Agenda item

Cabinet was asked to consider the purchase of 5 new affordable homes, using the additional capital budget, approved by council at its meeting on 12th October 2023 and the letting of these homes in accordance with the council’s Allocations Policy, at an affordable rent as set out in the council’s Tenancy Strategy.

In July this year Council approved an accelerated affordable rented housing development programme of at least 400 new homes, constructed or acquired, by 2027. As a potential addition to this programme, officers had been contacted by Millwood Homes, who were required to deliver five new affordable homes, as part of their development at Reading Street, Broadstairs. This requirement was set out in the Section 106 obligations for the development. However, Millwood Homes were unable to secure an affordable housing provider to deliver these homes.

As the homes had been designated as affordable homes in the planning consent and Section 106 agreement, they had been designed specifically for that purpose and accordingly were considered appropriate for the HRA, in line with the needs of households on the Council’s register or those living in temporary accommodation. Currently there was a significant level of need for one bedroom homes, as well as for larger family homes. It is proposed that the new homes were let in accordance with the Council’s Allocations Policy.

The purchase of these homes was part of the Council’s accelerated housing delivery strategy; ensuring that Section 106 homes were delivered and that the affordable housing that the Council was entitled to as part of developments coming to the district came to fruition. As this was a revenue strategy, it had already been established that the HRA would benefit from these acquisitions in Year 13. The capital cost for these properties was £800,000, with £50,000 provided for associated costs and this provided one by 1 bed flat, one x 2 bed flat and three x 3 bed houses.

Very importantly this proposal provided social housing in an area of Thanet that was often inaccessible for renters because property and rental costs in Broadstairs were significantly high and acquiring genuinely affordable housing within Broadstairs was often challenging. Ensuring that all of the district was accessible to residents was incredibly important. In addition, local individuals and families should be able to remain where their local connections were. Acquisitions such as this supported that aim.

Members thanked the Housing team for the work relating to this proposal. In an ever increasing property market, being able to deliver genuinely affordable properties that would otherwise have been lost was essential and being able to deliver them in an area that was often harder to access for those on lower incomes was incredibly important.

Councillor Whitehead proposed, Councillor Keen seconded and Cabinet agreed to:

1.  The purchase of 5 new affordable homes, using the additional capital budget, approved by council at its meeting on 12th October 2023;

2.  The letting of these homes in accordance with the council’s Allocations Policy, at an affordable rent as set out in the council’s Tenancy Strategy.