


Guest post by Philip Grant in a personal capacity

 

In a guest post last month (‘Tis the Season to be Sneaky!) I suggested that Brent Council might be trying to use its “urgency procedures” to get the decision to award a major contract for its Wembley Housing Zone (“WHZ”) development slipped through over the Christmas / New Year period, in the hope of avoiding it being called-in for scrutiny.

 

Although the decision was scheduled to be made on 19 December, it wasn’t officially made, by Brent’s Chief Executive, until 10 January, and published on the Council’s website the following afternoon. Normally, 28 days clear notice of a Key Decision has to be given, but the Urgent Key Decision Form sent to a Scrutiny Committee Chair on 12 December said that was not possible. Yet the decision was made 29 days after “urgency” was claimed!

 

Part of the Evaluation Process section from the Officer Key Decision Report.

 

In fact, notice of a Key Decision for this contract could have been given at least several months before 12 December. The Officer Report (undated), on which the decision to award the contract was based, says that the tender process started on 30 April 2022, when the Council advertised for initial expressions of interest from contractors. Eight had provided the necessary responses by the closing date of 31 May. The four short-listed contractors were invited, on 3 July, to submit tenders, and three had submitted valid tenders by the closing date of 18 October.

 

The Recommendation from the Officer Key Decision Report.

 

After all of the evaluation of the tenders by Council Officers, the recommendation which Brent’s Chief Executive accepted was to award the “developer partner” contract to Wates Construction Ltd, for a price of £121,862,500. That is a lot of money! In fact, the report shows that it could be even more than that, perhaps as much as £133m (and that is after an estimated £4m already having been spent on architects’ fees).

 

Extract from the Financial section of the Officer Key Decision Report.

 

It appears that the £126.5m will be the cost of building 304 homes on two sites which Brent Council already owns. That is a building cost of around £416,000 per unit. As para. 4.2 in the Report extract above states, part of this will be funded through capital receipts from the sale of private homes. When Cabinet agreed this scheme in August 2021, it included allowing the development partner to have half the homes (152, and all on the more favourable Cecil Avenue site, which will be completed first) to sell privately, for profit. How much will Wates be paying Brent for those homes as part of the contract deal? We don’t know – it’s a secret!

 

Part of the funding will also come from the ‘capital receipts from … intermediate homes’. In plain English that means the sale of percentages in shared ownership flats within the 152 homes that the Council will own. In August 2021, Cabinet agreed that 61 of the 98 homes which Brent would retain on the Cecil Avenue site should be “intermediate”, with only 37 of them for London Affordable Rent. Following the November 2022 Cabinet meeting, will the figure of shared ownership be increased?  We don’t know – it’s a secret!

 

Wembley Housing Zone extract from the “Affordable Housing” report to Cabinet, 14 November 2022.

 

Martin published a guest blog I had written about that Affordable Housing report to the November 2022 Cabinet meeting, and another which I wrote following the Council Leader’s response to questions which Cllr. Anton Georgiou had asked at that meeting. I showed that there is already a surplus in shared ownership homes on offer in Brent, which is likely to continue and increase, and that shared ownership is not really affordable to most people in housing need in Brent. So why is the Council planning to make many of the WHZ homes shared ownership, which won’t help the people its affordable homes policy is meant to house?

 

Outline of the contract from the Officer Key Decision Report.

 

The contract, as shown by the extract above, is in several parts. This is because although both WHZ sites were given planning permission in February 2021, Ujima House only has outline permission. Because of the long delay in getting to the contract award stage (which has greatly increased the cost of the project), the “developer partner” has to prepare, submit and get approval for the actual Ujima House plans. That’s why there is a completion date of 31 December 2026 (nearly 4 years away!), with a possible extension, for those homes to be delivered.

 

The former office block at Ujima House still has some “meanwhile” occupants, including the thriving Stonebridge Boxing Club, a vital resource for the local community. They have still to find an alternative home. Despite the long lead time before any work at Ujima House can begin (apart from its possible demolition, leaving an empty site, like that of the former Copland School buildings, where work on the Cecil Avenue homes could start straight away), Brent Council wants to ‘seek to assist them in finding suitable alternative premises’ (evict them a.s.a.p.). 

