Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 27, 2026

Purpose: To consider the report of the Cabinet Member for Housing seeking approval for the adoption of a selection rationale and accompanying methodology for the future management of certain void Housing Revenue Account (HRA) properties. The report will outline an approach to ensuring best use of housing assets and reinvestment of resources to support the delivery of the Council’s Decent Homes and housing improvement objectives.

Content: (i)  To approve the adoption of the selection rationale, as the framework for identifying suitable HRA assets for disposal subject to a detailed business case. (ii)  To delegate authority to the Director of Housing following consultation with the Executive Director of Resident Services, Director of Finance and the Cabinet Member for Housing to proceed with five pilot sales of under-performing Void properties, each of which would be based on a detailed business case. (iii)  To grant permission to continue with the wider programme of disposals only following a comprehensive evaluation of the outcomes and lessons learned from the initial pilot sales.

Reasons for the decision: 1.  The Council currently faces an estimated circa £75M gap between cost of improving HRA homes to a Decent Homes standard and the budget available – the council’s current performance on decent homes is among the worst in the country. There are a range of measures being proposed to address the gap, these include selected asset sales. 2.  This report sets out the rationale for the disposal of Housing Revenue Account (HRA) assets where the cost of repair and re-letting is significantly outweighed by the financial and strategic benefits of sale. It outlines a methodology for determining where disposal provides better long-term value than repair. Due to limited internal capacity to refurbish these properties and the requirement to return them to social rent, there is no viable business case for the Council to undertake these works.

Alternative options considered: (i)  To approve the new Southampton City Council Housing Strategy 2026-2031. (ii)  To note the feedback from formal consultation on the Housing Strategy and how feedback will be used, presented in Members Room Document 1.