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.

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.
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.
 
Peterborough City Council. Town Hall, Bridge Street, Peterborough, PE1 1QT - (01733) 747474 - DX12310 Peterborough 1