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February 2022 Readers may find the debate about future housing growth confusing. Which should they believe - the worst case scenario put forward last year by the Neighbourhood Plan Group, that hundreds of houses might be built in Groby? Or the best case scenario in the new Local Plan for the Hinckley and Bosworth area, of just 45 homes?
Neither may be right
The fact is that neither may be right. The Neighbourhood Plan has not yet been written, and it is unlikely that residents will be asked in a referendum to support or reject a Plan until 2024. Articles highlighting the potential development risk were written before the Borough Local Plan allocation for Groby had been published.
The Local Plan, however, has been written, and the proposed housing allocation of 45 new houses from 2026 to 2039 will be welcomed by many. But a Local Plan can change before it becomes the accepted Plan for the Borough. Public consultation has begun and a vitriolic debate continues between the County and Borough Councils. The County Council has concerns over infrastructure and wants the consultation delayed to allow for more discussion. They could object to it and influence the outcome of the ‘examination’.
On the one hand we have a Neighbourhood Plan that has yet to be written, and a Local Plan that has yet to be examined and approved by the Government. The current, or an amended, Local Plan will be approved first. This means that, whatever the final outcome, residents must hope that planning regulations don’t change again, and the Borough manages to maintain a 5 year supply of sites to stop any speculative developments, and to resist any overflow allocation from Leicester City.
Not everyone will rejoice at this figure of 45 new homes in 13 years. For those with a Groby connection, and in need of affordable housing, the future looks bleak. The Borough Council requires developers to allocate 40% of any large new housing site to affordable homes, equating to just 18 of the 45 homes between 2026 and 2039. The 2019 Housing Needs Survey had 120 respondents classing themselves as being in housing need. Of these 28 respondents were assessed as having a need for affordable housing. This suggests that the 18 which the plan might deliver will not be adequate.
Groby hasn’t fared very well with affordable housing in recent years. The 11 affordable homes planned for the Brant Inn site never materialised after a deal was done with the developer to accept a cash payment in lieu. The payment was used to help finance the Martinshaw Lane development, despite the fact that it was already in the pipeline. Most of the Hello site homes went to residents from other parts of the borough, not people with a local Groby connection.
These householders from outside Groby were not to blame – there were not enough applicants from the local area because only 22 of the 120 who said they had a housing need in the survey had registered with any agencies for rehousing. Only one had provided contact details. Anyone with a housing need should contact Hinckley and Bosworth Housing Department (Telephone: 01455 238141) to discuss the options available, and avoid missing any suitable opportunities.
Important to register
“The point about local people missing out is a very pertinent one and we have often found that people don’t register on our waiting list as they don’t feel they have a chance at getting an affordable home.” said a Borough Council spokesperson. “So often unfortunately they end up in private rented in the urban areas. Where we can, we do encourage people to register, and everyone who responds to a housing needs survey is advised to register as soon as possible.”
This is sound advice. Developments ‘in the pipeline’ at Ratby and Markfield are larger and should deliver higher levels of affordable housing. They may not be an applicant’s first choice, but registering may provide additional opportunities, albeit in neighbouring villages
Commercial housing developments are not the only source of sites for affordable housing. They may also be built on ‘exception sites,’ a site at the edge of a rural settlement which would not normally be available to build housing on. But this option has also been a disappointment for Groby, as no exception sites have been identified following any Housing Needs Survey.
Nevertheless, the Borough Council keeps looking. “Our Rural Housing Enabler has concentrated this financial year on finding suitable sites,” the spokesperson continued. “Due to the known scarcity of land, Groby was a village that we asked specifically to be looked at. However despite a call for sites and contact with a landowner, we haven’t been able to identify any suitable sites for a rural exception site to be delivered in Groby. We are still committed and keen to deliver rural exception sites and community led schemes and they will continue to be actively sought within the Borough.”
The population of the village has grown sevenfold over the last 100 years and what’s left of the open land in and around Groby is largely either designated as open space or Green Wedge that is protected against development. Last month Cllr Cartwright reminded readers that residents don’t want more development, a clear outcome of the Parish Plan, which he chaired. “We asked if Groby and Field Head needs more housing,” the Parish Plan reported. But although a resounding 96% who responded said no, “69% then said they would like more affordable housing.” The report added that a “majority of Groby’s children said they would like to live in Groby when they leave home, however, only 27 thought that they would be able to afford to do so when the time came.”
