Agenda item

UPDATE ON AFFORDABLE HOUSING STRATEGY

Officers to provide an update on progress.

Minutes:

The HRA business plan is currently being drafted, this is a substantial piece of work which requires input from multiple teams. It provides for a 5-year asset management plan and a 30-year forecast for stock investment and financial planning.

 

Whilst the plan is well-advanced recent changes to legislation, increased inflation, particularly in the construction industry, and interest rates as well as change to the policy around rent caps has required substantial revisions.  The Housing Strategy Team are taking this opportunity to liaise with the new management structure to ensure that their views are incorporated into the plan.

It is anticipated that the plan will be completed prior to the end of the financial year.

 

Officers clarified the following points in response to Members’ queries:

 

  • The split of the housing stock would be detailed in the report, but a brief synopsis was provided. Currently there is just short of 9,000 properties in the housing stock, 7,369 of those are general need properties, so those are properties let on social rents. 1,605 of these are sheltered accommodation. A full breakdown will be included in the business plan.
  • The differences between social housing and affordable housing will be included in the report and this has always been an area of confusion.
  • The council doesn’t generally operate a shared ownership model for affordable housing as this tends to be done by affordable providers that sit outside of the council.
  • In regards to maintenance of public realm, this would normally be dealt with via the planning process and quite often the public realm transfers to the council in return for payment. This would be a capitalised sum of the ongoing maintenance costs.
  • Officers said that the market rate for affordable housing will vary from property to property, but figures based on a beacon analysis of the stock can be provided.
  • Figures on voids (empty properties) couldn’t be provided as it falls outside the officer’s remit. Officers noted that the strategy itself needs to bring in multiple teams across the council so details of this can be included in the report.
  • Members noted that the council used to interview and appoint between five and seven housing associations. There was concern that some of these smaller housing associations are being gobbled up by the bigger ones, and we need to make sure that the residents are getting the best possible service.
  • The council doesn’t offer a shared ownership model but does have a couple of bungalow developments that are age limited. When people purchase them, they purchase a long lease of the property, when they pass away, and the family sell the property, the council grant a new long lease to the incoming residents so that those leases are continually renewed. The council are also developing Minster House which will be

age limited, but this is not a shared ownership model.

  • Where residents purchase their flat either on the initial new build or through the right-to-buy programme, they will enter into a long lease with the council. That long lease will contain service charge provisions, and so they will be due to pay a proportion of costs of the maintenance that is a pro rata figure. So, as an example, if there are 50 flats in the block and only one of those is privately owned, they may only be looking at 2% of the overall cost. They wouldn't be looking at paying any more than that, because they are the only privately owned property within the block, the council would absorb the other 98%. This is standard across the industry. If you own a property that benefits from communal areas, you contribute towards the cost of those communal areas.
  • When a tenant purchases under right-to-buy scheme, the council are required to set out the predicted service charge for the next three years to them. Anybody who is exercising their right to buy should be fully aware that they will be paying a service charge and what those service charge figures should be.