Peterborough beats housebuilding target - but falls well short on affordable homes

Between 2016 and 2019, 3,039 new homes were built in Peterborough - 366 more than the Government target of 2,673.

However, the number of affordable homes built was just 399 (13 per cent). This is despite the council having a policy of only approving developments if they have a minimum of 30 per cent affordable homes.

These are classed as properties which are available at 20 per cent or more below market value.

In Peterborough, if the 30 per cent threshold had been hit this would have delivered approximately 510 more affordable homes over the three year period.

A Peterborough City Council spokesperson said: “Affordable housing delivery fluctuates considerably, over several years, and there are only certain types of development which government allows us to seek affordable housing from - for example, smaller developments and office-to-flats conversions are exempt.

“Of the 3,339 new homes built between 2016/19, over 600 were office-to-flat conversions.

“Achieving a full 30 per cent affordable housing rate is therefore a very challenging target. Nevertheless, over the long term (past 10 years), our affordable housing delivery has averaged around 30 per cent and, while in the past few years we haven’t hit that amount, we know we have had a strong pipeline of affordable housing being built in the past 12 months meaning we should be around our 30 per cent target for 2019/20.”

Developers can try to reduce the number of affordable homes they build at a site by stating that it would be commercially unviable to go ahead with the 30 per cent policy.

This has left the council either having to accept a smaller percentage of affordable homes or potentially see no homes built at all.

This has happened on several occasions in Peterborough, including at the former district hospital site and in Cardea, where affordable housing provision was slashed.

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The council has tried to accelerate the number of affordable homes in the city through Medesham Homes, a joint venture with Cross Keys Homes, while it is also seeking to build council houses again.

The Cambridgeshire and Peterborough Combined Authority - the county’s mayoral body - is also funding the delivery of affordable homes in Peterborough.

The latest housebuilding figures have been published in the Government’s Housing Delivery Test results for 2019.

In a letter to the council on its performance, secretary of state for housing, communities and local government Robert Jenrick wrote: “Your performance so far shows that Peterborough is really rising to the challenge.

“I know how hard delivering the homes can be whilst maintaining the support of your communities. I hope your effort will serve as a source of encouragement for other authorities and demonstrates what is possible when a local authority works with their community to produce a local plan and turns it into a reality.

“The work you are doing to build the homes your community requires is an essential part of making the housing market work for everyone and restoring the dream of home ownership for a new generation.”

The government has set a target to deliver 300,000 homes a year by the mid-2020s.

Cllr Peter Hiller, council cabinet member for strategic planning, commercial strategy and investments, said: “Delivering the right number of homes for our residents is one of our top priorities so I am delighted that we are exceeding our targets.

“However, it is equally important that we are providing the right types of homes, in particular affordable homes, which allow people to take their first step on the housing ladder. In the last three years 399 affordable homes have so far been completed, including those at Fishpool Drive in Stanground and Eye Green which were delivered by Medesham Homes, the partnership between the city council and Cross Keys Homes.

“I’d also like to thank our planning teams for producing a first-class Local Plan which continues to ensure that homes are being built in the right place and at the right time, with the right infrastructure to support them, and for running a professional planning application service for Peterborough, making the process as smooth as possible for housebuilders.

“Our city continues to grow faster than many parts of the country, demonstrating the desirability and affordability of Peterborough as a great place to live.”