The Overview and Scrutiny Board met to consider a call-in of a recent Cabinet decision regarding a Build to Rent scheme at the Local Housing Allowance. After discussion, the Board voted on whether to uphold the requisition. The vote was tied at five members for and five against. The Chair used their casting vote to not uphold the requisition, meaning the Cabinet's decision to proceed with the scheme can be implemented.

Call-in of Executive Decision: Build to Rent at the Local Housing Allowance

The Board considered a call-in of the Cabinet's decision to enter into a 40-year nomination agreement with Inspired Solutions for the delivery of up to 600 build to rent properties. The grounds for the call-in included concerns about the procurement process, whether other suppliers had been considered, the speed at which the decision was being made, the adequacy of due diligence, the identity and financial standing of the provider, and the financial risks to the Council.

Representatives from Inspired Solutions, including managing director Simon Smith, Peter Harrison, and John Jory, were present to answer questions. Council officers also provided responses to the grounds for the call-in.

A key point of discussion revolved around the financial implications and the projected cost avoidance of £580 million over 40 years. Officers explained that this figure was a long-term, portfolio-level estimate and that the initial Cabinet decision authorised only the first tranche of 71 to 100 homes. The savings are primarily realised by reducing the Council's expenditure on expensive temporary accommodation, such as hotels and nightly-paid accommodation. Councillor Dilip Patel questioned the long-term financial risk, asking at what point the scheme might cease to generate savings and become a net cost. Officers stated that the scheme is designed to always be a saving to the Council.

Concerns were also raised about the procurement process, with councillors questioning why a competitive tendering exercise was not undertaken. Officers explained that a formal procurement process was not required as the arrangement is a nominations agreement relating to land, which is exempt from procurement requirements under the Procurement Act 2023. They also clarified that the Council has not granted exclusivity and retains the ability to engage with other providers.

The speed of the decision-making process was another area of focus. Councillors noted that the proposal moved rapidly from the forward plan to Cabinet approval. Officers responded that engagement with Inspired Solutions had been ongoing for six to nine months, and the urgency reflected the sustained overspend on temporary accommodation and the shrinking private rented sector.

The identity and track record of Inspired Solutions were also scrutinised. Councillors raised questions about the company's lack of a company number in the Cabinet papers and concerns that it appeared to be a young management consultancy rather than a property developer with no prior delivery experience. Officers assured the Board that the Council was not appointing a contractor or commissioning a developer, and that due diligence would be conducted on specific legal entities, land interests, and funding structures before any commitment was made.

The Board engaged in a detailed debate about the contractual arrangements, including rent guarantees, void periods, and rent arrears. The Council's liability for these was discussed, with assurances that these risks were intended to be limited and phased, and materially less than the current exposure to temporary accommodation costs.

The meeting concluded with a vote on whether to uphold the requisition. The vote was tied at five members for and five against. Councillor Laurance Garrard, Chair of the Overview and Scrutiny Board, used his casting vote to not uphold the requisition, meaning the Cabinet's decision to proceed with the Build to Rent scheme can be implemented.