HOUSING DEVELOPMENT STRATEGY 2021 2030
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HOUSING DEVELOPMENT STR ATEGY
2021 - 2030
HOUSING DEVELOPMENT STRATEGY 2021 - 2030 1
CONTENTS
H E A LT H Y H O M E S
GOOD FOR PEOPLE AND THE PLANET
OUR VISION IS TO CREATE Executive Summary......................................................................... 4
HEALTHY HOMES
Purpose of the strategy................................................................... 6
The Challenges............................................................................... 7
INTRODUCTION
GOOD FOR PEOPLE AND THE PLANET What are we seeking to achieve?.................................................... 8
RESPONDING
T O T H E C L I M AT E E M E R G E N C Y
The Council Plan objectives............................................................. 9
Design objectives to meet the challenges of climate change.......... 10
DEVELOPMENT OBJECTIVES
The Housing Strategy priorities...................................................... 12
Design standards.......................................................................... 13
D E L I V E R Y C A PA C I T Y
Development sites......................................................................... 16
The Housing Company.................................................................. 16
W H AT A N D W H E R E
WE INTEND TO BUILD
New build..................................................................................... 17
Acquiring Land and Properties...................................................... 18
Acquisitions.................................................................................. 18
Partnerships.................................................................................. 19
Procurement and Contract Management...................................... 19
AFFORDABILITY AND THE
I M P A C T O N V I A B I L I T Y ......................................... 20
DETERMINING SCHEME
VIABILITY AND RISK
Governance.................................................................................. 22
Project criteria............................................................................... 23
COUNCILLOR
Emerging costs............................................................................. 24
KELSIE LEARNEY,
Cabinet Member for Housing and Asset Management
R E S O U R C E S ..................................................................... 25
O T H E R C O U N C I L I N V E S T M E N T .................... 26
Winchester is a great place to live, but also an expensive designing and building new homes to achieve as close to To step up delivery we will assess potential sites
place to find a home. Good quality affordable housing is net zero as possible. for our own council developments. We will also C O M M U N I C A T I O N , C O N S U LT A T I O N
crucial to enable people of all ages and incomes to enjoy seek out opportunities to purchase suitable land A N D T E N A N T I N V O LV E M E N T ......................... 27
Residents’ health and well-being is the focus of design for
living in the district – providing ‘Homes for All’ and creating and acquire existing properties – and use these
new homes. We plan to create beautiful, high quality homes
cohesive communities. partnerships to influence principles of design and R E V I E W ................................................................................ 28
that are healthy and comfortable to live in and economic to
sustainability across the district.
Since the council embarked on a programme of building run, and which residents are proud to call home. Carefully
council homes, we have built nearly 300 new homes with designed green spaces around the homes will provide This strategy sets out our commitment to achieving
R E F E R E N C E S ................................................................... 30
many more in the pipeline. And we have acquired or recreational opportunities for people to come together and our ambitious target to provide 1000 new homes APPENDIX
converted more than 60 dwellings. to create communities. over the next 10 years; building beautiful, healthy
homes which are energy efficient and affordable Appendix 1 - Case Studies............................................................ 31
Our ambitious target to provide 1000 new homes over the Our most pressing challenge is to find suitable sites for Appendix 2 - New build Properties................................................ 37
to run; and providing a leadership role to other
next 10 years is about more than increasing the number development in the areas of greatest housing need. And
house builders to construct high quality Appendix 3 - Procurement and Contract Management................. 38
of affordable homes to meet increasing housing need. whilst we are determined to build high quality, low carbon
housing to provide residents with a place Appendix 4 - Viability Appraisal assumption criteria....................... 39
We also have bold ambitions to mitigate the climate homes, we must ensure they provide value for money and
which they are proud to call home.
emergency through our house building programme by are financially viable.
2 Winchester City Council
EXECUTIVE SUMMARY
Healthy homes – good for people and the planet
The target is to build 1,000 new homes across the district
between 2021 and 2030 with the following priorities:
• To address the climate emergency by • To create housing that people choose to live
designing new homes to deliver as close to in and are proud to call home
net zero carbon as possible
• To ensure value for money and bench
• To build beautiful, high quality, healthy and marked build costs
affordable homes to meet identified needs
HOMES
FOR
ALL
The greatest challenge is LAND
AVAILABILITY as without a site there is The design of new homes will also We will consider using Modern market However in order to
improve the natural environment; Methods of Construction during the meet the 1,000 home target the
no project. A secondary challenge is the reduce fuel poverty; and improve development of the design, particularly council will consider acquiring land
tension between COST AND QUALITY. health, wellbeing and comfort. We will for larger projects, where viable. on the open market. The council
aim to achieve the Passivhaus standard will also continue to work directly or
‘Homes for all’ is one of the 5 priorities We will maintain a rolling programme
for new homes, the most reliable way by partnering with developers and A
of the refreshed Council Plan 2020- of development opportunities for
to achieve net zero carbon. contractors to provide new affordable number
25 with the aim around 100 additional homes per
homes. of funding sources
that all homes are We will build high quality, beautiful annum. The sites will range from large
energy efficient and new homes in which people choose sites sufficient for 50 to 100 new Further housing stock can be added are available, including Right to Buy
affordable to run. to live and are proud to call home, dwellings to small sites, often garage via the purchase of existing properties (1-4-1 receipts), sales income from
The key issues we will creating a sense of place which in turn sites for between 2 and 10 homes. particularly stock that provides shared ownership, Homes England
consider to ensure this helps to foster a sense of community. additional benefits such as large grant, Section 106 receipts and loan
A variety of types, sizes and tenures of funding.
and to move the energy We will build new homes which also gardens in which further new homes
home will be built to meet the range
efficiency towards zero have open green spaces as an integral can be built or a refurbishment to Adequate staff resources are a key
of housing needs identified and to
carbon are: part of developments to: provide additional homes. requirement to enable the council to
create mixed, sustainable communities.
