INTRODUCTION

  In the Statement made on the 18 July 2002 Sustainable Communities, Housing and Planning, the Deputy Prime Minister set out the Government's plans to rejuvenate communities including the provision of resources to achieve this. Unprecedented economic growth over the last 30 years has generated increasing demands for new housing but it appears we have failed to meet the demand and today are building fewer homes than we were 30 years ago.

GOVERNMENT OBJECTIVES

  The Government aims to ensure that everyone has the opportunity of a decent home and quality of life. It intends to achieve this by:

—  a reform and speeding up of the planning system and decision making process;

—  an injection of an extra £365 million into the planning system to assist planning authorities;

—  an increase of development on Brownfield sites with an associated increase in densities, while protecting and enhancing the Greenbelt and countryside;

—  building more homes that people can afford.

  The Government recognises that the rate of development needs to increase and will bring forward proposals to achieve this for discussion with agencies and local authorities.

THE VISION OF GREENWICH

  Greenwich is proud of its success and contribution towards the regeneration of south east London. It has worked hard and established a network of productive partnerships with various agencies and the community to secure the sustainable communities of which the Government seeks. The Greenwich Partnership has produced a Draft Greenwich Strategy which sets out the Borough's vision for the next 10 years. It addresses the issues that are most important to the citizens of the Borough of Greenwich. It contributes to Greenwich being a place to live, work, visit, learn and seek recreation now and in the future. The vision includes:

—  reducing discrimination and increasing opportunity;

—  making a major contribution to London's economy;

—  ensuring residents have skills to get jobs;

—  improving education achievement;

—  local people having good quality housing;

—  having a clean and cared for environment;

—  effective and co-ordinated public transport;

—  reducing crime;

—  protecting the vulnerable and disadvantaged;

PLANNING POLICY IN GREENWICH

  Our planning policies, closely aligned with the Greenwich Strategy, aim to create a sustainable, cohesive and inclusive society. The needs of all the citizens of the borough are considered alongside those of business and economic efficiency. The policy objectives towards securing a sustainable environment are endorsed in the First Deposit Draft of the revised Unitary Development Plan (UDP). The aims include;

—  high quality urban design;

—  mixed-use development in town centres;

—  a sustainable transport strategy which integrates land use and transport;

—  preservation of the best of our heritage;

—  conservation of open spaces and natural environment;

—  the development of buildings which are environmentally efficient to fun.

DEVELOPMENT IN GREENWICH

  Following the production of the Greenwich Waterfront Strategy at the beginning of the 1990s, the setting up of a Waterfront Partnership, the success of bids to the Single Regeneration Budget (SRB) the Council established a firm basis for development throughout the Borough. Allied with the coming of the Dome and Millennium Exhibition and the opening of two new railways in Greenwich significant development has taken place. Between 1991 and 2001 the population grew by 4,400 and households by 4,700, some 6,000 new homes have been built in the period since 1992 with a significant proportion of affordable housing.

  There is a significant level of development now underway throughout the Waterfront from West Greenwich to Thamesmead. A flagship development is the Millennium Village. An award winning development of 1377 new homes of contemporary design providing the elements of sustainability which combines all the attributes of diversity and environmental standards and all built on reclaimed contaminated land. The Millennium Village leads the way in new design and addresses the very essence of the aims sets out in the Deputy Prime Minister's statement.

  There has been significant development in Thamesmead so much so that most of the major sites have either been developed of have been granted planning permission and a wide range of good quality housing has been provided both for rent through a Registered Social Landlord (RSL) and for sale at affordable levels.

  The Royal Arsenal is being comprehensively redeveloped with over 700 new homes being built by Berkeley Homes, including affordable housing. This development within the boundary of the historic Royal Arsenal combines new contemporary development with new units built to reflect Victorian styles and flats within refurbished listed buildings. It is being built to high standards to design appropriate to its historic setting.

FUTURE OPPORTUNITIES

  The Council's plan for new development is ambitious and is based upon strategies and frameworks and detailed discussions with developers and the community. Major developments are in the pipeline. These include the Meridian Delta Limited proposals for the Dome and Greenwich Peninsula which is likely to provide a further 10,000 new homes as part of a mixed use development. The Council also has ambitious proposals for the regeneration of Kidbrooke to the south of the Borough where in excess of 4,000 new homes will be built of which some 50% will be affordable. The Borough is on target to provide the 16,000 new homes in the period up to 2016 sought by the UDP and Draft London Plan.

MECHANISM TO PROVIDE AFFORDABLE HOMES

  Greenwich Council has a good record in securing benefits through Section 106 Legal Agreements (Planning Obligations). Affordable Housing has been a major element of a large number of Legal Agreements. The District Audit has praised Greenwich as being an example of Good Practice in the negotiation, co-ordination and management of Planning Obligations.

  The Unitary Development Plan seeks to ensure that at least 30% of the dwellings provided up to 2016 are affordable to those on low and lower incomes. In terms of the level of affordable housing secured through legal agreements to date the Council has secured 1,345 affordable dwellings which equates to approximately 20% of the total new build in the Borough over the past four years. The Council has consistently applied the target of 30% sensitively when negotiating with developers for affordable housing taking account of individual site costs and economic viability, including the availability of public subsidy. One example of the approach taken by the Council regarding the matter of public subsidy is by agreeing to secure 30% affordable housing on site unless public subsidy is not available in which case a lower level to be accepted.

  The planning system is not in a position to secure the level of affordable homes that are needed in the Borough, as evidenced by the findings of the Borough's recent Housing Needs Study (September 2002). Whilst the study will lead to a rise in the percentage sought, taking account also of the levels identified in the Draft London Plan, this will not be sufficient to deliver the amount of affordable housing needed.

  The mechanism, which is very dependant upon the private sector, is also effectively applying a development tax on private investment to subsidise homes for the less fortunate members of the community. An effect is to further push up the cost of private housing. It creates uncertainties and is unpredictable because it relies on the private sector in a completely unstructured way.

  An additional problem with the provision of affordable housing is that of deciding what the mix and size of units should be. This is important because there is a potential for huge variations to exist which will affect occupancy rates, the amount of land required for the affordable units (particularly large family units with gardens) and ultimately the cost of provision. The Council recognises that it is important that the element of affordable housing requires is clearly identified and supported by relevant studies. The Council's Housing Needs Survey is being analysed to refine our approach.

CONCLUSION

  Greenwich Council welcomes the Governments aims to create successful thriving communities and to ensure the provision of decent affordable homes that people want to live in. the level of development seen in Greenwich over the last five years has led to the creation of new communities and a level of opportunity not previously experienced. A wide range of housing has been and is programmed to be built. We have adopted a positive and proactive approach to Planning Obligations and as a result have secured very significant benefits not least in the level of affordable housing.

  We have also sought innovation in design and living concepts. The Millennium Village is an excellent example of this and it displays quality and diversity in a showcase contemporary design and includes a large element of affordable housing. The Council will continue to strive to secure development of this nature which at the same time securing the level of affordable housing.

  We welcome the Government's initiative and offer of additional resources. We would also seek greater clarity on the mechanisms for provision of affordable housing which do not place an unreasonable burden on private development, often to the overall detriment of a development scheme and its wider community benefits.