Issue - meetings

This item is due to be pre-scrutinised at a meeting of the Overview and Scrutiny Committee scheduled to take place on 7^th July 2025.  Any recommendations on this subject arising from that meeting will be reported for the Executive Committee's consideration in a supplementary pack.

The Strategic Housing Services Manager presented a report on the subject of the acquisition of properties and in doing so explained that the Council had been approached by a developer regarding 12 shared ownership properties that the developer had been unable to sell.  Originally, the developer had invited the Council to purchase the properties at a rate of 20 per cent of market value but the authority had concluded that these properties could be offered as social housing.  The Council had had the properties valued and would take this information on board in the process.  There was a need for the sale to be completed by October 2025, so the timescales for completion were tight.  The properties did correspond with the type of homes that were in demand on the Council’s housing waiting list.

Members discussed the report and in doing so commented that whilst the Council had not originally planned to purchase these properties, this situation demonstrated how opportunities could arise over time that would benefit the Housing Growth Programme and therefore local residents.  It was noted that the developer would need to apply for planning permission to convert the properties from shared ownership.  The developer would also be responsible for any initial snagging issues as well as during the first 12 months for any defects.  Thereafter, a 10-year insurance-backed warranty would apply.

During consideration of this item, Members question whether the difficulties that the developer had experienced when trying to sell these properties as shared ownership units had been specific to that development or were part of a wider issue.  Officers explained that this was part of a national issue for smaller developments.  Some Registered Providers would only offer to purchase properties in particular locations and this could also have an impact.  However, the Council was keen to ensure that there continued to be a balanced housing market in the Borough and this proposed investment would help to support this ambition.

RESOLVED that

1)          the option to acquire a package of twelve affordable housing units from a developer to increase Council housing stock to support the Council Housing Growth Programme be approved;

2)          authority be delegated to the Deputy Chief Executive and S151 Officer and the Assistant Director of Communities and Housing, following consultation with the Portfolio Holder for Housing and the Portfolio Holder for Finance, to agree expenditure within the approved budget in the Housing Capital Growth Programme; and

3)          the properties be acquired to be let at a social rent commensurate with the Council’s Housing Capital Growth Programme.