• Close the ‘performance gap’ • Enhance the landscape and Rents are set at 70% open market The financial viability of each scheme deliver the target of 1,000 homes over
between design and built biodiversity and include edible rents; Social rents are available with will be assessed to ensure the 10 years.
performance landscapes significant grant funding; Shared cumulative effect of the programme is We hold a range of public information
• Low-carbon heating systems • Create a hierarchy of spaces ownership homes are currently offered affordable in the context of the wider
such as heat pumps - no new gas and consultation opportunities during
• Provide footpaths and cycle paths at an initial average share of 40%. HRA business plan. the course of development. This
connections
linking with local networks enables us to keep people informed,
• Ultra-high levels of fabric efficiency The majority of new development will Each project will be assessed to ensure
to minimise energy usage • Use sustainable urban drainage and continue to be on council land as this it meets the aims of this Development gain feedback on the designs and
other features to mitigate extreme incorporate suggestions where
• Mitigate overheating risk by design/ is both quicker and more affordable Strategy, has been risk assessed and is
weather appropriate.
orientation and passive cooling than acquiring land from the private financially viable, meeting the key criteria.
4 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 5
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HEALTHY HOMES HEALTHY HOMES
GOOD FOR PEOPLE AND THE PLANET GOOD FOR PEOPLE AND THE PLANET
PURPOSE OF THE STRATEGY - THE CHALLENGES
WHAT ARE WE SEEKING TO ACHIEVE? COST TENSION QUALITY
ACTION POINT
Our Priorities By
• To address the climate emergency
by designing new homes to deliver
meet identified needs
• To create housing that people
2030 The challenges in achieving this target
include:
The project team led by the New
Homes Delivery Team includes
as well as impact on the availability of
labour on sites.
as close to net zero carbon as choose to live in and are proud to
we plan to have completed colleagues from other departments
• Land – this is the greatest challenge New legislation and guidance can
possible
1,000 new
call home as without a site there is no project and external consultants. Colleagues
cause challenges to projects e.g. the
• To build beautiful, high quality, from other teams may have other
• To ensure value for money and • Resource provision – the project new model of shared ownership to
healthy and affordable homes to bench marked build costs affordable healthy homes priorities and may be working
be introduced in 2021, allows as low
team including colleagues in on different timescales; financial
other departments and external as 10% initial share and staircasing at
resources are less challenging as the
consultants; 1% and repairs to be undertaken by
HRA is able to fund the scale of new
• Financial resources – The 2021- the landlord for the first 10 years. This
homes projects required over the
22 HRA Business Plan has been model is designed to make ownership
next 10 years through the proposed
constructed around providing the more accessible but will be an added
HRA Business plan, largely funded
required funding to deliver this pressure on viability and staff resources.
through prudential borrowing, shared
target and remains both sustainable ownership sales and affordable rents.
and viable.
There is a tension between cost
• Tension between cost and quality -
the Winchester brand is high quality and quality. The cost of achieving
and low carbon but these add cost zero carbon homes – either AECB
and challenge financial viability (Association for Environment
Conscious Building) or Passivhaus
• Nitrate neutrality – either finding
standards is 10-20% higher than
suitable land or paying into projects
simply meeting building regulations,
to mitigate increased nitrates
but there are significant long term
caused by new development
savings for residents and the council,
• Procurement – must be appropriate as the homes are built to higher
‘Homes for all’ is one of the council’s New homes will contribute to the England funding. Some homes will to encourage contractor appetite performance standards. Other costs
main priorities set out in the refreshed council’s Carbon Neutrality Plan be delivered through the Housing • Covid19 – lockdowns cause delays such as the cost of nitrates mitigation,
Council Plan 2020-25 – objectives 2020-30 – ‘All new council homes Company. to projects and supply chain issues infrastructure costs such as electric sub
include ‘building significantly more will be built to the highest efficiency • Brexit –may cause delays, supply stations or connecting in rural areas and
All schemes will be assessed against
homes ourselves, and using the standards by 2024’. chain issues, availability of materials abnormal costs can impact on viability.
the agreed viability criteria. They
new Winchester Housing Company and availability of construction staff
They will be built to high quality will be project managed by the New The procurement process must be
to deliver a wide range of housing
standards following the 10 Homes Delivery Team with input from • Impact of new legislation and appropriate to encourage contractor
tenures to meet local needs’
characteristics of a well-designed colleagues in the planning, natural guidance appetite including the right size
The New Homes Delivery Team has place set out in the National Design environment, finance, legal, estates, Without land there is no project. This of contractor - small and medium
a target to build 1,000 new homes Guide, 2019 and will provide healthy housing and property services teams, is the most critical challenge, but the contractors for small projects, the use
between 2021 and 2030. These will environments indoors and outside. as well as external land must also be located in the areas of frameworks such as the Southern
predominantly be affordable homes, consultants. of greatest housing need. Good size Construction Framework for larger
Most homes will be delivered through
either rented or shared ownership, and relatively easy to develop HRA projects.
the Housing Revenue Account (HRA)
built across the Winchester district, sites have already been developed.
under prudential borrowing from the Projects may be delayed by a range
including areas inside the South General Fund sites need to be explored.
Public Works Loan Board and funding of issues but particularly the impact
Downs National Park, to meet the We can and do bid for other sites but
from right to buy receipts or Homes of Covid19 with a reduced site team
housing needs of its residents. it’s difficult to compete with private and supply chain issues. Brexit is also
developers and housing associations expected to cause delays to the supply
and timescales are out of our control. chain and the availability of materials
6 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 7
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1. INTRODUCTION 2. RESPONDING TO THE CLIMATE EMERGENCY
What are we seeking to achieve?
