Decision Maker: Executive Member for Adult Services, Health and Housing
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
This report seeks spend approval of up to £1,177,200 to purchase 6 x 1 bed/bedsit properties off the open market funded by £450,000 of the unallocated S106 affordable housing commuted sums and borrowing of £727,200, the cost of which will be met by net rental income. These properties will be council owned affordable rented temporary housing to meet the needs of rough sleepers and other single homeless households.
RECOMMENDED that the Executive Member for Adult Services, Health and Housing RECOMMEND to Council that they:
i. Approve the total capital spend commencing in the 2021-22 financial year, in order to purchase 6 properties to ensure that Council has suitable temporary emergency affordable housing.
ii. Approve that a proportion of this total to be funded through S106 affordable
iii. Approve borrowing to fund the remaining balance. The cost of borrowing and MRP (minimum revenue provision) will be met by net rental income so will be cost neutral.
The Council has a small stock of temporary accommodation to meet the needs of homeless households. These are predominantly 2- and 3-bedroom properties. Currently there is a lack of one-bedroom units for temporary placement of single homeless households. This increases reliance on more costly nightly paid accommodation. The proposal is revenue cost neutral as the residual borrowing required after the application of Section 106 funding will be met through net rental income (that is, rental less housing management costs).
i. Securing accommodation through the private rented sector is challenging as the sector is proportionately smaller in Bracknell than the South East or England and property is in high demand. Private Sector Leasing is an option but this incurs a cost to the authority. The option proposed is cost neutral and confers the benefit that the council owns the assets which will appreciate in value over time.
ii. The council is simultaneously exploring other options to bring forward an additional supply of one bed accommodation for those in housing need including potential to support new build accommodation and launching a new incentive scheme to encourage landlords and agents to let to council nominated households.
Reason Key: Expenditure >£400,000 & Affects more than 1 ward.;
Wards Affected: (All Wards);
Financial Impact: As above
Subject to Urgent Proceedings: No
Making Representations: In writing to the Executive Director: People
Other reasons / organisations consulted
Contact: Sarah Gee, Assistant Director: Early Help and Communities Email: firstname.lastname@example.org Tel: 01344 351447.
Report author: Sarah Gee
Publication date: 16/11/2021
Date of decision: 16/11/2021
Decided at meeting: 16/11/2021 - Executive
Effective from: 24/11/2021