Agenda item

[Report of the Director for Housing, Regeneration and Planning.  To be introduced by the Cabinet Member for Planning, Licensing and Housing Services]

Following Cabinet approval on 8 December 2020, Officers undertook a consultation exercise with Leaseholders in respect of enhanced repayment options for major works invoices. This report provides details and feedback on the outcome of this exercise.  The report also sets out proposals to amend and improve the Council’s leaseholder repayment options for major repair works.

Councillor Chandwani left the meeting as per item 555.

The Cabinet Member for Planning, Licensing and Housing Services introduced the report which sought approval to amend and improve the Council’s leaseholder repayment options for major repair works. This was following a Cabinet approved consultation exercise with Leaseholders. The report provided details and feedback on the outcome of this exercise.

The Cabinet Member provided some context to the decision being sought, outlining the increasing programme of major works on the borough’s estates in the next few years. The works would be completed on a holistic basis with major works completed as a whole on an estate rather than section by section . This would less inconvenient and more cost effective. The capacity issues to deliver schemes had improved . The proposed payment options had bene researched and compared these to other borough’s terms for leaseholders, and they provided good options with the offer of flexible payments.

In response to questions from Cllr Palmer, the following was noted:

• With regards to equity loan succession to partners and not family members, this was likely to be a typical legal requirement. This was likely to be the typical approach followed by other Council’s and organisations. However, the Director for Housing, Planning and Regeneration would explore this point and follow up in writing with a response to Cllr Palmer.

• In relation to the Council taking forward leaseholder bills, where there has been misinformation, it was noted that there was a further Cabinet report on the Noel Park Pods Major works to be considered by the Cabinet on the 22nd of July.

• The situation on charging some leaseholders for installation of fire doors and delay in completing works was a complex issue. There was confusion due to the inefficiency in the providers of fire doors, providing the required certifications and qualifications and this had caused confusion and issues. There were also various legal procedures on how to deal with accounts folding funds for these works and therefore not straightforward situation to resolve.

RESOLVED

To note the outcome of the consultation and approve the revised leaseholder repayments options set out at appendix A, which includes the proposed changes and enhancements as set out in detail in appendix B of this report.

Reasons for decision

It is important that that the Council offers fair and considerate terms that recognise the needs of residents and any debts incurred are recovered in an ethical, reasonable and just manner.

Approving the enhanced payment options will mean that the Council’s new terms reflect some of the best options offered by other London Councils and will give leaseholders greater flexibility to choose a payment option that meets their financial circumstances. It also reduces the risk of the Council incurring debts that remain unpaid as well as the risk of lengthy and costly court proceedings to recover the debt.

Alternative options considered.

A do-nothing option will mean that some leaseholders will struggle to pay the monthly payments associated with bills, particularly bills in excess of £30,000. This is not in the Council’s interest since this could result in lengthy court action to recover the debt.

The alternative of not introducing this scheme would mean the Council could run the risk of not providing sufficient options for leaseholders, to enable them to agree repayment terms that are affordable and reflect the full range of financial and other circumstances which households may find themselves in.