Agenda item

Presentation by Dave Evans, Service Manager (Policy) & Carol Morgan, More Homes Development Manager.

David Evans (Housing Business Manager), assisted by Carol Morgan, More Homes Development Officer, presented the More Homes Strategy.

 

The presentation detailed:

 

·       The purpose of the Strategy;

·       The aim of providing more Council housing;

·       The Financial context;

·       Housing need;

·       The supply of land;

·       The aim of supporting sustainable homes and communities;

·       The Pilot schemes;

·       The Development options; and

·       Next steps.

 

The Cabinet Member for Next Generation Services stated that the results of the pilot scheme, examining the costs of Corporate Building and Property Services (CB&PS) had not been received.  The introduction of the ‘Right to Buy Scheme in 1996 had reduced the Council’s housing stock by 3891 and it would take some time to replenish the number.  It would be easier for CB&PS to deal with a site that had 100% Council houses and it is important to ascertain whether CB&PS had the capacity to build houses for mixed use tenures.  The Scheme would need to be managed in a creative and articulate manner.  

 

The Chair stated that inability to build affordable houses had been a growing concern for some time and needed to be the focus going forward.  Other options could be considered if CB&PS were not in a position (due to the Welsh Quality Housing Standard up until 2020) to commit to schemes.  Such options included the use of organisations who build houses and market homes for sale but are not classed as developers.

 

In response to Member questions, the Housing Business Manager stated that:

 

·       Any new Council housing would be subject to the same rent policy and tenancy agreements as the existing stock;

·       the investigation into ‘arms length companies’ was included in the strategy.  Whilst the use of these companies may bring funding opportunities, it would need to take into account any HRA borrowing gap limitations;

·       The requirement to maximise the percentage of homes built for council use would be imperative;

·       The strategy complimented other council strategies.  Social Services had been involved in early discussions and would be consulted further on the detailed development plan

·       The term ‘affordable housing’ described housing which is let or sold at below market rent or value.  However, build costs are similar irrespective of the eventual tenure and Government standards could mean that costs can be higher for affordable housing.  Therefore, to be a viable proposition, affordable housing schemes need to be subsidised which could be in the form of lower land values and/or subsidy from Government to help cover some of the costs;

·       The Housing Revenue Account Business Plan forecasts are over a 30 year period;

·       The objective will be to maximise community benefits and ensure compliance with the Council’s ‘Beyond Bricks and Mortar’ Scheme’ irrespective of who undertakes the development;

·       The introduction of the Welsh Government’s policy for calculating social housing rents provides an element of consistency for all social housing landlords including Council’s and Registered Social Landlords;

·       The cap on borrowing is an all Wales limit set by the Treasury. Welsh Government will seek to get the cap increased;

·       The strategy establishes that £6m could be made available to spend by 2020 but assumptions in the HRA Business Plan may need to be revised if the rent policy changes and / or the impact of welfare reforms are more severe.  The negotiation of any developer contribution towards affordable housing is a planning policy issue; and

·       There are commercial risks associated with build developments for sale which need to be taken into account and if this involves selling properties built using HRA funds, then the full cost of the scheme plus land value would need to be recouped as the ring fence means that the account cannot subsidise the purchase price.

 

The Cabinet Member for Next Generation Services stated that land was being considered across the board to identify the best way to develop quickly and efficiently whilst taking into account the needs of the community.  Each site would be looked at on its own merit and the Council’s aim would be to procure goods/services locally.  She reiterated the need to develop an action plan and timescales.

 

The Chair thanked the Officers for their informative presentation.

 

RESOLVED that:

 

1.     the presentation be noted; and

2.     The Chair write to the Cabinet Member highlighting: the percentage of affordable housing required for future schemes; the dumb bell effect (pressures either end) associated with the provision of suitable accommodation (single or two bedroom flats); local authorities be given social housing grants; the development of an action plan and timescales to track progress; the reconsideration of developer contribution schemes and the need to be ambitious in pursing the energy and fuel poverty strategy into the private sector via the Scheme.