Purpose

Cabinet is recommended to approve the acquisition of 80 homes from Countryside Partnerships to be used by the Council for affordable housing.

Decision

Cabinet:

(1)  approved in principle, the proposed acquisition and the utilisation of Right to Buy (RtB) receipts and borrowing on the terms set out in the exempt Financial Appendix 1 of the report;

(2)  delegated authority to the Strategic Director of Place in consultation with the Strategic Director of Resources to review the updated financials for the scheme and ensure that the proposals remain affordable and financially sustainable for the Housing Revenue Account (HRA) before contracts are concluded; and

(3)  delegated authority to the Strategic Director of Place in consultation with the Deputy Leader (Housing and Regeneration), the Strategic Director of Resources and the Corporate Director of Governance and Law to enter into the all necessary legal agreements for the acquisition of the homes by the Council.

Options & Alternatives Considered

Do not acquire

The opportunity is only of benefit to the Council if acquiring the homes at FSQ rather than elsewhere in the borough. The only alternative to acquiring the units is to take no action. In this scenario GLA grant secured in principle would be forfeited and no additional affordable homes would be delivered for the Council.

If the acquisition is not made, the homes can be sold as private on the open market, reducing the affordable housing to 38% across the scheme and may also cause the overall scheme to remain stalled due to the continued slow private sales market.