Decision details

Councillor Clare Cummins, Cabinet Member for Housing Services, presented the report which set out a summary of the Buy Back & Acquisitions Policy & Procedures, which will support the Council to purchase residential dwellings in private ownership and convert them into social and affordable housing, to help meet housing needs in the borough and reduce homelessness.

All potential acquisitions will be subject to a pre-acquisition suitability assessment and robust financial appraisal. Properties acquired under this policy will be refurbished to decent homes standards as required, added to the housing stock and allocated to eligible applicants on the Council’s housing waiting lists at a social or affordable rent capped at local housing allowance rates where appropriate, to ensure affordability.

The Council has recently purchased two properties applying the methods detailed within the new policy, and a further four acquisitions are currently being assessed.

In response to a Member’s query regarding the Council having the funds for the acquisitions of properties, Cabinet was advised that there are available funds within the HRA Budget and on occasion Section 106 monies can also be used. In addition the Leader reminded Cabinet that any sales above £250,000 will be required to be considered through the Cabinet decision making process.

When questioned regarding the feasibility of competing in a competitive market members were assured that there is a need for the properties and new building take a considerable amount of time in comparison to a sale of a property.

Decision:

Cabinet:

1. Agreed to adopt the Buy Back & Acquisitions Policy & Procedures.
2. Noted that in line with the constitution the approval of all acquisitions with a value up to £250,000 in association with this policy will be delegated to the Executive Director of Finance, in conjunction with the Director of Housing. Acquisitions with a value in excess of £250,000 will require Cabinet approval in accordance with the Council’s constitution.

Reasons for recommendation(s):

• There is a continuing shortage of social and affordable housing in the borough and this policy will help to address the deficit. It provides a legislative framework to support a range of property acquisitions under a single procedure, to ensure a consistent approach across the Council. This will enable effective governance, resource planning and monitoring.

Alternative options considered and rejected:

1. Do nothing: This option has been rejected as the Council would not have a reliable framework in place for the acquisition of residential property.
2. Update the Council’s Right to Buy, Buy Back Policy 2016: This option has been rejected as this policy dealt exclusively with the re-purchase of property that had previously been sold under the Right to Buy legislation, and did not make provision for the broader range of acquisitions detailed within the new policy