1.  THE OVERALL SCALE OF HOUSE-BUILDING REQUIRED

  The Draft London Plan published by the Mayor in June 2002 sets out the requirement for additional housing provision as 31,200 homes per annum for the next 10 years and 20,700 per annum in the subsequent five years—a total of 415,500 over the Plan period 2002-2016. This is on the basis of meeting the estimated housing need backlog of 112,000 households over 10 years, and meeting the requirement for 20,700 new household demand per annum. These estimates are not significantly affected by the initial results of the census, which would demonstrate a level of household growth since 1991 similar to the projection assumed in the draft Plan.

  They will however be updated to take into account new information from the recently completed London household survey and the new ODPM estimates of overcrowding, sharing and concealed households when available. It should be noted that there has been a significant increase in the number of homeless households placed in temporary accommodation by London boroughs since the above estimates were prepared, and it is likely that the estimate of unmet housing need will increase to counterbalance any minor marginal fall in the projection of future household, as opposed to population, growth. It should be noted that the GLA estimate of household growth is a cautious one, as it assumes a high level of sharing between single person households.

  The draft London Plan estimates a requirement for affordable housing, comprising the need for social rented housing and intermediate housing, of 25,700 homes per annum until the backlog is met, and 14,500 a year thereafter.

2.  ARE THE GOVERNMENT'S PROPOSALS LIKELY TO SIGNIFICANTLY REDUCE HOUSE PRICES?

  No. As the level of house building, even with the marginal increase in affordable housing output arising from the SR 2002 announcement, will not satisfy housing demand, it is likely that house prices in London will continue to increase. London's role as a world city attracts significant international demand, which is not significantly effected by an overall marginal increase in affordable housing provision.

3.  THE GEOGRAPHICAL DISTRIBUTION OF NEW HOUSING, INCLUDING PLANS TO CONCENTRATE DEVELOPMENT IN THE SOUTH EAST IN FOUR GROWTH AREAS: MILTON KEYNES, THE CAMBRIDGE/STANSTED CORRIDOR, ASHFORD AND THE THAMES GATEWAY

  The Mayor welcomes the focus of new provision in growth areas in the Southeast. A shift of investment in new provision from areas of low demand to areas of acute housing need and projected household population growth is appropriate. It is important that the four growth areas are developed as part of a broad South Eastern regional strategy, which recognises and response to pressures in London as well as in the Southeast region outside London. The inter-relationship of London and the Home Counties has to be recognised. While a major part of the Thames Gateway area is within the London boundary, the development of the Thames Gateway area as a whole needs to be undertaken in a manner which recognises the cross regional inter-relationships. Similarly it is important that the upper Lea Valley regeneration is incorporated within the strategy for the Cambridge/Stansted corridor which extends into London. The relationship of the Ashford and Milton Keynes growth areas to London also need to be considered. In accordance with urban renaissance principles, the emphasis needs to be on mixed-use high density schemes.

  Intra-regional relationships are also significant, thus in London development in the Thames Gateway needs to be placed firmly within the context of what is happening elsewhere in London.

  It is however also important to recognise that the focus of resources on these four growth areas should not be achieved through diverting resources from other regeneration opportunities within London. 69% of the identified housing capacity in London is actually outside the Thames Gateway boroughs, and in fact the most acute housing needs are largely outside the east London area. In order to minimise the need for household dislocation, it is important that the housing opportunities in the areas of greatest housing need are also fully utilised. The draft London Plan therefore recognises the need to bring forward development of major sites throughout London. This includes development in town centres and other areas with good public transport access, where intensification is considered to be appropriate, as well as supporting consideration of higher density development of appropriate sites within the Thames Gateway area. The Plan also seeks mixed use development.

4.  WHETHER THE PROPOSALS WILL PROMOTE HIGH QUALITY SUSTAINABLE COMMUNITIES WHILST AVOIDING POORLY DESIGNED URBAN SPRAWL

  This is largely dependent on whether new opportunities are developed in a planned and resourced manner. Ensuring a balanced mix of household types, income groups and tenures on such developments is critical to long term sustainability and economic viability. Given the diverse ethnic and cultural mix in London's existing population, including households, who have arrived relatively recently in London, it is important that new communities also reflect this diversity. New communities cannot exist solely either of gated communities for the affluent or for benefit dependent households in social housing. The promotion of intermediate forms of tenure, as advocated by the draft London Plan and previous GLA reports, is as critical to the success of new developments as it is to the future economic prosperity of London.

  It is recognised that achieving sustainable communities at higher densities is challenging and involves significant risks. Design is critical and the committee is referred to the work of the Architecture and Urbanism Unit at the GLA working under Lord Rogers, which is promoting examples of high quality higher density housing design.

  The provision of physical and social infrastructure, including not just public transport but schools, health centres, shops and leisure facilities, on a phased basis in tandem with residential development, is critical to the achievement of this objective. Proximity of employment to homes of good public transport connections between the two is also important and should be promoted through appropriate planning mechanisms and funding.

