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Item Housing Market Renewal Pathfinder Gateshead Council

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					                  Report for the Gateshead Strategic Partnership
                  Steering Group

                   30 April 2003

                  Housing Market Renewal Pathfinder

Purpose of the Report

1. This report updates the Gateshead Strategic Partnership on progress of the Housing
   Market Renewal Pathfinder.

Background

2. On 10 April 2002 Stephen Byers, then Secretary of State for Transport, Local
   Government and the Regions announced that nine Pathfinder schemes will be set up to
   tackle the most acute areas of low demand and abandonment in the North and Midlands.
   NewcastleGateshead is one of the Pathfinder projects.

Progress Update

3. Initial funding of £2.66M was awarded in May 2002 to begin the process of planning and
   research necessary to develop the scheme submission. In the Communities Plan
   announcement in February, a new £500M market renewal fund was created for
   investment into the Pathfinder areas over the next three years. Future funding is to be
   decided in the 2004 and subsequent spending reviews.

4. The Pathfinder is working to a detailed project plan. One of the milestones is to
   establish the Project Team. This has now been achieved. In addition to the Director, Jo
   Boaden, the following people have been appointed.

   Martin Walker         -   Programme Manager
   Alaric Pritchard      -   Link Officer (Newcastle)
   Julia McAweaney       -   Office Manager
   Joanne Flynn          -   Communications Officer
   Angela Merritt       -    Link Officer (Newcastle)

5. The Gateshead Link Officers will also work as part of this team. They are already in
   post – Andrew Marshall and Anne Connolly. The team have a good variety of
   backgrounds in terms of skills and previous employers in different parts of the public
   and private sectors. The team will be accommodated in an office suite in Grainger
   Town.

6. A second milestone achieved is the preparation of Area Assessments. These are
   intended to provide the information and research basis for the preparation of detailed
   intervention proposals. They provide a position statement that lays the foundation for
   the development of options and action plans. They are also an important part of the
   consultation and communication process which needs to discuss the different
   perceptions of the current position before moving on to preparing proposals.
   Assessments have been prepared for the four Area Development Framework areas. The
   Gateshead Area Assessment is attached at Appendix 1.

7. In addition to these Assessments, work is progressing on the assembly of baseline data
   about each area and analysis of market conditions.

Officer Working Arrangements

8. The organisational structure of the Pathfinder has changed to reflect the establishment
   of the Core team. The new structure is illustrated in Appendix 2.

Communication and Consultation

9. A consultation programme considered by the Partnership in January is attached at
   Appendix 3. The Pathfinder area in Gateshead has been divided into nine "Community
   Consultation Areas". These areas have been selected to enable more meaningful
   consultation and involvement and are not intended to be rigid for the purposes of
   delivery. A programme of Information Meetings have been arranged for March that aim
   to raise awareness of the project, present the Area Assessment findings and seek
   peoples views on the issues affecting their neighbourhoods.

10. A newsletter has been distributed to all residents in the Pathfinder area introducing the
    initiative and detailing the timetable of consultation events.

Issues

11. There are a number of emerging issues:
     Pathfinder represents a significant opportunity for regeneration
    Success will be dependent on how effectively Pathfinder links to other strategies
    The initiative is timely in that it should complement the development of
      Neighbourhood Management and Community Partnerships
    Deadlines are tight - much needs to be done before the October Submission date
    The development of options for inclusion in the Scheme Submission will require hard
      choices
    ALMO
    Delivery Vehicles
    Neighbourhood Information (Vitality Index)

Recommendation

12. The Partnership is asked to note the contents of this report.




CONTACT: John Robinson. Director, Development and Enterprise
                                          Appendix 1


                      GATESHEAD AREA ASSESSMENT

1. KEY FEATURES
The Borough of Gateshead covers over 14,000 ha (55.6 sq. miles) with a population of
191,151, as recorded by the 2001 Census.

Gateshead comprises a mixture of urban and rural land. It includes a number of settlements,
some of which have coalesced over the years; however, almost 60% of the Borough remains
rural.

The Borough contains both good and poor quality urban environments. The latter include
parts of the older inner urban areas with housing stock of all tenures, many of which provide
the focus for the Housing Market Renewal Pathfinder.

The Pathfinder initiative will focus on an area of 1215 ha (8.7% of the area), which currently
accommodates 49,783 (26%) of the Borough’s population.

1.1 DEMOGRAPHICS

In Gateshead, the population has declined from 225,124 in 1971 to 191,151 in 2001. The
Office of National Statistics predicts that the population in Gateshead will decline by 6% in the
period 1996-2021, compared to the regional figure of a 4% decline. Nationally, the population
is predicted to increase by 6.9%.

Population continues to decline in the Pathfinder area but this trend is reducing. In the period
1971 to 1981, population declined by 14.6%; in the next 10 year period (1981 to 1991) there
was a 14% decline; and in the last 10 years (1991 to 2001) the decline has been 6.4%. In the
30 years since 1971, a net total of just over 22,600 have left the Pathfinder area (66% of the
total net loss for Gateshead).

The table below indicates the household composition in Gateshead compared with the
England and Wales average.

