Agenda item

Report E/19/5 sets out, as part of the Council’s Housing Development Strategy for increasing its supply of affordable housing stock and Empty Homes programme, the case for the potential purchase of empty properties and former Right to Buy Council properties where the Council has first refusal.

The Lead Executive Member for Housing, Health and Culture presented the report which sets out, as part of the Council’s Housing Development Strategy for increasing its supply of affordable housing stock and Empty Homes programme, the case for the potential purchase of empty properties and former Right to Buy Council properties where the Council had first refusal.

The Lead Executive Member for Housing, Health and Culture explained that the Council had the potential to purchase empty properties and former Right to Buy council properties where it had first refusal. It was noted that each purchase would be dependent on a business case and the Council was able to drawn down from the funding provided by Homes England in respect of the purchase and repair of empty properties.

The following discussion took place on the report:

• In response to a query concerning the price of purchasing, it was noted that the Council would always negotiate the best price for the property to ensure it wasn’t overpaying.

• Discussion took place on how the demand for the buyback of council properties. The Executive was informed that around 20 former council properties were sold each year with around 10 being offered back to the Council.

• It was noted that if the property was sold by the buyer within 10 years then the Council had a legal right to know and that this should be flagged by the mortgage company or the solicitor. Furthermore, it was explained that if it was sold within five years of purchase then the seller would be required to pay back the discount they had received. It was noted this would be calculated on a sliding scale up to the five years. A query was raised whether this appeared as a local land charge on the property. It was agreed a response would be sought on this.

• In response to a query concerning if a seller could go back on the council housing waiting list after selling a property, the Head of Operational Services explained that this would only happen in certain specific circumstances.

• A query was raised regarding the works required to the properties to be purchased. The Head of Operational Services explained if work was required to the property, this would be identified in the business case.

It was proposed and seconded that the following amendments be made to the recommendations:

• It was proposed to remove the reference to leisure for the Lead Executive Member in resolution three as this was not under their portfolio.

• It was proposed that resolution two include a reference to liaising with the Lead Executive Member for Finance and Resources to ensure there was Member input.

RESOLVED:

i)             To approve extension of the Empty Homes and Housing Development programmes to include the purchase of former Council houses previously sold under the Right to Buy scheme;

ii)            To delegate authority to the Chief Finance Officer in consultation with the Director of Corporate Services and Commissioning and the Lead Executive Member for Finance and Resources to determine the most appropriate funding package for these acquisitions drawing on approved funding from Homes England Empty Homes Programme Grant, Section 106 affordable housing commuted sums, prudential borrowing and HRA funding approved for building/acquiring additional council homes;

iii)           To authorise the Director of Corporate Services and Commissioning, in consultation with the Lead Executive Member for Housing, Health and Culture and the Section 151 Officer to purchase properties subject to the business case and enter into contracts to purchase properties which meet the business case, costs and available funding.

REASON FOR DECISION:

To utilise funding available from the Empty Homes Programme and Housing Development Programme for purchase of former Right to Buy (RtB) Council properties to support the increase in affordable housing provision and contribute to meeting the Council’s one for one replacement target for right to buy properties.