Agenda and draft minutes

CAPITAL LETTERS MEMBERSHIP, Cabinet Member Signing
Tuesday, 9th May, 2023 11.00 am

Contact: Felicity Foley, Committees Manager  2919, Email: felicity.foley@haringey.gov.uk

Items
No. Item

1.

Apologies for absence

To receive any apologies for absence.

Minutes:

There were no apologies.

2.

Declarations of interest

A member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

 

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

 

A member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

 

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 5-7 and Appendix A of the Members’ Code of Conduct

Minutes:

There were no declarations of interest.

3.

Capital Letters Membership pdf icon PDF 360 KB

Minutes:

Capital Letters (London) Limited was created on 17 December 2018 with the aim of removing competition and duplication between individual London boroughs when sourcing private sector properties to meet housing need.

 

In October 2018, Cabinet agreed that Haringey would join Capital Letters in the first tranche of boroughs, and we formally transferred our function for sourcing private sector lets on 14 October 2019.

 

In joining Capital Letters, Haringey entered into a tranche of agreements with Capital Letters and participating boroughs, including a Members’ Agreement, a Service Level Agreement, and a Secondment Agreement.

 

The report described the Council’s experience as members of Capital Letters, the advantages, and disadvantages of membership along with recommendations on our future membership.

 

The Cabinet Member asked how long it would take for the Council’s officers, seconded to Capital Letters, to return to Haringey. She was informed that they would return on 10 May 2023. 

 

The Cabinet Member for Cabinet Member for Housing Services, Private Renters, and Planning RESOLVED

 

1. That the Council should cease membership of Capital Letters as soon as is practicable; and for this purpose, to delegate authority to the Assistant Director for Housing Demand. 

 

2. If required, to serve notice pursuant to the Members’ Agreement to this effect.

 

3. To agree with Capital Letters and/or the participating boroughs terms for earlier departure in consultation with the Member and Director of Finance 

 

4. To end the secondment arrangements for the employees and resume the sourcing of private sector lets within the Housing Demand Service in the Council.

 

5. To ensure a smooth transition of service delivery from Capital Letters.

 

Reasons for decision

 

The principle behind Capital Letters was a good one and boroughs working collaboratively to source private sector accommodation was an approach that the Council was keen to support. It had been hoped that by working together, the Council would be able to influence the market, secure more local lets and avoid the need for increased incentives.

 

However, the reality has proven difficult to achieve. Haringey committed to the approach – seconding (pursuant to the Secondment Agreement) in 3 experienced members of staff, putting all of our private sector activity through Capital Letters, adhering to agreed incentives and making changes internally that supported the delivery of Capital Letters lets. However, few boroughs showed the same commitment and most kept their options open by working with Capital Letters while retaining some of their own staff and sometimes paying higher incentives. As a result, Capital Letters had not been able to influence the market in the way that was hoped.

 

The level of lets achieved by Capital Letters had never exceeded what the Council would have expected to deliver with the same staff in-house. There were also some opportunities in moving back to local control and being able to react to the challenges in the local market.

 

In a challenging market, it was very important to show flexibility and act nimbly when trying to secure lets. As Capital Letters must obtain agreement on incentives  ...  view the full minutes text for item 3.