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Extra care scheme resurrected after LHA cap scrap
Riverside has resurrected plans for an 88-home supported housing scheme in Rochdale, more than three years after it was mothballed over welfare reform fears.
The 55,000-home housing association had been preparing to start work on the £14m extra care development in 2015 when ministers announced plans to apply the Local Housing Allowance (LHA) to the social housing sector.
LHA rates cap the amount of housing benefit that private tenants are entitled to, based on the lowest third of local market rents.
The government had planned to apply the cap to social and supported housing from April 2019 until a U-turn in October 2017.
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Supported housing providers had warned that the LHA cap could have huge implications for the sector and its tenants, as rents are often well above private rates due to enhanced services.
Research by the National Housing Federation found that housing associations had slashed their plans for new supported homes by 85% while the threat of the cap still loomed.
Riverside said its plans for a supported housing development for older people on the Langley Estate in Rochdale are now back on the agenda, with the site now cleared ready for building work.
Homes England has provided £6.5m in funding for the scheme, made up of 88 homes for rent and 10 for shared ownership.
The project is expected to take two years to complete.
Inside Housing dedicated a feature article in October 2017 to the stalled plans for the scheme.
Alison Halstead, head of retirement living at Riverside, said: “We’re delighted that the extra care scheme, located off Keswick Close, Langley, has commenced, as it will provide a mixture of homes and specialist accommodation so people can continue to live independently.
“With an ageing demographic in the area, this development is a facility which will meet the housing requirements of the future as well as supporting economic growth, regeneration, and health and well-being.”
Iftikhar Ahmed, cabinet member for adult care at Rochdale Borough Council, said: “We’re thrilled that the extra care scheme has started on site, as it will perform a vital role in meeting current and future housing needs.
“Rochdale is committed to delivering on the principles of age-friendly development, ensuring a wide range of housing choice to promote well-being later in life.
“The new homes are a welcome addition to the Langley Estate, and will be the latest project in a successful regeneration partnership between the council and Riverside that goes back more than 15 years.”
August 2017: The National Housing Federation releases research showing housing associations have slashed planned supported housing developments by 85% due to the uncertainty over future funding.
October 2017: Facing pressure from Labour and crumbling support for the policy on her own benches, Ms May makes the surprise announcement that the policy is to be scrapped outright: LHA rates will no longer be used to set housing benefit in the social housing sector. The government promises to set out plans for supported housing funding next week