 

Extract from the Equality Implications section of the Officer Key Decision Report.

 

The Report’s determination ‘to ensure a start on site by the end of March 2023’ must mean that the extra £5m funding the Council has obtained from the GLA comes from its 2016-2021 (but extended to 2023) Affordable Housing Programme. There is probably some “spare” money in that pot because Brent will fail to start some of its other New Council Homes projects before the 31 March deadline! The £5m looks like the grant for 50 London Affordable Rent homes, at £100k per home. The Cabinet’s August 2021 decision (possibly since watered down) was for all 54 homes at Ujima House to be for LAR, but only 37 at the Cecil Avenue site, so at least some of the latest GLA agreement must relate to Ujima House.

 

One final point. The documents published with the decision notice include the Council’s Tender Evaluation Grid, where Wates appear as contractor “C” (the identities of “A” and “B” are secret). Although “C” scored highest overall, because their Financial score was much better than the other two (meaning their price was lowest), they were only second in the Quality section. Their Quality score was 68.6 out of 100 (contractor “B” was best with 72.0). Brent has had problems over poor quality housing developments in recent memory.

 

The Quality section of the WHZ contract Tender Evaluation Grid.

 

Non-Cabinet councillors have five working days to call-in the Key Decision for scrutiny, if they consider there are reasonable grounds to do so. As it was published on 11 January, at least five members would need to call-in the decision by 5pm on Wednesday 18 January for the award of the contract to be put on hold, so that (probably) Community and Wellbeing Scrutiny Committee could consider it. It will be interesting to see whether that happens!

 


Philip Grant.

 


Friday 9 December 2022

Brent’s Broadview infill plans – do genuinely affordable homes and the environment matter?

Guest post by Philip Grant in a personal capacity

 

Aerial view of the Broadview Garages site. (From Google Maps website)

 

I first mentioned Brent’s plans for infill homes on a small garage site behind Broadview in August 2021, when I wrote about Brent’s “secret” Council Housing Projects. I was not aware of the current planning application for two houses on this site until I saw it on the agenda for next Wednesday’s (14 December) Planning Committee meeting. I took a quick look through the Officer Report, initially just out of interest, but what I read left me knowing that I had to object to the application!

 

I will ask Martin to attach a copy of my illustrated objection comments document at the end of this article, so that you can read it if you wish to. It is another application where Planning Officers recommend approval, because what they describe as ‘the limited conflict with policy’ would be outweighed by building new homes.

 

The first point that I felt really strongly about is that, although Brent’s application states that both new homes would be for London Affordable Rent, Planning Officers say that there does not need to be an affordable housing condition in the consent letter. I have explained why, if these homes are to be built (despite the good planning reasons why the application should be refused), the “benefit” of them needs to be guaranteed by making it a condition that they are let to Brent residents in housing need at “genuinely affordable” rent level.

 

The rest of my objection points arise mainly from Planning Officers relying on inaccurate, and at times wholly misleading, information in reports prepared on behalf of the applicant, and ignoring the true facts given to them by local residents in their objection comments. This is not the first time I’ve raised the importance of looking at such reports critically (because they are prepared by firms paid to support the application, so not impartial). Most recently this was in connection with trees, and the Arboricultural Impact Assessment (“AIA”) for the trees at the Newland Court infill site.

 

The Broadview Garages AIA (as well as the Ecological Impact Assessment and Flood Risk Assessment) were prepared by the same firm as the Newland AIA. That is not the only similarity, as the applicant (Brent Council, possibly with the same Project Manager), planning agent and Planning Case Officer dealing with the application are also the same as the Rokesby Place and Newland Court applications (cynics might say: ‘How “cosy” is that?’). The firm begins its Broadview Garages AIA as follows:

 

 
 

OK, that’s just a minor slip, probably because they are using the same template for many reports for Brent infill schemes! My main concern with their AIA is that they misrepresent where an important tree ‘on the boundary of the site’ actually is, so that they can justify having it cut down. It is actually growing inside Fryent Country Park, so that it should be protected. Their original AIA, later amended, said that both of the tall ash trees you can see on the left of this photograph could be cut down and removed!

