Issue - meetings

This report provides the Audit and Standards Advisory Committee with an update on the work of the Housing Companies, i4B Holdings Ltd (i4B) and First Wave Housing (FWH) to deliver against their business plans for 2024-25, which were agreed by the Council as Shareholder of i4B and Guarantor of FWH.

(Agenda republished to include the attached report on 19 March 25)

Ahead of the formal introduction of the item, the Chair reminded members of the newly introduced reporting arrangements for i4B Holdings Ltd (i4B) and First Wave Housing Ltd (FWH) with the role of the Audit & Standards Advisory Committee now focussed around assurance relating to the arrangements the Council, as Shareholder (in the case of i4B) and Guarantor (in the case of WFH), had in place to oversee the governance and performance of both companies rather than on their detailed operational management & performance, which would be monitored through the Council’s scrutiny function.

The Chair then welcomed Andrew Hudson to the meeting (as Chair of the Boards for both i4B Holdings Ltd and FWH Ltd) who introduced the update report outlining the work being undertaken by both Housing companies to deliver against their respective business plans for 2024-25, which had been agreed by the Council as Shareholder of i4B and Guarantor of FWH along with an update on their 2025-26 Business Plans.  In presenting the report, the following issues were highlighted:

·             The Committee’s attention was drawn to section 3.3 in the Committee report which detailed the governance arrangements in place relating to both companies along with the updates provided in section 3.4 on the key issues covered at the most recent Shareholder meeting between the Council and i4B and Guarantor meeting between the Council and FWH (held in February 2025) relating to operational performance and financial performance as well as progress against each respective Business Plan (on which the full reports had been included as Appendix 1 (i4B) and Appendix 2 (FWH) of the Committee report).

·             As a summary of key operational performance issues highlighted, members were advised:

o      of the ongoing challenges identified in relation to the management of voids including delays from third-party freeholders affecting turnaround times. Both i4B and FWH Board had conducted a deep-dive session to identify ways to reduce void times and rent loss, resulting in an action plan which the Boards had reviewed at their February meeting.

o      Whilst the most recent tenant satisfaction metrics for both companies had shown an increase in overall satisfaction, levels were still below the London average, and below where the companies want to be with work focussed around the Housing Companies Tenant Services Managers reflected in the improved results with further work underway to consolidate and enhance performance over the coming year.

o      In terms of acquisitions, i4B was reported as having exceeded their acquisition target of 25 properties for 2024-25 with the company having successfully purchased 27 street properties and a small block of 9 units within the borough.  Whilst noting performance in this respect had been strong members were advised of the challenges in being able to maintain current levels of acquisitions moving into 2025-26 given movements in interest rates and other factors impacting on viability making it harder to acquire properties within the necessary financial criteria.  In recognising the importance in continuing to prioritise acquisitions, given the ongoing demand for housing and need to alleviate costs  ...  view the full minutes text for item 9

8.1   Report on i4B Ltd

This report provides the Audit and Standards Advisory Committee with an update on the work of i4B Holdings Ltd to deliver against its business plan for 2023-24 which was agreed with the Council as Shareholder, and an update on the company’s upcoming 2024-25 business plan.

8.2   Report on First Wave Housing Ltd

This report provides the Audit and Standards Advisory Committee with an update on the work of First Wave Housing Ltd to deliver against its business plan for 2023-24 which was agreed with the Council as Guarantor, and an update on the company’s upcoming 2024-25 business plan.

Ahead of the formal introduction of the item, the Chair reminded members of the change in reporting arrangements for i4B Holdings Ltd (i4B) and First Wave Housing Ltd (FWH) with the role of the Audit & Standards Advisory Committee now focussed around assurance relating to the arrangements the Council, as Shareholder (in the case of i4B) and Guarantor (in the case of WFH), had in place to oversee the governance and performance of both companies rather than on their detailed operational management & performance, which would be monitored through the Council’s scrutiny function.

Minesh Patel, Corporate Director of Finance & Resources then introduced the reports that updated the Committee on the governance arrangements of both i4B and FWH, including updates on issues considered at the most recent Shareholder and Guarantor meetings in relation to delivery against each respective Business Plan, financial and operational performance along with outline of key risks and the reports provided for the most recent Shareholder and Guarantor meetings attached as an appendix to the update reports on i4B (Agenda Item 8.1) and FWH (Agenda Item 8.2).

Key issues highlighted were as follows:

·             The Committee’s attention was drawn to section 3.4 in both the i4B and FWH reports which detailed the governance arrangements in place relating to both companies along with the updates provided in section 3.5 of both reports on the key issues covered at the most recent Shareholder meeting between the Council and i4B (February 2024) and Guarantor meeting between the Council and FWH (February 2024) relating to operational performance and financial performance as well as progress against each respective Business Plan.

The Chair welcomed Andrew Hudson to the meeting (as newly appointed Chair of the Boards for both i4B Holdings Ltd and FWH Ltd) and then invited the Committee to comment on the updates in relation to both i4B and FWH, with the following issues discussed:

·             Further details were sought on the current structure of both companies and the consideration given to a potential merger in order to generate further efficiencies.  In response, members were advised that expert advice had been sought on a merger in seeking to explore potential tax efficiencies, however, the advice provided had confirmed this would be difficult to achieve given the way both companies had been established particularly with FWH being limited by guarantee and with limited ability to dispose of its assets.

·             In referring to the need for regular scrutiny to be established (under the new performance monitoring arrangements) in relation to the operational performance of i4B and FWH, further details were sought on progress in establishing the joint scrutiny Committee meeting between the Resources & Public Realm and Community & Wellbeing Scrutiny Committees to examine the companies in more detail and consider how the process could best be incorporated within the relevant sections of each Committee’s work programme.  In response, it was agreed by the Chair that a further update be requested on progress in seeking to establish a joint scrutiny work programme planning session to consider the arrangements and remit of  ...  view the full minutes text for item 9