Winchester City Council owns over
5,000 council houses and flats
The 30 year HRA business plan is
regularly reviewed to assess the
THE COUNCIL PLAN OBJECTIVES
providing a variety of good quality amount the council can spend on
homes for our tenants. Since HRA Self new homes and this is approved TACKLING THE CLIMATE EMERGENCY AND CREATING A GREENER DISTRICT
Financing which commenced in 2012, annually by the Cabinet. The
A carbon neutral organisation by 2024 and carbon neutral district by 2030
the council has had the ability to build business plan gives the council
new housing. But borrowing capacity a clear strategy for borrowing
was constrained by the statutory HRA to limit financial exposure
borrowing cap. and accelerate new homes WE WILL ENSURE THAT WE Winchester City Council has declared a
development whilst
In October 2018 this borrowing cap
was abolished and there is no longer a
ensuring that the HRA DELIVER HIGH QUALITY, ENERGY climate emergency and has prioritised
remains financially viable housing as a sector of key importance
restriction placed on the level of loan
and sustainable. EFFICIENT, AFFORDABLE HOMES to contribute to the council’s ambition
funding, and subject to the ability to of making the activities of Winchester
cover loan interest payments within In the Housing Development IN A COST EFFECTIVE WAY City Council carbon neutral by 2024
the HRA business plan the HRA has the Strategy 2021– 2030 we set and its aim to achieve the same
ability to borrow prudentially. This has out what the council intends to position for the district by 2030.
created the opportunity for the council build, for whom, and how we will
to realise local ambitions with a target ensure that we deliver high quality,
to build 1,000 new homes by 2030. energy efficient, affordable homes in a
cost effective way. We will set out our
The Council Plan 2020-25 has an
overall aims for the next ten years and
overarching priority to tackle the
what added value and initiatives our
climate emergency and create a
development programme can bring to
greener district. ‘Homes for all’ is one
the local environment and economy.
of the 5 priorities with the aim that
The Strategy will form the framework
all homes are energy efficient and
within which the council will
affordable to run.
evaluate development opportunities
and decide whether to proceed Council Plan 2020-25 Carbon Neutrality Plan 2020-30 Committee on Climate Change
with a project.
The design of new homes will make The council’s Carbon Neutrality Plan The Committee on Climate Change’s
a significant contribution to the 2020-30 ii says: report ‘UK housing: Fit for the future?’
refreshed Council Plan 2020-25 published in February 2019 iii says:
All homes to be 2021 EDITION
All new council WINCHESTER CLIMATE EMERGENCY
CARBON NEUTRALITY ACTION PLAN
‘New homes must UK housing: Fit for the future?
energy efficient and homes will be be built to be low-
COUNCIL PLAN 2020 - 2030
2020 - 2025 Committee on Climate Change
February 2019
affordable to run built to the carbon, energy and
highest efficiency water efficient and
Move the energy standards by climate resilient. The
efficiency of new
THIS STRATEGY WILL
1
2024 costs of building
and existing homes
To develop a council led pilot to a specification
EVOLVE AND WILL BE towards zero carbon 1
Passivhaus housing scheme in that achieves the
aims set out in this report are not
FORMALLY REVIEWED Micheldever by 2021
prohibitive, and getting design right
EVERY 12 MONTHS from the outset is vastly cheaper
than forcing retrofit later. From 2025
at the latest, no new homes should
be connected to the gas grid. They
should instead be heated through
low carbon sources, have ultra-high
levels of energy efficiency alongside
appropriate ventilation and, where
possible, be timber-framed.’
ii, iii Please refer to the references on page 30
8 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 9
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2. RESPONDING TO THE CLIMATE EMERGENCY 2. RESPONDING TO THE CLIMATE EMERGENCY
DESIGN OBJECTIVES TO MEET THE We will undertake an energy feasibility
study and a cost benefit analysis for
Standard Assessment
CHALLENGES OF CLIMATE CHANGE each new project to consider the Procedure rating
ACTION POINTS options regarding energy efficiency We will aim to achieve Standard ACTION POINTS
0
and carbon emissions. This will include Assessment Procedure (SAP) rating
The key issues we will address to the passivhaus and AECB (Association 100, equivalent to Energy Performance
ensure all new homes are energy Close the ‘performance We will aim to achieve the
for Environment Conscious Building) Certificate (EPC) A. We will ensure
efficient and affordable to run and to gap’ between how homes Passivhaus standard for new
building standards both of which that all new council homes achieve
move the energy efficiency towards are designed and how they homes as this is the most
significantly reduce energy required a SAP rating of at least 86 which is
zero carbon are: actually perform when built reliable way to achieve net
for heating and therefore carbon equivalent to EPC B. This is in line with zero carbon.
a. Close the ‘performance gap’ between emissions. Homes that achieve these ‘Housing 2050; How UK social housing
how homes are designed and how
they actually perform when built CO² No new homes will connect
to the gas grid. Instead they
will have low-carbon heating
standards also provide healthy,
comfortable homes: warm in winter,
can meet the challenge of climate
change, 2018’. vi
The council will provide a
leadership role to challenge
b. No new homes will connect to the gas cool in summer; sound proofing and
systems such as heat pumps We will also consider embodied carbon volume house builders who
grid. Instead they will have low-carbon are economic for residents to run. In
in the use and reliability of materials, continue to build to minimum
heating systems such as heat pumps
c. New homes will be built to ultra-high % New homes will be built to
ultra-high levels of fabric
addition the mechanical ventilation
required to provide a constant supply of
clean fresh air remove the tiny droplets
in lifecycle costs and the longevity of
building elements.
standards.
levels of fabric efficiency to minimise
efficiency to minimise energy
energy usage that can carry viruses such as Covid 19.
usage
We will also address the following:
d. Assess the risk of overheating at the g. New homes will be resilient to
design stage. Mitigate overheating flood and other extreme weather
risk by design/ orientation and passive events – use of sustainable drainage
cooling – opening windows and systems where possible, together
shading from vegetation or window with retention and provision of green
ROWLINGS
shutters infrastructure/open spaces
e. Reduce the whole life carbon impact h. Include landscape features that
of new homes including embodied improve biodiversity and ecology such
and sequestered carbon, for example as making provision for hedgehog
using wood in construction rather access areas and swift boxes
ROAD
than high carbon materials such i. Scheme design and layouts will
as cement and steel. Timber frame encourage sustainable travel – with
construction systems will be used safe and well lit walking and cycling
where possible routes, easy access to electric vehicle
f. Continue to improve on planning charging points and access
policy requirements for water to public transport
efficiency in new homes where possible.
The design of new homes to reduce
emissions and increase resilience to
climate change will also improve the
Rowlings Road features
natural environment; reduce utility DESIGNING HOMES THAT
bills and therefore fuel poverty;
and improve health, wellbeing and
ARE HEALTHY TO LIVE IN AIR SOURCE
AND AFFORDABLE TO RUN
comfort, including for vulnerable
groups such as elderly people and
HEAT PUMPS FOR
those living with chronic illnesses.