 

The Broadview Garages site, with Fryent Country Park on the left, 8 December 2022.

 

My objection comments should give rise to a Supplementary Report to the Planning Committee meeting on 14 December. It will be interesting to see which change, if any, having the true facts, with supporting evidence, will have on the outcome of the application!

[]

Philip Grant.


Friday 11 November 2022

Brent’s New Affordable Council Homes promises shredded!

 Guest post by Philip Grant in a personal capacity 

 


When I shared my open email to the Council Leader on Morland Gardens in a guest post earlier this week, I drew attention to the “Update on the supply of New Affordable Homes” report, which is going to next Monday’s Cabinet meeting. Now I will highlight some points from that.

 

It’s only a month since I wrote about Brent’s Affordable Council Housing – the promises and the reality, but that reality has got a whole lot worse. Then I was writing about Social Rent, London Affordable Rent (“LAR”) and Shared Ownership (“SO”), which is neither ownership nor “affordable” housing. Now Council Officers want to include some new terms, Open Market Rent (“OMR”) and Open Market Sale (“OMS”) into Brent’s New Council Homes programme.

 

Extract from the “Update” Report for the 14 November Cabinet meeting.

 

They are saying that some (in fact, quite a lot!) of the new homes the Council builds can no longer be for social housing, which is what Council homes are meant to provide. They will have to be for rents that are not genuinely affordable, such as OMR (or Local Housing Allowance level, as it is sometimes referred to), or they will have to be for shared ownership or sold off privately, the same as any other developer would do. 

 

‘What is the point of the Council building new Council homes which are not new homes for rent to Council tenants?’ you might ask. The answer from the Corporate Director, Resident Services, is that you have to “convert” some of those homes to unaffordable homes, or homes for sale, in order to be able to afford to build other homes which are for affordable rent. But the Council, as a social housing provider, can’t offer unaffordable homes to Council tenants, so it has to pass on the OMR and SO homes it is “converting” to someone else.

 

The start of a long list of recommendations for Cabinet to agree on 14 November.

 

The Report recommends that the “conversion” will be done by ‘Officers’. Which Officers? – it doesn’t say (why is that?), but many of the other recommendations delegate the power to make decisions to the Corporate Director, Resident Services (the Officer who signed off the Report, Peter Gadsdon). 

 

As will be seen from my first extract from the Report above, the “conversion” will be ‘via the Council’s wholly owned subsidiary company i4B.’ Because i4B is a separate “legal person”, it can charge higher rents than the Council itself would be allowed to charge. The Council would build the homes to be “converted”, then sell them to i4B (who would pay for them with a loan from the London Borough of Brent), for rent to Brent residents (possibly homeless families). 

 

But as well as making these recommendations, Peter Gadsdon is also a director of i4B, which would benefit from the extra properties in its portfolio. Isn’t that a conflict of interests? And another director of i4B is Cllr. Saqib Butt, the brother of the Council Leader who will chair the Cabinet meeting considering the recommendations. I have raised these potential conflicts of interest with Brent’s Monitoring Officer, and await her response.

 

How many of the New Affordable Homes are likely to be “converted” to unaffordable ones? It could be as many as 50% of them, on the basis of this recommendation from the Report:



 

And it is not just ‘new planning permission applications’ that that are at risk of losing up to 50% of their affordable homes. Windmill Court, which has an “affordable housing” condition in its planning consent specifying that the tenure of the homes must be for no more than LAR, is one of the schemes proposed for “conversion”. The planning consent gave the reason for the LAR condition as: 'In the interests of proper planning.'

 

Extract from the Update Report, including proposals for Kilburn Square and Windmill Court.

 

Also on this particular list (there are others) for “conversion” is Rokesby Place. Regular readers may remember that I have been challenging the action by Brent’s Planning Officers in secretly changing the tenure for those two new 4-bedroom Council houses from Social Rent to the more expensive LAR. Now the Report to Cabinet wants to change things again, and either sell off one of the houses, or transfer it to i4B, to be let out at OMR! 

