13 December 2002
Although councils employ many staff who are struggling to find affordable accommodation, they do not put key worker housing high enough up their agendas, said Nick Reed, the Housing Corporation's director of investment and regeneration for central England.
Section 106 agreements, which force developers to provide low-cost homes as part of 'planning gain', are being used almost exclusively for social housing, he told a conference on key worker housing in London.
'There are precious few [councils] that have got their heads around the issue of key worker housing. They are completely missing the plot,' he said. 'Housing for key workers can be achieved through section 106 without the need for public subsidy. '
Senior housing association figures who attended the conference, held on December 6, complained that councils in southeast England are unwilling to sell land at a realistic price for key worker accommodation.
This was leading to disputes between county and district councils, which negotiate section 106 agreements. 'District councils won't give up part of section 106 agreements unless county councils give up some of their land banks,' said David Keeling, head of development at Bedfordshire Pilgrims Housing Association.
Housing associations are keen to branch away from traditional social housing into key worker accommodation – partly because they are assured of higher rent income from tenants who are less likely to run into debt problems.
As well as building homes, many registered social landlords are providing key worker housing through the Starter Home Initiative. But this does not always have the impact that was hoped for because inner London property prices are so high.
Deborah O'Dea, director of human resources at St Mary's NHS Trust, said that some staff ended up buying homes so far away from Paddington, where the trust is based, that they were forced to look for new jobs.
PFdec2002
