Issue - meetings

To seek approval of the HRA investment plan and purchase of 11 two-bedroomed properties on the Middlefield development.

This report was considered by the Scrutiny Commission on 8 November. An extract from the minutes of that meeting is attached.

Members gave consideration to the HRA investment plan which demonstrated how the council would secure 100% decent homes standard by 2021 and the proposal to purchase 11 two-bedroomed properties on the Middlefield development. A member queried a previous government proposal that authorities would have to sell high value voids, and in response members were assured that the green paper had removed this proposal.

Councillor Lay left the meeting at 7.37pm.

It was moved by Councillor Ladkin, seconded by Councillor Surtees and

RESOLVED –

(i)            The HRA investment plan be approved;

(ii)           The purchase of 11 two-bedroomed properties on the Middlefield development for up to £1.2m be approved;

(iii)          Authority be delegated to the S151 officer, Executive member for Housing & Community Safety and Executive member for Corporate & Member Services to agree the final cost of purchase of the properties to a maximum variation of £200,000.

To present the HRA investment plan and recommend purchase of 11 two-bedroom properties on the Middlefield development.

The Scrutiny Commission gave consideration to the HRA investment plan including purchase of properties on the Middlefield development. It was acknowledged that the lifting of the HRA cap was significant but it was emphasised that the key was to ensure the rental income could meet the costs to avoid over-borrowing. It was noted that some local authorities had already carried out more work on their ACW build proposals and were reporting that it was affordable, but detail such as the type of properties they were proposing wasn’t available so further research was required.

Concern was expressed that it would not be feasible to offer the properties at council rent levels and in response it was explained that there was an option to offer at an affordable level below market rent as had been the case with the Southfield Road properties.

In response to a question it was noted that right to buy would still apply to the new properties, but that the receipt could be retained to replace the property and during the first ten years a lower discount could be offered to cover the build costs.

RESOLVED –

(i)            The report be RECOMMENDED to Council;

(ii)           An update be brought to a future meeting of the Scrutiny Commission in relation to the lifting of the HRA cap.