Sub-Regional Housing Strategy
EXECUTIVE SUMMARY
The key points of the Sub-Regional Housing
Strategy can be summarised as follows:
- The city has a diverse and complex housing market that can be explained in part by its geographical location between the prosperous areas to the south and areas of rural deprivation to the east.
- The city benefits from excellent transport links and many people are choosing to live in the city whilst working in other areas of the region.
- The city is a major employment centre that has been identified as an area that will benefit from further significant economic growth.
- The city includes areas of significant deprivation and corresponding social issues and an older housing stock in the city centre that requires regeneration.
- There is high demand for social housing in the city and a significant increase in the number of people accepted as homeless
- The city requires continued and sustained investment in new social housing and has the land available to deliver this housing.
- The city has a large ethnic minority population that has grown rapidly over recent years.
THE SUB REGION
The Peterborough sub-region of the East of
England is focused on the city of Peterborough but extends outside
the city into the surrounding rural areas beyond the city
boundaries and is the main driver for economic growth in the north
of the region. The sub-region extends into parts of Cambridgeshire,
the East Midlands, Rutland, Lincolnshire and Northamptonshire.
Peterborough has a diverse and complex housing market that is
strongly affected by its relation to the rest of the sub-region,
the city benefits from excellent transport links with the main east
coast rail line and being on the junction of the A1, the A47 and
the A15. Peterborough occupies a unique position within the Eastern
Region. The city faces south towards the economically prosperous
areas of Cambridge, Huntingdon and London but also neighbours The
Fens, an area that exhibits many symptoms of rural deprivation.
This geographical juxtaposition strongly affected the development
the city and continues to affect the Peterborough housing
market.
THE MAIN ISSUES AFFECTING THE SUB-REGION
Economic Growth in the City and the Wider Eastern Region
Peterborough is a major employment centre
within the Eastern Region, which also impacts upon all its
neighbouring authorities. The city has a strong economic base and
is home to a number of national and international companies
including Thomas Cook, AMP, Royal Sun Alliance, Hotpoint and
Perkins. Peterborough's economic boundary extends far beyond the
local authority district reflecting its importance as a major
employment centre. This wider economic area is often referred to as
Greater Peterborough. The city will soon benefit from major new
investment. Leading environmental organisations including the City
Council, The Environment Agency and English Nature are working
towards establishing an Environment Business Cluster in
Peterborough. A new 'Super Hospital' is also planned within the
city as well as a new prison. All of these developments will
contribute to the continuing economic development of the city and
all will increase housing pressures across the Peterborough
sub-region. The East of England Regional Development Agency has
identified Peterborough as an area that demonstrates high
opportunities but also high need in economic and regeneration
terms. This combination of need and opportunity is a unique blend
within the Eastern Region and re enforces the decision to identify
the city as a sub-region in its own right. In the context of the
economic growth of the Peterborough sub-region and the East of
England as a whole it is critical that sufficient housing across
all tenures is developed in the city. This will help ensure that
Peterborough can continue to thrive as the key economic area in the
north of the region and that the city can continue to contribute to
the economic growth of the East of England as a whole. Peterborough
is currently playing a crucial role in extending the economic and
housing growth planned for the Thames corridor and Cambridge
sub-region further north. This important regional factor will
continue to assist both with the difficult affordability issues
faced in and around Cambridge and will also help to balance
economic growth within the Eastern Region as a whole.
The Role of the Peterborough Sub-Region as Part of the East of England
Property prices in Peterborough are generally
lower than in the area around Cambridge but house prices in the
city have steadily risen over recent years and affordability is
becoming an increasing problem for many households.
Home ownership is not now affordable to many of households who require housing. Most households in the city earn less than £17,500 per annum and this would not enable the purchase of a family home in the city.
The city council owns and manages around 11,000 properties with a further 5,000 managed by housing associations. There is generally high demand for this social housing which is focussed on the three townships which were established by the Development Corporation whilst the city benefited from New Town status. New housing provided by the private sector however is focussing investment in areas where demand and prices are high in comparison to the rest of the city including at Hampton (the largest private sector housing development in Europe) and at the old British Sugar site.
It is now an absolute priority of the city
council to increase the numbers of new affordable homes developed
in Peterborough each year to keep pace with this fast changing
housing market. High levels of Right to Buy acquisitions, which
have far outstripped the number of new affordable homes developed
in recent years have also distorted the local housing market The
lack of affordable housing available for key workers is becoming an
increasing problem in the Peterborough sub-region. In recent years
it has been felt that affordability rates in Peterborough meant
that key workers would have little difficulty purchasing property
on the open market. It is now clear this is no longer the case due
to significant recent house price increases. The city council and
its partners are determined to ensure that housing is provided in
the city that is affordable to key workers.Home ownership is not now affordable to many of households who require housing. Most households in the city earn less than £17,500 per annum and this would not enable the purchase of a family home in the city.
The city council owns and manages around 11,000 properties with a further 5,000 managed by housing associations. There is generally high demand for this social housing which is focussed on the three townships which were established by the Development Corporation whilst the city benefited from New Town status. New housing provided by the private sector however is focussing investment in areas where demand and prices are high in comparison to the rest of the city including at Hampton (the largest private sector housing development in Europe) and at the old British Sugar site.
