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The Committee considered a report summarising the First Homes programme and outlining it in the context of Colchester. Bethany Jones, Planning Policy Officer, presented the report to the Committee and together with Karen Syrett, Lead Officer, Planning, Housing and Economic Growth, assisted the Committee in its deliberations.
In discussion the Committee expressed some concerns about the First Homes Programme. It would only benefit a very small proportion of those who needed help in buying a first home and it was likely to have very little impact on the housing crisis. The particular issues around affordability in Colchester as set out in the report were highlighted. The costs involved for the Council were noted, and it was unlikely that it would receive any support to help with this. It was noted that Shelter did not support it. It limited the market and those that bought a home under the scheme would likely find that it was difficult to sell the property and would become trapped. If the saving on the homes was met by the developer or landowner this would have an impact on the viability of schemes, and could lead to less planning gain being delivered.
It was noted by officers that it would not apply to Colchester’s Local Plan as it was submitted before 2021. However, the Committee raised concerns that the Council’s SPD on affordable housing reduced the rented social housing for the Garden Community on the basis that the First Homes policy was being introduced. Therefore, the SPD on affordable housing should be revisited.
The Planning Policy Officer explained that whilst the government recognised that there would be a cost to Councils from managing the scheme, it had not indicated whether it would be providing additional support to Councils to help with these costs. The SPD on affordable housing would be looked at again following the adoption of the emerging Local Plan. However, the current policy was for 30%. The Lead Officer, Planning, Housing and Economic Growth, confirmed that the costs of the discount would fall to the developer or landowner. The Council had consulted on a revision to the SPD in 2020 but this had not been taken forward due to progression on the Local Plan. The Evidence Base needed to be updated to take account of changing government policy and the SPD would be brought back to the Committee for further consideration in due course. The SPD had not been adopted so it was not policy or guidance at this point. Members of the Committee expressed the view that social rented was the favoured tenure type.
It was noted that previous schemes set up by the government to deliver starter homes for first time buyers had been unsuccessful, although there were other schemes such as the 95% mortgage guarantee scheme which was still available. Further information was sought as to when the Local Plan might be reviewed, which may necessitate the inclusion of First Homes within the Plan. Officers explained that this would depend on the views of the Inspector, who could suggest an early review of the Plan, and all Plans needed to be reviewed within 5 years of adoption. When reviewing a Plan, the Council would need to look at the methodology on housing growth and targets. Members expressed concern that this may lead to imposition of the higher housing targets at an earlier point.
Concern was also expressed about the impact of First Homes on the more longstanding planning gain tools such as section 106, which in turn would have an impact on the Council’s ability to deliver affordable housing with the preferred tenure types. Officers confirmed that the policy requirement was for 30% affordable housing. Some of that would be met by First Homes and the remainder would be made up by the tenures specified in the Council’s policy so there would be an impact on the delivery of preferred tenures.
RESOLVED that the report be noted.