Agenda item

This report outlines three main options open to the council which are to continue with provision by BHP, for the council to directly provide the service in-house or to enter into a partnership arrangement with another organisation to provide these services.

Cabinet are therefore asked to agree to commence a formal review of these housing management options. This review will include consultation with tenants and leaseholders to gain insight into satisfaction with the current service and priorities for future provision, and to inform the criteria for decision between the options.

RESOLVED:

-           noted the areas of performance to be formally addressed by BHP in accordance with the Recovery Plan

-           agreed that the Recovery Plan period be extended until 30 September 2016 following which progress against the plan will be reported to Cabinet.

-           noted the position in respect of the commercial negotiations between BHP and Wates and delegate to the Strategic Director, Community Wellbeing in consultation with the Lead Member for Housing and the Chief Financial Officer agreement with BHP on the final terms of settlement with Wates within the parameters set out in the exempt section to this report.

-           authorised that a formal review led by the Strategic Director Community Wellbeing be undertaken of the options for the future management of the council’s tenanted and leasehold stock as outlined in this report with associated consultation with tenants and leaseholders and for the results of that review to then be reported to Cabinet.

Councillor Farah, Cabinet Member for Housing, introduced the report stating that the government’s Housing and Planning Act (2016) and other measures would have a significant impact on the council’s housing stock including on its future size, financial performance and management over coming years.

He reminded members that the council entered into a new 10 year Management Agreement with Brent Housing Partnership (BHP) in April 2013 for the management of the council’s housing stock. This required BHP to provide services and achieve performance in accordance with an annually agreed Delivery Plan.

Councillor Farah stated that, in 2015/16, BHP failed to achieve the required outcomes and performance standards in a number of respects. BHP have put in place a recovery plan to address this which was originally intended to run until end June 2015 but it was proposed to now extend to end September 2016. The council was also formally notifying BHP under the Management Agreement of the need to remedy under-performance in the areas of most significant concern.

Councillor Farah reminded members that the management and performance of the stock investment programme in 2015/16 was a particular concern and the findings of a recent fact-finding audit commissioned by the council were provided and details of associated commercial matters and risks were set out as appropriate in an exempt section to the report.

Councillor Farah stated that, in view of the challenges presented by the government’s reforms, it was necessary to consider afresh the most appropriate arrangements for the management of the council’s stock while taking account of BHP’s performance under the Management Agreement.

Councillor Butt stated that the report outlined three main options open to the council which were to continue with provision by BHP, for the council to directly provide the service in-house or to enter into a partnership arrangement with another organisation to provide these services.

Councillor Butt stated that Cabinet was therefore asked to agree to commence a formal review of these housing management options. This review would include consultation with tenants and leaseholders to gain insight into satisfaction with the current service and priorities for future provision, and to inform the criteria for decision between the options.

Councillor Farah stated that it was proposed to bring a further report to Cabinet in October 2016 setting out the results of the review and associated consultation. This report would also advise on whether performance had been successfully remedied in the areas formally notified under the Management Agreement and also report on the progress made during the period of the BHP recovery plan. Cabinet would be asked to conclude on its preferred option for future Housing Management Services.

The Cabinet also had before them an appendix to the report which was not for publication as it contained the following category of exempt information as specified in Schedule 12 of the Local Government (Access to Information Act) 1972: 

Information relating to the financial or business affairs of any particular person (including the authority holding that information).

RESOLVED:

(i)         that the areas of performance to be formally addressed by BHP in accordance with the Recovery Plan be noted;

(ii)        that agreement be given to the extension of the Recovery Plan period until 30 September 2016 following which progress against the plan will be reported to Cabinet;

(iii)       that the position in respect of the commercial negotiations between BHP and Wates be noted and authority be delegated to the Strategic Director, Community Wellbeing in consultation with the Lead Member for Housing and the Chief financial Officer to agree with BHP the final terms of settlement with Wates within the parameters set out in the exempt section to this report;

(iv)       that a formal review led by the Strategic Director Community Wellbeing be undertaken of the options for the future management of the council’s tenanted and leasehold stock as outlined in the report with associated consultation with tenants and leaseholders and for the results of that review to then be reported to Cabinet.