                   Composition                        Gateshead      Eng. & Wales
                                                                         Ave.
                  One person                            33.4%            30%
                 Married couple                          34.7            36.5
               Cohabiting couple                          7.6             8.3
      Lone Parent with dependent children                7.7%            6.5%
  Lone Parent with non-dependent children only           3.7%            3.1%
               Other households                         12.8%           15.6%
Source: Census 2001

The 2001 Census also provided information regarding ethnicity. 97.5% of Gateshead
residents were born in the UK compared to the England and Wales average of 91.1%. Only
1.8% were born outside of the EU against the average of 6.6%. The dominant ethnic group
was white (98.4% against the England and Wales average of 91.3%)

Household growth in the region lags behind that nationally. In Tyne and Wear, the projected
rate of household growth is 5% compared to the England average of 14%.

In terms of future migration, the Housing Needs Survey [1] shows that 5,300 households
intend to leave Gateshead in the next five years. The reasons why people are thinking of
leaving the borough are:
     Anti-social behaviour / fear of crime 38%
     Employment 33%
     Family 29%
     Poor quality neighbourhood 25%
     Education 20%
     Lack of high quality housing 13%
     Lack of affordable housing 11%

1.2 ECONOMIC DEVELOPMENT

Unemployment in Gateshead has fallen by 0.5% since November 2001. In November 2002
there were 3,572 people unemployed in the Borough, representing 3.8% of the labour force.
The wards within the Pathfinder Area are primarily those with the highest unemployment
(average of 5.7%) and accommodate approximately 1190 of the Borough’s officially
registered unemployed residents (about 33%). Set within the wider Tyne and Wear
conurbation, 25,058 people are registered unemployed (4.9%). Gateshead’s Economic
Activity Rate is 75.6% compared to the national rate of 79%

The main employers within the Borough are manufacturing industries and retail/wholesale,
employing 20% and 21% respectively, of Gateshead’s residents.

Economic performance is still poor compared to other parts of the country and the movement
of people out of the region for jobs accounts for about half of out-migration from the Borough.
33% (1750), of those people who think that they will leave the borough in the next five years
will do so for employment reasons. [1]

In the Borough, population out-migration continues to reduce the core economically active
age group (25-44) most significantly. The numbers of young people are projected to decline
but there is a significant rise projected in the number of elderly residents. If such trends
continue, this will have significant economic implications.

1.3 SOCIAL DATA

The Pathfinder area covers, in full or in part, ten wards. Eight of these wards are mainly within
the area; the remaining two only have a small part included. Under the Index of Multiple
Deprivation 2000 (IMD), five of these eight wards are in the worst 5% of the country. All but
one of these eight wards are in the worst 20% in the country.
Income

The IMD shows all eight wards as amongst the worst 20% in the country with two in the worst
5%. The child poverty measure shows three of the wards in the worst 5% nationally and all of
them in the worst 25%.

Within the Pathfinder area, in 1999 (the latest figures available):
 40.5% of households were receiving Council Tax Benefit and 36% Housing Benefit
 27.5% of the population were in households dependant on Income Support. These
   households included 35% of all children in the area
 A further 4.9% were dependent on income-based Jobseeker's Allowance
 In addition 1510 people, with 2645 dependent children under 16 (19% of all children in the
   area) were dependent on Family Credit.
 14% of the population were in households dependent on Incapacity Benefit.

The table below shoes the annual household income across the Borough.

                                                                      UK 1999 -
 Annual income                            %             Cum %
                                                                       2000 *
         Below    £10,000                33.4           33.4            28.3
         £10,001 - £12,500               10.8           44.2            28.8
         £12,501 - £15,000                 8.6          52.8            18.4
         £15,001 - £17,500                 4.8          57.6
         £17,501 - £20,000                 6.1          63.7
         £20,001 - £25,000                 9.3          73.0
                                                                         24.5
         £25,001 - £30,000                 8.0          81.0
         £30,001 - £40,000                 9.7          90.7
         Above    £40,000                  9.3         100.0
Household income levels across the Borough per DSS Family Resources Survey 1999-2000

Health

Under the IMD, five of the eight wards are in the worst 5% in the country and all eight in the
worst 15%. 11.7% of the adult population in the area were receiving Disability Living
Allowance.

The 2001 Census shows that there were a higher percentage of people with a limiting long-
term illness in Gateshead than the England and Wales average (23.9% against 18.2%).
There were also a higher percentage of people whose general health was 'not good' (13%
against 9.2%).
Education

The IMD shows all eight wards as performing worse than the national average. Six are in the
worst 20% nationally and two in the worst 5%. However, significant improvement has been
made in attainment of local schools.

The table below gives the average statistics relating the attainment, occupancy, attendance
and free school meals for schools within the pathfinder area on whose catchment areas fall
within the pathfinder boundary.

As can be seen, at Primary level the figures are close to the LEA average. They also reflect
an on-going trend of improvement for many schools. This is particularly encouraging given
that often significant levels of disadvantage faced by many pupils and their families is
expressed by the above average % of pupils receiving free school meals.

                Attainment          Occupancy           Sessions        Free School Meals
                  (KS2 &                                 Missed
             5+A-C GCSE's)
  Primary       26.9 (27.6)       86.44% (90%)        6.3% (5.7%)         42.1% (25.9%)
 Secondary     33.5% (48%)        89.75% (86%)       10.27% (9.1%)       32.35% (21.1%)
LEA Average in brackets

The 2001 Census returns shows that, in Gateshead, a higher percentage of people aged 16-
74 had no qualifications when compared to the England and Wales average (38.4% against
29.1%). In addition, a lower number of residents had a degree or higher level qualification
(12.8% against 19.8%).


