Issue - meetings

Recommendation from the meeting of Cabinet Housing Panel on the 8 November 2021.

Cabinet noted the update on the performance of Now Housing Limited and approved the updated Business Plan.

Recommendation from the meeting of Cabinet Housing Panel on the 8 November 2021.

(1)        The Decision Taken

RESOLVED:

(unanimous)

Cabinet noted the update on the performance of Now Housing Limited and approved the updated Business Plan.

(2)       Reasons for the Decision

Now Housing is a Council-owned company, operating within the General Fund.  Its purpose was to provide housing for local people whose needs cannot easily be met through the private or social rented sectors.

The Council’s Shareholder Group monitored the company’s delivery against the business plan, and had overarching responsibility for the governance of Now Housing.

Now Housing was initially funded by loans from the Council, via the General Fund.  Net rental income would permit Now Housing to repay these loans, and, as time goes on, Now Housing would use surpluses over and above this to complement the funding from the Council.  The General Fund lending to Now Housing is itself financed by matched long-term borrowing, currently from the Public Works Loan Board.

As noted in the report, Now Housing currently owned and managed a block of 12 units at Chequersfield in Welwyn Garden City.  Performance had been good, with rent collection currently at 100%.  Only 4 days rent had been lost, through a void, but that was re-let quickly.

The initial business plan was approved in October 2019.  The latest indicative plan, which was consistent with the Council’s current 2021/22 budget was set out in the appendix to the report, and aimed to deliver 416 homes over the next 5 years.

The business plan is reviewed annually, and in this way can be kept consistent with future council budgets.

The report was unanimously noted, and found helpful, by the Cabinet Housing Panel at its meeting on 8 November 2021.