Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: January 14, 2026

Purpose:

Content: Decision   RESOLVED that:   1.1) Cabinet recommended to Council that the funding be approved. 1.2) That subject to the approval of the funding by Council, Cabinet:- a) Approved the acquisition of the 3 residential properties identified in, and at the prices set out, in Schedule A of the Part 2 of the report, later on the agenda. b) Authorised officers to undertake modernisation works to the properties at the estimated cost set out in Schedule B of the Part 2 of the report. c) Approved the application of Local Authority Housing Fund (LAHF3) grant funding towards the purchase costs, and in accordance with the grant terms. 1.3) Authorised the Head of Asset Management & Engineering Services and the Chief Finance Officer, in consultation with the Portfolio Holder for Asset Management, to agree the detailed purchase terms and the improvement works as set out in the Part 2 report.   Reasons for decision   The proposed acquisitions directly supports the council to effectively manage the demand for larger temporary accommodation properties to support the relief of homelessness in the borough.   The use of Local Authority Housing Fund (LAHF3) grant funding materially reduces the Council’s net capital exposure and improves the affordability and overall value for money of the investment.   The agreed purchase prices are supported by independent valuations and are considered reasonable and prudent, providing assurance that the Council is not paying above market value.   The South Mimms and Bushey properties, while structurally sound, require internal modernisation to achieve lettable standards. The scope and estimated cost of these works have been assessed and are reflected in the purchase prices, with appropriate allowances included within the approved capital budget.   The Borehamwood property is well maintained and presents a comparatively low refurbishment and delivery risk. A proportionate contingency has been included to cover minor cosmetic works.   The proposal is affordable with the use of LAHF funding and capital receipts, and has been assessed for ongoing revenue implications, including management and maintenance, all of which are considered manageable within existing budgetary provision.   A requirement of LAHF is that the funds have to be utilised by 31st March 2026, or the unspent monies have to be returned.   The proposal supports the Council’s Asset Management Plan and wider corporate priorities by making prudent use of capital resources and external grant funding to deliver long-term community benefit, while maintaining appropriate financial governance and risk management.   Alternative Options Considered   Do Nothing: Not proceeding with the acquisitions would result in the loss of an opportunity to secure two three-bedroom houses and one three-bedroom flat at prices considered reasonable when assessed against independent valuation evidence. This would limit the Council’s ability to increase its stock of family-sized temporary accommodation. In addition, failure to proceed would place at risk the use of Local Authority Housing Fund (LAHF3) grant funding within the required timescales, potentially resulting in the loss of external funding and reducing overall value for money. This would have a negative impact on the Council’s housing delivery targets and the efficient use of capital resources.   Do Something Else The Council could seek to identify and acquire alternative residential properties within the Borough to meet temporary accommodation needs. However, there is no certainty that suitable properties of the required size, condition and value for money would be available within the Local Authority Housing Fund (LAHF3) funding criteria or within the required delivery timescales. Pursuing alternative options would be likely to delay delivery, increase acquisition costs due to market conditions, and risk the loss of LAHF3 grant funding. This option would therefore introduce additional financial and delivery risk, with no guarantee of achieving improved outcomes compared to the recommended approach.