 


The Rokesby Place  planning application was pushed through, against the wishes of existing residents, on the grounds that the Council had to use any “spare” land on its estates to build genuinely affordable homes for local people in housing need. Now one of the two houses won’t be, despite the Report’s empty words: ‘Large family sized homes at low rent remain a priority for the Council.’

 

 

The Update Report’s section on the Council’s Wembley Housing Zone.

 

Another housing “battle” I’ve been having with Brent, for the past 15 months, is to try to get more genuinely affordable Council homes at their Cecil Avenue development. It’s a vacant, Council-owned site which has had full planning permission for 250 new homes since February 2021. The Report says that since Cabinet approved the project in August 2021, ‘officers have advanced competitive procurement of a delivery partner.’ When there are 250 homes which could be for Brent residents in urgent housing need, that’s very slow progress!

 

The delay has been even longer, because Officers carried out a “soft market testing” exercise in April 2021 (which was so soft that it guaranteed the result they wanted, to justify their recommendations to Cabinet). They could have started the project last year, when the cost of borrowing to build the homes (152 for the “developer partner” to sell for profit, 61 as intermediate housing - SO or OMR – and only 37 for LAR!) would have been much lower. What further cuts to the affordable housing in the Wembley Housing Zone are hidden in ‘(Exempt) Appendix 3’, which the public will never be allowed to see?

 

 Now, quickly, here are two more recommendations to Monday’s meeting from the Report: 

 

 

What are Modern Methods of Construction (“MMC”)? I would suggest you read a blog article on “Airspace” which Martin published in October last year. ‘A minimum of 25% of all homes’ out of the 700 the latest round of GLA funding will almost certainly include Gauntlett Court in Sudbury, and probably Campbell Court and Elvin Court in Kingsbury. Has there been any genuine consultation with residents of those Council estates yet?

 



   
The Report is recommending “conversion” of LAR homes the Council proposes to build to SO, when it has no evidence that there is any demand for them! There are already a large number of shared ownership homes built by, or in the pipeline from, private developers on big schemes in Wembley and elsewhere. Those developers are forced to provide a proportion of affordable homes as part of their plans, and they make as much of it as possible shared ownership, because that is recognised for planning purposes as “affordable housing”, even though it is unaffordable to most people in housing need in Brent.

 

There was an interesting Q&A on Council housing, and shared ownership, as part of consideration of Brent’s Draft Borough Plan 2023-2027, at the Resources and Public Realm Scrutiny Committee meeting on Tuesday, 8 November. I’ll end this post with a transcript (from the webcast recording - at around 2hrs 5mins in!) of that exchange. 

 

Cllr. Anton Georgiou (“AG”): Just for complete clarity for the committee, what does Brent Council define as a Council home? Most people define a Council home as being a property owned by the Council that is let at Social Rent.

 

Carolyn Downs, Chief Executive (“CD”): That is what we do as well.

 

AG: From documents that I’ve read, it seems that Brent have extended this to include Shared Ownership, London Affordable Rent, temporary accommodation and assisted living.  

 

CD: Absolutely not. When we talk about one thousand general new Council homes they are Council homes. It is Council housing.

 

 

AG: This isn’t Shared Ownership?

 

CD: We have not ever built a single Shared Ownership. Developers might, we the Council haven’t.

 

Shout from an unidentified person: Not genuinely affordable!

 

Cllr.Muhammed Butt, Council Leader:  Apologies. What you just said there, right, comes under the broad banner of affordable homes, right, but we do actually build Council homes.

 

Cllr. Rita Conneely, Chair: So, I’m going to draw this item to a close.

 

You can make up your own mind, from what was said at that meeting and from the Report, how committed Brent Council are to their promise of ‘genuinely affordable housing for families in Brent’. 

 

My own “Update on the supply of New Affordable Homes”? Far fewer than were promised ahead of last May’s local elections!

 


Philip Grant.