Agenda item
Burcot Lane Site Redevelopment - Next Steps Report
Minutes:
The Housing Strategy Manager presented a report in respect of the redevelopment of the Burcot Lane site. This report followed previous updates to Cabinet in September 2017 and October 2018 and focused on the options available to the Council.
There were three main options available to the Council. The option that was more likely to work for the Council would be for the authority to retain the land and to develop properties that would form the basis of a revenue stream. Some of the properties could be retained by the Council to rent out, some could be sold at market rent and some properties could be made available as affordable housing. However, the financial implications of this redevelopment had been impacted by the Covid-19 pandemic and would require further investigation.
There were different models available for the affordable housing that might be developed on the site. This included the potential to transfer any affordable housing units to an existing social housing provider, the Council becoming a registered provider of social housing and the Council setting up a light touch registered provider to manage a small number of affordable housing units.
There was documentation available to guide Councils in respect of becoming a registered provider of social housing. Members were advised that properties managed by Council housing companies were not subject to right to buy rules, but registered providers were.
During consideration of this item Members were advised that the report had been pre-scrutinised by the Overview and Scrutiny Board earlier in the evening. The Chairman of the Board, Councillor M. Thompson, explained that the Board had proposed the following two recommendations:
(1) “Cabinet have full sight of information in respect of other local authorities who have set up housing companies, including successes and failures (to include the reasons for failure).
(2) Full consideration be given to the Council becoming a registered provider.”
Councillor Thompson explained that in discussing the report, the Board had identified the need for Members to review the information available about local authority housing companies established in other parts of the country. Members had been particularly keen to ensure that case study information could be considered by Cabinet and there was the possibility that whilst some of these examples would involve positive experiences, others would illustrate some of the difficulties that could occur when launching a Council housing company.
The Overview and Scrutiny Board had concluded that consideration needed to be given to the Council becoming a full registered provider for the social housing in order to meet the needs of local residents. The Board had noted that the Council would receive rental income in this scenario and would be able to ensure good quality housing was provided to residents in need of social housing.
The first recommendation from the Board was discussed in some detail. Officers confirmed that information could be shared with Members in respect of examples of housing companies that had been established by other local authorities. It was confirmed that the circulation of this information would not cause any delays to the redevelopment process. Members agreed that this information should therefore be shared with both members of the Cabinet and members of the Overview and Scrutiny Board to help inform future decision making and the following amended wording was proposed to this recommendation:
In relation to the second recommendation from the Overview and Scrutiny Board, Members commented that the proposal from Officers in the report was that transferring the affordable units to an existing Registered Provider was in the Council’s best interest, having due regard to all the relevant factors . Given the officers’ expertise in this area and the fact that no decisions had yet been taken, Members agreed that the proposal from officers should be retained.
On being put to the vote the second recommendation from the Overview and Scrutiny Board in respect of the Burcot Lane site redevelopment was lost.
RESOLVED that
(1) Officers develop a business case for the formation of a Housing Company to hold the market rent units for the Council’s consideration;
(2) The development model is progressed on the presumption that the affordable housing units will be transferred to an existing registered provider; and
(3) The full research information for local authorities that have set up housing companies should be circulated for the consideration of members of Cabinet and the Overview and Scrutiny Board.
(During the consideration of this item, Members discussed matters that necessitated the disclosure of exempt information. It was therefore agreed to move to exclude the press and public prior to any debate on the grounds that information would be revealed relating to the financial or business affairs of any particular person (including the authority holding that information). There is nothing exempt, however, in this record of proceedings.)
Supporting documents:
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