Agenda item

On 13 October 2015, Housing and Regeneration Scrutiny Panel was presented with a

report on the strategic approach to council-led development. The Panel made 13

recommendations for the Cabinet, the lead-member for Housing and Directors. This

report is an update on these 13 recommendations, and actions taken since the initial

report.

Dan Hawthorn, Director for Housing and Growth, introduced the report and explained that Appendix 1 provided an update on each of the Panel’s recommendations, from 2014/15, on council-led development. 

In terms of recommendation 1, the Panel was informed that phase 1 of the Council’s infill development programme of 31 affordable dwellings would be completed by June 2017. The following points were noted in relation to phase 2:

-       A competition between Haringey’s Preferred Partner Registered Providers occurred in September/October 2016 to enable funding and development of this portfolio of 20 small sites on a 150 year leasehold basis.

-       The successful Registered Provider (Sanctuary) would provide a mix of tenures including a minimum of 50% affordable housing and 100% nominations (including re-lets) to the borough for the rented tenure.

-       Cabinet approval was obtained in January 2017 and start on site was targeted for 2017/18 where feasible.     

During the discussion a number of issues were highlighted in relation to the use of right-to-buy receipts. In addition, the following points were considered: 

-       Questions relating to the Cabinet Member signing, from 23 January 2017, concerning the sale of Land to Sanctuary Housing Association to enable phase 2 of the Infill development programme.

-       Issues in relation to maintenance/estate management standards.

-       Findings from the Elphicke-House Report concerning the role of Councils in housing delivery, including financial modelling issues.

-       The impact of the 1% reduction in social housing rents following changes made by the government on how rents were calculated including implications for the Housing Revenue Account.

In terms of recommendation 4, the following points were noted:

-       The importance of conducting comprehensive options appraisals for key development sites. It was noted that finance options were fundamental to this part of the process.

-       The fact that identifying and pursuing external funding and grant opportunities was an explicit role within the new Strategic Housing function.

In response to questions, the Panel was informed that officers from Housing Strategy and Commissioning and the Tottenham Team met regularly with the GLA to discuss details of new and existing funding streams available, both to the borough and developers operating within Haringey. The Panel was informed that the team was in the process of meeting with all major Registered Partners to discuss how they might make the most of recently announced GLA affordable housing funding.

In terms of recommendation 5, the Panel was informed that the Cabinet Member for Housing, Regeneration and Planning had recently met with the Housing Minister and had raised issues concerning restrictions on spending right-to-buy receipts and borrowing cap implications. It was noted that these issues would be raised in any response to the Housing White Paper and that Haringey was supporting joint lobbying by London Councils and the GLA to relax Housing Revenue Account rules.

In response to questions, Mr Hawthorn explained debt matters were generally dealt with as part of the Council’s long term business plan for the Housing Revenue Account, which was being refreshed. It was noted that a long term Housing Revenue Account Business Plan would be provided within 2017/18 and that this would take into account financial implications of High Road West and the Haringey Development Vehicle. The Panel discussed the Housing Revenue Account, including the capital programme, income and maintenance obligations, and requested further information on balances, borrowing headroom and the underspend. 

AGREED: That the update on council-led development be noted.