Agenda item

The Strategic Housing Services Manager presented the Low Cost Housing Capital Receipts report.

Members were advised that the Council currently held a thirty per cent equity share in one hundred and eleven low cost housing properties through the low cost housing scheme. Cabinet had previously agreed in 2017 that proceeds arising from the sale of these properties should be ring-fenced for strategic housing purposes. A subsequent report considered by Cabinet in December 2024 had explored the potential use of these capital receipts in partnership with Bromsgrove District Housing Trust (BDHT). However, due to capacity constraints within BDHT, it had not been possible to progress this initiative.

The report therefore proposed that the Council utilise the available capital receipts to acquire properties for use as temporary accommodation. Members were informed that, following the purchase of suitable properties, a procurement exercise would be undertaken to appoint a registered provider to manage the accommodation on the Council’s behalf.

It was noted that approximately £2,000 had been allocated within existing budgets to meet legal and development officer costs associated with property acquisitions. Ongoing management costs were estimated at approximately £6,500 per annum for each accommodation unit.

Members were further advised that the Council would principally seek to acquire existing suitable residential properties. However, opportunities to work with developers through Section 106 housing developments would also be explored where appropriate.

In considering the report Members had detailed discussion and commented on the following points:

·       Members welcomed the proposal, noting that it would make effective use of the Council’s existing expertise and resources whilst helping to address the shortage of temporary accommodation.

·       Clarification was sought regarding the types of properties that would be acquired. Officers advised that both existing suitable dwellings and properties available through new developments, including Section 106 schemes, would be considered, subject to availability, cost and standards being met.

·       Members queried the standards that acquired properties would be required to meet. Officers confirmed that all properties would be assessed against the Council’s established acquisition criteria and condition standards before purchase.

·       Discussion took place regarding the purpose of the temporary accommodation. Officers explained that the properties would be used to meet the Council’s statutory homelessness duties by providing short-term accommodation until suitable long-term housing became available.

·       Members noted that the proposals would help reduce the Council’s reliance on bed and breakfast accommodation and provide more suitable accommodation for households in need.

·       A typographical error within the report was identified which referred to Redditch Borough Council, officers agreed that this would be corrected.

·       Members requested that regular progress updates be provided as the scheme developed.

·       Officers advised that, subject to available opportunities and funding, it was anticipated that between six and ten properties could be acquired.

·       An alternative suggestion involving mobile homes was discussed. Officers advised that this would require additional licensing and planning approvals and was not considered the preferred approach for reducing dependence on bed and breakfast accommodation.

RECOMMENDED that

1) all low cost housing receipts be used by the Council to increase the supply of temporary accommodation by purchasing suitable dwellings.

2) delegated authority be granted to the Assistant Director Community and Housing Services following consultation with the Cabinet Member of Housing to purchase properties.