Crime

Within the Borough of Gateshead, many types of crime are significantly higher than the
national average, particularly both domestic and non-domestic burglary, car crime, criminal
damage and drug offences. Crimes of violence however are substantially below the national
average.

The Audit of Crime and Disorder 2001 had the following key findings:
 Total amount of recorded crime had fallen by 11% over the last 3 years
 Domestic burglary had fallen by 28%
 Over the last year crimes of violence fallen by 13%
 Business crime and vehicle crime both account for a third of all crime
 Anti-social behaviour is a continuing area of public concern
 In the last year the Gateshead Youth Offending Team dealt with 880 young people, 72 of
  whom met the definition of persistent young offenders. 16 -17 year old males are responsible
  for 40 percent of all youth crime and the majority of crimes by young people involve theft or
  handling stolen goods
1.4 REGENERATION PROGRAMMES

The Gateshead Community Strategy contains an aim to go beyond providing good quality,
well-maintained homes to developing and sustaining communities and individuals by working
with them and other agencies. This emphasis on communities has been carried forward into
the Neighbourhood Renewal Strategy that identifies Priority Neighbourhoods where renewal
activity will be concentrated.

Several regeneration initiatives are already having a significant impact on the Pathfinder area
 East Gateshead. This Single Regeneration Budget initiative has been the catalyst for
  major restructuring of the area between Gateshead Town Centre and the Gateshead
  International Stadium resulting in the creation of a new cultural, residential and leisure
  quarter at Gateshead Quays, a new urban village at St James which includes the
  successful redevelopment of public sector stock at Old Fold and proposals for the
  development of the Baltic Business Park following demolition of unwanted public sector
  stock at Saltmeadows.
 Bensham/ Saltwell. A wide ranging community partnership has been established with SRB
   and Capital Challenge funding to deal with a range of economic, social and environmental
   problems. This has improved communication between the local community and the
   Council, providing the basis for further intervention to secure the future viability of the
   Bensham and Saltwell area.
 Gateshead Town Centre. This SRB initiative has concentrated on physical improvements
   to the areas in and around the Town Centre and on access routes into it. This has resulted
   in increased activity in the Town Centre area, which has been complemented by working
   with the voluntary sector to improve the availability of services and facilities for local
   residents. It remains a major objective to secure redevelopment within the retail area and
   discussions continue with private sector partners.

These initiatives provide the momentum for the Pathfinder to bring forward proposals in
response to housing market problems.

1.5 HOUSING

1.5.1 Stock Profile

The total number of dwellings in Gateshead is 88,303. 58.5% are in owner-occupation, 6.5%
private rented, 29.5% Council and 5.5% RSL[2].

Within the Pathfinder area, there are 24,700 dwellings. 13,587 (55%) are in the private sector,
8737 (35.4%) Council and 2376 (9.6%) RSL [3].

1.5.2 Private Sector Stock

The built form of the private housing stock across the Borough is characterised by a
dominance of terraced properties. Flats, in particular Tyneside Flats, make up 20.5% of the
stock, terraced housing 28.7% and semi-detached 34.8%. Detached homes account for 6.9%
of the stock and bungalows for 9.1%.
The age profile of the private housing stock, inclusive of RSL stock, in Gateshead is
representative of all building eras but predominantly of post-war construction. 61.7% of the
stock was constructed post-war, 15% in the inter-war period and 23.2% pre-1919 [4].
Excluding RSL stock, 32% of the private sector housing is pre-1919 [5]. High concentrations of
pre-1919 stock are found in the Pathfinder boundary area. 55.6% of stock in the Central
Management Area was constructed pre-1919 [4]. This area contains the majority of private
sector stock within the Pathfinder.

Private Sector Housing Market

The average price for all dwellings in the third quarter of 2002 was £72,401. This compares
with the regional average of £81,063. This is an increase of 13.2% over the previous year,
compared to the Tyne and Wear increase of 16%. The table below compares average house
prices by type with neighbouring authorities [6].

   Region/Area      Detached     Semi-      Terraced      Flat/          Overall
                                detached                Maisonette
   Gateshead         144474      78785        59409       38712          72401
    Newcastle        196293     102753        92104       86208          100738
 North Tyneside      160764      89602        79543       53237          80443
 South Tyneside      154498      83444        57853       39458          69735
   Sunderland        157659      72887        49424       45215          70584
    Tynedale         192783      107455       85439       73350          132521
   Derwentside       128437      60925        40026       41055          64726
 Tyne and Wear       162756      85972        68080       61936          81063
Source: Land Registry. July-Sept 2002

House prices in Gateshead are lower than the regional average and this is particularly evident
in the values of flats and maisonettes. Whilst prices of Semi-detached and terraced houses
have increased by 20% over the last year, the average price of flats has only increased by
3%.

Within the Pathfinder area house prices demonstrate extremes. On the Quayside, new
apartments are selling for £100,000+ whilst in Sunderland Road, for example, some Tyneside
Flats are valued at below £10,000.

The largest volume of sales in the Borough was that for terraced houses (38.8%) followed by
semi-detached houses (28%) and flats (19.4%).

