Agenda item

To consider the report of the Director of Resources and Housing seeking authority to spend to support a new 2-3 year programme of up to 180 property acquisitions (and refurbishments). The report also seeks approval of the updated Property Purchase Policy.

Further to Minute No. 22, 26^th June 2019, the Director of Resources and Housing submitted a report which sought the necessary ‘authority to spend’ to support a new 2-3 year programme of circa 150-200 property acquisitions (and refurbishments), which followed the earlier injection into the Capital Programme at the Council meeting in February 2019. In addition, the report also sought the Board’s approval of the updated Property Purchase Policy.

Members discussed the approach and criteria being proposed. During the discussion, emphasis was placed upon the need to ensure that the buying back of a property provided value for money and was a viable investment, whilst on the other hand, a concern was also raised about ensuring that the approach was not too restrictive.

Responding to Members’ comments, emphasis was placed upon the need for any purchases to deliver value for money and enable the property to be brought up to the desired standard within the proposed ‘per property’ budget cap.  It was clarified that the approach being taken was to focus on repurchasing former Council properties which had been bought under ‘Right to Buy’ provisions and that the ‘Right of First Refusal’ protocol had been identified as the main means to achieve this.

Reference was also made to the establishment of a Local Housing Company and the benefits that that would bring when looking to address housing need in the city.

RESOLVED –

(a)  That the progress made to date in terms of the property acquisitions, as set out in the submitted report, be noted, with the establishment of the project, the supporting processes, resources and the governance arrangements also being noted;

(b)  That ‘Authority to Spend’ of £22.5m to the Council Housing Growth Programme which will support a new 2-3 year programme of c.150-200 property acquisitions (and refurbishments), following the injection of the Capital required at February 2019 Full Council, be granted, and that the Board’s support also be provided for any funding bids which are required to optimise the funding mix for these acquisitions;

(c)  That it be noted that the acquisitions (and refurbishments) will be funded via a combination of Housing Revenue Account (HRA) funding, blended with either retained ‘Right to Buy’ receipts or Homes England Grant;  and that the necessary authority to approve the final funding mix for the acquisition (and refurbishment costs) be delegated to the Director of Resources and Housing;

(d)  That the current budget cap of £145,000 per property, as detailed within the submitted report, be noted, and that the necessary authority to amend this in line with future fluctuations in housing prices be delegated to the Director of Resources and Housing;

(e)  That the updated Property Purchase Policy, as presented at Appendix A to the submitted report, be approved, and that the implementation of the Policy be delegated to the Director of Resources and Housing.

(Under the provisions of Council Procedure Rule 16.5, Councillor Golton required it to be recorded that he abstained from voting on the decisions referred to within this minute)

(During the Board’s consideration of this item Councillor A Carter left the meeting. At this point, under the provisions of Executive and Decision Making Procedure Rule 3.1.6, Councillor A Lamb was invited to attend the remainder of the meeting on behalf of Councillor A Carter)