Despite the acceptance of the need for more affordable housing, this appears to be a problem without a solution, and suggests a bleak outlook for affordable homes in Groby.
October 2020
When Housing Needs Surveys are undertaken they are a snapshot of the situation at a particular time and a forecast of needs in the next few years. They cannot take account of the unknown, and the great unknown at the time of the latest survey was that there was a pandemic on the horizon that would impact on the income and living standards of millions of people. Only time will tell whether Groby is well placed to avoid the worst financial effects on its estimated 3000 households, but it is possible that the pandemic might increase the number of affordable homes required.
It is likely that some of the respondents to the most recent Housing Needs Survey will be moving into the new homes on the Hello site on Leicester Road, completed after the survey was undertaken. “ For this site there was a local policy meaning that applicants had to have a connection to Groby, and the criteria was strict,” explained Borough Councillor Martin Cartwright. “As I understand it all the allocations comply with the policy”.
In the latest survey 2,939 questionnaires were sent out. A total of 744 responses were received, average for a survey of this size. The survey reports that affordable housing and shared ownership provision in Groby in 2011 was low, with just 127 households living in a shared ownership home, or one form of affordable rented property or another. Property prices in Groby across all house types have, in the last 5 years, increased by 28.18%, and the report estimates that a house buyer would need a deposit of £21,429 (20%) and an annual income of £38,097 in order to afford a semi-detached property valued at £214,298. The average rent in the private rented sector at the time the report was written was £751 per calendar month.
When asked whether they would support a number of homes being built for local people, there were slightly more households in favour of new homes being built compared to those not in favour; 365 and 322 respectively.The survey adopted a two-step research process, analysing the survey data, and then carrying out a cross-referencing exercise with the Local Authority Housing Register.
The 120 respondents classing themselves as being in housing need fell within the
following timescales :
18 in immediate need
14 within 12 months
40 within 3 years
48 within 5 years.
The report concluded that 28 respondents were considered to have a need for affordable housing as follows :
No. Affordable Rent No. Shared Ownership No. Specialist / Supported Housing
7 1 or 2 bedroom home 2 1 or 2 bedroom home 1 2 bedroom home
7 2 bedroom bungalow 5 2 bedroom house
1 2 bedroom house 2 3 bedroom house
3 3 bedroom house
February 2018
Construction of the small housing development for older people is now well advanced at the site off Martinshaw Lane. The funding of the homes has proved controversial as the Parish Council understood this to be a fully funded scheme. The land has been owned and left undeveloped by the council for decades. When the Borough Council eventually put together a development plan for the scheme it no longer met the the eligibility criteria for funding from the Homes and Communities Agency under the Affordable Homes Programme.
Other funding options had to be considered so that the project could still be delivered and as a result the council allocated a £365,000 payment made by Jelsons in respect of their Brant development to Martinshaw Lane. Jelsons said they had been unable to find any housing agency that would purchase the affordable homes it was required to build at the Brant from them, so they were allowed to make a lump sum payment instead. This resulted in the loss of up to 11 affordable homes promised for Groby.
The Borough Council has had better luck down at Hinckley where Westleigh Partnerships Ltd was given permission by Hinckley & Bosworth Borough Council's Planning Committee to build 68 affordable homes in a a mix of house types on the site of the former Richard Roberts factory in Southfield Road, on behalf of the Borough Council and Nottingham Community Housing Association (NCHA). The affordable housing development comprises a mix of 51 rented properties and 17 homes for shared ownership.
The Borough Council will own and manage 30 of the rental properties and the Nottingham Community Housing Association will own and manage 21 rental properties, as well as managing the 17 shared ownership properties.
Cllr Peter Wallace, Executive Member for Housing and Community Safety at the Borough Council said: "These new homes (in Hinckley) are a fantastic addition to HBBC’s stock of over 3300 Council Houses, which are distributed across the Borough, and later this year further new build properties will be completed in Martinshaw Lane in Groby, in both cases we have implemented a housing lettings policy which gives priority to local people, and I’m very pleased to see our first tenants have now moved in. I hope they enjoy living here and will soon feel at home."
But although applicants with a connection to Groby will be given priority for 100% of new build properties at Martinshaw Lane this is reduced to 50% of re-let properties, and even this is subject to a review after just one year. It is felt locally that this development will do nothing to help younger residents looking for affordable homes.