Vacancy rates in the private sector vary across the Borough with the overall figure being 2.1%
[4]
    . The equivalent figure for the Pathfinder area is 4.5%. Excluding RSL stock, the private
sector vacancy rate in the Pathfinder is 4.7% but certain neighbourhoods exhibit far higher
rates, reflecting the localised failure of the housing market. [3]

The average weekly rent for a 2 bed flat is £40-60 and for a 3 bed house £55-75 [5]. There is a
strong private rented sector market operating in the Pathfinder area. An estimated 3009 units
(23.8% of dwellings) in the Central Management Area are in this sector. There is concern
about the sustainability of the growth in the private rented sector.
1.5.3 Social Sector Stock

The local authority has 24,948 properties in five neighbourhood areas across the Borough.
Houses, ranging in size from 1 to 5 bedrooms, account for 14,453 properties (58%), whilst
flats (high and low rise) make up 24% (6124) of the stock. 8,737 Council properties lie within
the pathfinder boundary (see table below).

28% of the Council stock was built before 1945 and 72% before 1965.

In the Pathfinder area, there are 16 RSL's managing a stock of 2376 dwellings. A detailed
breakdown of the stock profile is not available at this time.


   Property Type        0 bed    1 Bed     2 bed      3 bed    4 bed 5 bed      Total
       House                       26       1618      1927      175      1       3747
    Bungalows                     449       188         7                         644
        Flats                     502       1147       67                        1716
     Multi flats                  697       965        53                        1715
    Maisonettes                    1        287        300      23                611
 Aged Persons Units      103       65                                              65
      Bedsits            105                                                      208
     Flat –units                   4                                               4
     Flat bedsit          23                                     4                 27

        Total            231     1744       4205      2354      202      1       8737
Council Stock in the Pathfinder Area


Social Sector Market

By January 2003, the Local Authority had sold 11,412 dwellings, including the lease of 520
flats, since the introduction of the Right to Buy in 1980. As a result, over 25% of the remaining
stock is high-density flats and maisonettes, which are less popular, have a higher turnover
and require more maintenance than traditional housing. Much of this stock is located in the
Central and Inner West management areas.

There are currently 477 Council properties vacant in Gateshead, of which 281 (59%) are
located in the Pathfinder boundary (a vacancy rate of 3.2% for the Pathfinder area). Of these,
191 (40%) are flats – high and low rise, which account for 75% of all the flats currently vacant
within the Borough. Within the RSL stock, the vacancy rate in the Pathfinder is 3.2%. [3]

The average weekly rent charged for a Council property is £41-46 that compares with the
national local authority average of £46.06 and the London average of £62.32. Housing
Association rents average £53-£62 compared to the English average of £53.90 [5].

Almost 30% of the social housing (Council and RSL) in the Borough are considered to be in
low demand [2]. In some cases this is a neighbourhood issue but in others, such as
accommodation for older people, it is due to properties not meeting the demands of the target
client group. Average turnover of Council accommodation is 12.3% but this figure increases to
22% for flats.

Conversely, in some areas of the Borough there is a shortage of affordable larger family-sized
accommodation to rent or buy.

There is a mismatch in the supply and demand for some properties in Gateshead, particularly
in the Central, Teams and Dunston areas. The Housing Needs Survey[1] and supporting
Dwelling Balance Analysis found that there are too many affordable* maisonettes and one-
bed flats, however there are not enough 2,3,and 4 bed homes.




*Affordable – “housing that is provided, with subsidy, for people who are unable to resolve
       their housing requirements in the local housing market because of the relationship
       between housing costs and incomes” [6]
2. 3-YEAR PROGRAMME

The 3-year programme is based on two principles:

   The ability to advance initiatives already under way and to seek a more comprehensive
    approach

   Working with local communities to develop further initiatives in response to problems
    which have been identified

This will enable the Partnership to make progress on issues that have been the subject of
consultation and use that experience in further detailed development of programmes
reflecting the priorities which will be established in the Area Development Framework.

2.1 DELIVERY PLAN

2.1.1 Sunderland Road Strategy

The Strategy Area is a multi-tenure neighbourhood of approximately 1,200 dwellings. The
principal cause of concern is the living conditions in the streets to the north of Sunderland
Road. The problems include absentee landlords, anti-social behaviour, criminal activity, drug
taking and the fear of crime resulting in declining property values, owner occupation levels,
increasing vacancy, high resident turnover and increasing abandonment of properties.
Because of the potential risk of the decline and deterioration spreading out from this area, this
strategy:
 proposes the introduction of a series of measures to address the issues identified which
    need to encompass: grant aided improvements to retained older housing; continuation of
    the Neighbourhood Housing Officer post; the establishment of a multi-agency presence to
    improve information exchange and service delivery; measures to improve security and
    reduce the fear of crime; environmental improvements, and measures to engage young
    people.
 examines the possible case for, and extent of, demolition in the area to the north of
    Sunderland Road;
 examines the powers available to assist the Council to acquire any properties to be
    demolished, resource implications and timescales; and
 recommends which properties should be demolished and the making of a Compulsory
    Purchase Order in order to secure the comprehensive acquisition, demolition and
    redevelopment of the affected area.