HEATING AND HOT WATER
vi Please refer to the references on page 30
10 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 11
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3. DEVELOPMENT OBJECTIVES 3. DEVELOPMENT OBJECTIVES
THE HOUSING STRATEGY PRIORITIES DESIGN STANDARDS
Our new developments aim to meet The Building Better, Building Beautiful
The Winchester Housing Strategy
high standards of design and create Commission report, published
2017/18 to 2022/23 vii sets out in HOUSING STRATEGY VISION – environments that are attractive, January 2020 says ‘Ask for Beauty:
detail the context within which the
council will develop new homes. This To support the creation of cohesive communities, useable and durable. We will follow We do not see beauty as a cost, to ACTION POINT
the 10 characteristics of a well- be negotiated away once planning
Development Strategy maps out how helping everyone in the district to have a choice designed place set out in the National permission has been obtained.
new council homes will help to meet We will follow the 10
some of the objectives of the strategy.
of high quality housing to meet their needs. Design Guide published by the It is the benchmark that all new
characteristics of a well-
MCHLG in October 2019 viii. The Guide developments should meet. It includes
designed place set out in the
emphasises good design and beauty. everything that promotes a healthy
National Design Guide
and happy life, everything that makes
The Social Housing White Paper
a collection of buildings into a place,
published November 2020 says that
everything that turns anywhere into
creating beautiful homes and a sense
somewhere, and nowhere into home.
l-designed pla
The Winchester District Housing Our primary objective is to provide
Introducing the tenWe will also provide housing to meet
characteristics of place helps to foster a sense of
Strategy Priorities new homes for those on the housing identified needs not necessarily on the
e l
community. Beauty should be an
So understood beauty should be an
Aw ce
36
registers - both for rented Well-designed
housing placesregisters,
housing have individual
as set out in priority aspiration for all new
essential condition for the
1. To accelerate and to maximise
the supply of high quality (Hampshire Home Choicecharacteristics
register) and which work together
1, objective 7: to developments,
grant of planning
shared ownership (Helpcreate its physical Character.
to Buy register). The tenapproach to permission.’
affordable housing across the ‘Adopt an innovative regardless of
district characteristics
Wherever possible we will create help
new affordableand
to nurture sustain
housing a
provision, tenure.
2. To improve the housing new homes that aresense ofthose
suited to Community. Theyexploring
including work tothe positively
opportunities
i f esp
an Cont
ext C
with particular needsaddress
which areenvironmental L
circumstances of vulnerable and not issues
for shared affecting
ownership housing, modern
Introducing the ten characteristics viii
h
e
currently being met, including extra methods of construction, community
excluded households Climate. They all contribute towards the es
I
a
Made to last Enhances the
at
care housing for older people and led housing, custom/self building Well-designed places have individual
cross-cutting themes for good design set out
de
ra
surroundings
c
3. To support local people to access
ur
housing for downsizers. and housing types to meet specific characteristics which work together to create
nt
high quality and affordable in the National Planning Policy Framework.
m
so
ity
markets, such as, supported housing its physical Character. The ten characteristics
ct
housing which meets their needs By this more specific targeting of
Re
Efficient and Attractive and
(including extra care andPart
for those help to nurture and sustain a sense of
housing need we aim not The ten characteristics set out in 2
Cli
37 only to resilient distinctive
4. To make best use of housing with a learning disability), students, Community. They work to positively address
er
provide housing which are:might not
downsizers, sharers & young newly environmental issues affecting Climate. They
Homes and
5. To engage with residents and
buildings
otherwise be available, but also to
B u il t fo r m
create cohesive communities ■ Context – enhances forming the surroundings.
households’. A coherent all contribute towards the cross-cutting
‘free up’ housing suitable for people Functional, healthy pattern of
and sustainable themes for good design set out in he
■ Identity
with no specific requirement other – attractive and distinctive. development
National Planning Policy Framework.
than affordability.
■ Built form – a coherent pattern of Accessible and
Context Public spaces
development. Mixed and easy to move enhances the safe, social and
integrated around surroundings. inclusive.
t
en
■ Movement – accessible and easy to
Identity Uses
Us
em
Enhanced
move around.
es
Safe, social and attractive and mixed and integrated.
ov
and inclusive optimised M distinctive.
■ Nature – enhanced and optimised. Homes and buildings
Pu Built form functional healthy and
Public spaces – safe, social and inclusive. sp blic ure
Nat
■
ace a coherent pattern sustainable.
s
Uses – mixed and integrated. Co y of development.
m m u nit
■ Resources
We will EXPLORING
CREATE NEW HOMES HOUSING
Specific targeting■of Homes and buildings OPPORTUNITIES
– functional, healthy Movement efficient and resilient.
that are suited to those HOUSING NEED including older for shared ownership, extra care, accessible and easy
WITH PARTICULAR NEEDS and
people, to FREE UP FAMILYsustainable. students, downsizers, sharers & to move around.
Lifespan
which are not currently being met HOUSING for those who need it young newly forming households made to last.
■ Resources – efficient and resilient. The ten characteristics of well-designed places Nature
■ Lifespan – made to last. enhanced and
optimised.
vii, viii Please refer to the references on page 30
12 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 13
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ACTION POINT
We will consider the following We want to leave a lasting and
factors when designing the external positive legacy from the council house We will promote the use
environment building programme of well designed, of Modern Methods of
3. DEVELOPMENT OBJECTIVES 1. Building with nature to
distinctive and comfortable homes Construction during the
which help to create civic pride. development of the design,
complement and enhance the particularly for larger projects
landscape and biodiversity The National Design Guide also says
2. Include edible landscapes to help ‘Well-designed, sustainable places
new communities to engage with with a strong identity give their users,
DESIGN STANDARDS their landscape and create a sense occupiers and owners a sense of
pride, helping to create and sustain
of ownership
communities and neighbourhoods’.