Council Leader Mike Hall added: "Council housing is an essential part of the mix of housing types that are available in the Borough, and I hope that we shall soon be building more to meet the expanding demand as the population grows. Pressure on the housing market and problems with affordability for many people also means that councils must take a different view of council housing. We must view renting a council house as one way onto the housing ladder and an affordable route into home ownership." He added that he wants to see more people taking advantage of their Right-to-Buy so that their council house really does become their home, a view that may not be shared by those in housing need who believe that that Right to Buy, whilst helping some get onto the housing ladder, has contributed towards the national shortage of affordable homes.
Housing Register figures as at 1 April 2016 illustrate the demand for affordable homes locally, with 56 applicants stating they had a local connection to Groby.
May 2017
Last month the Spotlight reported that members of Groby Parish Council have been dismayed by the response of Hinckley and Bosworth Borough Council (HBBC) to their Freedom of Information request relating to failure to secure the building of 11 affordable homes at Jelson's Brant housing development. The reply was described by members as a disgrace, and a “disgusting, arrogant and dismissive reply.”
The housebuilder was required under a 'Section 106' agreement to build up to eleven new affordable homes on their Brant site in Groby, but these will not now become available as it says it has been frustrated in its search to find a housing association with the cash to buy them. Instead the developer has paid a commuted sum in lieu which, if affordable homes were bought on the open market, would pay for 2 at current house prices in Groby. A formula is used to arrive at the amount it would be reasonable for the developer to pay as a commuted sum.
“It is fair to say that a commuted sum will not fund the same number of affordable homes as on site provision, which is why, where possible, the Council’s first preference is always for on site provision of affordable housing,” a spokesperson for the Borough Council explained. “Since the use of the formula will give a different value on a site by site basis, the Council asks the developer to provide evidence of how the commuted sum figure is achieved, and has the developer’s calculation externally validated in much the same way as a viability assessment is carried out. This was the case with the Brant Inn site and specialist advice was sought to determine the level of commuted sum that would be appropriate. It was on this basis that a sum was negotiated.”
The Parish Council would like to know just how the sum was arrived at, but the spokesperson added that the financial information provided by the developer is commercially sensitive so cannot be disclosed by the Council.
Use of commuted sums
The Borough Council's Supplementary Planning Document adopted in 2011 explains that the use of commuted sums should initially target the use of the sum to the local area of the development (within three miles). The spokesperson confirmed that the contribution will now be put towards the Council’s development of nine bungalows on land at Martinshaw Lane, Groby.
Local lettings policy
On 29th June 2016 the Borough Council Executive approved a local lettings policy for the Martinshaw Lane development and applicants with a connection to Groby will be given priority for 100% of new build properties and 50% of re-let properties, subject to a review after one year. Housing Register figures as at 1 April 2016 illustrated the demand for affordable homes locally with 56 applicants stating they had a local connection to Groby. Of these applicants 17 are over 60 and would qualify for properties designated for older people.
The Martinshaw Lane development has been on the table for years, but the Borough Council says that without this money, the project was at risk of not being delivered.
“Money for the Martinshaw Lane scheme was originally intended to be drawn from a government grant via the Homes and Communities Agency under the Affordable Homes Programme,” explained the spokesperson. “Unfortunately last year the eligibility criteria for this funding changed so the grant was no longer available for Martinshaw Lane. This meant we had to consider other funding options so that the project could still be delivered.
We looked at funding from the County Council but they were over-subscribed with projects and Martinshaw Lane could not be funded this way. The commuted sum secured off the Brant development will allow the Martinshaw Lane scheme to come forward. There are very few other sites in or around the settlement of Groby where this money could be spent so effectively.”
The Parish Council has not yet had the opportunity to discuss this latest development.
April 2017
Members of Groby Parish Council have been dismayed by the response of Hinckley and Bosworth Borough Council (HBBC) to their Freedom of Information request relating to the provision of affordable housing at Jelson's Brant housing development. The reply was described by members as a disgrace, and a “disgusting, arrogant and dismissive reply.” The housebuilder was required under a 'Section 106' agreement to build up to eleven new affordable homes on their Brant site in Groby, but these will not now become available as it says it has been frustrated in its search to find a housing association with the cash to buy them.