2.1.2 Teams Strategy

Considerable change is taking place in the Teams area of Gateshead. The demolition of the
Teams Maisonettes, new housing at Staiths South Bank, the Centrelink project, concerns
about traffic and bus services, local facilities and the poor environment of industrial areas,
have all raised uncertainty about the area. The Strategy seeks to promote sustainable
development, the reuse of previously developed land and to maximise the use of sites with
good access to public transport. It comprises the following proposals:
 continue to implement an imaginative and innovative new housing development at Staiths
   South Bank, in discussion with the developers;
   develop the site of the Teams Maisonettes and land at Smith Terrace for new social
    housing and housing for sale;
   develop a new neighbourhood centre off Askew Road West bringing together a better
    range of local services, including shops, health and other community facilities in an
    attractive and accessible setting;
   consider an environmental scheme for the existing housing around Kelso Place so it can
    be better integrated with proposed new housing development;
   pursue a mixture of traffic management measures and road improvements to improve
    accessibility;
   continue to liaise with bus operators to improve services to the Town Centre; and,
   work with businesses to improve businesses prospects and the attractiveness of the
    industrial area.

2.2 PLANNING PRIORITIES

2.2.1 Central Area

The Central Area comprises Bensham/Saltwell and Shipcote, the former of which is now in
the latter stages of a seven-year programme of regeneration initiatives funded through SRB
and Capital Challenge. The area contains the largest concentration of private sector dwellings
within the Pathfinder area.

The area is characterised by the monolithic provision of high-density two-storey terraces in a
compact grid-iron pattern, with a dominance of private sector tenure. The majority of these
dwellings are Tyneside Flats. There is a shortage of good quality, larger family homes. This is
a particular concern given the housing needs of the Jewish and BME communities living in
the area.

House prices within the area are below the average for Gateshead and are falling behind
relative to local house price inflation. The vacancy rate is rising, particularly in a number of
sub-areas and there has been a significant shift to private renting over the last few years. The
majority of the stock was constructed pre-1919 and there is a need for significant investment
to make good disrepair and unfitness.

A comprehensive housing market-restructuring programme to address the inherent stock
imbalance and to sustain the existing community is an early priority in this area.

2.2.2 Council Housing

The results of the Housing Quality Network research for the Housing Futures Review
indicates that there are several areas of the Borough that cause concern in terms of demand
and investment requirements, of those that fall within the Pathfinder boundary the following
have been identified as being of priority:

       Ravensworth Road, Dunston – maisonettes and Derwent Tower, significant investment
        needed in terms of remedial work, little or no demand (312 properties).

       Victoria / Eslington Teams area – the two main multi storey blocks of flats comprising
        over 300 properties are unpopular, in low demand and have high tenancy turnover
        rates. The area is characterised by an over provision of flats and an under provision of
       houses. The remainder of the area is popular and potentially sustainable if this
       imbalance is addressed.

      Chandless - family-sized maisonette accommodation in a poor environment, close to
       the main Felling bypass, with few local facilities. There is no registered demand from
       within Gateshead for the maisonettes. Over 300 multi-storey flats that are cut off from
       the main town centre by a major road network. The flats experience high turnover rates
       with few long- term tenancies. (161 maisonettes and 384 multi storey flats).

      Sunderland Road area – Carlisle Street maisonettes, comprising 87 two, three and four
       bedroom maisonettes are poorly located and exhibit all the features of low demand.
       The access to the maisonettes is poor with balcony access to the upper properties.
       The demand for these properties is virtually non-existent from families for the larger
       sized properties.

      Felling bypass estates – there are a number of estates which border both sides of the
       Felling bypass and have very low, localised demand. One-bed houses at the Nest
       Estate prove particularly unpopular and difficult to let, as do the one-bed bungalows.
       The location of these estates adjacent to areas of light industry and small factory units
       also present issues in terms of lack of facilities for leisure and shopping.


2.2.3 RSL Housing

Home Housing Association is planning to carry out a detailed property options appraisal in the
Deckham/Highfield area to address low demand in the stock. The options appraisal will
consider the stock profile, the potential for demolition/ remodelling/ revitalisation and
environmental improvements.

These estates comprise 628 dwellings, 424 of which are houses/bungalows, the remaining
204 flats. In the Deckham estate, demand for property has become localised to specific
streets and in some cases specific sections of streets. In Highfield, waiting lists have
diminished over the past 6 years to virtually nothing. The estate's stigma acts as a barrier to
the entry of new tenants and a spur to the departure of existing ones.
3. KEY ISSUES

3.1 Aligning Key Strategies

The Housing Market Renewal Pathfinder will be an essential component of local regeneration.
The initiative will be shaped by the aims and objectives of key local strategies and will assist
in their delivery in a positive and productive way. These strategies need to be aligned with the
Pathfinder and take account of the nature of market renewal activity. The strategies need to
be consistent with and not undermine the scheme.

The framework of strategies and policies is constantly evolving and full account of the
Pathfinder needs to be taken throughout the review and development of these documents. Of
particular importance are the:

   Community Strategy
   Neighbourhood Renewal Strategy
   Housing Strategy and Business Plan
   Private Sector Renewal Policy
   SRB Forward Strategies
   Unitary Development Plan and supporting Area Action Plans
   Transport Strategy
   Community Safety Strategy
   Education Development Plan
   School Organisation Plan
   Economic Development Plans
   Asset Management Plans and Capital Strategies
   Partners investment strategies e.g. PCT Estates Strategy

The dynamic nature of regeneration within the area requires a responsive and flexible
relationship to adapt to both positive and negative change.