3. Create a hierarchy of spaces with
useable spaces which are private - The Social Housing White Paper notes
The district is varied in its character. We will build healthy, comfortable, Both the Design Guide and the including balconies, semi-private, the importance of good design of
New homes will be designed to create beautiful homes with the following Building Better, Building Beautiful and public social housing in preventing poor Modern Methods of
a sense of place that responds to its features to optimise health and Commission (BBBBC) report emphasise perceptions and stigma.
local context and local distinctiveness wellbeing: the importance of designing open
4. Provision of footpaths and cycle Construction (MMC)
paths linking with local networks to From the projects we have completed
in terms of layout, scale, form, green spaces as an integral part encourage walking and cycling New construction techniques may
1. Economic to run for residents to date, the council has created a
space and materials. Homes will of developments to aid health, contribute towards improving
2. Low heating requirement to 5. Use sustainable urban drainage, trusted reputation for providing high
be designed to connect seamlessly sustainability and biodiversity and the efficiency, productivity and the quality
address fuel poverty rain water planters and other quality, distinctive new homes in which
to the surrounding development report encourages street trees and of new homes and buildings. These
features to mitigate more extreme people choose to live and are proud to
and integrate with landscapes and 3. Protection from noise: soundproof urban orchards, suggesting a new fruit include the off-site manufacture of
weather call home.
the natural environment. They will with double or triple glazing tree for each new home. buildings and components using
create safe, attractive, accessible See Symonds Close case study in innovative and smart technologies,
The National Design Guide says ‘Good
4. Good ventilation to maintain a Well defined, easily accessible and safe appendix 1
environments and, where appropriate, design promotes quality of life for the supported by digital infrastructure.
constant comfortable temperature green spaces are important for exercise
they will seek opportunities to enhance occupants and users of buildings. This They offer the potential to reduce
and to minimise the impact of and maintaining mental wellbeing,
the public realm. includes function – buildings should be whole life costs are better at reducing
building contaminants which is particularly important for
easy to use. It also includes comfort, the performance gap than traditional
Our new council homes will meet 5. Good air quality to address health residents without private gardens;
safety, security, amenity, accessibility methods and enable users to
National Minimum Space Standards issues, particularly asthma and by providing attractive areas to
and adaptability. customise the products. We
and will be designed to be accessible meet, they help to create cohesive and
6. Appropriate size windows to will consider these techniques
and adaptable (Building Regulation sustainable communities. Well designed homes and buildings
provide good natural lighting during the development of
part M4(2)) to meet the requirements are efficient and cost effective to run.
the design, particularly for
of people with mobility issues and to 7. Designs to prevent They help to reduce greenhouse gas
larger projects where there are
provide a lifetime home, adaptable overheating Winnall Flats emissions by incorporating features
economies of scale and benefits
as needs change, unless there is a that encourage sustainable lifestyles.
of faster construction, less
particular reason this is not achievable. They maximise natural ventilation,
disruption to existing residents
They will also be designed to meet avoid overheating, minimise sound
and less likely to suffer from
‘Secured by Design’ principles to design pollution and have good air quality’.
critical labour shortages.
out crime and anti-social behaviour.
New Homes
New Pocket Park
New Homes
ACTION POINT
We will build healthy, comfortable, beautiful homes with features to optimise
health and wellbeing. Where possible we will provide easily accessible and
safe green spaces, important for health and sustaining cohesive communities
14 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 15
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4. DELIVERY CAPACITY 5. WHAT AND WHERE WE INTEND TO BUILD
The target for the council’s New Support is required from other teams New build
Homes Delivery Programme is to build including – Finance, Legal, Estates, The Winchester Housing Strategy discounted market sale, market
1,000 new homes in the period 2021 Planning, Landscapes & Ecology, notes that ‘While homes for Affordable sale and sub market rent (managed
to 2030, which equates to a rolling Housing and Property Services. Rent are of the highest priority, in through the Housing Company).
programme of approximately 100 new
The New Homes Delivery Team order to meet other needs and create Providing a mixture of tenures can ACTION POINT
homes per annum. cohesive communities it is important help to create mixed, sustainable
appoints specialist consultants for
New council homes schemes are each project including Employer’s to recognise the challenges faced by communities, as well as helping the
New extra care schemes
project managed by the New Homes Agent, Quantity Surveyor, Design those unlikely to secure such a home scheme to be financially viable.
to meet the needs of older
Delivery Team from identification of a Teams, Engineers, Clerk of Works etc or who wish to access intermediate or
Following the successful completion people will be developed in
potential site, through the feasibility low cost home ownership homes, for
and occupation in 2018 of Chesil Winchester and the southern
assessment, the planning process, THE KEY REQUISITE FOR instance shared ownership or other
Lodge, a 52 unit extra care scheme, parishes
tender, construction, completion and NEW HOMES IS LAND parts of the rented sector.’
which includes shared ownership
handover. We will build a variety of dwelling and open market sale as well as
types and sizes to meet the range of affordable rented apartments, the
housing needs identified. However council will retain a particular focus
the priority will be to provide smaller to develop attractive, suitable homes
family houses and flats to meet the for older people, including extra care
Development sites The Housing Company high levels of need on the housing apartments. This may enable older
We will maintain a rolling programme The council is establishing a wholly registers and to enable current tenants people to move out of a larger property
of realistic development opportunities owned Housing Company to support to downsize if they wish to. On of which they are not making full
that we will actively pursue, with the New Homes Delivery Programme. some sites, the council may seek to use, including council properties. See
sufficient sites for around 100 The company is not intended as an provide homes for shared ownership, appendix 1 for Chesil Lodge case study.
additional houses or flats per annum investment vehicle and has a more
to contribute to our overall target of social purpose, with the aim of
1,000 homes in 10 years. supporting additional, predominantly
“sub market” tenures rather than
The sites will range from large sites
social tenancies.
sufficient for 50 to 100 new dwellings
or more, to small sites, often garage The company will not support the
sites, suitable for between 2 and 10 actual delivery of more homes –
homes. Some of these sites may not funding development through the HRA
ultimately be developed and other sites is far more cost effective. However, the
will be put forward to replace them. company will be able to buy or lease
homes developed through the HRA
The council has a corporate
programme and let them on shorter
responsibility to ensure that it is
making best use of its own assets.
term tenancies (albeit longer than typical
private sector tenancies). It will specifically
VICTORIA
Most of the projects the council
has developed to date are built on
support the council’s “Homes for All”
priority and support the provision of
COURT
council owned land and we expect
housing for residents just outside of
to continue to develop homes on our
the council’s waiting list priorities.