“Discussions between the developer and Borough Council officers reached an agreement that a commuted sum in lieu of on-site provision would be best able to meet the future need for affordable housing,” a spokesperson for HBBC said. “This would allow a range of options to be pursued, which include a contribution towards the development of new affordable housing, acquisition of existing homes for affordable housing or increasing the number of types of affordable housing on an existing scheme.” A commuted sum of £365,000 has been paid to Hinckley and Bosworth Borough Council.
This practice of cash for affordable housing concessions is gaining momentum, particularly in the South of England, and it seems it is not uncommon for the cash received by authorities to be diverted to affordable housing in lower cost areas.
Agreed behind closed doors?
Although the final arrangement, which is believed to have been agreed behind closed doors and was described at the meeting as “morally reprehensible”, meant the loss of the affordable housing units for Groby, the Borough response says that “the obligation was simply secured in a different manner.” Groby's elected representatives were not informed of this change of plan and the Council says that there was no need for further consultation or discussion as Bill Cullen,the then Deputy Chief Executive, approved of the arrangement.
Questions that might have clarified an audit trail and evidential support of the validity of the conclusions reached during the negotiations between the officers and the developer did not draw a substantive response. As there was no 'constitutional requirement' to consult, there was no consultation. Similarly as there was no requirement to prepare a report with authenticated evidence, none was written.
Residents no wiser
What was clear from the Parish Council discussion was that residents are no wiser regarding the calculations, audit and advice that went into the S106 settlement before it was approved. The FOI request asked how the Borough checked that the price the developer offered the homes at was fair and reasonable, but the response was that the Council is not entitled to ask, so it didn't.
The Parish Council would like an explanation as to how the the commuted sum was calculated, audited and validated. Rather than explain the calculation the Borough Council has just said that the rules allowed the Deputy Chief Executive to use delegated powers to give approval to the deal.
Delegated powers are surely there to oil the wheels of administration not to prevent council tax payers from knowing how and why decisions have been taken. “Don’t hide behind the rules” is thought to be a good discipline for all those who have the power to affect the lives of others.
When calculating commuted contributions some councils use a simple formula: A-B=C
Where: A = value of the proposed development assuming 100% of the residential units are provided as private housing;
B = the value that would otherwise have been achieved by the proposed development incorporating an element of affordable housing in line with the council’s affordable housing requirement;
C = payment in lieu
The Borough Council's Supplementary Planning Document adopted in 2011 seems to take this approach, which suggests that the difference in value between an Affordable House and an Open Market House on the Brant site is no more than around £35,000. This may be the case, but residents, particularly those in need of affordable homes, might find it difficult to accept. This may be a completely erroneous calculation but, without authoritative information and disclosure, speculation loves an information vacuum.
The document explains that clauses in respect of the use of commuted sums should initially target the use of the sum to the local area of the development (within three miles), but “should also allow for the use of the sum in any part of the Borough, depending on priority housing needs, if opportunities for spending the sum in the vicinity of the original development appear to be limited within any defined time limits, normally two years.”
The policy says that “only in exceptional circumstances and where it can be robustly justified will off-site provision or commuted sums be acceptable.” Where commuted sums are accepted in lieu of on-site provision they should be of ‘broadly equivalent value’ to ensure that the same number and type of affordable dwellings can be provided on an alternative site in the same or similar locality. The equivalent value will be calculated on the amount which would be contributed by the developer/landowner were the affordable housing provided on site.
Two Housing Needs surveys
The Borough's own Housing Enablers have conducted 2 surveys which highlighted the desperate need for Affordable Housing in the village and also established that there were no suitable exception sites in the Parish. So it is not surprising if those who need the houses are angry that a development that could have satisfied perhaps 25 to 30% of the need has slipped through their fingers, and that they fear that the affordable homes may be quickly followed by the S106 payment made in lieu.
No doubt before Bill Cullen approved the deal he was assured that the Borough had achieved the best deal in the circumstances, so it is hard to see why the decision is shrouded in secrecy. The Parish Council is determined to continue to press for the release of more information relating to this transaction. There was not sufficient time for Bill Cullen to reply and comment before the April 2017 edition of the Spotlight.
February 2017
It looks as if up to eleven new affordable homes planned for Groby will not now become available. A housebuilder which insidermedia.com describes as being run by one of the wealthiest families in the Midlands, has been frustrated in its search to find a housing association with the cash to buy affordable homes it was required to build on their Brant site in Groby. Jelsons is part-owned by Robert Jelley and family, who are the fifth generation of the Jelley name to run the business. The family appeared at number 38 on the 2016 Insider Rich List, two places higher than the 2015 ranking, with estimated assets of £145m.