3.2 Housing Tenure

Social housing forms 35% of the housing stock in Gateshead [5]. In the Pathfinder area, this
figure rises to 45%. This level of social housing provision is higher than both the regional
(40.2%) and national averages (22%). [1]

Initial findings from the Housing Needs Survey show that 47% of existing households who
were considering moving saw owner occupation as their preferred tenure. 44% indicated a
preference for Council rented accommodation. Interest in renting from Housing associations
or the private rented sector was minimal.

In the case of concealed / new households, the figure for owner occupation as a preference
rose to 61% compared to 26% for Council renting and 10% for private renting.

There is a declining market for social housing in the North East generally. Research by the
Northern Housing Consortium in 2000 established that the number of households seeking this
tenure in Gateshead is likely to fall by 2000 households a year by 2010. It is expected that
there will be a reduction of 700 properties in 2002 /03 and a further 650 each year for the next
nine years due to the combined effects of sales and demolition of properties for which there is
no demand.

The findings from Housing Quality Network, which considered in detail the options for the
future of Council housing, have identified that the majority of the estates suffering from low
demand are in the Pathfinder area.

There is a need to ensure that the restructuring of the housing market meets the social
preferences and economic needs of existing and future residents, leading to the development
of mixed tenure, mixed economy neighbourhoods.

3.3 House Type

Private Sector

In the private sector the market is dominated by concentrations of high-density pre-1919
terraced property. In the Central Management Area alone, 21.5% of the stock is terraced and
61.4% (7755) are flats, the majority being Tyneside Flats. This figure equates to 60.4% of all
private sector flats in Gateshead [4].

Across the Borough 50.8% of the private stock takes the form of semi-detached, detached or
bungalows. This figure falls dramatically to 17.1% in the Central area reflecting a short fall in
the provision of larger family accommodation within the Pathfinder area [4].

Given the expressed housing preference shown in the Housing Needs Survey (see table
below) there is a clear imbalance in the nature of the housing stock within the Pathfinder area.
This is further evidenced in relatively low property values compared to the regional average
and areas of high voids. Of particular note is the low preference given to Tyneside flats. 13%
of respondents identified a lack of high quality housing as a reason for their intention to leave
Gateshead [1].

In terms of property size the key facts from the Housing Needs Survey show that over 86% of
new forming households are looking to purchase one or two bedroomed units which represent
only 47% of the current housing stock.

                                         Households Intending to Move

                                  Existing Household          New Household
                                     Preference %              Preference %*
        Semi-detached                   36.2                      45.7
           Bungalow                     21.2                       8.0
           Detached                     19.6                      14.4
           Terraced                     9.4                       23.2
       Flat / Maisonette                8.5                        8.7
      Supported Housing                 2.5                     No data
         Tyneside Flat                  2.1                        0.0
        Bedsit / Studio             0.5                  No data
Source: Housing Needs Survey 2002 (*households moving within one year)
There is a need to address the lack of choice within the private sector housing market in the
Pathfinder area. There is a need to rebalance the stock and provide a larger number of
houses, ranging in size from small starter-type homes to larger executive housing. The
provision of a greater range of housing will not only serve to address the housing preferences
of existing and new households but may also serve to attract people back to the urban
conurbation.

Social Sector

In the Council sector it is recognised that there is an overprovision of flat type
accommodation, both high and low rise, particularly in the Central Management Area where
there are approx. 2050 (63% of stock) one and two bedroomed flats, with low registered
demand for all types.

In contrast, there are only 825 (25%) traditionally built houses within the Central area. The
unpopular family sized maisonettes at Chandless estate account for 259 properties or 8% of
the stock available for family occupation. In the Central area, there is a lack of suitable
accommodation for older persons, with only 2% of the stock in bungalow form.

In the Dunston area, demand for traditional family housing is high, however the low turnover
of such properties means that the choice for most people seeking family housing is limited to
the maisonettes at Ravensworth Road, which are unpopular and have little or no registered
demand. In comparison, demand for houses in the remainder of the Dunston area is high,
with waiting times in excess of 5 years for applicants.

The Felling area comprises a mixture of traditional houses and flats as well as non- traditional
maisonettes at Carlisle Street, which are unpopular and prove difficult to let. One bedroom
houses and a high number of one bedroom bungalows are also unpopular and present
significant demand issues. The estates bordering the Felling bypass exhibit low demand at a
very localised level, it is difficult to attract people to the area.

Home Housing Association has a large estate at Deckham, in the Central Gateshead area,
comprising a total of 628 properties, 32% of which are flats. In 2001, 40 of the most unpopular
flats were demolished and replaced with 12 semi-detached 2 bed bungalow, two of which
have been fully adapted for the disabled. Demand for the estate is low and localised down to
street level.

Within the social sector in some areas of the Pathfinder, there is a lack of choice, particularly
in relation to family-sized accommodation. This is most evident in the Dunston and Central
areas where non-traditional maisonettes are unpopular but where the supply of traditional
housing is too low to meet demand.

An oversupply of high-rise flats, particularly in the Central Area also needs to be addressed in
view of the high number of other 'flat' type accommodation also available in the area.

