Agenda item

That the Committee recommends the NEW Homes Business Plan 2015/16 to Cabinet.

The Service Manager, Housing Programmes presented the North East Wales (NEW) Homes Business Plan 2015/20 and updated Members on progress made since the company had been established.  He spoke about work undertaken to develop the business plan and the aim to work strategically with the Council’s SHARP project and housing associations to address key areas of housing need.  It was noted that the findings of the recent joint Local Housing Market Assessment which had indicated an annual shortfall of 246 affordable dwellings in Flintshire.  In referring to the affordability of the market compared with average salaries in Flintshire, the Service Manager said that NEW Homes would also help to deliver long-term housing opportunities for those unable to access affordable properties who were not eligible for social housing.

Through the first phase of the SHARP project, NEW Homes would benefit from 300 new properties, starting with the first scheme proposed at The Walks in Flint.  Feedback would be sought from a community consultation event on 9 October 2015 so that the scheme could be finalised prior to seeking approval at Cabinet: a similar approach would be taken for all future schemes.  An update was also given on the 13 new build properties from developers under Section 106 Planning Agreements which were shortly to be transferred to the company.

A piece of work was underway to explore opportunities to borrow against existing assets to purchase circa eight new properties, which could be let on affordable rent in areas of proven housing need.  Future proposals including how this would be funded would be brought to the Committee for consideration.

Councillor Peter Curtis welcomed the progress made by the company, particularly in view of the likely increased demand for affordable rent as a result of changes to Working Tax Credits and rent increases in the private sector.

In response to a question from Councillor Nancy Matthews on borrowing, the Chief Officer explained about options to borrow against existing assets potentially from the Council which could then reap a return for the Council.  In terms of the scheme proposed in Flint, the recommendation would be to use long-term leasing financing from a private finance company.  NEW Homes would receive the rental income to cover management and maintenance costs and would pay leasing finance costs over 30 years, after which the properties would revert to the company for £1 per property.  Approval of the business plan would be sought from Cabinet before bringing forward each capital scheme for individual approval.

In welcoming the report, Councillor Mike Reece asked about the potential for the Council to take on derelict properties.  The Chief Officer explained that various options were currently being explored to develop the number of properties in the company’s portfolio within the legal powers available.  Whilst the Empty Homes Scheme was already in place, other options could be considered such as re-purchasing unused ex-Council properties and bringing them back up to standard for letting.

Councillor Ian Dunbar welcomed the forthcoming community consultation event in Flint and asked that this be rolled out across other areas of the county to help inform local schemes.  In highlighting the importance of meaningful consultation involving communities, the Service Manager gave an example of positive feedback generated from a consultation exercise in Connah’s Quay to engage with local residents affected by a particular scheme.  Following a question on the level of resources required to take forward the plans, the Service Manager referred to recent staff changes within the service, implementation of the new management structure and the good working relationship between NEW Homes and the Council.

In response to a comment by Councillor David Cox on the importance of providing social housing, the Service Manager advised that 200 of the properties to be made available through SHARP would be for social housing starting with the scheme in Flint.  Whilst it was not possible for NEW Homes to alone meet affordable housing need in the county, the intention was to work with the Council to prioritise housing in identified areas of need.

When asked by Councillor George Hardcastle about timescales, it was reported that work on the scheme at Flint was due to start in February 2016 followed by the site in Connah’s Quay subject to planning approval.  Learning from these initial schemes would be vital before progressing further schemes from the 12 sites identified through SHARP which would be subject to future consideration by the Committee prior to approval at Cabinet.  It was anticipated that the entire programme for 500 properties would take around five years.  It was also explained that as part of the contract and performance indicators, there was a need to use an element of local labour to create employment and training opportunities and that ‘Meet the Buyer’ events provided opportunities to engage with tradesmen and generate involvement by small and medium enterprises on future housing projects.

This was welcomed by Councillor Curtis who made the point that local labour should be utilised on all schemes wherever possible.

In response to a further query from Councillor Hardcastle, the Chief Officer gave a reminder that the Welsh Government had reduced the maximum discount for Right to Buy and that the Council would be supporting the suspension of Right to Buy for the new build Council homes.  Under the SHARP programme, Right to Buy would not apply to the rented properties.

The Chairman expressed his appreciation to the Chief Officer and those on the NEW Homes board for their progress.

RESOLVED:

That the Committee recommends the NEW Homes Business Plan 2015/16 to Cabinet.