Agenda item

To consider the report regarding the Acquisition of Section 106 Properties by the Housing Revenue Account.

The Vice-Chair reminded Members that details pertaining to cost were commercially sensitive and the meeting would have to be moved to Part Two if such details were to be discussed. He said that the debate could remain open to the public if members were content to only discuss the general principles of the purchase.

Members agreed that they were content to discuss the general principles in the first instance.

Councillor Coote spoke to the report and urged Members to accept the recommendations.

Councillor Hargreaves seconded the proposal.

Members welcomed the initiative.

Following questions from Members, the Leader of the Council confirmed:

• Following on from the pandemic the council house target was currently only short by forty seven properties.
• The right to buy option would be available after three years as per current government policy and this could not be changed by the District Council.
• Appropriate energy efficiency standards would be implemented following government guidance.
• The former depot site in Great Dunmow could not be internally transferred from the general fund to the Housing Revenue Account without evidence. The viability of the site would be considered. She noted that there were currently three parties potentially interested in the site.

Councillor Hargreaves confirmed that the proposal would be funded by the Housing Revenue Account.

Councillor Khan requested that the proposal be amended to ensure that the housing be built to adequate quality and be ring-fenced for social rent only.

Councillor Coote confirmed that the Housing Board had agreed to ask the Housing Revenue accountant to model social and affordable rent systems for comparison.

The Chief Executive clarified that no amendment was required as the recommendation before Members was to secure the purchase and did not bind them to either rent type.

Councillor Merifield confirmed that Housing Board had agreed to consider the rent and subsequently make a recommendation to Cabinet and then Full Council. She confirmed that affordable rent in Uttlesford is 25% below Housing Association rent.

Councillor Freeman said that the Council could ensure build quality of the affordable housing by requiring inspection by Building Control officers.

In response to a request from Councillor Light, the Vice-Chair recommended that the press and public be excluded from the meeting in order to facilitate discussion on the cost of the properties.

RESOLVED that under section 100I of the Local Government Act 1972 the press and public be excluded for the following item of business on the grounds that it involved the likely disclosure of exempt information as defined in paragraph 3, part 1 of Schedule 12A of the Act.

In response to a series of questions, Council was informed:

• Borrowing would be sourced from the Public Loans Board on a fixed rate. As the Board set rates twice daily, a definitive rate could not be provided at this stage. The Public Loans Board was an appropriate lender as, ideally, the Council would retain these properties for up to 50 years.
• Land was included in the total purchase price outlined in the report.
• The purchase was cost effective due to the hard work of housing officers who had proactively pursued the opportunity.

Councillor Coote summarised the debate. He said it was vitally important that the Council continued to provide council housing.

The Vice-Chair moved to a vote. The proposal was carried unanimously.

            RESOLVED:

                      I.        To note approval of the purchase by the HRA of 18 x 1 bed flats and 1 x 2 bed flat from Barratts Homes as per the details outlined in the restricted report.

                             II.            To endorse the acquisition and to authorise the required borrowing.