Agenda item - Review of the long lease held by The Brighton Lions at Lions Court

Report of the Acting Executive Director Environment, Development & Housing (copy attached).

1)       That the Policy and Resources Committee be recommended to approve the sale of the freehold of Lions Court to the Brighton Lions for a consideration equal to its market value, in the sum of £670,000, subject to the Lions allocation scheme stating that new tenants will be on the council’s housing register.   

2)       It is agreed that if a decision is taken to sell the freehold, a restrictive covenant is placed on the land for social housing use only.

3)    That it is noted that the council will be offered nominations by the Brighton Lions if they are unable to let a vacant flat.   

4)       That the Policy and Resources Committee be recommended to approve that the capital receipt be used to support the HRA capital programme.

26.1   The Committee considered the report of the Acting Executive Director Environment, Development and Housing which informed Members that the Brighton Lions, through its Housing Society, were leased council (Housing) land at Manor Way, Brighton in 1968 in order to build affordable residential accommodation to rent.  They built 30 older peoples flats which they managed.  The Brighton Lions now wished to buy the freehold to enable them to grow and invest in new projects.  The Brighton Lion’s Manor Way scheme supported the council’s housing strategy and sale of the freehold would provide a capital receipt that could be used to subsidise the housing capital programme. The report was presented by the Housing Stock Review Manager.

26.2    Councillor Miller asked why only one valuation had been obtained for the freehold.  He also asked why an accurate valuation had not taken place shortly before the Committee decision was made.  The Housing Stock Review Manager replied that the valuation had been negotiated by external chartered surveyors.  Paragraph 7.1.3 of the report set out how the current freehold price was agreed between the relevant chartered surveyors in April 2015.  The delay had been caused by the timing of the committee cycle.

26.3    Councillor Mears commented that she had previously been a ward councillor in the Manor Way area.  It was a well kept area and residents were happy in Lions Court. 

26.4    Councillor Moonan asked how the Brighton Lions allocation policy matched up to the council’s allocation policy.  The Housing Stock Review Manager referred to paragraph 3.2 of the report which related to the allocations process/nomination rights.  This stated that the Brighton Lions operated their own waiting list.  Applicants must be residents of Brighton and Hove, be over 55 years of age and have been resident for 5 years.  Applicants are allowed up to £16,000 ‘liquid assets’ but must not own a property.  The Brighton Lions did not have a public scheme.  They had a points scheme.  

26.5    Councillor Moonan asked if the tenants who were allocated homes were people who would otherwise approach the council for help.  The Housing Stock Review Manager confirmed that this was the case.  The Brighton Lions were meeting housing needs in the city. 

26.6    Councillor Gibson expressed disappointment that the council were not exercising 100% nomination rights.  It was not known whether housing needs were being met by the nomination scheme of the Brighton Lions.  Councillor Gibson was concerned that if the freehold was sold, the council was potentially losing an asset.  He asked if any of the people housed by Brighton Lions were on the council housing waiting list.  

26.7    The Housing Stock Review Manager replied that people were always advised to join the council housing list.  Brighton Lions were a social housing provider who were committed to social housing. 

26.8    Councillor Gibson asked if it could be confirmed that the rents charged by Brighton Lions were social rents.  The Housing Stock Review Manager confirmed that rents charged would be social rents. 

26.9    At this point in the proceedings the Chair drew Members’ attention to two separate amendments to the recommendations that had been received from the Conservative and Green Groups.   

26.10  Councillor Mears proposed the following amendment which was seconded by Councillor Miller:

          Delete the word “housing” on line 3 in recommendation 2.4 and replace with the word “HRA” so it would read:   

          “That Housing & New Homes Committee recommends to the Policy & Resources Committee that it approves that the capital receipt be used to support the HRA capital programme.”                                            

26.11  Councillor Gibson proposed the following amendment which was seconded by Councillor MacCafferty:

          Amend the recommendations by adding 1 new clause so that it would read:

          Paragraphs 2.1 to 2.4 unchanged. 

          Add

          “2.5  The Housing & New Homes Committee negotiate a fixed % of nomination rights and report back to Housing & New Homes Committee for final authorisation to proceed with the sale.” 

26.12  The Chair pointed out that it was not in the power of the Housing & New Homes Committee to authorise the sale to the Brighton Lions.  This was the responsibility of the Policy & Resources Committee. 

26.13  The Interim Head of Housing suggested that the Committee might want to consider an alternative amendment to set a condition on the sale so that new tenants housed in the scheme were on the housing register prior to their being housed.   Paragraph 2.1 could be amended to add “subject to the Lions allocation scheme stating that new tenants should be on the Council’s housing register”.  Councillor Gibson found this acceptable.  He wished to see a tighter register and a tighter criteria for people on the housing list. 

26.14  The Committee voted on paragraph 2.1 as amended below:  

          “That Housing & New Homes Committee recommends to the Policy and Resources Committee the sale of the freehold of Lions Court to the Brighton Lions for a consideration equal to its market value, in the sum of £670,000, subject to the Lions allocation scheme stating that new tenants should be on the council’s housing register.” 

26.15  The amendment was agreed by 8 votes for the amendment.  There were two abstentions.   

26.16  Members agreed recommendations 2.2 and 2.3, and then considered the Conservative amendment as follows:

          “Delete the word “housing” on line 3 in recommendation 2.4 and replace with the word “HRA” so it would then read:

          “That the Policy and Resources Committee be recommended to approve that the capital receipt be used to support the HRA capital programme. “  This amendment was agreed.

26.17  RESOLVED:-

(1)            That the Policy and Resources Committee be recommended to approve the sale of the freehold of Lions Court to the Brighton Lions for a consideration equal to its market value, in the sum of £670,000 subject to the Lions allocations scheme stating that new tenants will be on the council’s housing register.

(2)      It is agreed that if a decision is taken to sell the freehold, a restrictive covenant is placed on the land for social housing use only.

(3)      That it is noted that the council will be offered nominations by the Brighton Lions if they are unable to let a vacant flat.   

(4)      That the Policy and Resources Committee be recommended to approve that the capital receipt be used to support the HRA capital programme.