Report Page 6 - Southport, Formby, Liverpool, 2020-09-28

LIVERPOOL City Council's Cabinet has approved a report recommending the building of 74 Council homes in the Yew Tree ward, in the North of the City. Subject to a grant from Homes England and the Liverpool City Region Combined Authority, the ₤9m scheme will be the 1st since the Council revamped its housing team in the summer; and 150 years since Liverpool built the 1st Council Homes in Europe.

Mayor of Liverpool Joe Anderson said:- "I'm excited by this scheme. It's a signal of our intent to create thousands of new homes that meet the needs and aspirations of our residents. The private rented sector in this City is unbalanced and the absence of Council homes has left many families exposed to market forces. We have a vision for a Liverpool where the Council provides quality affordable homes, to buy and to rent, which caters for all manner of families and individuals and provides a sustainable platform for them to move up the housing ladder. This scheme is the beginning of realising that vision. Of course, this requires external grant funding, but I'm confident the business case is robust and that Lovell will begin and complete the scheme on schedule."

The Denford Road project forms part of a wider Council plan to build and retrofit thousands of new homes by 2030 after the Government agreed to waive the debt for the Council's historical housing revenue account. The project, which gained planning permission in March 2019, will see 20 Council homes built and a further 54 homes constructed for "affordable rent."

The homes will be built on land bordered by Denford Road, Ackers Hall Avenue, Dunchurch Road and Murcote Road. The scheme is intended to be delivered in partnership with Riverside Housing Association, who will create an additional 31 homes on land they own within the site. Following cabinet approval, Liverpool City Council will now enter in to a contract with leading Birkenhead based regeneration specialist Lovell Partnerships, who have a long standing history of successful delivery of high quality affordable and mixed tenure homes in Liverpool. Over the last 20 years they have developed similar schemes in areas such as Kensington and Belle Vale.

Lovell led on the design of the Denford Road development and aim to have a start on site in October 2020, with an anticipated completion date of January 2023. Lee Sale, Managing Director Lovell North West said:- "We are extremely pleased to be working with Liverpool City Council on this project. We have been focussing on increasing our footprint within the Region and are delighted to be playing a part in shaping communities and delivering much needed affordable homes to the area. We are currently working on our joint venture project with Riverside Housing in Belle Vale to deliver over 100 mixed tenure homes and are looking forward to working with the City Council and Riverside in Yewtree at Denford Road."

The site will accommodate 105 homes overall consisting of for 54 2 bedroom units, 28 3 bedroom units, 4 4 bedroom units, 13 1 bed bungalows and 6 2 bedroom bungalows. Some of the bungalows are to have bespoke designs and will be ring fenced for vulnerable tenants with mobility issues and support requirements.

A new report into perceptions of Shared Ownership in the North West has shown that thousands could be being held back from getting on the property ladder, due to a lack of awareness and understanding of the tenure. The findings come from Clarion Housing Group, the UK's largest housing association and provider of Shared Ownership homes. Its OnePoll survey of 1,000 North West residents found that, while 85% of respondents have heard of Shared Ownership, less than 2 ⅓s fully understand what it involves or what it is.

Most worryingly, 24% believe it means sharing a house with someone else and 8% think it's only for those under 40. While ⅔ of respondents don't know you can sell a Shared Ownership house or increase your equity over time. The biggest benefit of Shared Ownership is that it allows you to get a foothold on the property ladder using a smaller deposit. Buyers can purchase an initial portion of a property, and pay rent on the rest, usually to a Housing Association or Local Authority, and can increase their share over time.

While it is a common tenure in the South, with over 1,600 homes available in London alone according to Sharetobuy.com, Shared Ownership has been slow to make headway in the North, with less than 500 homes available across the North West. Yet such tenures are vital at a time when the average 10% deposit needed for a home in the North West is circa ₤20,000, according to Zoopla.

This un-affordability is reflected in general attitudes towards the housing market, 44% of all respondents saying they believe the North West property market is unaffordable for 1st time buyers. 53% wanted more emphasis and education about alternative, affordable routes to homeownership, including on schemes like the Government's Help To Buy, with nearly 50% of respondents claiming they didn't understand how it works either.

Richard Cook, group director of development, at Clarion Housing Group, said:- "Shared Ownership has been previously believed to be only suitable for London buyers, but that is seriously underestimating its potential. It can help such a wide variety of people get onto the property ladder, without them having to wait and save up the huge deposits needed to buy in many areas across the North West."

1 buyer who has benefited from Shared Ownership is Steph Hall, 32, who bought a 35% share (₤61,250) in a 2 bed home worth ₤175,000 at Clarion's Lingley Fields development this year, after finding herself priced out of buying, or even renting, alone, via traditional methods. Steph says:- "I was getting so frustrated with the lack of options available to me as a lone buyer; all the houses I wanted were just far out of my price range, and despite saving carefully for my deposit, as it was just me, I would never be able to get a mortgage high enough to buy them."

When Steph stumbled across Shared Ownership she was initially sceptical as she knew little about it, but soon realised it could help her get the house she wanted, quickly and on her own. Steph continues:- "Being able to live in a new-build house was such an incentive for me to buy via Shared Ownership. For the same amount I pay per month, I'd only be able to afford a small, old flat if I was traditionally renting. Instead, I now own part of a house I love and crucially, I've been able to buy it on my own. Without the scheme, I would have had to fork out over ₤15,000 on a deposit."

Tim Seward, director of sales and marketing at Clarion Housing Group, says:- "The sheer number of people Shared Ownership can help is why we need to increase awareness. While people may believe it is only for a certain type of buyer, this couldn't be further from the truth and actually, it is a viable option for most people looking to buy their 1st home, or even downsize alone. This summer's lockdown has encouraged many to look at ways they can leave Generation Rent and buy the home of their dreams, and we've seen a spike in people enquiring about Shared Ownership who don't fully understand how it works. Our research shows buyers are crying out for more education and this is why we've created this report; to help people across the North West feeling priced out of the private sale homes they want."

The inequality of the North West housing market was most recently highlighted in the BBC documentary:- "Manctopia - Billion Pound Property Boom," which shone the spotlight on Manchester's thriving luxury residential markets, juxtaposed with its urgent need for more affordable housing. Richard continues:- "If the North West is going to thrive, we need to make sure we're providing diversity when it comes to housing provision. This means building a healthy supply of affordable homes; for both sale and rent; alongside new private sale schemes. Increasing supply of Shared Ownership homes in the Region is a key focus for our development team at Clarion and a number of exCiting new developments; in locations people actually want to live in; are already in the pipeline."

News reports located on this page = 2.

New start - A CGI of how part of Liverpool City Council's Denford Road housing scheme will look

Shared ownership confusion is preventing thousands of potential home buyers from getting onto the North West property ladder