The Social Housing Gap
One of the few saving graces of the tower blocks planned for Como St, is that it was to provide 50% social housing.
Affordable rents,at 80% of the local going rate, and shared ownership schemes, would have provided some genuine Havering residents with a chance to own or rent their own homes.
But the need for greater profitability, has led Mercury Land Holdings Ltd, who are owned by the council, to commission a financial viability assessment for Como St. Read it here.
The conclusion of the report is that the development isn’t financially viable with the 50% social housing. How convenient !
It’s certainly a cynical attempt to cash in by Mercury Land Holdings Ltd, and not the first time they’ve done it. The development at Dorrington Gardens in Hornchurch, also contains no social housing, and neither does the proposed development on the former Angel Way car park. Developments on council owned land, must offer 50% social housing.
And the financial viability assessments are always announced after the public consultations, anyone seeing a pattern here ?
LBH seem content to cancel new social housing, and place families in temporary accommodation, like the property below. The policy seems to be, profit over people.
Where’s The Commitment To Social Housing ?
We have to now question the commitment of LBH to social housing, despite the lofty claims in the Housing Services Asset Management Strategy Document 2021-26 Read it here
“The Council recognises that there is a need for high quality, affordable homes, especially for vulnerable residents, those on low incomes, and for first time owners, (via shared ownership schemes).
Therefore, in this strategy we have set out our ambition for how we will meet these housing needs by using resources generated through the Housing Revenue Account Business Plan”
Even the huge development at Bridge Close, has a starting point of only 30% social housing, and a financial viability assessment of that scheme from 2020, has already identified a huge funding shortfall. And more worryingly, the council already need to borrow £223 million to build it.
So what are the options for LBH at Bridge Close ? Borrow more money, or remove the social housing ! You can probably guess what’s going to happen here !
A Generational Debt For Havering Residents
We think it's important to show you the level of council debt since 2023 (year 1), and how long it will take to repay.
The peak in 8 years time (year 10), will be £1.041 billion. And this is just the Housing Revenue Account.
This insane borrowing to fund barely profitable private housing has to stop. It's unsustainable !l
Can LBH not just reduce the ridiculous building plans, and help the vulnerable, low income families, by building family homes ?