Agenda item

The purpose of this report is to provide an overview of progress against the Council’s targets in relation to the delivery of affordable homes in the borough.  The report also sets out specific decisions required for schemes being delivered directly by the Council, whether this be through the New Council Homes Programme (NCHP) or Regeneration schemes.

(Agenda republished on 8 December 2023 to include an amended version of the report with changes underlined and highlighted in bold)

Cabinet RESOLVED:

(1)    To agree to award the Main works contract to Wates for the delivery of Church End including 99 homes and a new market square for the value set out in Recommendation 1 of Appendix 1 of the report (which contained exempt information).

(2)    To note the challenges set out regarding the delivery of Morland Gardens in paragraph 5.3 – 5.10 of the report and agree for officers to develop an alternative site strategy for future consideration by Cabinet.

(3)    To approve, that if necessary, the Council consult on ending the South Kilburn Promise (Landlord Offer) for new temporary accommodation households and the use of voids properties identified on the South Kilburn regeneration area for temporary accommodation, noting the legal considerations around consultation set out in Section 8 of the report.

(4)    To note the updated programme budget for the New Council Homes Programme of £495.5m and approve the use of usable Capital reserves to fund this.

(5)    To agree to wave the delegated authority limits to enable the Corporate Director of Resident Services in consultation with the Corporate Director of Finance and Resources to agree the terms of the lease and thereafter enter into and complete on a 5-year leasing arrangement with the developer for the new build scheme at Manor Park Road, Harlesden NW10 4JJ for use as emergency and settled temporary accommodation, as set out in Section 6 of the report and where necessary make any further amendments as and when required.

(6)    To approve an acquisitions budget of £52.7m to address the acute housing and temporary accommodation needs and challenges.  This is in addition to any acquisitions already approved by Cabinet.

(7)    To agree for a new delegation to the Corporate Director of Resident Services in consultation with the Corporate Director of Finance and Resources, to acquire 133 homes from the open market (including both freehold  and leasehold acquisitions) such delegation to include negotiating and approving the terms of any freehold or leasehold acquisitions and thereafter entering into the relevant transactional documents to address the acute housing and temporary accommodation needs in line with approach set out in Section 11 and Appendix 1 (containing exempt information) of the report, which is in addition to those acquisitions already approved by Cabinet.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 18 December 23

Councillor Knight (as Cabinet Member for Housing, Homelessness and Renters Security) introduced a report providing an overview on progress against the Council’s target in relation to the delivery of affordable homes in the borough and outlining specific decisions required for schemes being delivered through the New Council Homes Programme or other regeneration schemes.

In considering the report members, whilst commending the progress made to date in terms of delivery against the target for provision of new affordable homes across the borough by 2028, also recognised the significant nature of the financial and economic challenges identified in relation to ongoing delivery of the programme and associated impact on the viability of a number of schemes.  As a result, whilst the delivery of the target remained on track, Cabinet was advised of the need to further prioritise which sites continued to be taken forward in order to not only address housing need but also benefit the wider community and the strategic priorities of the Council.

Members noted the updates provided in relation to the schemes being delivered by the Council, including the proposal to prioritise delivery of the Church End scheme given its impact as a catalyst for wider regeneration in that area, and measures introduced to manage delivery of schemes on site within the New Council Homes Programme designed to mitigate against delays (where identified) and the associated financial implications and risks to the Council.  In terms of Phase 2 of the New Council House Programme, members welcomed the agreement obtained from the GLA to roll the Kilburn Square scheme into the new grant programme and whilst keen to support ongoing delivery noted that this would only be possible should the current viability gap be removed.  In considering the wider updates provided, Cabinet also expressed support for the work being undertaken in an attempt to address the pressures and increase the supply of temporary accommodation in response to the high level of demand being created by the current increase in homeless households, including the further budget of £52.7m identified for an additional acquisition programme and the potential use of void properties as part of the South Kilburn regeneration programme, on which additional legal advice had been incorporated within a republished version of the Cabinet report.

Members took the opportunity to thank officers for their efforts in seeking to progress delivery of the target for new Affordable Housing, given the extent of the current economic, financial and wider political challenges faced recognising the importance of the work being undertaken to maximise the opportunities available given the ongoing housing crisis and significant increase in households currently presenting as homeless on a weekly basis.  Whilst expressing disappointment that it had not been possible to progress the Moreland Gardens scheme, including the provision of the Adult Education Centre, members recognised the pressures which had meant the scheme had no longer been assessed as viable to proceed.  The quality of the new build schemes which it had been possible to deliver was, however, welcomed along with the support being provided to protect tenants (including introduction of the selective landlord licensing scheme in the private rented sector) and in seeking to support those households at risk of homelessness which it was felt contrasted with the approach and support being made available through central government and delay in progressing the Renters Reform Bill.

In recognising the extent of the challenges identified, Cabinet ended by once again highlighting their ongoing commitment to delivery of new and affordable housing across the borough with members supportive of the efforts being made to progress delivery of the programme in as prudent a way as possible, despite the significant financial pressures identified, with all involved thanked for their efforts in seeking to establish a viable way forward whilst also supporting those tenants and residents most at risk.

In supporting the approach outlined and having noted the exempt information contained in Appendix 1 of the report Cabinet RESOLVED:

(1)    To agree to award the Main works contract to Wates for the delivery of Church End including 99 homes and a new market square for the value set out in Recommendation 1 of Appendix 1 of the report (which contained exempt information).

(2)    To note the challenges set out regarding the delivery of Morland Gardens in paragraph 5.3 – 5.10 of the report and agree for officers to develop an alternative site strategy for future consideration by Cabinet.

(3)    To approve, that if necessary, the Council consult on ending the South Kilburn Promise (Landlord Offer) for new temporary accommodation households and the use of voids properties identified on the South Kilburn regeneration area for temporary accommodation, noting the legal considerations around consultation set out in Section 8 of the report.

(4)    To note the updated programme budget for the New Council Homes Programme of £495.5m and approve the use of usable Capital reserves to fund this.

(5)    To agree to wave the delegated authority limits to enable the Corporate Director of Resident Services in consultation with the Corporate Director of Finance and Resources to agree the terms of the lease and thereafter enter into and complete on a 5-year leasing arrangement with the developer for the new build scheme at Manor Park Road, Harlesden NW10 4JJ for use as emergency and settled temporary accommodation, as set out in Section 6 of the report and where necessary make any further amendments as and when required.

(6)    To approve an acquisitions budget of £52.7m to address the acute housing and temporary accommodation needs and challenges.  This is in addition to any acquisitions already approved by Cabinet.

(7)      To agree for a new delegation to the Corporate Director of Resident Services in consultation with the Corporate Director of Finance and Resources, to acquire 133 homes from the open market (including both freehold  and leasehold acquisitions) such delegation to include negotiating and approving the terms of any freehold or leasehold acquisitions and thereafter entering into the relevant transactional documents to address the acute housing and temporary accommodation needs in line with approach set out in Section 11 and Appendix 1 (containing exempt information) of the report, which is in addition to those acquisitions already approved by Cabinet.