But it seems that wealth doesn't make it any easier to deliver on your statutory obligations. The site at the Brant was subject to a Section 106 agreement which included a requirement for Jelsons to provide 11 affordable houses, and to transfer them to an affordable housing provider. They approached 10 Registered Providers on three separate occasions but were unsuccessful in identifying a Registered Provider who would purchase the affordable housing.
A spokesperson for Hinckley and Bosworth Borough Council (HBBC) explained that the reduced borrowing capacity Registered Providers are currently experiencing has impacted on their build programme in general, and their ability to purchase on Section 106 sites in particular. It seems that the Brant is the first occasion on which this has affected a site in the Borough.
Cash payment in lieu of homes
“Discussions between the developer and Borough Council officers reached an agreement that a commuted sum in lieu of on-site provision would be best able to meet the future need for affordable housing,” the spokesperson added. “This would allow a range of options to be pursued, which include a contribution towards the development of new affordable housing, acquisition of existing homes for affordable housing or increasing the number of types of affordable housing on an existing scheme.”
A commuted sum of £365,000 has now been paid to Hinckley and Bosworth Borough Council and is currently being held on account. At present the council is considering which option would give the best value for increasing affordable housing supply, and for spending the money as close as possible to the Brant site.
“It is best practice and expected that commuted sums will be spent as close to the original site as possible,” the spokesperson explained. “Council officers in Development Management and Legal Services are working together to establish procedures to run in parallel with other Section 106 financial contributions to ensure there is an effective process to notify and consult on affordable housing commuted sums. This will then start the dialogue on the most appropriate use for this and any future contributions in the Borough.”
Those in need of an affordable home locally may find it difficult to accept the Borough Council view “that a commuted sum in lieu of on-site provision would be best able to meet the future need for affordable housing,” as even if the funds are allocated to buy Groby homes on the open market the 3 least expensive currently for sale on online agents Rightmove.co.uk would cost £400,000 to acquire.
Locally there is concern about the arrangement for two reasons. The first is that the agreement reached between Jelson Homes and the Borough Council was reached without any involvement of the Borough Councillors for Groby or the Parish Council, which is serving a Freedom of Information request on HBBC.
The second is that Groby needs these affordable homes and the additional 11 were seen as a welcome addition to the housing stock. Affordable Homes surveys have failed to find a suitable location for an 'exception site' which would allow homes to be built on land on the edge of the village which would not normally be given planning permission for development.
At least 30 affordable homes needed
As far back as 2006 Richard Windley, the Leicestershire and Rutland Rural Housing Enabler, concluded that Groby needed to find a site to build a new development of up to 24 affordable homes to help residents who cannot afford accommodation locally to stay in the village, or those with a strong local connection to return. But his search for a 'rural exception site' was unsuccessful.
A second Housing Needs Survey questionnaire was circulated with the Groby and Field Head Spotlight in 2013 in order to produce an up to date review of the need for affordable housing within the parish. It showed that the need had increased to 30 affordable homes. The response was excellent with a a return rate of about 28%. A total of 806 completed survey forms were received.
The 2013 study looked at house sales in Groby over the previous 12 months to try and determine the lowest entry point to the housing ladder for a small family home. It was estimated that with a 20% deposit and a mortgage of about 3.5 times annual income a housebuyer would need an annual household income of around £34,000 to buy the cheapest 3 bed home currently on offer. Income statistics from 2007 suggested that less than half of the households in the parish could comfortably afford an entry level home if they were not already satisfactorily housed.
Recently Communities Secretary Sajid Javid announced that housing providers will be able to apply for their share of a £7 billion fund to build affordable housing. It has been made available to housing associations, local authorities and private developers for the building of thousands of affordable housing, shared ownership and rent-to-buy homes.
In response to the announcement the Chief Executive at the National Housing Federation, which describes itself as 'the voice of housing associations' said:“We are delighted to start the new year on such a strong footing with such a clear show of faith from the Government in our sector. This funding and the relaxed restrictions for building affordable homes will enable housing associations to provide the right mix of houses.”
