At a meeting of the Portfolio Holder Decision Meeting, Harrow Council agreed to submit a bid for the acquisition of homes in Harrow to be used for social housing, with the aim of reducing the council's reliance on temporary accommodation and mitigating rising costs. Councillor Paul Osborn, Leader of the Council, approved the recommendations, also delegating authority to the Strategic Director for Housing and Regeneration to appoint an agent to support the bid. A report will be submitted to cabinet and full council to update on the terms of the bid and the Housing Revenue Account's (HRA) five-year capital programme, respectively.

Acquisition of Homes for the Housing Revenue Account

Harrow Council has approved the submission of a bid to acquire homes in Harrow for use as social housing, with the intention of reducing the use of temporary accommodation and mitigating rising costs. The decision was made in response to a time-sensitive opportunity to secure newly built homes in Harrow. The council aims to acquire the properties to provide secure, long-term homes, ending the uncertainty faced by many households in Harrow.

The council's report noted that:

Current forecasting projects an increase in cost to the current nightly rented model of between 40.5% and 76% through the next three financial years. The cost of accommodation through nightly paid models continues to rise, while demand for settled housing support is steadily increasing.

The acquisition is intended to address the rising costs and demand for temporary accommodation, which have placed significant pressure on the council's resources. The council has seen a significant increase in temporary accommodation spend over the last two years, driven by an increase in households needing support and a reduction in the number of affordable homes available. This has led to an increased use of nightly rated accommodation, creating financial pressures that are forecast to continue.

The council considered several alternative options, including investment in modular housing and the acquisition and lease of properties through a community benefit society, but these were discarded in favour of direct acquisition.

The council will seek funding from the Greater London Authority's (GLA) Affordable Homes Programme (AHP) to offset the purchase cost and reduce the size of loan and interest payments over the long term. The acquisition and costs of the loan will be paid through the Housing Revenue Account (HRA).

The council will independently manage the properties and subcontract for maintenance and resident services using existing policies and contracts. The purchase will be subject to a full independent building survey and red book valuation¹ which will be commissioned on acceptance of the council's bid.

The recommendations that were approved were:

• Approving the submission of a bid and purchase in accordance with the range set out in confidential Appendix 1 to the officer's report.
• Delegating authority to the Strategic Director for Housing and Regeneration, following consultation with the Strategic Director for Finance (S151 Officer), the Strategic Director for Legal and Governance, Councillor Paul Osborn, Councillor Mina Parmar, Portfolio Holder for Housing and the Portfolio Holder for Finance and Highways to appoint an agent to support with due diligence on the bid and any subsequent acquisition on the basis that the appointment represents best value, as set out in confidential Appendix 1 to the officer's report.
• Noting that a report will go to Cabinet to note terms of the bid and business case in confidential appendix 1 to the officer's report and approve all necessary steps required to successfully complete.
• Noting that subject to a successful bid, a report will go to Full Council updating the HRA's 5-year capital programme to reflect the agreed price and approve any successful grant application in line with financial regulations.