Purpose

This report provides an update on progress and seeks further approvals for the acquisition of homes for temporary accommodation delivered through the Local Authority Housing Fund. It also proposes a strategic approach to securing long term (ten years plus) leased accommodation through institutional and pension fund backed providers to reduce reliance on nightly paid accommodation and improve value for money.

Decision

Cabinet is asked to:

A. Note the progress made in acquiring homes to increase housing available to the Council to use for temporary accommodation and reduce reliance on nightly paid temporary accommodation.

B. Note that, in accordance with his delegated powers, the Executive Director for Finance & Digital signed a Memorandum of Understanding with the Ministry of Housing, Communities and Local Government (MHCLG) in March 2026 to deliver Round 4 of the Local Authority Housing Fund (LAHF4), with the sum of £15,081,000 to be spent on 62 homes across 4 four years. A further £20,088,000 of council capital has been allocated to support these acquisitions.

C. Approve the acquisition of a proposed target of 125 homes during 2026/27 through a combination of freehold purchase and long-term leasing arrangements.

D. Delegate to the Executive Director of Housing & Sustainable Development in consultation with the Executive Director for Finance and Digital and in consultation with the Cabinet Members for Housing and Sustainable Development and Finance and Corporate Services authority to acquire properties which represent best value for the Council to achieve the acquisition target of 125 homes for 2026/27, and where relevant in accordance with the conditions of the Local Authority Housing Fund.

E. Delegate authority to the Executive Director of Housing & Sustainable Development in consultation with the Cabinet Members for Housing and Sustainable Development and Finance and Corporate Services into enter into any contracts and deeds to acquire the units, and other legal agreements required to facilitate the acquisitions and facilitating of supply of the TA properties authorised by recommendation D.

F. Note the criteria and assumptions for the LAHF4 unit mix, which apply a portfolio approach to the delivery of the programme and set indicative purchase prices per property against each bedroom size. These assumptions ensure the proposals in this report do not provide a General Fund budget pressure and will be vetted and signed off by the relevant executive directors, as set out in recommendation D.

G. Consider the merits of individual contractual arrangements of 10 years (or more) with institutional and pension-fund backed providers on terms or similar terms as set out in paragraph 4.46 to 4.51 of this report and, subject to concluding any necessary procurement procedures, to authorise the Executive Director of Housing & Sustainable Development in consultation with the Cabinet Members for Housing and Sustainable Development and Finance and Corporate Services to enter into any contracts for the supply and use of these units.