Agenda item

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.

Minesh Patel (Corporate Director, Finance and Resources) was invited to introduce a report which provided an updated on the governance and oversight arrangements the Council had in place as Shareholder of i4B Holdings Ltd (i4B) and Guarantor of First Wave Housing Ltd (FWH). Members were advised that the report (in line with previous versions) also outlined the mechanisms through which the Council monitored performance, risk and compliance, and highlighted key governance developments from the most recent Shareholder / Guarantor meeting held in September 2025.

In presenting the report, Minesh Patel informed the Committee that the most recent shareholder and guarantor meetings had included a review of capacity within the Board of Directors, including the non-executive directors, to engage in a forward-looking discussion regarding the strategic direction of both i4B and FWH involving a constructive dialogue concerning future priorities. The Board had acknowledged challenges around the economic climate and capacity of the Board and its impact on property acquisition. Nevertheless, there remained a commitment to explore alternative methods of securing affordable housing within the Borough, in support of the Council’s broader objectives.

Having thanked Minesh Patel for introducing the report, the Chair then moved on to invite questions and comments from the Committee in relation to the update report, with the following comments and issues discussed:

• As an initial query, independent members cited paragraph 4.6.4 of the committee report, which stated that i4B was in the process of arranging a Phase 3 loan with the Council, comprising a £32 million loan and £8 million in equity. Clarification was sought regarding the nature of the equity component. In response, Amanda Healy (Deputy Director Investment and Infrastructure) clarified that the equity element represented an investment made by the Council into the company. This investment did not attract interest repayments and was a capital contribution intended to financially support the organisation.

• Independent members additionally referred to paragraph 4.5 of the committee report, which addressed the composition of the Boards and capacity. Recent changes in Council-appointed directors were noted and it was queried whether these changes posed any risks to continuity of experience from the Council’s perspective. In response, Minesh Patel advised that the changes reflected a number of changes at senior officer level across the Council following the retirement of individual officers, which had necessitated discussions with Andrew Hudson (Chair of i4B and FWH), as well as with Kim Wright (Chief Executive) and Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance & Resources), to assess the future composition of the Board. It was confirmed that Andrew Hudson had articulated clear ambitions for the Board’s future direction, and that discussions regarding Board composition had commenced in the previous year. In continuing the response, Andrew Hudson (Chair of i4B and FWH) elaborated that due to their nature, it had not been possible to plan the timing of the changes in the usual manner. However, the situation had presented an opportunity to introduce new perspectives and ideas to the Board and encourage new members to share their initial impressions, recognising the value of fresh insight. In relation to continuity of experience, Andrew Hudson reported that Sadie East (Director Communications Insight and Innovation) had now joined the Board and previously served as a senior director within the Council. It was further noted that she had been closely involved with the companies throughout their development and her appointment was expected to provide a high degree of knowledge and expertise.

• Members enquired about the potential impact of the Renters’ Rights Bill on the operations of i4B, to which Minesh Patel responded that the Bill aimed to establish clear standards for landlords and expressed the hope that, as a Council-owned subsidiary organisation, i4B and FWH Housing would serve as exemplars of good landlord practice.

• Member referred to the significant amendment of the Defective Premises Act (1972) by the Building Safety Act (2022) and questioned how many acquisitions made by i4B and FWH had involved new-build properties. In response, Natoya Vincent (Strategy and Delivery Manager, i4B and First Wave Housing) clarified the new-build acquisitions, which included the Lexington block and another block leased from Quintain. Additionally, in September 2024, the company had acquired a small block comprising 6 flats and 3 houses, all of which were new builds.
• With reference to paragraph 4.8.5 of the committee report, which highlighted persistent issues with void properties within i4B, members requested further information regarding the scale of the issue and the proposed path to resolution. In response, Andrew Hudson (Chair of i4B and FWH) acknowledged that void properties represented one of the most significant challenges faced by the companies. It was noted that the issue was not unique to i4B and FWH, but was also being addressed by the Council. The problem resulted in lost revenue and underutilised housing stock that could otherwise be occupied by Brent residents. To improve management of voids, weekly meetings had been established between Natoya Vincent (Strategy and Delivery Manager, i4B and First Wave Housing) and colleagues in the Property Management Team, which reviewed each void property, assessed progress, and identified any delays. Recent staff appointments were expected to alleviate ongoing resource pressures and in the longer term, a new Head of Property Management had been appointed, and broader improvements were underway within the housing management function which extended beyond the specific issues that had led to the Council’s self-referral to the Regulator. It was further reported that the establishment of a Void Improvement Group, which i4B and First Wave were a part of, was examining the entire void management process, beginning with the lettings team. The aim was to ensure that preparations for re-letting commenced as soon as a property became vacant. Efforts were being made to streamline the process by initiating void works in parallel with tenant identification, thereby reducing delays and improving efficiency.

• The Chair raised concerns regarding the current interest rate environment and enquired whether there were any indications that rates might change in a manner that would alleviate existing financial pressures. In acknowledging the impact of the current interest rate environment, the importance of exploring alternative forms of support from central government, including potential discounts on interest rates was highlighted. It was reiterated that a return to the previously low rate of 2% was improbable, and that future planning would need to reflect the prevailing financial conditions.

With no further issues raised, the Chair thanked Andrew Hudson and officers for the update provided and the Committee RESOLVED to note the governance arrangements and assurance provided in relation to the oversight mechanisms in place for i4B and FWH.