With all this going on villagers may be puzzled by the apparent unwillingness of any Housing Association to acquire the homes at the Brant.
June 2013
Earlier this year a new Housing Needs Survey questionnaire was circulated with the Groby and Field Head Spotlight in order to produce an up to date review of the need for affordable housing within the parish. The response was excellent with a a return rate of about 28%. A total of 806 completed survey forms were received.
Richard Windley, who organised both the current and earlier survey, has now left his post as Rural Housing Enabler. One of his final tasks was to prepare a draft report of his findings and this has been submitted as an interim report to the Parish Council. His work is being looked after by a Project Delivery Manager at Midlands Rural Housing whilst a review into rural housing in Leicestershire is completed. He will be liaising with Groby Parish Council to see what the next steps are once the final version of the Housing Needs Survey Report is published.
The last survey
Six years ago Richard’s report concluded that Groby needed to find a site to build a new development of up to 24 affordable homes to help residents who could not afford accommodation locally to stay in the village, or those with a strong local connection to return. Many were currently having to share homes with their family or friends. Once the report was accepted by the Parish Council his next task was to try and find a suitable plot of land for a small development of affordable homes.
In order to keep the cost of development down and to make the homes affordable the search was on for what is known as a 'rural exception site'. This is usually land on the edge of the village which would not normally be given planning permission for development. The land would cost much less than land with normal planning permission for development. But after three years he had to concede that he had not been able to find a suitable site.
“Despite rigorous searches by me, the Parish Council and Val Bunting, the Housing Strategy & Enabling Officer from Hinckley and Bosworth Borough Council, we have been unable to locate a suitable site in the parish with a willing vendor for rural affordable homes - a Rural Exception Site,” said Richard.
The 2013 draft report
The latest report showed there is now a need for up to 30 affordable homes and 4 open market (sale) homes for local people enabling them to be suitably housed within the community and also concludes that they could be developed on a Rural Exception Site, if available, or as part of a larger development – a so-called “Quota Site.”
The current study looked at house sales in Groby over the last 12 months to try and determine the lowest entry point to the housing ladder for a small family home. It was estimated that with a 20% deposit and a mortgage of about 3.5 times annual income a housebuyer would need an annual household income of around £34,000 to buy the cheapest 3 bed home currently on offer. Income statistics from 2007 suggest that currently less than half of the households in the parish could comfortably afford an entry level home if they were not already satisfactorily housed.
Those households who felt that they were adequately housed and would not be looking to move to alternative accommodation within the next 3 years accounted for 772 of the 806 returns. Only 34 returns had a qualifying affordable housing need. There were 4 returns having an open market housing need.
Concentrating on the needs within the next 3 years the suggestion for homes in the Parish is as follows -
“This suggested requirement of up to a maximum of 30 affordable rented and shared ownership homes will meet the current housing need for those who, being in housing need and wishing to stay within the parish of Groby, are unable to secure a suitable affordable home,” the report concludes. “However a rural exception site would not normally be larger than 10 properties, so the need will most probably be met over a number of sites.”
This is, of course, a draft report and the figures may be subject to change in the light of further community consultation.
April 2013
A three year search by the Rural Housing Enabler for land in Groby suitable for a small development of affordable housing failed to find a suitable site in 2010, but there has now been a new survey to assess current needs. The 800 questionnaires returned are now being analysed.
October 2010
This month marks the third anniversary of the decision by the Parish Council to approve the findings and recommendations of the Groby Affordable Housing Survey undertaken by Richard Windley, the local Rural Housing Enabler. Affordable housing can best be described as non-market housing provided to those whose needs are not met by the market. It can include both social rented and shared equity housing.
Affordability has been defined with regard to the availability of housing for purchase at no more than 3.5 to 4 times rural earnings. Groby had grown from a village of less than 2,000 in 1951 to a population of around 7,000, but still fell within the definition of a rural area with less than 10,000 residents for the purposes of the survey.
Purpose of the survey
The purpose of the survey was to identify the need for affordable housing in Groby and to establish just what type and tenure of housing would be appropriate. Richard’s report concluded that Groby needed to find a site to build a new development of up to 24 affordable homes to help residents who cannot afford accommodation locally to stay in the village, or those with a strong local connection to return. The recommendation was that development would be mainly 2 bedroom units, with 21 of the homes rented and 3 on a shared ownership basis. At the time of the survey many were having to share homes with their family or friends. Such a development would help meet the need for affordable housing at a time when house prices locally are out of reach of many home buyers.
