The Sustainable Communities Overview and Scrutiny Panel met on Monday 9 March 2026 to discuss Merton Regeneration, Housing Associations, the Housing Revenue Account, and performance monitoring. The panel noted the expected benefits of reopening the Housing Revenue Account (HRA), including increased financial discipline for expenditure, particularly for repairs, and ensuring an adequate maintenance budget. Residents would gain democratic recourse to their local authority as landlord, with councillor oversight.

Merton Regeneration

The panel discussed various regeneration projects across the borough. The Majestic Way, Mitcham project was noted as being subject to an upcoming council planning decision and would not be discussed at this meeting.

Regarding the Eastfields Estate, concerns were raised about the impact of new building safety requirements on affordable housing. Clarion confirmed that these changes could be incorporated into the plan, with an aim to increase affordable social rent housing if grant funding was secured. The main risks identified were regulations concerning second staircases and unit layouts. Clarion calculates social rents based on property value, providing initial estimates before properties are completed. While housing associations can apply a 5% uplift, Clarion has removed this for existing residents and will apply a rent cap for them. The panel noted inconsistencies in Clarion's taper offer to residents on the Eastfields Estate, with initial written advice differing from subsequent legal documents. Clarion confirmed they would honour the original offer for residents who had already sold properties to them and continue the revised offer for those who had not yet sold. Clarion would review the situation and communicate appropriately, and a session was planned to explain the taper offer and address concerns.

The panel noted that Clarion had received the final report on flooding at Ravensbury, and although Phase 3 of the project was delayed, Clarion stated the original model remained accurate. An enhanced incentive for residents to sell to Clarion had been withdrawn due to viability reasons, as it was no longer necessary to secure certain homes for several years. Peacock Road was scheduled for demolition, and the ball court could be relocated. Negotiations were underway with a pub regarding scaffolding on a party wall. Many Phase 4 properties were in good condition and available to Merton Council for temporary use to alleviate housing list pressures.

Housing Associations (Part Two)

The panel received an update on the services provided by housing associations L&Q and MOAT. L&Q varies its estate inspection timings to increase visibility, while MOAT's inspections are publicised but door-knocking conversations are not always recorded. MOAT is exploring more regular surgeries to reduce contact centre calls and emails.

Both associations acknowledged repair backlogs. MOAT ended a repairs contract a year prior, leaving 1,000 repairs in progress, and aims to improve customer follow-up with a new contractor, reporting an 85.5% customer satisfaction rate. L&Q is also addressing a similar backlog with a new contractor and is recruiting skilled workers to improve customer satisfaction. Both associations collect customer feedback via text messages and regular surveys.

A Red-Amber-Green system is used for voids. MOAT holds fortnightly meetings with the council to understand void pipelines and prioritise. L&Q would welcome closer engagement with local authorities. For scattered or individual homes, MOAT conducts monthly inspections and weekly cleaning, with monthly ground maintenance, stating residents should not experience a different service level. Both MOAT and L&Q offered to provide stock lists and meet with councillors to discuss priority areas.

The panel requested further information on the number of days taken to complete repairs and stock lists, along with opportunities to discuss priority areas.

Housing Revenue Account (HRA)

The panel noted the expected benefits of reopening the Housing Revenue Account (HRA), including increased financial discipline on expenditure, particularly for repairs, and ensuring an adequate maintenance budget. Residents would gain democratic recourse to their local authority as landlord, with councillor oversight.

The panel was informed that the HRA is expected to impact the cost of temporary accommodation from 2027. Seventy-five homes are being handed over, not all for temporary accommodation, with choice-based lettings available. In-year purchases would be held in the council's general fund.

A Special Purpose Vehicle (SPV), separate from the council, could be part of plans to provide a diversity of housing tenures, such as shared ownership or short-term tenures, aligning with the Mayor of London's announcement on building key worker living rent housing. The council's preference is to provide housing within the borough, but locations outside the borough, such as Croydon, would be carefully considered if they were within a 30-minute public transport journey from Merton.

The panel highlighted that individuals placed in temporary accommodation are often located far from the borough and suggested the council formally define a commutable distance. The Executive Director of Housing and Sustainable Development agreed to consider this proposal.

The panel requested a response regarding the proposal to define a commutable distance for temporary accommodation placements.

Performance Monitoring

The panel noted that questions relating to the Executive Director of Environment, Civic Pride and Climate's services would be answered in writing. Councillor Wilson would submit questions on these areas to the Scrutiny Officer.

Questions were raised about the 95.6% score for street cleaning reports, specifically whether it encompassed all reports or only those requiring action, and if anti-social behaviour incidents were included.

Complaints from residents regarding the new planning application system's validation process were highlighted. The Executive Director stated that the transition was complete, with existing applications now uploaded. The new software was considered an improvement, with results expected to be visible in the quarter.

Inquiries were made about accessible temporary housing accommodation, with the panel noting that not all homes qualify. Despite a difficult period regarding numbers, the situation had stabilised in the last quarter due to registered providers handing over voids more quickly and new stock becoming available for nomination.

The panel noted that targets for temporary housing were focused on achieving a point where the council was not overspending in this area, with a long-term aim to reduce the number of people requiring temporary accommodation to reasonable levels.

The panel queried the process for responding to residents and councillors on legacy complaints and was informed that 300 open cases were being managed by a small team, achieving good results with limited resources.

Quarterly Performance Reports

The panel noted that when officers are unable to attend meetings, they should nominate deputies to answer questions. Questions concerning the Executive Director of Environment, Civic Pride and Climate's services would be addressed in writing.

Action Log

The panel noted the report.

Work Programme

The Chair requested that panel members submit any reflections on the previous work programme, suggestions for improvement, and future topics to the Scrutiny Officer by the end of March. A request was made for information on the number of recommendations made by the panel in 2025/26 and how many were accepted. The usefulness of site visits was highlighted, and opportunities for these should be considered.