The Tees Valley region has had some of the lowest average house prices nationally for decades. This has made owner-occupation relatively affordable which has led to a declining demand for social rented accommodation.
More desirable and often new housing on the outskirts of the urban area has been more affordable enabling first time buyers to enter the housing market higher up the ladder and bypass the older town centre terraces.
The core areas have, therefore, been losing population leaving the residual residents with a poor quality of life, high levels of worklessness, crime and antisocial behaviour, poor educational attainment levels, poor health and a deteriorating environment.
Over the last three decades, regeneration initiatives have failed to stop the decline in the inner areas.
Tees Valley Living believes a transformational approach is needed and it has now created the conditions for a successful delivery programme
Governance structure
A new structure was established in September 2005. The TVL Board includes the leaders or mayors from all five councils.
Funding
Public sector resources are being used to maximise private sector involvement which is recognised as the key to successful housing market renewal. In the short-term public funding is vital to get the process underway but once longer-term partnerships develop, the amount of public subsidy will reduce.
We have developed a financial model to help us understand the market value of our opportunities. Evaluation of each project using the model allows us to understand potential private sector returns to ensure schemes are competitive yet commercial.
Packaging of sites
Projects can be combined so higher land values of some sites can be used to promote action on sites with less land value. Additional affordable housing can be secured by requiring some provision within the development.
Planning gain
Further thought is being given to whether the benefits from one council can be employed to the advantage of housing market renewal in other council areas inside the city region which will help in dealing with the problems of obsolete housing and the need to dramatically improve the housing offer and mix in inner city areas.
Tees Valley Living is supporting local authorities to capture value and ensure a long-term delivery plan. This is a partnership which has proven ability to join up and deliver added value and results. TVL is “investor ready” and will continue to deliver results as we move into sub-regional commissioning.
Sub-regional Housing Strategy
This was funded by TVL to ensure that housing provision caters for all needs in a cost effective and efficient manner across the sub-region, avoiding duplication of supply while choosing locations that don’t disadvantage the most vulnerable clients.
Joint local housing assessments
The councils are committed to preparing Local Housing Assessments following guidance commissioned by TVL in 2005 to ensure a common approach. Darlington commissioned its study first while Stockton, Middlesbrough and Redcar & Cleveland have jointly instructed consultants. Hartlepool will complete its assessment by March 2007. TVL will then commission a further study to join up the completed works.
Pot funding
Over £13m has been awarded to Tees Valley councils to deliver four linked projects fundamental to securing sustainable neighbourhoods and a well-maintained housing stock.
Joint procurement
TVL is exploring opportunities for jointly procuring services such as legal services, consultant studies and demolition contracts to achieve economies of scale.
How will we judge success?
Rising house prices within the intervention area are not necessarily a reflection that the market is adjusting as recent property purchases in the low demand area have been by speculators in the buy-to-let market rather than families. This issue will be monitored and be the subject of further investigation.
Renewal of the housing offer in the core areas is essential to build sustainable communities. Increased confidence in a sustainable future will stimulate further improvement achieved by encouraging owner-occupiers and private landlords to invest in their property with a limited amount of grant for the more vulnerable households but principally by loans linked to equity in the property.
Tees Valley stakeholders are committed to securing a higher standard of urban design as a means of re-branding urban areas and removing any stigma they held.
There are currently 14 housing market renewal sites identified within Tees Valley and the 15-year implementation programme will see them through to completion.
Interventions will enable large-scale new developments which secure mixed income communities where residents have a wide range of choice from social renting and shared equity to 4/5 bedroom detached homes.
We will link housing market renewal investment with other investment streams such as health, education, transport, retail, culture and environment. We will also ensure local labour agreements are in place to make sure employment opportunities for local communities are maximised.
Together, this joined-up approach to regeneration will secure long-term savings for the public purse.
