Agenda item

To present the report of the Head of Housing Services.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing presented the report by the Head of Housing Services incorporating the Local Housing Market Assessment 2023-2028.

The Council is statutorily required to undertake a Local Housing Market Assessment (LHMA). Every five years, local authorities are required to rewrite their LHMAs and refresh their LMHA during that five year period. The purpose of the LHMA is to provide a broad analysis of the Isle of Anglesey housing market, considering the long-term requirements for housing on Anglesey. The evidence base within the assessment will also be used to inform the Anglesey Housing Strategy as well as part of the Local Development Plan. It also informs strategic housing priorities and local service planning such as education and transport.

The Head of Housing Services guided members through the detail of the report including the data collection process and consultation and engagement and referred to some of the challenges involved in the process. As part of the assessment Anglesey is divided into nine housing areas which are defined based on where people currently live and are likely to move. The Head of Housing Services referred to the LMHA results highlighting that the demand for affordable housing, particularly one bedroom social rent units remains exceptionally high.

The matters raised in the subsequent discussion were as follows –

• It was noted that the assessment identifies the need for 1 bedroom dwellings. Questions were asked about how this conclusion was reached as well as how unmet housing need would be resolved given that demographic changes could add to the need.
• The extent to which the assessment will influence future housing policies in formulating the Local Development Plan. Questions were asked about the degree to which the data will be reflected in the LDP especially in relation to the need for 1 bedroom dwellings so that this need is reflected in approved developments.
• The risks and challenges facing the Council and its delivery partners
• It was noted that the assessment provides a snapshot of the local housing market at a point in time only and that the Council needs access to “live” data to help plan for its housing needs. It was suggested that Welsh Government be asked to ensure the data is kept up to date and current. It was further noted that while the document provides a factual and numerical assessment of the housing market and highlights the demand for housing, it does not provide answers as to how the issues identified are to be addressed.
• Whether use of the LHMA data can be made to influence policy more widely.
• The impact of second homes on the affordability and availability of housing for local people in popular tourist areas locally and nationally. A suggestion was made regarding   increasing the Council Tax premium on empty homes and second homes to the maximum level allowed and questions were asked about other ways of addressing housing supply and affordability as well steps taken to alleviate the impact of second homes on the Welsh language within communities.

Officers responded to the points of discussion as follows –

• That the document provides a snapshot of housing need at the time at which the assessment was made based on the number of individual/families on the housing register at the time and projects that unmet need from the period will be resolved. However, it is also recognised by Welsh Government that it is unlikely that all unmet need will be addressed within this timeframe.
• That the local housing market assessment forms one of the evidence bases that will shape housing policy within the new Local development Plan and determine whether any amendments need to be made to current policies.  Assurance was provided that the LMHA data will feed into the housing policies within the LDP including with regard to housing mix. The committee was informed that eighty four one bedroom dwellings are in the pipeline as part of developments but that any such further need that is identified will take time to come through in properties for rent or purchase.
• That the main risks to delivery include not being able to provide the right homes in the right places, the supply of affordable housing being delayed or reduced by rising costs while demand continues to grow; the unavailability of suitable development land in areas where people want to live e.g. rural areas; wider economic factors such as interest rates may affect the pace of development and there may be local objections to proposed developments.
• That Welsh Government could via the Executive be requested to ensure that the relevant data remains current and that similarly, Heads of Housing in Wales could via the Executive be invited to discuss how the data can be used to influence national policy.
• That Welsh Government recommends that local authorities consult on raising a premium to above 100% and that any such consultation should be undertaken at least six months before the beginning of the financial year to which the increase relates which means the timescale does not allow the Council to make a determination to raise Council Tax premium above 100% for the 2025/26 financial year. 

In response to the comments made, the Portfolio Member for Finance said that increasing the Council Tax premium is an option that can be considered in addressing the issues arising as a result of second homes and long term empty homes and could form part of the budget setting discussion for 2026/27. The Portfolio Member for Planning, Public Protection and Climate Change referred to provisions within the planning process to safeguard the Welsh Language which will be reviewed with a view to their being strengthened in the new Local Development Plan for Anglesey and she referred also to ongoing discussions with the Commission for Welsh speaking communities.

Having scrutinised the Local Housing Market Assessment document 2023-28 and received assurances with regard to the matters raised, the Corporate Scrutiny Committee resolved to recommend –

·         That the Executive approves the Local Housing Market Assessment 2023-28

·         That the Executive approves the consultation process.

·         That the Executive delegate authority to the Head of Housing Service in consultation with the Housing Portfolio Holder to agree any minor editorial changes required to the draft Local Housing Market Assessment prior to its submission to Welsh Government.

Additional Actions –

To recommend the following to the Executive –

• That Welsh Government be asked to ensure that the data on which the LMHA is based is “live”, up to date and current.
• That ways in which the data can be used to influence national policy be discussed with Heads of Housing in Wales 
• That consideration be given to reviewing the level of the Council Tax Premium applied to second homes and long term empty homes.