  The draft Mayor's Plan also promotes sustainable design and construction. Applications for strategic development will be required to include a statement showing how sustainability principles will be met in terms of demolition, construction and long term management. The Plan proposes that Boroughs should ensure that where appropriate, the same sustainability principles are used to assess planning applications. These should include measures to:

—  re-use land and buildings;

—  conserve energy, materials, water and other resources;

—  be bioclimatically designed;

—  reduce the impacts of noise, pollution, flooding and micro-climatic effects;

—  ensure developments are comfortable and secure for users; and

—  conserve and enhance the natural environment, particularly in relation to biodiversity.

5.  PROPOSALS FOR THE NEW MILLENNIUM VILLAGES

  None of the new Millennium Communities announced by the Deputy Prime Minister were in London. However, the Greenwich Peninsula was previously announced as a Millennium Community, and a number of other major regeneration initiatives, including the Royal Victoria Dock and Imperial Wharf schemes have been referred to as Urban Villages. Millennium and Urban villages are a concept and do not necessarily involve new funding streams. The Committee's attention is however drawn to the policies set out in the draft London Plan for the development of large residential developments:

—  Boroughs should encourage proposals for large residential developments, including the provision of suitable non-residential uses in appropriate locations within such schemes.

—  Boroughs should prepare area development frameworks for all large residential sites of 10 hectares of more, or that will accommodate more than 500 dwellings.

—  The area development framework should be prepared in consultation with local communities and stakeholders.

—  These policies are supported by the GLA's Spatial Development Strategy Technical report 18—Investigating the Potential of Large Mixed Use Housing Developments, published in August 2002.

6.  THE BALANCE OF NEW DEVELOPMENT BETWEEN HOUSING FOR SALE AND SOCIAL HOUSING

  The draft London Plan sets the objective that 50% of additional housing provision should be affordable housing. It is considered that this element should comprise 70% social rented provision and 30% intermediate provision. Intermediate provision includes shared ownership housing, sub-market rented provision and discounted home ownership where this is affordable by households on an income between £15,000 and £35,000 a year. It is assumed that households with incomes of below £15,000 a year will require social rented provision, which normally requires significant direct or indirect subsidy. The target applies to provision from conversion of residential and non-residential property as well as to provision arising from new development. The 70/30 split is supported by an analysis of borough housing needs surveys undertaken for the GLA by Fordhams consultants. Moreover the provision of intermediate housing for key workers is essential if workers are to be recruited and retained to maintain key services in London and to support London's economic development and regeneration.

7.  THE EXTENT TO WHICH DECISIONS RELATING TO HOUSING, INCLUDING NUMBERS, TENURE AND DENSITY, SHOULD BE TAKEN BY CENTRAL AND LOCAL GOVERNMENT

  It is for central government to allocate investment resources relative to the relative needs of regions. In this context, it is important that the current formula for distributing both Housing Corporation investment resources and local authority resources through the Housing investment programme system is revised to more adequately reflect homelessness, differential market affordability and projected new households, recognising that the proportions of new households who will be able to afford market housing, will vary between regions.

  It is considered essential that sufficient resources are made available to ensure the targets in the draft London Plan are achieved. This relates to social and physical infrastructure as referred to above as well as to housing investment resources. It should be recognised that major sites in London, both in the Thames Gateway area and elsewhere, are generally brownfield sites, with significant site preparation and remediation costs, which cannot be met from existing housing investment budgets. 90% of new development in London is on brownfield sites, as compared with the national target of 60%. In addition many of these sites require major transport improvements to secure high density sustainable communities. Substantial budgets are required for all these preparation and infrastructure works if significant amounts of new housing, especially affordable homes, are to be delivered in accordance with the draft London plan targets.

  It is important that the decisions as to appropriate use of housing and regeneration investment resources are made at regional and sub-regional level. The Mayor as strategic planning authority, together with the LDA as the key economic development and regeneration agency, must have a central role in this process, working with both the Housing Corporation and the Government Office for London, and with the Boroughs who retain their statutory homelessness duties. Housing markets cross borough boundaries. Housing provision needs to reflect employment linkages and travel to work areas rather than be limited to the needs of residents in unsatisfactory housing within a borough's boundaries. The draft Mayor's Plan is explicit that targets for affordable housing provision should not just reflect local need but the potential for a contribution to be made to meeting sub-regional and regional needs. The relationship between housing capacity and housing need and demand varies between boroughs—the boroughs with the most acute housing needs are not generally the boroughs with the capacity to respond to these pressures.

  The need for regional and sub-regional co-ordination of investment decisions is recognised in the Government's 2002 London Housing Statement and in the Housing Corporation's London investment strategy for 2003-04. The draft Plan sets out the framework for implementing sub-regional strategies and for the effective development of major sites. This involves appropriate arrangements for access to new provision by households in housing need, including homeless households, as well as the coordination of investment decisions and development.