3.4 Stock Condition

Due to the high number of non-traditional properties in the social sector across the Pathfinder
area, there is a significant investment need in terms of maintenance and improvement, which
in terms of sustainability may not be viable.
Of the 18 Council estates in the Borough that show characteristics of lower than average
demand, 13 (72%) are within the Pathfinder area [7]. It is suggested that more detailed work is
carried out in these areas to determine the precise requirements for investment, remodeling
and / or demolition in consultation with local people.

In the private sector 9.3% of the stock is unfit or in poor repair in the Central Management
Area [4].

3.5 New Build

Within, and at the edge of, the Pathfinder area there are 9 major housing sites currently under
construction, which when complete will provide a total of 2,614 dwelling units.

There are a further 8 sites where residential development could potentially provide a further
1,478 dwelling units. These sites either already have planning permission or are allocated for
residential development.

The sites are distributed across the whole Pathfinder area. The most recent permissions at
the larger riverside sites have comprised flats at relatively high densities. Due to the
continuing buoyancy of the housing market, these are relatively high priced. For example, at
Curzon Place, prices at the end of 2002 were advertised at £135,000 for a 2 bed flat, rising to
£180,000 for a 3 bed flat.

This situation has arisen at the same time as the Boroughs' first housing need assessment
(carried out in the summer of 2002). This has established that there is a requirement for in
the order of 245 affordable housing units (that is subsidised) to be provided each year. Some
of these will be needed in the Pathfinder area.

The impact of current and proposed development, both within the Pathfinder area and in the
wider market, needs careful monitoring to determine the level of migration from the existing
stock. The effect of these neighbourhood-level market flows requires careful management.

3.6 Accommodation for Older People

There is a need to provide a full spectrum of accommodation and housing related services in
different locations to meet the varying needs of older people. A review of the accommodation
options for older people has identified an under provision of suitable housing for sale and an
imbalance between supply and demand in the social sector.

In order to meet the changing needs of an increasing ageing population, the imbalance in the
provision of housing suitable for older persons will need to be addressed through new
development, reprovision and refurbishment. In particular, the construction/refurbishment of
housing to the 'Lifetime Homes' standard should be encouraged.

3.7 Maintaining Communities

The Government’s Urban White Paper sets out a new vision of urban living, which includes
involving communities in shaping their future. The emphasis of current national, regional and
local policy and guidance is to maintain and strengthen existing settlements and communities
to enable them to support a range of quality housing, employment, schools, shopping, leisure
and community facilities.

Gateshead's Community Strategy places at the forefront of service delivery, the aspirations of
communities and the factors that most impact on their quality of life. The impact of market
restructuring on local communities, needs to be handled sensitively with participative
community consultation processes.

A critical element of the process will be to ensure that residents who wish to remain within
their existing community are provided with the housing opportunity to do so.

3.8 Area Management

The effective alignment of investment with high quality public services will contribute to the
success of the initiative. The Pathfinder needs to ensure that area management approaches
that will restore confidence in areas, providing support to people living in areas experiencing
change, preserving the infrastructure of schools, shops, community facilities etc and
delivering improved after-care service for areas receiving capital investment are delivered
complementary to intervention plans.

The need to deliver schemes that address wider neighbourhood quality issues is paramount
to the success of the initiative.

3.9 Crime and Anti-Social Behaviour

Dealing with anti-social behaviour is the top priority for Gateshead residents. Those residents
intending to leave Gateshead highlighted crime and the fear of crime as the main reason for
intending to do so.

Paramount to he success of the Pathfinder is working with partners to reduce the incidence
and fear of crime and promoting public reassurance.

4.0 Private Landlords

Irresponsible landlords investing in areas suffering market weakness can have a significant
impact. Their activity in areas has a destabilising effect. They often fail to maintain their
properties, which serves to increase the physical deterioration of the area and the general
feeling of decline.

There is little vetting of tenants and subsequent anti-social and criminal behaviour of tenants
goes uncontrolled, causing distress for original residents and increasing the social tension in
the neighbourhood. An area rapidly becomes stigmatised which further drives out original
residents, often to the benefit of speculative landlords who continue to buy up vacated stock,
taking advantage of Housing Benefit payment to often sub-standard housing, with no control
or restrictions.

There is a need to intervene in areas exhibiting stress due to the impact of private landlords,
to improve both the quality of management and that of condition.
Reference:

[1] - Housing Needs Survey 2002
[2] - Housing Strategy Statistical Appendix April 2002
[3] - Property Gazetteer & Council Tax Data November 2002
[4] - Private Sector Stock Condition Survey 2002 (Includes RSL stock)
[5] - Housing Strategy July 2002
[6] - Land Registry July-Sept 2002
[7] - Housing Futures Review - Housing Quality Network 2002
                                      Appendix 2

                              PATHFINDER STRUCTURE


                                 STEERING GROUP




                                EXECUTIVE GROUP




                                    CORE TEAM




               LINK OFFICERS                       LINK OFFICERS




GATESHEAD WORKING                  WORK STREAM                   NEWCASTLE
      GROUP                          GROUPS                     WORKING GROUP




