Agenda item

“NOTE: the report contains exempt information which will only be made available to Members and relevant Officers. Should Members wish to discuss any exempt information contained in the report in any detail, a decision will be required to exclude the public and press from the meeting on the grounds that exempt information is likely to be divulged, as defined in paragraph 3 of Schedule 12 (a) of Section 100 1 of the Local Government Act 1972, as amended by the Local Government (Access to Information) (Variation) Order 2006.

(Paragraph 3: Subject to the “public interest” test, information relating to the financial or business affairs of any particular person (including the authority holding that information).)”

The Committee received a report in relation to the Council Housing Growth Programme. The Housing Strategy and Enabling Team Leader provided information on the proposed development sites.

It was reported that on 30^th January, 2017, the Council agreed the Council Housing Growth Programme and funding of £12.5 million was allocated to this project.  A number of options to increase the Council’s housing stock were agreed including commissioning the construction of new Council houses.

Following a desk top exercise, the Council identified a number of sites that could be added to Phase 2 of the Housing Revenue Account (HRA) New Build Programme.

The sites identified were considered to be HRA assets with the exception of Hawthorn Road Community Centre (the former Redditch Play Council site) which was a General Fund asset and the proposal was to transfer this to the HRA.

Officers had assessed the possible numbers and type of properties that could be delivered on the suggested sites. It was anticipated that the ten sites that had been identified could provide a total of 67 new council homes, subject to planning. Having considered the housing needs of the Borough, it had been found that there was a high demand for two bedroom bungalows.

The cost of development for the number of properties on each of the sites was estimated to be £8.173 million.

The Housing Strategy Manager was undertaking a process to appoint a development agent to assist in delivery and provide support to Council officers.  Subject to approval, it was proposed that the sites would undergo detailed discussions, in terms of, design and layout, and be submitted for planning permission to achieve a rapid start on site. The project would progress through a number of processes toward delivery, including, consultation with stakeholders and planning approval.

The Council was proposing that properties delivered through the Council Housing Growth Programme be let at affordable rent, where permitted. As part of the Council Housing Growth Programme £3.285 million had been spent on purchasing from the open market, ‘off plan’ and through s.106 agreements. The remaining budget was £9.215 million.

Members supported the Housing Growth Programme and expressed the view that this was beneficial for the housing needs of the Borough.  Members therefore agreed that it would be appropriate for the Hawthorn Road site to be moved from the General Fund into the HRA, in order that it could be developed for new Council housing.

In response to Members questions, the Housing Strategy and Enabling Team Leader explained that off-site housing would be considered if the Council concluded this was a more efficient way to reduce construction times and could lead to cost savings. It was further stated that a practical decision would be agreed after all elements had been considered in relation to what was best to meet the housing needs of local residents in Redditch.

The Housing Strategy and Enabling Team Leader confirmed, in terms of affordable rent, that this was set in accordance with government guidance, which stipulated that this could be up to a maximum of 80% of private market rents.  The Council could determine its own level of affordable rent under that 80% threshold.

RESOLVED that

1)            the sites in Appendix 1 beincluded in Phase 1 of the HRA (Housing Revenue Account) new build programme and proposals to progress the development of HRA new build council housing on them be approved;

2)            properties delivered through the Council Housing Growth Programme be let at Affordable Rent, where permitted; and

3)            the appropriation of the Hawthorn Road site from the General Fund into the Housing Revenue Account (HRA) in order that it can be developed for new council housing.