The initial results from the 2001 Census
indicate that the city's population growth has mirrored national
trends, for example with a growth in the number of people over the
age of 85. Interestingly however the figures also show that the
number of people aged 20-24 has grown in Peterborough against the
national trend. This age group is precisely at the point when new
households will be struggling to find a place in the housing
market.
Many of the people purchasing the new higher cost properties being developed in the city have moved from, and often still work in, the property hotspots around Huntingdon, Cambridge and north London. It is now clear that the Peterborough housing market is intrinsically linked to its neighbouring housing markets and that the city will play an increasingly important role in enabling the continued economic growth of the East of England.
Many of the people purchasing the new higher cost properties being developed in the city have moved from, and often still work in, the property hotspots around Huntingdon, Cambridge and north London. It is now clear that the Peterborough housing market is intrinsically linked to its neighbouring housing markets and that the city will play an increasingly important role in enabling the continued economic growth of the East of England.
As a new Unitary Authority the Council is well
placed to understand the importance of its regional role and
welcomes the fact that the future growth of the city will be based
both on the strength of its own local economy and of that of the
Eastern Region as a whole.
Travelling To Work
The number of people living in Peterborough and
travelling to work outside the city has grown rapidly over recent
years. Peterborough is a key regional rail interchange located on
the East Coast Main Line and the important east west route from
East Anglia to the Midlands. A survey conducted at Peterborough
station in 1999 indicated that towards 5,000 people move through
the station each day, many of whom will be commuting for work. The
1991 Census showed that 6820 residents of the city commute to work
each day from the city. It is generally agreed that this figure
will see a substantial increase when the figures from the 2001
Census become available.
The Hampton development
As the largest private housing development in
Europe, the development of the new Southern Township at Hampton is
helping to ensure that Peterborough can provide housing for people
coming in to the region for work and who are looking for a high
quality, desirable place to live. Hampton also has excellent
communication links to the rest of the region and the country as a
whole. The City Council is continuing to work with an innovative
consortium of partner housing associations, the master developers
and the Housing Corporation to ensure that high quality social
housing is provided as part of this highly prestigious private
development. It is critical that this investment in new social
housing at Hampton continues in future years to ensure that a
balanced and sustainable community is developed that meets both
local and regional housing needs. Demand for social housing across
the rest of the city has remained high during the period of this
new investment.
Regeneration issues in the city centre
Whilst Peterborough is a city benefiting from
economic growth in a fast growing region the city centre area
contains a high proportion of older housing that neither meets
modern standards nor the aspirations of many local people. The City
Council is determined to address the issue of city centre
regeneration. The City Council is currently working as part of a
strategic partnership with the East of England Development Agency
and English Partnerships to redevelop major areas of the existing
city centre including the South Bank and North Westgate. It is
intended that these prestigious large-scale commercial developments
will also allow an opportunity to redevelop areas of existing
housing in the city centre area. The City Council is clear that the
major development opportunities that currently exist must take
account of the need for the regeneration of existing housing in the
city centre area.
Housing condition issues resulting from ageing Development Corporation housing
Whilst Peterborough has benefited from its
earlier New Town status, the rapid expansion of the city's
townships and the short time frame within which much of the city's
social housing was developed has left a legacy which in terms of
housing improvement and repair now needs to be tackled. The
Council's Housing Business Plan clearly demonstrates that severe
pressures exist in future years as a result of the need to plan for
large-scale component replacement for the 'Commission for New
Towns' housing.
Large BME community
Peterborough is a multi-racial and
multi-cultural city. In the 1991 census approximately 7% of
Peterborough's population classified themselves as belonging to a
non-white ethnic minority group. It is expected that this figure
will rise towards 15% as the figures for the 2001 census become
available. Over the last two years there has been an influx into
the city of people coming from other countries. This has happened
for a number of reasons. Firstly the city has been designated a
cluster area for the dispersal of asylum seekers by the Home
Office. This has resulted in well over 1,000 extra persons from
abroad arriving in the city in the last twelve months. There has
also been a major growth in unaccompanied minors moving to the
city, some placed by other local authorities. Those authorities
have responsibility for supporting these minors in the city. It is
difficult to establish the exact number of people in these
categories but estimates range from between 2,000 to 5,000. This is
a significant rise in population for a city the size of
Peterborough. It used to be the case that Peterborough contained a
substantial number of people from a small number of minority
communities, this picture has changed radically over recent years.
The City Council for example now manages accommodation through the
NASS dispersal programme for people from over 40 countries who
speak over 23 different languages.
Increasing levels of homelessness
The number of people accepted as homeless in
Peterborough rose from 170 in the year 2000/01 to 181 in 2001/02.
If current trends continue the figure for 2002/03 will be over 300.
This rise in homelessness, which is in part due to the 2002
Homelessness Act, has placed a substantial unplanned pressure on
temporary accommodation in the city. With all the council's hostels
at full occupancy the number of households placed in bed and
breakfast accommodation has risen from an average of ten per week
in 2001/02 to an average of seventeen per week so far in
2002/03.
