Agenda item

Stock Investment and Estate Renewal Policy

[The report of the  Director for Planning, Regeneration and Development. To be introduced by the Cabinet Member for Housing, Regeneration and Planning.]To approve an updated Stock Investment and Estate Renewal Policy for council owned housing and land.

Minutes:

The Cabinet Member for Housing, Regeneration and Planning introduced the report which set out a new local standard for homes, following the expiry of the decent homes standard .The report proposed a more asset based management strategy where the Council can sell more expensive stock to build more affordable housing stock.

 

In response to questions from Cllr Engert the following information was noted:

 

·         Impractical to agree each high value Council housing sale at Cabinet and this would  be completed through officer delegation with the  governance details of this process to be clarified and discussed at a future scrutiny meeting.

 

·         Expectation that the development vehicle will not ‘cherry pick’ more financially viable easy sites and operate according to a variety of sites, if impossible and not viable to develop a site then cannot enforce this but there is a pre – agreed portfolio of sites to limit this situation and the Council will have an equal stake on the development vehicle board and can also safeguard against this type of situation.

 

·         The Council had objected to the selling of high value homes but were required to follow this government policy. The Cabinet Member clarified that the Council can only sell a property when void  and this  will not be easy to implement but there will be a set criteria followed as set out in the report

 

·         Cllr Strickland provided a reminder that the 40% target of affordable housing was subject to viability and the two schemes mentioned in Tottenham were part of a regeneration, development and restoration and renewal scheme including community facilities which causes higher cost and means difficulties in meeting the 40% target. The Council will always continue to push for 40% affordable housing but there was a need to be honest in the report that the cost of developments makes it difficult to meet this target.

 

RESOLVED

 

  1. To approve the adoption of a new standard for investment in the Council’s stock, as set out in paragraphs 6.13 – 6.18 and appendix 1.

 

  1. To approve the principle of active asset management that will be detailed in the Council’s new Asset Management Delivery Plan, to ensure that the best stock is retained and invested in and assets are appraised for possible disposal when necessary using a Stock Options Appraisal process as illustrated in appendix 2.

 

  1. To agree that the receipts from the sale of Housing Revenue Account (HRA) assets will be ring fenced to the HRA and applied to payment of the required levy and to funding the two for one replacement programme or other approved new supply initiatives.

 

  1. To delegate authority to approve the detailed Asset Management Plan and investment programme, and any variations to it, to the Director of Regeneration, Planning and Development after consultation with the Lead Member for Housing and the Chief Operating Officer;

 

  1. To note the programme of continuous engagement with residents described in paragraphs 6.23 – 6.24, to ensure that tenants and leaseholders are aware of the new standard of investment and the choices that need to be made in relation to the maintenance and investment in the housing stock;

 

  1. To note the progress made to date on the previous Estate Renewal strategy and agrees the proposed principles for estate renewal in this report at paragraph 6.31 and appendix 3.

 

  1. To note that the need for disposals of Council homes will require regular decisions by the Leader and Lead Members, which would formerly be undertaken by Cabinet.

 

Reasons for decision

 

The recommendation to approve a new approach to stock investment is required to reflect the new environment since the ending of the Decent Homes programme.  It also reflects the reduced resource position that all local authorities find themselves in, since the introduction of the 1% rent reduction in April 2016 and the forthcoming requirement to pay a levy to Central Government reflecting higher value properties.

 

The recommendation to approve the active asset management programme and a continuous Stock Options Appraisal process is necessary to prepare for the forthcoming requirement to pay a levy reflecting higher value properties which become empty during the course of each year.

 

Recommendation 3.3 is required to ensure that members are informed of the use to which any receipts from the sale of HRA assets will be applied.

 

This report sets out the high level approach to the principles of investment in the housing stock.  These principles will be applied to the stock and programmes of work developed in a more detailed Asset Management Plan.  It is proposed that this more detailed Asset Management Plan be approved by the Director of Regeneration, Planning and Development in consultation with the Lead Member for Housing and the Chief Operating Officer. (Recommendation 3.4).

 

The reason for the recommendation to adopt an engagement approach (3.5) is to ensure that tenants and leaseholders are well informed about the financial position of the HRA and the resources available for investment in the housing stock, and are engaged as far as possible in the planning and prioritisation necessary to ensure that their homes are maintained within available resources.

 

Recommendations 3.6 seeks approval for the next steps in our Estate Renewal Strategy, which is updated since it was first adopted in November 2013 to reflect the lessons learnt from the experience of consulting with, and delivering specific projects. It sets out the principles for Estate Renewal in the future and the next steps for delivery.

 

The reason for the recommendation that Members note the process of disposal of Council housing assets will be undertaken by the Leader and Lead members in the future is to ensure that Members are aware that disposals of Council assets, where in relation to the HRA and the requirement to fund the compulsory levy, will not in the future normally be approved by Cabinet.

 

Alternative options considered

 

An alternative approach to stock investment is to continue with a programme of works as set out in the Decent Homes standard, to the remaining stock which has not yet achieved Decent Homes.  However, this option is unaffordable, and the Council would not be able to carry out basic maintenance of its stock, if it did not adopt a more affordable approach.

 

The alternative approach to the decisions on the way forward for the Estate Renewal progress report (appendix 2) and the medium and larger size estates is not to make any decision on these estates or make decisions on only those which are going forward for further option appraisal work at this stage.  This was rejected, as there has been consultation and information provided to the tenants, and they will want to know what the future is for their homes, and their estates.  Whilst not all decisions can be made on all estates now, it will be helpful to those tenants and leaseholders living on those estates to have as much information as is currently available, so that they can plan their lives with the best possible information.

 

 

Supporting documents: