The Overview and Scrutiny Committee of Barking and Dagenham Council met on Wednesday, 2 April 2025, to discuss the impact of new build developments and review the council's work programme. The committee noted the progress on delivering new homes and provided input into the new Inclusive Growth Strategy.

Impact of New Build Developments

The committee received a report detailing the impact of the council's Housing Delivery Programme, which has seen nearly 3,000 new homes completed and over 1,400 more under construction. The report highlighted that 86% of these new homes are classified as affordable housing, defined as costing 80% or less of market rent. Funding for various affordable tenures, including Target Rent, London Affordable Rent (LAR), and London Living Rent (LLR), is supported by grants from the Greater London Authority (GLA), while Discounted Market Rent (DMR) properties are supported by Right to Buy (RTB) receipts.

Discussions clarified that Target Rent is equivalent to social rent, with homes typically costing between 50-60% of market rent. These tenures are crucial for removing households from the housing waiting list. The committee explored the potential for delivering more Target Rent properties to reduce the need for temporary accommodation, which is a significant financial pressure for the council. While 669 new homes have been allocated directly to households on the housing register, the council continues to lose approximately 200 properties annually through the Right to Buy scheme.

The committee also raised concerns about the impact of population growth, driven by new housing developments, on local infrastructure. While the council has a good record of building schools, improvements are needed in transport links with Transport for London (TfL) and in policing. The National Health Service (NHS) infrastructure remains a challenge, with the borough experiencing one of the lowest population-to-General Practitioner (GP) ratios in the country due to difficulties in funding GPs. Discussions are underway with a university to potentially establish a dentistry teaching facility in the borough.

The report noted that the Local Plan dictates the requirements for different bedroom sizes in new homes, with a higher demand for one and two-bedroom properties. However, GLA grant funding is based on housing numbers rather than unit size, which can impact the long-term viability of larger homes. The Gascoigne East 3B development aims to address this by delivering three and four-bedroom homes, with all 34 four-bedroom units designated as LAR properties. The council also confirmed that approximately 10% of all housing schemes are built to be adaptable.

Regarding the regeneration of the Gascoigne Estate, it was explained that while planning laws require the replacement of social housing, some social housing was lost during the initial phase due to the aspiration for a mix of tenures and the construction of a school. The funding for new build developments is expected to result in cost avoidance for the Housing Revenue Account (HRA), as some existing properties would have been too costly to bring up to standard.

The committee was informed that while the council can prevent placements in its own Reside properties, there are no restrictions on private market placements from other boroughs, although they are required to inform the council. The council's ability to cross-subsidise new builds by selling existing homes is limited due to Barking and Dagenham having some of the lowest house prices in London. The council remains confident that borrowed funds will be repaid within the 52-year period.

Affordability criteria are in place for tenancies, including a maximum income threshold for Discounted Market Rent (DMR) properties and an affordability criterion ensuring tenants do not spend more than 40% of their income on rent. Reside offers support to tenants in accessing relevant services. The council hopes that building between 200-300 new properties annually will help reduce the housing waiting list. The council is the freeholder of the new build properties, with Reside acting as the operator/leaseholder.

Challenges with temporary accommodation were highlighted, with many individuals in temporary housing being able to afford discounted rent properties but finding none available. Decanted properties are also used for temporary accommodation. The council's housing target, recently reduced by the government, remains challenging to meet.

Regarding Underground Refuse Systems (URS) on the Gascoigne Estate, the council is reassessing their use due to issues with fly-tipping and the need to partner with the London Borough of Tower Hamlets for waste collection, as standard refuse vehicles are not equipped for the task. The council has not yet utilised available GLA grant funding for property acquisition, as it only covers 40% of the cost, requiring the council to fund the remaining 60%.

The committee noted the progress on new home delivery and its impact on the borough, as well as the development of the new Inclusive Growth Strategy.

Work Programme

The committee noted the council's work programme for 2024/25.