The decision to proceed was a significant milestone in the process for Richard who remains an enthusiastic and energetic advocate of affordable housing. Without it he could not start the search for suitable sites or funding, and he had hoped to put a proposal to Groby Parish Council by the end of 2008.
Search for land fails
But three years on Richard's search for what is known as a 'rural exception site', land on the edge of the village which would not normally be given planning permission for development, has been unsuccessful. As a result there is little prospect of a scheme being put together.
“Despite rigorous searches by me, the Parish Council and Val Bunting from Hinckley and Bosworth BC (Housing Strategy & Enabling Officer) we have been unable to locate a suitable site in the parish with a willing vendor for rural affordable homes - a Rural Exception Site,” said Richard. “Hinckley and Bosworth Borough Council have a local connection clause in their S106 policies which means that if there was an open market development in the parish local people could be given priority. I think this is the best chance there is in Groby to provide affordable homes.”
He added that his survey is now out of date and would need to be redone if that is the wish of the Parish Council, adding that any new survey would probably be done to demonstrate housing need on an open market development site not for a rural exception site. October 2010
2007
Local residents struggling to meet open market rents or buy a property in Groby are a step nearer to finding an affordable home in the village. This follows the decision taken by the Parish Council to accept the findings of the report on housing needs prepared in 2006 by Richard Windley, the Leicestershire and Rutland Rural Housing Enabler. Richard has already delivered several similar developments in other Leicestershire parishes.
Purpose of the survey
The purpose of the survey was to identify the need for affordable housing in Groby and to establish just what type and tenure of housing would be appropriate. Richard’s report concluded that Groby needs to find a site to build a new development of up to 24 affordable homes to help residents who cannot afford accommodation locally to stay in the village, or those with a strong local connection to return. Many are currently having to share homes with their family or friends.
If suitable land and funding can be put in place the recommended development would be mainly of 2 bedroom units for rent, with a few available on a shared ownership basis. Such a development would help meet the need for affordable housing for the next couple of years at a time when house prices locally climb out of reach of many home buyers.
No committment
Members were told that to accept the report is only to accept its findings and were assured that the Council was not committing itself to supporting any specific scheme. The decision is a significant milestone in the process for Richard who is an enthusiastic and energetic advocate of affordable housing. Without it he cannot start the search for suitable sites or funding. He can now progress this scheme, liaising closely with the Parish Council at each stage, ensuring it was always in the best interest of parishioners.
The right to object
If as a last resort he had no option other than to put forward a contentious site the Council would have the right to object to the planning application in the same way they could for any other housing development. “In any event if the residents of Groby were set against a particular site I don’t think the Housing Corporation would support it with social housing grant ,” said Richard. This would stop any scheme as,without grant no project could be made viable. The Chairman told members that the decision gives the opportunity for builders to be aware that affordable housing is needed in Groby and that the Council supports the principle of rural exception sites.
First published in the Groby Spotlight in November 2007
What is affordable housing?
Broadly speaking affordable housing is non-market housing provided to those whose needs are not met by the market. It can include both social rented and shared equity housing. The recommendation is that 21 of the homes on the proposed Groby development will be rented with 3 on a shared ownership basis.
Affordability has been defined with regard to the availability of housing for purchase at no more than 3.5 to 4 times rural earnings. Groby has grown from a village of less than 2,000 in 1951 to a population of around 7,000, but still falls within the definition of a rural area as it has less than 10,000 residents.
Affordable Rural Housing Commission
Growing concern about the shortage of affordable housing for rural communities led to the setting up of the Affordable Rural Housing Commission(ARHC) in 2005. The ARHC concluded there was a need to significantly increase both social rented housing and low cost home ownership in rural areas and estimated that these areas needed 11,000 new affordable homes a year.
Right to Buy policy
The Commission found that in the 25 years after 1980 around a third of the local authority housing stock in urban, rural and mixed areas was lost to the private house market because of the Right to Buy policy. In addition the report said that average house prices have risen faster in rural areas and first time buyer homes are 12% higher than in urban areas. Press reports on figures issued by the Royal Institution of Chartered Surveyors recently show that property prices have risen three times faster than salaries in the last 10 years and poorer families now have to save almost a year’s salary to have enough for a deposit and stamp duty.