Issue - items at meetings - Housing delivery options

Report of the Acting Executive Director for Environment, Development & Housing together with an extract from the proceedings of the meeting of the Housing & New Homes Committee held on 2 February 2016 (copies attached).

1)    That the Committee be recommended to agree that the Executive Director Environment, Development & Housing, in consultation with Executive Director of Finance & Resources, procure specialist legal and financial advice in order to evaluate and progress the proposals for the delivery of alternative models for the supply of affordable housing as detailed in the report, for report back to Housing & New Homes and Policy and Resources Committees.

2)    That the Committee be recommended to allocate £0.100m of the 2016/17 Strategic Investment Fund towards specialist legal and financial advice.

152.1    The Committee considered a report of the Acting Executive Director for Environment, Development & Housing in relation to Housing Delivery Options. The report sought permission to fund the establishment of a joint venture and/or special purpose vehicle to delivery new homes and inform development of specific proposals to be reported back to the Housing & New Homes Committee and the Policy & Resources Committee. The Committee also noted the report had been considered by the Housing & New Homes Committee on 2 March 2016, as set out in the attached extract from the meeting.

152.2    Councillor Janio commented the proportionately high number of residents in the private rented sector had some advantages such as creating a more flexible workforce. In response to a query from Councillor Janio it was explained that much of the affordable new homes built were shared ownership, this venture would also allow the Council to better capture a supply of housing to meet the city’s needs in a more affordable way.

152.3    In response to Councillor Sykes it was explained that this type of modelling could consider a range of rents options as it was not subject to the same regulatory constraints.

152.4    Councillor Meadows noted that rents were very high in the city, and the type of housing stock often meant that heating and fuel bills were also higher; the delivery vehicle proposed in the report would allow alternative models to be considered and take properties out of the right to buy scheme so they could not be lost as housing stock. Whilst the option of 60 year borrowing had been considered; a period of this length could potentially fetter the future options of the Council. This delivery vehicle would allow the Council to build the type of homes needed and ensure were not priced out of staying in the city.

152.5    In response to Councillor Wealls it was explained that this venture could help to ‘kick-start’ development if the Council was purchasing units upfront; the Council could also work to increase densities, where appropriate, and fund schemes that might not be otherwise workable.

152.6    In response to Councillor Mac Cafferty it highlighted that any governance would ensure the Council’s interests were protected.

152.7    The Chair then put the recommendations to the vote.

152.8    RESOLVED:

1)     That the Committee be recommended to agree that the Executive Director Environment, Development & Housing, in consultation with Executive Director of Finance & Resources, procure specialist legal and financial advice in order to evaluate and progress the proposals for the delivery of alternative models for the supply of affordable housing as detailed in the report, for report back to Housing & New Homes and Policy and Resources Committees.

2)     That the Committee be recommended to allocate £0.100m of the 2016/17 Strategic Investment Fund towards specialist legal and financial advice.