land to add supply to our own housing
stock and to replace stock lost through
An
e
the right to buy scheme. The council
tim
d
will therefore identify a pipeline of
ACTION POINT
to
pr
ht
sites which will include undertaking ov rig
strategic reviews of areas where there id he
The council will identify a pipeline of sites which will include ea tt
are significant council land holdings, he a
both general fund and HRA land, undertaking a strategic review of general fund and HRA land lpf
ul tr ho me
including areas of council housing. ansition to the right
16 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 17
BA CK
Procurement and Contract
Partnerships Management
Effective procurement ensuring that
5. WHAT AND WHERE WE INTEND TO BUILD Winchester City Council has strong
established links with other Registered
a developer on a Section 106 site,
for instance where no other RP has best value is achieved in accordance
Providers (RPs) that make a significant expressed a wish to acquire them. with internal and external regulations
contribution to housing supply in Encouragement will be given to RPs is vital. However given the importance
the district. It is important that this to work with Community Land Trusts of the quality and longevity of new
continues and it is not the council’s (where established) especially with the homes referred to throughout this
intention to compete for sites with provision of housing in rural areas. strategy, procurement documents
Acquiring Land and other RPs. The council intends to will ensure good design and building
Properties continue to work alongside our partners
Other partnership opportunities have quality is valued as well as price.
been offered to and encouraged by
The HRA Business Plan has been develop. It will therefore be important and offer a complementary approach to
the council. These include partnerships Alongside procurement is the need
reviewed and refreshed and the need to continue to explore the potential of the delivery of affordable homes.
with Homes England, Hampshire for effective contract management;
to deliver 1000 new homes remodelled other land, including land held in the Registered providers will continue County Council, RPs and Developers. that contracts are maximised to ensure
to provide the necessary capital council’s general fund to contribute to provide a vital role in delivering Developing partnerships with these operational and financial performance
funding to deliver the 1000 homes towards improving supply. The council the affordable homes via Section organisations is an important priority and minimise risk.
target with a significant resource will consider acquiring land on the 106 planning obligations and other as they will have access to, or own See appendix 3
(£238.5m) available over the next 10 open market or by negotiation in order opportunities brought to, and land suitable for affordable housing. By for details of the
years to accelerate delivery. Included to ensure the supply of new homes. identified by them. They supply combining land and financial strengths, process
within this sum is a figure of £10m for The council will also negotiate with affordable rented and intermediate development sites can be brought
site acquisition. developers or contractors to provide tenures primarily shared ownership, forward in a timely way thus accelerating
new affordable homes through a and in some cases market properties the supply of affordable homes.
New development will usually provide
purchase agreement, particularly where this supports other affordable
best value for money if it takes place
where other community benefits form ACTION POINTS The council will continue to seek or
on council owned land. To date most housing provision.
part of the package. An example of respond to partnership opportunities,
of the development has been on land Where a developer has an obligation including Joint Ventures in which both
this approach is the 35 new homes The council will seek
which is already held for housing to provide affordable homes under a the risk and the reward are shared. The
at Top Field, Kings Worthy which also opportunities to acquire land
purposes and this is likely to continue. Section 106 planning obligation the council will use these opportunities
provides a large area of open space on the open market or by
There is however a finite supply of council will encourage them to work to increase design and sustainability
to meet community aspirations. See negotiation with developers
suitable sites and those that remain are with another registered provider. Only standards across the whole site.
appendix 1 for case study. to ensure the supply of new
increasingly difficult and expensive to in exceptional circumstances will the
homes
council consider acquiring units from
We will purchase existing The four guiding principles, form the key elements of
Acquisitions stock to let or develop if the the council’s Procurement and Contract Management
Further housing stock can be added The council has some housing stock, properties can meet the Strategy 2020 - 2025:
via the purchase of existing properties such as existing bedsits, which are council’s requirements and
acquisition is proven to be
to use as council homes. These will
be considered where the properties
not easy to let and which could be
converted to create larger units. In financially viable
VALUE
some cases it may be more financially
can meet the council’s requirements
viable to demolish and rebuild, such The council will continue to
COMPLIANCE
and acquisition is proven to be
financially viable. They may be new as the Victoria House bedsits which seek or respond to partnership ENVIRONMENTAL AND SOCIAL
homes completed by a developer and were demolished and replaced with opportunities, including Joint
offered to the council. Whilst in some an equivalent number of spacious, Ventures in which both the risk FAIRNESS
circumstances this may be appropriate, attractively designed flats meeting and the reward are shared.
homes acquired in this way are unlikely high sustainability standards. See The council will use these
to contribute towards the net zero appendix 1 for case study opportunities to increase
carbon targets, and may not meet the design and sustainability
The council may also extend
high quality objectives set out in this standards across the whole site
properties or convert non-residential
strategy. They are likely to cost more buildings to form dwellings. These
as they will be bought at market value. We will negotiate purchase
may be funded from the new homes
agreements with developers
Acquisitions will also include the purchase programme if they create new housing
or contractors to provide new
of former council properties bought opportunities. Corner House is an
affordable homes, particularly
through right to buy. In these cases we example of a former public house
where other community benefits
will prioritise the purchase of existing stock which was purchased by the council
HOOK PIT
form part of the package
that provides additional benefits such as to convert to affordable homes. See
large gardens in which further new homes appendix 1 for case study.
can be built or a refurbishment to provide
additional homes.
A full list of projects completed and
on site by December 2020 is listed in
appendix 2.
KINGS WORTHY
18 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 19
BA CKIncreases in rental income are In September 2020, MCHLG WE OFFER SHARED
governed by the rent standard 2020 introduced a new shared ownership
OWNERSHIP HOMES
6. AFFORDABILITY AND THE IMPACT ON VIABILITY – 2025 issued by MHCLG. Annual
increases for social and affordable rent
model which will reduce the minimum
initial ownership stake from 25% to at an initial share from as little as
properties are a maximum of CPI + 1% 10% and will enable purchasers to
OVER THE LIFE OF THIS
for 5 years from 2020/21 and revert
to CPI annually thereafter. Rent levels,
including associated service charges,
then buy further shares in smaller
instalments of as little as 1%.
