Agenda item - Leaseholder Engagement

Report of Executive Director for Neighbourhoods, Communities & Housing (copy attached).

(1)    That the committee notes the practical measures to improve engagement with leaseholders set out in paragraphs 3.29 to 3.40 and supports their implementation.

7.1     The Committee considered a report of the Executive Director, Neighbourhoods, Communities & Housing which looked at how the council currently engaged with leaseholders and proposed ways in which this engagement could be improved, concentrating on improving customer service, better communication, value for money and greater engagement on planned major works. The report was presented by the Head of Housing Strategy, Property & Investment, accompanied by the Leasehold Services Manager.

7.2     Members were informed that the Leaseholder Action Group had endorsed the report and it was acknowledged that there was a need for officers to keep working with this group. The Executive Director for Neighbourhoods, Communities and Housing read the following email from the Chair of the Leaseholder Action Group as follows: 

          “The Leaseholder Action Group unanimously endorse the leaseholder engagement report and appreciate all the engagement and consultation undertaken by Larissa Reed and her team, Martin Reid, and Glyn Huelin during the preparation of the report.  This report sets out proposals for a complete overhaul of the way Brighton & Hove housing engages with its leaseholders and is a starting point for future productive discussion on the scope and detail of implementation and hopefully the beginning of a new era where Brighton and Hove housing are not just technically robust in compliance with leaseholder legislation but set best practice to the sector. The leaseholder Action Group is looking forward to participating in the implementation.  The Leaseholders Action Group also feel that the workshops with officers and elected members monitoring progress on leaseholder engagement and on the review of the new maintenance contract are very useful and productive.  Finally the Leaseholder Action Group welcomes the report and the new spirit of engagement.” 

7.3     Councillor Atkinson welcomed the positive response from the Leaseholder Action Group. He thanked officers for the report and the solid list of practical measures on pages 47 and 48. In terms of engagement and communication prior to major projects he requested more accessible language to be used when communicating with residents. Officers present endorsed the need to improve communications.

7.4     Councillor Gibson welcomed the report and the process of engagement which was a positive step forward and had led to a good set of practical measures. He paid tribute to the Executive Director, Neighbourhoods, Communities & Housing who had driven this work forward. He welcomed the overwhelming endorsement of the Leaseholder Action Group. Councillor Gibson expressed one concern. He referred to page 55 of the report which stated that council loans had a variable interest rate, currently 4.83% when leaseholders were struggling to pay large bills (as high as £30,000 in one case) Councillor Gibson could not understand why the council could not be a bit more helpful and offer a lower rate given that the council could borrow at a considerably lower rate than the 4.83%. The Leasehold Services Manager explained that repayment over a period of 5 or 10 years was one option. In the past officers had worked up a number flexible payment options which were designed to address leaseholders with high major works charges of £5,000 or above to keep them in their homes. In those situations there were deferred payment loans, and there were a number of different options such as paying over a period of time without interest. Officers did not rule out looking at this again and talking with accountants with regard to interest rates. 

7.5     Councillor Hill welcomed the report. This was a transparent process and the correct direction to proceed.

7.6     Councillor Bell welcomed the report and the email from the Chair of the Leaseholder Action Group.  He was pleased that the Leaseholder Action Group felt they had been listened to and were supportive of the report.  Councillor Bell referred to paragraph 3.4 on page 44. This stated that “The leases, with the exception of most leases created before 1987, include a provision to contribute towards works of improvement.” Councillor Bell asked how many residents of leasehold properties were exempt from paying any contributions to improvements to their properties. He referred to paragraph 3.15 on page 45 and asked how many people had taken up the flexible terms. Councillor Bell congratulated officers for recognising that there was too much reliance on meetings, and that they needed to carry out consultation (paragraph 3.22).  The Leaseholder Services Manager explained that paragraph 3.4 referred to Brighton leases created before 1987. This would be around 100 to 120 leases. Information on how many people had taken up an equity loan agreement would be sent to Councillor Bell.

7.7     Councillor Janio thanked officers for the report. He was pleased to see that efforts had been made to engage with leaseholders. Councillor Janio noted that the report had not suggested that the council, leaseholders and contractors should be part of a co-operative agreement. Leaseholders tended to think that the council and contractors were in this together against the leaseholders. He noted that there was no mention in the report of external validation or checks that work had been carried out to validate the dispute that could be going on. The Head of Housing Strategy, Property & Investment explained that part of the process was to improve some of the criticism there had been in the past from leaseholders.  In terms of checking the works officers had tried to outline that the council’s own quantity surveyors and surveyors checked 100% of major works. Sometimes audit would double check those works as well. Around 60% of planned works were checked. Officers were trying to improve engagement with leaseholders by having much earlier conversations. 

7.8     RESOLVED:-

(1)    That the committee notes the practical measures to improve engagement with leaseholders set out in paragraphs 3.29 to 3.40 and supports their implementation.