Legal News

Cambridge City Council is considering proposals to press for more freedoms and flexibilities from central government to tackle the housing affordability crisis in the Greater Cambridge area.

In the statement published on 25 February, the council presents an analysis of the housing market in the city and the impact of government legislation, based on local data and national studies.

The statement comes in the wake of recent proposals for a devolution bid for Cambridgeshire, Norfolk and Suffolk – and a request for councils involved to lay out their “asks” of government.

The council says the government should allow it to add fresh impetus to tackling the housing shortage – and makes the case for delivering new affordable homes to rent and buy, including new council housing.

The statement highlights changes in government policy, which – without the proposed new freedoms and flexibilities – might have a highly detrimental impact on the Greater Cambridge area.

The statement also points to the government’s policy with a funding shift away from social housing for rent and towards home ownership. The statement says that this does not address the “continued pressing need for affordable housing” for those on lower and average incomes in Cambridge.

The council says in its proposals that the government’s 1% social housing rent cut each year for four years will result in an income loss to the council’s Housing Revenue Account (HRA) of £15 million over four years – which has resulted in the council’s existing HRA new build programme being put on hold.

A further challenge posed by government policy – according to the statement – is the requirement for councils to dispose of “high value” social housing, in order to fund the implementation of the Right to Buy for housing associations.

More than 30% of all rental homes in the Cambridge area are council-owned and the council says that the forced sale of a significant number of these homes would risk damaging the local housing market – especially as housing in Cambridge tends to be of higher value and spiralling rents and house prices would make it even more difficult for local people to find affordable housing.

Only the top 20% of households in the Cambridge area have incomes that enable them to buy homes – with the remaining 80%, including those on average or lower incomes, unable to do so.

The council is proposing to open negotiations with the government to secure a number of new freedoms and flexibilities, including approval for a higher level of borrowing against the HRA, flexibility for social housing providers to set council housing and housing association rents, to better reflect local conditions, as well as exemption for new build homes from Right to Buy and the High Value Levy for 30 years.

The statement also calls for the power to retain a significant proportion of the receipts from the sale of high value properties, to fund a like-for-like, one-for-one replacement of council homes lost through compulsory sale.

The council is also suggesting approval to use Right to Buy receipts against borrowing – and the ability to spend Right to Buy receipts within a five-year period rather than three years, to take account of land supply.

The planning powers should also agree the appropriate tenure mix on sites to meet local housing need, says the council.

Cambridge City Council’s Executive Councillor Housing, Councillor Kevin Price, said:

“Any devolution deal must offer real benefits for Cambridge and for its residents.

“Tackling the housing affordability crisis is at the core of the growth challenge facing the city – and so it is at the core of our ‘ask’ to government.

“Many people simply can’t afford to buy homes – and Cambridge needs a mix of housing, including housing for social rent, to meet existing and future needs.

“The council has a good delivery record and ambitious plans to build new homes – but to do that we need more flexibility from government and that’s what we are pressing for.”

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise landlords and public sector or private sector tenants on a wide range of housing matters – including right to rent checks, landlord’s obligations under the Housing Act, disrepair of rented accommodation, Landlord and Tenant disputes, tenancy agreements and unlawful eviction.

There are Duncan Lewis offices nationwide – and our housing law solicitors can also advise on Local Authority housing and council’s obligation to re-house.

For expert legal advice on housing law, call Duncan Lewis housing solicitors on 0333 772 0409.