Agenda item

Report of the Corporate Director (Housing and Communities) on the rationale behind the Council’s commitment to maintain circa 9,000 affordable housing properties in the Borough, and the context in which changes would be considered.

Members received a report which considered the objective to maintain the council’s circa 9,000 stock of affordable housing within the Borough. The report set out the origins of the objective and noted the policies and strategies underpinning achieving that objective. 

In particular Members noted that a Delivery Plan for the Affordable Housing Programme was agreed by Cabinet in 2016, which contained the 9,000 objective in response to the depletion of the affordable housing stock as a result of the popularity of the Right to Buy Scheme.

This Delivery Plan was then superseded in 2019 by the Housing Delivery Strategy 2019-2025. The Strategy reflected in part a report the Council commissioned from Savills to identify affordability and demand issues in Welwyn Hatfield. The findings of the report also contributed to the decision to establish a separate housing company.

Members also noted the challenges with increasing the stock of affordable housing, with issues with securing sufficient funding, locating appropriate plots, capacity issues in the construction sector and competing priorities within the council (including investment in the existing housing stock).

The following points were raised and noted:

·       Members enquired as to whether the waiting list had grown since 2014.  Officers confirmed that demand and the waiting list had grown since 2014. However, it was difficult to compare figures between now and then as eligibility rules had changed. Officers agreed to provide exact figures to Members following the meeting. Members noted the need to consider the growth in demand when reviewing the proposed Local Plan.

·       Members noted that the report did not consider population growth, with some forecasts suggesting a 31% rise in the population of the Borough, mainly from migration from London. This would indicate a need to increase ambitions to meet this housing need.

·       Members suggested reviewing the Council’s ambition was a role that Cabinet should consider taking on given the complexity and resource requirements such a review may require, and the budgetary impacts that would need to be considered.

·       Members also asked whether the Council could be more ambitious with Now Housing. Officers confirmed that the new strategy had a target of 400 new homes to be deliveredover the next five years. Whilst Now Housing fulfilled a slightly different function, the homes it delivered would benefit those on the waiting list by either providing more affordable housing options than the open market or freeing up properties in the council’s affordable housing stock.

·       Member enquired as to whether the Council had made offers to landlords and homeowners whose properties were being neglected.  Officers confirmed this had been an option used in the past, but the team were limited by budget and opportunity. Members were invited to notify officers of any vacant properties they were aware of.

·       Members noted that the need to provide more affordable homes was accepted, but the Council was limited by the available resources and competing priorities.

·       Members also noted that there was a risk that the Council increasing its housing stock through the open market may reduce the opportunity for residents also looking to purchase on the open market.  Officers confirmed that they were aware of this potential negative impact and did look to purchase properties across the Borough rather than concentrate on any particular area.

·       Members enquired whether additional council tax rates are used on empty properties. Officers confirmed that this was the case.

Members thanks Officers for the presentation and the Chair asked the Principal Governance Officer to consider the comments made by Members and circulate proposed next steps to Committee Members.

Following the Committee meeting the following next steps were agreed by Members

RESOLVED

1. The Committee noted that the stated 9,000 ambition set in 2016 was a response to reducing stock caused by the popularity of the Right to Buy scheme.

2. The Committee acknowledged that even maintaining a stock of 9,000 affordable housing dwellings in the Borough will not meet the housing needs of residents which has grown since 2016 and is likely to grow in the future.

3. The Committee recognises the limitation of increasing this ambition without sufficient funding, in particular funds available through the Housing Revenue Account (HRA).

4. The Committee therefore recommends to Cabinet that the current HRA Business Plan and associated Strategic Plan are reviewed in order to understand the financial capacity to increase the Council’s current housing stock and directly deliver more affordable homes, whilst also continuing to invest appropriately in the existing housing stock.

5. That this review take place in good time to allow any revision to policy and plans to be incorporated into the 2023-24 budget.