Agenda item

This report informs the Panel of the current housing situation in the Enterprise Zone and the steps being made to help address housing need to support the delivery of a vibrant and economically sustainable City, whilst continuing to meet general affordable housing need in Bath.

The Divisional Director for Community Regeneration introduced this report alongside the Team Manager for Enabling & Development. He explained that the Council is aiming to maximise Government funding opportunities to help unlock and accelerate delivery of new homes in the City and that this must be balanced against the delivery of around 11,000 new jobs within the Enterprise Zone.

He highlighted three indicators to show the importance of delivering the Enterprise Zone as planned.

• Industrial sites within B&NES currently have a less than 1% vacancy rate.

• Figure of net jobs created in Bath is low. The Core Strategy highlighted a need for 400 net new jobs per year between 2011-2016 in Bath. The latest figures suggest a net gain of 30 per year during that period. This shows the importance of the Enterprise Zone in creating new jobs. Local Government funding has reduced significantly.
• The Enterprise Zone designation allows for the Council to retain 100% of Business Rates and this could equate to around £2m per year from the Bath Quays sites alone.

Councillor Rob Appleyard sought clarification on comments that could be made by members of the Panel who may also have a role on future Development Management Committee meetings involving the Enterprise Zone.

The Divisional Director for Development replied that Councillors must maintain an open mind regarding applications and not comment in such a way that would indicate any pre-determination.

The Team Manager for Enabling & Development commented that delivering a wide range of affordable housing options is vital to securing the success of the Enterprise Zone. She added that this means that as well as delivering homes to meet a traditional affordable housing need, the Council needs to look at ways of delivering affordable housing products targeted at individuals, couples and families working or looking to work in the City. She said that this supply will also support current major employers, such as the RUH and even the Council, for whom local house prices can be a major impediment to the recruitment and retention of staff.

She stated that there is a need to have an innovative approach to affordable housing and highlighted one such development of 5 ‘micro homes’ at the site of the former Banglo Pub on Lower Bristol Road at a 25% discount from the Open Market Value (OMV).

She explained that the levels of historic direct subsidy for affordable housing delivery are no longer sustainable, so the Council is working to secure capital finance through a number of possible grant/funding mechanisms;

·  Bath Quays: £7.5m Homes England Accelerated Delivery Fund

·  Bath Riverside: £12.6m Homes England Housing Infrastructure Fund: Marginal Viability

·  Bath Riverside: £7.5m Accelerated Delivery Fund specific to relocation and remediation of recycling centre

·  Growth Deal: £10m initial land purchase funding within the EZ

Councillor Lisa O’Brien said that she appreciated the number of jobs that the Enterprise Zone were looking to deliver, but questioned the viability in being able to provide affordable properties for these individuals / couples. She questioned whether any accommodation could be provided with certain types of employment and said that she saw travel costs as a real dilemma alongside housing affordability.

The Team Manager for Enabling & Development replied that she would look into the proposal to see if it had been taken forward anywhere else in the country.

Councillor Colin Blackburn said that he was sympathetic to the issues raised as a number of his business team have found it difficult to purchase property within the area. He stated that the Council needs to work as hard as it can to influence developers on the levels of affordable housing. He asked if any of the upcoming sites would be available on a professional house share basis.

The Team Manager for Enabling & Development replied that the 2 bed units at Roseberry Place that are being delivered at between 60% and 80% of market rent levels would offer the opportunity for these to be let as shared housing for 2 individuals.

Councillor Rob Appleyard asked if over the course of the Quays project so far whether aspirations for the site had been dumbed down in terms of higher pay employment sites.

The Divisional Director for Community Regeneration replied that it didn’t think it had as there remained an aspiration to provide facilities for the Creative, Technical and Digital industries alongside Business and Financial Services. He added that there was need to provide graduate level jobs to retain students that have studied locally and that their housing need must also be accounted for.

Councillor Barry Macrae said that he thought that the sites were unviable and that there is a housing need that should be addressed across the whole of B&NES. He added that opportunities for housing should be sought across the district and that he would not want to see any of the employment prospects compromised.

Councillor Lisa O’Brien asked if a restriction was allowed to be placed on the new affordable housing which would not allow students to live within them.

The Team Manager for Enabling & Development replied that yes this could be done.

The Chairman said that he was confident that officers were working hard to deliver both employment and affordable housing within the Enterprise Zone.

The Panel RESOLVED to note the current housing situation in the Enterprise Zone and the steps being made to help address housing need to support the delivery of a vibrant and economically sustainable City, whilst continuing to meet general affordable housing need in Bath.