Shared owners, like other
25% TO IMPROVE
AFFORDABILITY
STRATEGY THERE WILL BE
AVERAGE WAIT TIME must not exceed local housing
allowance (LHA) rates, to ensure
homeowners, are currently responsible
for the full cost of any repairs
the combined weekly charge can be
AN INCREASED DEMAND covered by universal credit where
from day one. The new model also
HIGH NEED/PRIORITY LOW introduced a 10-year “repair-free”
FOR ALL TYPES OF applicable.
period during which the landlord will
AFFORDABLE HOUSING Property type Band 2 Band 3 Band 4 We offer shared ownership homes at cover the costs of major repairs for
PROVISION IN WINCHESTER. an initial average share of 40%, but new homes. This model is applicable
1 bed 1 year 3 months 3 years 5 months N/A the initial share can be reduced to from April 2021 for schemes which
The significant and growing 25% in exceptional cases to improve receive Homes England grant.
2 bed flat 1 year 3 months 1 year 10 months N/A
imbalances between housing demand affordability. Shared owners also
and supply continues to exacerbate 2 bed house 1 year 8 months 3 years 5 months N/A pay rent calculated at
the increasing problems of affordability 2.75% of the value of the
in the private sector. 3 bed 2 years 3 years N/A remaining equity. Owners
4+ bed N/A 2 years 1 month N/A can staircase by purchasing
The Strategic Housing Market
additional shares, currently
Assessment (SHMA) undertaken by Age 60+ Properties 11 months 1 year 7 months I year 1 month in tranches of 10%.
Iceni for the council and published
in 2020 concludes that there is 1 April 2019 and 31 March 2020
a substantial need for additional
affordable housing across the The Hampshire Home Choice Annual Winchester area. Where N/A is noted
Winchester district for those who report for 1/4/19-31/3/20 publishes the no properties were offered from this
cannot afford to rent on the open market. above details of the average waiting band. The band represents the level of
There is also a need for affordable times for applicants housed between 1 housing need with band 1 being the
home ownership across all areas. April 2019 and 31 March 2020 for the highest level of need.
To ensure that the HRA business plan rent requirement for new homes is Even at 70% market rents it is likely
can fund the target development of currently 70% of market rent level for that a tenant of a new property may
new homes, it is important that each that area and type of property, subject pay a higher rent than those in a
scheme it funds has been properly to the rent not exceeding the local similar existing council home. However
assessed for financial viability. There housing allowance. This requirement new homes are designed to reduce
must be an acceptable relationship was set by Cabinet (Housing) in June energy requirements and therefore
between the cost of delivering the 2015 to recognise that 80% market fuel bills are likely to be lower, which
housing, taking all costs into account, rents were inaccessible to many people compensates for higher rents. Shared owners, like other homeowners,
and the rental and sales income that in need of affordable housing. We
Social rent is a more affordable option are currently responsible for the full
will be generated. It is necessary to may seek approval for a variation to
for tenants, but due to the rent cost of any repairs from day one.
ensure that the impact of each scheme the rent level for a specific project in
level being considerably lower than
on the business plan is assessed and exceptional circumstances at the final THE NEW MODEL INTRODUCES A
affordable rent, development schemes
understood and that the cumulative business case milestone.
effect of the programme is affordable
The SHMA reinforces this target ‘Iceni
are only financially viable with significant
funding from Homes England grant or
10-YEAR
“REPAIR-FREE”
in the context of the wider HRA
would recommend that rental costs other forms of subsidy.
business plan.
do not exceed Local
Government policy for affordable Housing Allowance levels GOVERNMENT POLICY for affordable
PERIOD
HILLIER
housing expects that the capital cost (which in particular may housing has set a benchmark
80%
of affordable housing should largely require costs to be set
‘affordable rent’ of
be met from the rental and sales below 80% market rents,
income it generates. It has therefore particularly for larger MARKET RENT
significantly reduced the capital grants
available to support new building and
properties); and that they
should take account of The council rent requirement for NEW HOMES is WAY
70%
has set a benchmark ‘affordable rent’ living rents, where these
of MARKET RENT
of 80% of market rent. The council are lower than LHA.’
20 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 21
BA CKACTION POINT
7. DETERMINING SCHEME VIABILITY AND RISK We will continue to monitor
build costs together with their
impact on financial viability
Project criteria
Each project will be assessed to ensure
Governance it meets the following criteria:
Elected Members set the strategic • It meets the aims of this
direction of the development development strategy.
programme at the Council’s Cabinet,
ACTION POINT • It has been adequately risk
which will also take decisions assessed. Building homes involves
necessary to implement the significant risks. This is why market
development programme. Cabinet will Schemes will be recommended for approval if they meet the developers and investors demand
BAILEY
approve the development programme council’s objectives and key financial viability criteria of a high returns in reward for that
within the HRA budget on an annual positive net present value and HRA cashflow viability risk. It will rarely be possible to
basis. We will seek specific Member eliminate risk but it can be assessed
approval generally at two project
milestones: the outline business
and managed. At a high level,
risk management is carried out
CLOSE
case including approval to submit by ensuring that proposals have Five new homes built on
a planning application and to seek a strategic fit with this strategy, a disused site of garages
tenders for construction; and to agree particularly with respect to viability.
the final business case and the build The council’s corporate project and The key metric driving the evaluation
contract for scheme delivery. risk management processes will be process is the Net Present Value (NPV)
used to mitigate detailed risk and model, which determines how much
ensure that projects are progressed the future expected net revenue cash
in a logical sequence to ensure flows from a project are worth today
that the council is not overexposed using a discount factor to represent
to risk. The majority of risks can the cost of capital to the organisation.
be managed through adequate
If an NPV is positive this indicates a
site investigation and ensuring
project’s future net cash flows can
developments meet housing need
payback the initial investment and
locally; are made available at an
affordable rent or shared ownership make a positive contribution, thus
value; and are supported by local demonstrating that the investment is
Members. Risk will be reviewed worth doing. If negative, the project’s
It is regularly. Where a project is future net cash flows are not sufficient
to payback the borrowing and are
RARELY POSSIBLE TO ELIMINATE RISK deemed to have an unacceptable
level of risk it would not be therefore financially not worth doing.
The new build development
programme needs to have the
but it can be recommended for approval.
