Agenda item

To seek support and approval from Council to amend the 2023/24 Housing Revenue Account (HRA) capital allocation of Housing Development Investment by an additional £1m to be able to respond promptly to opportunities to purchase properties to increase the Council’s housing stock. The report was recommended by Cabinet at its meeting held on 11 September 2023.

Members considered an amendment to the 2023/2024 Housing Revenue Account (HRA) capital allocation of Housing Development Investment by an additional £1m in order to respond promptly to opportunities to purchase properties to increase the Council’s housing stock.

The Council’s housing stock had been reducing year on year; however, capital budget had been committed to initiate development schemes. Examples of these schemes included the twenty homes in Swinegate, Grantham, and the four flats on Elizabeth Road, Stamford. Building work on other projects was scheduled to start in 2024.

The Council had been approached to purchase affordable homes on larger developments, and a recent example of this was the purchase of 12 homes in Langtoft, near Market Deeping.

The administration wanted to be able to respond swiftly to market opportunities and create a flow of new housing for those most in need. This could include buying back properties that had previously been sold, alongside working with the Assistant Director of Housing and the Housing team to develop a hybrid approach on the Council’s own sites.

The HRA Disposal and Acquisitions Policy, due to be presented at Cabinet on 10 October 2023 would set the framework for the way in which the Council acquired and disposed of land or assets to and from the Housing Revenue Account.

The following points were highlighted during debate:

·       There were roughly 6,000 Council properties, all of which would require differing degrees of maintenance. A point was raised as to whether the amendment to the HRA could be spent solely on repairs rather than on new stock. However, it was clarified that there was the possibility to both respond to opportunities in the housing market and invest in repairs as funding for the two different schemes came from different Council reserves.

·       There were a large number of people on the Council House register, and a number of homeless people across the country. Government figures indicated 104,000 in temporary accommodation and that these families were less likely to access services.

·       More housing was needed but it would be key to not outbid housing associations.

·       There were lessons to be learned from the recent property purchases in Langtoft.

·       It was difficult to recruit companies and staff to carry out major works on housing as there was a national shortage of labour in this area.

·       Work was ongoing to tackle voids, an example of this was works done to the 150 houses on the Earlsfield estate. Many of these works had been completed, with asbestos removed.

·       If the 12 homes at Langtoft had not been purchased they would have been placed on the open market. In time, these homes would return to the Council’s housing stock.

·       The Council was signed up to the ‘One for One’ scheme with the government, which required the Capital Receipts Reserve to be invested back into the Council’s housing stock. If this was not carried out the money would have to be given back to the government.

·       When people exercised their ‘Right to Buy’, there were cost floor protections which ensured that the Council did not sell the properties on at a discounted rate. Similarly, there were protections in place to ensure that the Council was not penalised unduly from future sales of ‘Right to Buy’ properties.

Having been proposed and seconded and upon being put to the vote, it was AGREED:

DECISION:

That Full Council approves the budget amendment of the Housing Revenue Account 2023/2024 Capital Programme Housing Development Investment by an additional £1m.

Note:  Councillor Paul Wood requested that his vote against this decision be recorded.

          The meeting adjourned at 15:31 and reconvened at 15:41.