Issue - meetings

Cabinet considered proposals for the purchase of thirty homes at Haine Road for Affordable Rent. Cabinet noted the need to progress with the acquisition of 30 new affordable homes being built by developer Guildcrest, using the accelerated housing programme capital budget, approved by Council at its meeting on 12 October 2023. Cabinet further noted that the Director of Corporate Services would re-assess the viability of the schemes and subsequently approve these acquisitions, in consultation with the Deputy Leader and Cabinet Member for Housing, should there be a variation to the assumed level of borrowing needed. Cabinet also confirmed that the letting of these homes would be in accordance with the Council’s Allocations Policy and any subsequent Local Lettings Plan (LLP), at an affordable rent as set out in the Council’s Tenancy Strategy.

The Housing team was praised quite often at Cabinet meetings, simply because there was a huge amount of their work that was praiseworthy, in both the management of Council properties and the support for residents in the current challenging economic times. However what was not spoken about as often was how tolerant and supportive the team was in both a strategy and finance sense, their willingness to embrace and enable new ideas and new forms of delivery. It was this ability specifically that was demonstrated by the proposed acquisition presented to Cabinet. 

Council recently approved Thanet District Council’s accelerated affordable Housing development programme, which would see at least 400 new homes, constructed or acquired, by 2027. This strategy was developed from the reality of affordable housing across the country being lost when Housing Associations find purchases to be nonviable. This approach had in many areas resulted in commuted sums being arranged and the loss of the affordable homes to the area housing list. The Council’s previous purchases had been of these affordable Section 106 units, to ensure that they were not lost. This site, however, represented a first in that these homes were further additions; namely, extending the purchase of Council housing from only Section 106 units into also purchasing sites and homes that would otherwise move into the private market.

Residents often expressed concerns about the ownership of housing built locally. The District’s Local Plan required 30% affordable housing for developments of above ten units, which leaves (if the 30% was satisfied, which unfortunately often was not the case, due to the way viability was worked out by government) up to 70% of a development at market price. Unfortunately these homes often were not within the reach of residents financially, whether through rental or purchase. It was an issue that had been producing inflation in housing numbers for a very long time, but delivery of housing via council funds, as was currently being done, ensured that local developments benefited local residents in need. This approach was turning what would otherwise be private purchase or rental properties into genuinely affordable housing, at no more than the Local Housing Allowance. Reaching the second stage of this housing strategy enabled  ...  view the full minutes text for item 30

Report to follow.

Ashely Jackson, Head of Housing and Planning introduced the report and made the following comments:

·  Members of the Panel would be aware that Full Council recently approved Thanet District Council’s accelerated affordable Housing development programme, which would result in at least 400 new homes being constructed or acquired by 2027;

·  While previous reports that had been brought to Overview and Scrutiny Panel and Cabinet detailed acquisitions that had been made for homes contained in Section 106 agreements (s106), this site represented a first in that these homes were a further addition;

·  Officers were contacted by Guildcrest, owner of the development at Haine Road, Ramsgate;

·  The cost for the 30 homes (3 x 2-bedroom homes and 27 x 3-bedroom homes) totals £8,350,000 and was funded as follows:

·  £2.5m Homes England grant (see below);

·  £5.5m was formed of borrowing;

·  £300,000 was from a s106 commuted sum which could be added;

·  £50,000 had been allocated for associated legal costs.

·  To be viable, schemes need to show an overall surplus over a 30 or 50-year timescale, depending on the duration of any borrowing. The proposed purchase would generate a cash flow deficit in year 1 of £38,860 with surpluses accumulating from year 8;

·  There is a significant need for properties containing 2-bedrooms and 3-bedrooms. The housing register shows 232 households having a requirement for a 2-bedroom property and 357 households requiring a 3-bedroom property;

1.  That the Council progresses with the acquisition of 30 new affordable homes being built by developer Guildcrest, using the accelerated housing programme capital budget, approved by Council at its meeting on 12 October 2023;

2.  To note that the Director of Corporate Services will re-assess the viability of the schemes and subsequently approve these acquisitions, in consultation with the Deputy Leader and Cabinet Member for Housing, should there be a variation to the assumed level of borrowing needed;

3.  The letting of these homes in accordance with the Council’s Allocations Policy and any subsequent Local Lettings Plan (LLP), at an affordable rent as set out in the Council’s Tenancy Strategy.

The Panel asked questions and made comments as follows:

·  One member asked there was any new information on government proposals regarding that would affect the Council’s acquisitions policy;

·  Another member asked when the homes would be available for occupation;

·  They further asked if this purchase was going to be for the whole estate or a part of it;

·  They also asked what the expectations of Homes England were regarding insulation, sustainability and keeping energy bills low for these new acquisitions;

·  One member asked if Homes England had minimum standards of energy compliance;

·  They asked whether these homes were similar to the ones that had been bought before and whether they were in one part of the estate or scarred;

·  Members wanted to know how far the Council had gone in reaching the 400 homes target it set itself to secure by 2027;

·  They also wanted to know whether the Council would continue to purchase more homes, once the Council  ...  view the full minutes text for item 17