                               MEMBERSHIP AND ROLE


STEERING GROUP

ROLE
 Oversee the development of the market renewal proposals for NewcastleGateshead
 Approve proposals for a Housing Market Renewal plan or specific parts of it, before
  submission to government or to partners.
 Be responsible for the deployment of the Pathfinder budget and monitoring the impact of
  early interventions.
 Review regularly the membership of the Steering Group as the proposals develop and,
  following consultation with the two LSPs, amend the membership if so decided.
 Propose a structure and remit for a Partnership Body to implement the strategic plan
MEMBERSHIP

Leo Finn              Independent Chair
Cllr Ruth Robson       Cabinet Member, Newcastle
Jill Preston           Director of Community and Housing, Newcastle
Cllr Peter Mole        Cabinet Member, Gateshead
John Robinson          Director, Development and Enterprise, Gateshead
Dawn Cranswick         Director of Business Support, Project North East
                       LSP representative, Newcastle
Pauline Nelson         Director, Gateshead Voluntary Organisations Council
                       LSP representative, Gateshead
Brian Ham              One North East
Malcolm Levi           Chief Executive, Home Group
Mike Smith             Operational Director - Mortgage Operations, Northern Rock
Jim Johnsone           Regional Planner, House Builders Federation
Eric Morgan            Sanderson, Townsend and Gilbert
Donald Urquhart        English Partnerships

Martin Townsend        Market Restructuring Team, ODPM (Observer)
John Bainton           Government Office North East (Observer)
Lindsay Greenwood      Housing Corporation (Observer)
John Moralee           Chief Executive, Northern Housing Consortium (Advisor)
David Cumberland       Consultant (Advisor)


EXECUTIVE GROUP

ROLE
 Strategic direction
 Links to key partners and LSP
 Fit with policies
 Relationship with partners sub-regionally


MEMBERSHIP
Jo Boaden
John Robinson
Jill Preston
Peter Stott
Martin Townsend
David Cumberland
Harvey Emms




CORE TEAM

ROLE
 Day-to-day development of strategic plan
 Operational issues
 Performance and financial management
   Monitoring, review and evaluation
   Communications and consultation

MEMBERSHIP

Jo Boaden                                    Alaric Pritchard
Martin Walker                                Angela Merritt
Joanne Flynn                                 Andrew Marshall
Julia McAweaney                              Anne Connolly


GATESHEAD WORKING GROUP

ROLE
 Preparation of Area Development Framework
 Monitoring of delivery contracts
 Input into project plan
 Input into scheme submission
 Communication and Consultation
 Links to partners

MEMBERSHIP

John Robinson - Director, Development and Enterprise
David Leeder - Head of Planning and Environmental Strategy
Amanda Reed - Residential Services, Development and Enterprise
Ian Stevenson - Neighbourhood Management Team Leader
Ian McGowan - Head of Delivery Unit, Learning and Culture
Colin Stockwell - Head of Commercial and Development, Legal & Corporate Services
Helen Campbell - Group Estates and Valuation Officer
Linden Watson - Finance & ICT
Mick Doyle - Principal Housing Manager
John Costello - Senior Policy Officer, Chief Executives
Andrew Marshall - Link Officer
Anne Connolly - Link Officer
                                             APPENDIX 3 - COMMUNITY CONSULTATION FRAMEWORK

               OBJECTIVES                             KEY MESSAGES                                     APPROACH                              TIMING - METHOD
   To develop a greater understanding       This is a real opportunity to deal with      Pathfinder team to co-ordinate the                End Jan - March:
    of the nature and scope of the            inherent housing stock imbalance              two initial phases of strategic            Promotion of the Issues and
    Pathfinder                               There are very real housing market            consultation:                               Vision & Objectives paper
   To raise awareness of housing             and other problems facing                      Visioning                                 through
    market imbalance and other issues         neighbourhoods                                 Options and Proposals                     Council News
    affecting neighbourhoods in              Informed and decisive action needs           Use existing consultation networks          Pathfinder Newsletter
    Gateshead                                 to be taken for the benefit of the            and teams within each authority to          Website
   To seek views and support for the         area as a whole                               deliver                                     Viewpoint
    vision for the area                      This is a long-term initiative for           Align with other Consultation               Include Survey Form
   To raise aspirations and promote          which careful planning is critical            programmes e.g. UDP                        Presentations at key meetings
    opportunities.                           No decisions will be taken without           Outsource additional capacity if            e.g. Community Partnerships
   To inform and include residents in        full and proper involvement of the            needed                                     Seminars to selected groups
    the planning and developmental            resident community                           Prepare risk management                    Community Planning Weekend
    stages of the Pathfinder                                                                strategies
   To draw out potential tensions                                                                                                                April-June
   To penetrate a wide a range of                                                                                                     Promotion of Options &
    interest groups                                                                        Continuing programme of press               Proposals through same media
                                                                                            releases to promote the initiative          as above
                                                                                                                                       Presentations, roadshows and
                                                                                                                                        exhibitions
                                                                                           Detailed consultation on local
                                                                                            actions led by delivery agent                    July-September
                                                                                           Development of flexible                    Promote preferred options
                                                                                            consultation protocols for differing
                                                                                            interventions                                        November
                                                                                                                                       Publish submission

                                                                                                                                             Beyond Submission
                                                                                                                                       Local consultation relevant to the
                                                                                                                                        type of intervention
                                                                                                                                       Promote overall Pathfinder
                                                                                                                                        progress

				
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