Schemes will be evaluated on the flexibility to deliver different sized
ASSESSED & MANAGED
• The financial viability is fully basis that they can be considered schemes across the district. As there
assessed and the basis on which it financially viable if the key NPV and are economies of scale with larger
can proceed is properly understood. HRA cashflow viability parameters schemes, small sites may be more
The viability appraisal includes are achieved. The projects that meet expensive to develop, particularly those
the ability to test “what-ifs” and this test will be recommended to the with abnormal costs. However this
examine the various rental streams, Cabinet to progress. Those that are may be offset by the social value they
financial models and provide short bring by replacing an under-used open
not viable will only be recommended
and long term cash flows. space or garage court with new, much
if there are specific circumstances that
The key criteria for determining can justify an exception. needed affordable homes.
scheme viability are set out below:
1. The scheme has a positive Net There are economies of scale with larger schemes,
Present Value (NPV) taking account
of the residual value of the asset SMALL SITES MAY BE MORE EXPENSIVE
2. The HRA can fund the ongoing however this may be offset by the
debt financing costs from net rental
income
3. The HRA Business Plan remains
SOCIAL VALUE THEY BRING
able to cash flow the investment
22 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 23
BA CK8. RESOURCES
7. DETERMINING SCHEME VIABILITY AND RISK
Core Council House Investment
Emerging costs Resources available
When the new homes programme The development of new homes Homes Programme 2021-26 includes In October 2018, the Ministry of Housing, of funding available through the
commenced in 2012 the national by the council will face a number a focus on Modern Methods of Communities & Local Government Affordable Homes Programme.’
economic context was that we of challenges as we strive to meet Construction and has identified the (MHCLG) lifted the debt cap placed on all
Staff resources are a key requirement to
were coming to the end of a major the 1,000 home target. In order for importance of the National Design local authority housing revenue accounts.
enable the council to deliver the target
downturn in construction due to the development to reflect current and Guide, energy efficiency and use of This allows unrestricted prudential
of 1,000 homes over 10 years. The New
financial crisis of 2008/9. This meant emerging issues it is becoming both Small and Medium Enterprise (SME) borrowing from the Public Works Loan
Homes Delivery Team currently comprises
that the council’s early new build more complex and more costly. contractors, all of which will increase Board (PWLB), to the extent that the
7.2 full time equivalent staff working on
schemes comfortably met viability costs and will therefore housing revenue account business plan
Build costs are likely to increase as a projects. This team was established for
assumptions. This quickly changed and be reflected can afford to pay annual interest costs.
result of changes to the decent homes a target programme of 600 new homes
build prices have risen steadily since in the At present a typical Public Works Loan for
standards resulting from the Hackitt over 10 years. Resources need to be
2015 (between 8-10% pa). During this assessment 50 years costs under 2%.
review into Fire Safety, from nitrate reviewed in the light of the revised
period Government policy required process.
neutrality measures and due to the The real constraint on the level of HRA target of 1,000 homes over 10 years.
rents for existing council properties to council’s ambition for zero carbon new resources available for new homes
be reduced at 1% pa. The project team led by New Homes
homes. The Homes England Affordable delivery is the number of schemes that
also includes colleagues from other
are identified and assessed as financially
departments, including Estates, Legal,
viable. The HRA is now able to fund
Finance, Planning, Natural Environment,
these if the borrowing is prudential, ie
Housing Services and Property Services
ACTION POINT
A KEY PRIORITY IN THE This could potentially result in Exeter affordable, sustainable and prudent.
- we are dependent on their resource
an increased initial capital outlay City Council availability to input throughout the We will compile a series of cost
COUNCIL PLAN 2020 – 2025 The Social Housing White Paper, 2020
to design new homes to meet have reduced the says ‘We want to see local authorities development of the project. Appointed benchmark levels to be used as
IS TO ‘ENSURE ALL HOMES standards such as Passivhaus or additional cost to 4-5% compared with a guideline for future appraisals
make the most of borrowing external consultants are part of the team
ARE ENERGY EFFICIENT AECB which minimise energy usage just meeting building regulations. flexibilities and innovate to deliver too including Architects, Landscape
and carbon emissions through high Architects, Engineers, Employer’s
AND AFFORDABLE TO RUN New homes must also address the homes for the future. We are keen
levels of insulation and air tightness, for local authorities to take advantage Agent, Energy Consultant etc.
AND TO MOVE THE ENERGY nitrates neutrality issue through a
mechanical ventilation heat recovery
nitrates mitigation plan as part of the
EFFICIENCY OF NEW AND and renewable energy. These homes
planning application. This will involve
EXISTING HOMES TOWARDS have the potential benefit of reduced
an estimated additional cost for each
Viability Appraisal
ZERO CARBON’.
annual maintenance costs and cheaper
new home of between £3,000 and assumption criteria
energy running costs for residents. We
£7,000 per unit which will be included The initial key development scheme
monitor build costs for all our new
in the project budget. assumption criteria were agreed
homes projects and will monitor new
models of delivery such as Passivhaus As noted, build costs have risen in 2012/13 when the new build
both with regard to build costs and significantly since 2015. Our design development programme commenced
future maintenance and running costs. brief for each project includes a cost and were modified following a review
per square metre as an objective. This by the Informal Policy Group in 2015,
We are able to learn from Passivhaus see CAB2701 (HSG) Rents.
is based on the average build cost
projects completed by other councils
of our projects and any particular The current list of development
and housing providers. Early projects
site constraints. We will continue to appraisal assumption criteria can be
had additional costs of around 20%.
monitor build costs together with their found in appendix 4.
These costs are reducing through
impact on financial viability.
optimised design, efficient construction We are currently compiling a series of
methods and effective supply chains. cost benchmark levels to be used as a
guideline for future appraisals. These
include build cost assumptions, based
Learning from other Passivhaus projects on cost per square metre, and baseline
ASHBURTON
COSTS ARE NOW REDUCING levels for all professional costs, including
design, valuation and planning fees.
ROAD through optimised DESIGN, efficient CONSTRUCTION methods All development appraisals include a
and effective SUPPLY CHAINS
contingency of 5% on build costs and
associated professional fees.
24 Winchester City Council C O NTENTS HOUSING DEVELOPMENT STRATEGY 2021 - 2030 25
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