Agenda item

In August 2015 Cabinet agreed to establish and deliver a Right to Buy (RTB) receipt enabled new supply housing programme for 2015-19.  Phase 1 of the programme, to purchase open market properties, is substantially underway and nine acquisitions have been completed to date.  Soft market testing has been carried out of prospective external delivery partners for Phase 2, and an alternative investment approach is now proposed. 

RESOLVED:

-           noted the progress of the Right to Buy Receipts Programme Phase 1 to April 2016 and its integration with the wider market acquisitions programme, as set out in paragraph 6.11 of the report.

-           agreed to continue this Programme to acquire existing properties until 31 March 2019, subject to financial viability including the flexibility to part-fund the cost of advance purchases within the South Kilburn regeneration area through retained Right to Buy receipts.

-           agreed to allocate retained Right to Buy receipts as local authority grant for the provision of affordable housing by external partners and to delegate authority to the Strategic Director for Resources in consultation with the Chief Legal Officer, the Chief Finance Officer and the Operational Director, Housing and Culture in consultation with the Lead Member for Housing to approve criteria for grant funding, to approve criteria for the evaluation of bids and to approve the allocation of such grant on acceptable terms.

-           agreed to contribute retained Right to Buy receipts to support residential development of council-owned sites and for a commensurate proportion of the homes to be provided as affordable rented accommodation, subject to financial viability and to delegate authority to the Strategic Director for Resources in consultation with the Chief Legal Officer, the Chief Finance Officer and the Operational Director, Housing and Culture in consultation with the Lead Member for Housing to approve the contribution of such receipts.

Councillor Farah, Cabinet Member for Housing, reminded members that, in August 2015, Cabinet agreed to establish and deliver a Right to Buy (RTB) receipt enabled new supply housing programme for 2015-19.

He stated that phase 1 of the programme, to purchase open market properties, was underway and nine acquisitions have been completed to date. Soft market testing has been carried out of prospective external delivery partners for Phase 2, and an alternative investment approach was now proposed.

Councillor Farah stated that it is recommended that, in order to maximise Brent’s opportunities to provide replacement affordable homes using RTB funding and to minimise the risk of unspent amounts being paid to government, a multi-strand investment approach should be adopted.

He indicated that the four key strands of this strategy were:

-       To award local authority grant to external providers to provide new affordable housing, leveraging significant private investment

-       To invest RTB receipts in the direct delivery of council-owned sites to provide new affordable housing, reducing overall council borrowing

-       To continue the existing acquisition programme to provide new affordable housing, integrated with the council’s wider market acquisitions programme.

-       To support investment in the Housing Zones, to acquire development sites in order to facilitate and accelerate development, and the provision of affordable housing.

Councillor  Farah stated that, based on the RTB receipts accrued to the end of March 2016 (£19.3m), which can be used to fund up to 30% of the total cost of providing replacement affordable rented homes, there was total investment pot in excess of £60m. The size of this pot was further increased once projected RTB sales income is included, over the next three years.

RESOLVED:

(i)         that the progress of the Right to Buy Receipts Programme Phase 1 to April 2016 and its integration with the wider market acquisitions programme, as set out in paragraph 6.11 of the report be noted;

(ii)        that this Programme continue to acquire existing properties until 31 March 2019, subject to financial viability including the flexibility to part-fund the cost of advance purchases within the South Kilburn regeneration area through retained Right to Buy receipts.

(iii)       that retained Right to Buy receipts be allocated as local authority grant for the provision of affordable housing by external partners and authority be delegated to the Strategic Director for Resources in consultation with the Chief Legal Officer, the Chief Finance Officer and the Operational Director, Housing and Culture in consultation with the Lead Member for Housing to approve criteria for grant funding, to approve criteria for the evaluation of bids and to approve the allocation of such grant on acceptable terms;

(iv)       that retained Right to Buy receipts be contributed to support residential development of council-owned sites and for a commensurate proportion of the homes to be provided as affordable rented accommodation, subject to financial viability and authority be delegated to the Strategic Director for Resources in consultation with the Chief Legal Officer, the Chief Finance Officer and the Operational Director, Housing and Culture in consultation with the Lead Member for Housing to approve the contribution of such receipts.