The Renewal, Recreation and Housing Policy Development and Scrutiny Committee met on Tuesday 24 March 2026 to discuss budget monitoring, capital programme updates, performance of the Meadowship Homes initiative, and the council's contracts register. Key concerns raised included a projected £2.8 million overspend in the Renewal, Recreation and Housing portfolio's revenue budget, primarily due to increased costs in temporary accommodation and reduced income from planning fees and the Community Infrastructure Levy.

Budget Monitoring 2025/26

The committee reviewed the revenue budget monitoring position for the 2025/26 financial year for the Renewal, Recreation and Housing Portfolio. A projected net overspend of £2,826,000 on controllable expenditure was noted, with the main areas of overspend identified as Temporary Accommodation (£918,000), Planning (£231,000), and Building Control (£199,000). Conversely, income targets were not being met for the Community Infrastructure Levy (£1,371,000) and Land Charges (£107,000).

Councillor Yvonne Bear, Portfolio Holder for Renewal, Recreation and Housing, explained that despite efforts in homelessness prevention and housing delivery, the withdrawal of housing providers from the temporary accommodation and private rented markets, coupled with increased demand and costs, had driven up reliance and expenditure on nightly paid placements. The average net cost per placement had risen significantly. A taskforce was reportedly beginning to reduce nightly costs, and a three-pronged mitigation strategy was in place, focusing on homelessness prevention, efficient use of accommodation, and increasing the supply of alternative housing solutions. The Housing and Homelessness Service had also undergone a restructure, with a new Assistant Director focusing on triage and prevention.

Regarding planning fee income, it was noted that it had not recovered to pre-COVID levels, creating a gap between service delivery costs and income. While legislative changes in December 2023 and April 2025 had increased fees and allowed for inflationary uplifts, the sustained reduction in application numbers continued to impact income.

Capital Programme Monitoring - Quarter 3 2025/26

The committee received an update on the capital programme monitoring for Quarter 3 of the 2025/26 financial year and the revised capital programme for 2025/26 to 2029/30. A revised capital programme was agreed by the Executive on 11 February 2026.

A member raised concerns about the rephasing of capital schemes into future financial years, citing rising interest rates and geopolitical pressures as potential cost escalators. The Assistant Director: Culture and Regeneration assured the committee that all capital schemes included contingencies and risk allowances within their business cases, and that schemes were reassessed if costs or deliverability materially changed. Additional grant funding had been secured for social housing schemes where costs had increased.

The report detailed several changes to the Renewal, Recreation and Housing portfolio's capital programme. Notably, the Castlecombe Housing and Chipperfield Housing schemes were added with significant budgets. The Beckenham Housing scheme received supplementary funding. Several completed or no longer progressing schemes were removed, resulting in a net decrease of £102,000. Post-completion reports for the Burnt Ash Lane and Anerley Housing schemes were reviewed, indicating they were delivered within budget, though delayed by external factors like the COVID-19 pandemic.

Meadowship Homes 1 and 2 Performance Update

An update was provided on the Meadowship Homes joint venture with Pinnacle Group, which aims to increase the supply of affordable homes for households in temporary accommodation. Meadowship Homes 1 has acquired 256 properties, and Meadowship Homes 2 has secured 198 properties, with a total portfolio expected to be around 203-205 properties. The scheme is intended to provide permanent homes at Local Housing Allowance rates, reducing the council's reliance on costly temporary accommodation.

While the schemes are financially self-sustaining in terms of asset value and cash flow, their income and interest receivable do not fully cover expenses, resulting in a reported loss on their Income and Expenditure accounts. However, the council directly benefits from avoided nightly paid temporary accommodation costs, estimated at £1.5 million annually for Scheme 1 and a similar amount for Scheme 2.

Performance against contractual Key Performance Indicators (KPIs) for April 2025 to January 2026 was reviewed. While most KPIs were met, concerns were raised about bad debt (at three times the target) and void turnaround times averaging 48 days. The Head of Bromley Homes explained that the bad debt position was largely due to Universal Credit payment delays, with expectations of reduction to around 7% by the financial year-end. Void turnaround times were impacted by factors such as the need for freeholder approval or specialist contractors, but efforts were being made to expedite property returns. The committee requested that performance over time be shown for KPIs rated 'Red' in future reporting.

Renewal, Recreation and Housing Contracts Register

The committee reviewed an extract from the Contracts Register as of 28 January 2026, detailing contracts with a whole life value of £50,000 or higher. The report indicated that there were 72 active contracts within the Renewal, Recreation and Housing portfolio. Notably, no contracts were flagged as 'Red' (requiring close monitoring due to potential issues or tight timescales). The majority of contracts were classified as 'Lower Risk' or 'Neutral' in terms of procurement status. Several contracts, including the Provision of Library Services and Housing Management Service, were highlighted as 'Higher Risk' due to their long duration or value. The report also listed capital contracts, with several identified as 'Higher Risk' due to their significant value and ongoing nature.

Renewal, Recreation and Housing Information Briefing

The committee received an information briefing comprising the Local London Annual Update. This was noted by the committee.