Agenda item

The Executive Member for Housing and Support.

Members received a report on grant funding from the Government’s Local Authority Housing Fund towards purchasing properties to be used to accommodate families arriving in the UK via the Ukrainian and Afghan resettlement programmes. The Council had been allocated £2.158m towards the purchase of 12 homes in the borough.

The Leader, Councillor Brunt introduced the report as Councillor Neame, Executive Member for Housing and Support, had sent her apologies.

The Executive were asked to:

·        Purchase and refurbish up to four properties to be retained in the Council’s ownership for use as temporary accommodation and let to households that meet the criteria set by the Department for Levelling Up, Housing and Communities (DLUHC).

·        Approval to release up to £1.050m from the Housing Delivery Strategy Revenue Reserve as match funding for the four properties retained in the Council’s ownership.

·        Authorise a capital grant of up to £0.110m from the Housing Delivery Strategy Revenue Reserve to partner Registered Providers, Raven Housing Trust and Mount Green Housing Association to support delivery of 2 x 4 bed properties at an affordable rent level.

There was an additional £20k DLUHC grant on each property to allow for refurbishment and other associated on-costs. It was expected by DLUHC that the properties should be purchased and ready-to-let by November 2023. The Council intended to deliver the housing in partnership with the Registered Providers to resource the purchase and refurbishment of the properties and let some of the properties on assured tenancies others as temporary accommodation. The Council only had the capacity and expertise to manage temporary and emergency unsecure tenancies.

It was noted that paragraph 15 on p114 of the agenda pack should read that the 2 x 4 bedroom properties will be let on assured tenancies (rather than secure tenancies).

The Council-owned four properties would be temporary accommodation and let at social rents. In future the properties could be used for emergency accommodation and would continue to be assets held and to be used for the borough. This was a great opportunity to bring more stock into a constrained system, including 4-bedroom properties – vital for housing larger families.

Visiting Members asked the following questions:

·        Housing Delivery Strategy Revenue Reserve – It was proposed to release up to £1.050m from this reserve which covered up to 40% of the capital cost. Where was the shortfall  and where is the remainder of funding coming from? Officers highlighted the table at paragraph 40 (p117 of the agenda pack) that showed the breakdown of funding. The balance to fund up to 8 properties purchased by partner Registered Providers would be provided by the Registered Providers. The 4 Council owned properties would remain in the ownership of the borough council and would save up to an estimated £63k a year in emergency accommodation costs.

·        House prices – Members queried the £390,000 for a three-bedroom property. Officers confirmed that this was achievable mainly in Merstham and Horley on properties that needed refurbishment or were more difficult to sell in the marketplace and could be brought back into use.

·        Refurbishment costs – it was confirmed that if under £20k was spent on refurbishing properties then this grant funding could be transferred to other properties.

RESOLVED – that the Executive agreed:

The Chief Finance Officer be authorised to:

(i) Agree to and sign the Memorandum of Understanding with DLUHC in order to secure grant funding from the Local Authority Housing Fund and comply with the associated terms.

The Head of Housing be authorised in consultation with the Chief Finance Officer, Strategic Head of Legal & Governance, Executive Member for Housing & Support, Deputy Leader and Executive Member for Finance & Governance, and Executive Member for Investment & Companies, to:

(ii) Use up to £0.600 million of Local Authority Housing Fund (grant funding), to purchase and refurbish up to 4 properties, to be retained in the Council’s ownership, for use as temporary accommodation and let to households that meet the criteria set out by DLUHC;

(iii) Release up to £1.050 million from the Housing Delivery Strategy Revenue Reserve as match funding when purchasing the 4 properties that will be retained in the Council’s ownership;

(iv) Authorise a capital grant of up to £0.110 million, from the Housing Delivery Strategy Revenue Reserve, to partner Registered Providers (RPs), Raven Housing Trust and Mount Green Housing Association, to support delivery of 2 x 4 bed properties at an affordable rent level;

(v) Obtain any necessary surveys, planning consents, quotes and tenders as required to carry out refurbishment work; and

(vi) Appoint and enter contracts as required, with legal advisors, consultants, suppliers and builders.

The Head of Housing be authorised in consultation with Chief Finance Officer, Strategic Head of Legal & Governance, Executive Member for Housing & Support, Deputy Leader and Executive Member for Finance & Governance, and Executive Member for Investment & Companies, to:

(vii) Enter into Memoranda of Understanding with partner Registered Providers, Raven Housing Trust and Mount Green Housing Association, to enable them to participate in the proposed purchase and refurbishment of properties under this programme, and to ensure delivery compliance;

(viii) Provide capital grants, funded from the Local Authority Housing Fund, to Registered Providers to enable them to assist with the delivery of the required properties.