Decision details

RESOLVED:

That Cabinet:

1.    Agrees in principle to work with a partner organisation or organisations to expedite the acquisition of up to 200 residential properties for affordable social rented housing within the Housing Revenue Account (HRA), in line with the Council’s agreed policy and budget strategy to acquire 500 additional affordable rented homes over the next three years.

2.    Agrees to the direct appointment of Madison Brook, to undertake a pilot programme to a ‘contract value’ of £607k to acquire 20 residential properties in Borough including full refurbishment of the properties to our lettings standard as required as part of the acquisition plan, for review, evaluation and feedback to Cabinet following the completion of the first 10 property acquisitions, to inform the future delivery options for the remainder of the acquisitions programme.

3.    Delegates authority to the post of the Corporate Director of Place, in consultation with the Cabinet Member for Property, Highways and Transport,to agree the purchase price, refurbishment costs and all associated fees and related costs of all properties within the pilot acquisitions programme and to make all necessary decisions in respect of the due diligence work required in support of this, and to make the final decision on the purchase of the accommodation, including the release of capital funds for each property as required, to be reported back to Cabinet.

4.    Releases funds of up to £7,248k capital funding to undertake the 20-property pilot from the Housing Revenue Account Acquisition and Development Budget Unallocated 2024/25, to include all necessary costs for due diligence, legal work the purchase of the properties, fees and cost of any refurbishment work (Appendix A)

5.    Notes that Officers will be seeking from the Greater London Authority and the Department for Levelling Up, Communities and Housing additional grant funding to support the programme to acquire additional residential properties.

6.    Requests that the Chair of the Residents’ Services Select Committee considers waiving the scrutiny call-in period on these recommendations due to the urgency reasons set out in the report.

Reasons for decision

Cabinet agreed a pilot programme and partner company to work with in order to accelerate the acquisition and refurbishment of housing, in order to both meet the Council’s housing target and importantly to meet social housing need locally. The innovative approach to the expansion of the Council’s housing portfolio was welcomed.

Alternative options considered and rejected

Cabinet considered various options, as set out in the confidential report.