031/ADforHH&P/23-24 Local Authority Housing Fund Property Purchases (ADC)

March 21, 2024 Assistant Director Housing, Homelessness & Prevention (CLT) (Officer) Key decision Awaiting outcome View on council website
Full council record

Decision

Adur District Council has been allocated £559,066 from the LAHF which is a government fund specifically for the provision of rented housing for refugees. The allocation is to provide 3 homes (of which one must have four bedrooms and the others at least two) by the funding deadline of 31st March 2024. Given the tight timescale, the acquisition or improvement of existing homes was considered to be the only way to deliver these.

Options were considered with the preference being for new property which could be quickly and easily acquired, however a review of the market showed that new homes within the budget and timescale were not available.

The following properties have been identified and are considered suitable. Full building surveys have been carried out and legal reports produced. Approval to purchase them is requested:

30 Bushby Close, Lancing ( 4 bed house) for the sum of £375,000

27 Beachcroft, Lancing ( 2 bed flat) for the sum of £225,000

37 Beachcroft, Lancing ( 2 bed flat) for the sum of £230,000

Total purchase cost: £830,000

Reasons for the decision

The Local Authority Housing Fund (LAHF) is a £500m capital grant fund, launched in December 2022, to support local authorities in England to provide housing for those displaced by war and conflict, in particular in response to the Afghan and Ukraine humanitarian schemes which offered a safe and legal entry route to those fleeing conflict

Refugees were identified as one of five priority groups in Adur District Council’s (draft) Housing Needs Assessment (September 2023).

Adur’s Housing Team will work with West Sussex County colleagues to allocate the properties to those who are eligible, homeless or at risk of homelessness and who currently live in unsuitable temporary arrangements. WSCC also has funding to meet costs associated with move-on and set up of a home as well as assist with rent and rent in advance if needed and there would be no additional financial burden to the council.

A report setting out the funding allocation and the budget for delivery of the three homes under the LAHF programme was approved by the Adur Joint Strategic Sub-Committee (JSSC) on 7th December 2023. Authority was delegated to the Assistant Director for Housing and Homelessness Prevention to approve the purchase of the properties identified.

The 2 leasehold flats at Beachcroft are in Adur owned blocks so will be incorporated easily into Adur’s stock with the Council as freeholder. The house at 30 Bushby Close is freehold.

The total acquisition cost is well below the figure indicated in the JSCC report of £1,075,000 however as the properties will need some repairs, it is envisaged that the entire approved budget will be required.

Alternative options considered

The alternative of improving existing housing was considered however it was considered preferable to increase the Council’s overall stockholding. In addition, it will be easier to comply with the required timetable for the LAHF funding which needs to be committed before the end of March 2024.

The option to do nothing and hand back the funding allocation was considered however this would have meant a failure to produce much needed homes, and it was demonstrated that the amount of grant available allowed these to be delivered with no additional burden on the Council’s budget.

Details

OutcomeFor Determination
Decision date21 Mar 2024
Effective from29 Mar 2024
Subject to call-inYes