Decision details

To agree to the disposal of 23 shared ownership homes under the grand union phase 1 scheme to the preferred bidder.

Cabinet NOTED the following comments made by Councillor Georgiou who had requested to speak at the meeting on the report.  In addressing Cabinet, Councillor Georgiou began by advising that whilst the properties being considered were located within his ward (Alperton) it was felt the issues raised had borough-wide implications.  On this basis, Councillor Georgiou advised he was seeking further clarification, following the response provided by Councillor Knight (as Cabinet Member for Housing, Homelessness and Renters Security) to a question he had raised at the Full Council meeting on 10 July 2023, on the reference made to repurposing as opposed to disposal of the homes.  In addition, details were sought on the original classification of the 23 homes and how this applied to their status and inclusion as part of the New Council Homes Programme, with Councillor Georgiou advising that in his view shared ownership did not represent an affordable housing model.

In reiterating the need to understand the process in terms of delivery of the New Council Homes Programme, Councillor Georgiou advised he was also seeking confirmation that any release of the units to an alternative provider would be at London Living Rent and, should that not be the case, for further clarity to be provided on the new model of ownership which had been referred to in the report.  Councillor Georgiou also felt there was a need to be clear on the length of lease being offered in relation to the release of the properties, the potential financial impact arising from the disposal and any requirement for Secretary of State approval.  Concerns were also highlighted regarding the timescale for the decision and impact on the availability of the properties since October 2022 along with the cost of financing any associated debt during this period in relation to the Housing Revenue Account.  In concluding, Councillor Georgiou advised that as a result of the issues raised and what he felt was further uncertainty around the Council’s plans for the ongoing delivery of affordable housing across the borough, he was calling for an Independent Scrutiny Task Group to be established to undertake a further detailed review of the approach, chaired by a member of the Opposition Group.

In responding to the comments raised, Councillor Butt (as Leader of the Council) advised that given the wide ranging nature of the issues raised he would arrange for a full response to be provided outside of the Cabinet meeting.

Having noted the comments received and content of the report Cabinet RESOLVED:

(1)      To authorises the proposed disposal of the 23 shared ownership homes at Block D, Grand Union (the Property) in accordance with the Council’s Constitution.

(2)      To recognise that in order to proceed with the proposed disposal of the Property reliance may be placed on the Secretary of State’s general housing consent.

(3)      To recognise that Heads of Terms will need to be agreed with relevant third parties in respect of the proposed disposal of the Property and authorise officers to negotiate and agree such Heads of Terms as may be necessary with the relevant thirds parties in relation to the same (which may include agreeing terms in respect of any variation which may need to be negotiated and agreed with regard to existing deeds).

(4)      To support the recommendation to proceed with the preferred option, offer 3 (as detailed in Appendix 1 of the report containing exempt information).