Agenda item

(a)       That the Committee welcomed the progress made by NEW homes to date against its business plan and the NEW homes future growth strategy projections and proposals; and

(b)       That the Committee were content that the appropriate governance arrangements were in place. 

The Service Manager – Housing Programmes introduced a report to update the Committee on the second full year of operation of North East Wales (NEW) Homes and the progress it had made against the 2015/20 business plan and growth strategy.  He detailed the background to the report and introduced Ms. Jan Lysett who was an independent board member.

Councillor Bernie Attridge, who was the Chairman of the NEW Homes Board, commented on the exciting opportunities that had arisen for Flintshire County Council since the introduction of NEW Homes, which allowed an increase in the range of housing options for the “squeezed middle” housing market.  He spoke of the realisation of the need for small steps at the beginning of the Company and the new learning experience for all concerned.  He commented on approaches by other local authorities on the work undertaken by Flintshire County Council to set up the Company and to seek advice and guidance on best practice so they could also consider this as an option. .  Flintshire County Council was the first in Wales to set up such a company and it was heartening to see a projected operating surplus of £33,000 for 2015/16, which he welcomed.  He introduced Ms. Jan Lysett who was an Independent Board Member and asked her to explain her background and the way forward that had been agreed by the Board. 

Ms. Lysett thanked the Committee for the opportunity to attend the meeting.  She explained that she had been on the Board since its inception and detailed her background which had included 30 years in the area of social housing and her current work for a housing association in Cheshire.  She welcomed the exciting opportunity to be part of the company and commended the Council for being forward thinking in meeting its housing obligations.  Slow and steady progress had been made and the Board had recognised that this was the necessary approach.  Ms. Lysett spoke of the other two independent board members (one had very recently been appointed).  She also said that one of the key headlines was the opportunity to develop new homes.  She added that the projected operating surplus was also to be welcomed. 

The Service Manager – Housing Programmes spoke of the increase in the housing portfolio through Section 106 agreements and commented on one scheme which it had been intended would be delivered in 2015/16 but this had been delayed slightly.  He also commented on the steady growth in the areas of management of properties for landlords through a management agreement and commented on the introduction of a Rent Smart Wales scheme which was a compulsory licensing and registration scheme for landlords; close working with local landlords was continuing.   The introduction of the over 55’s scheme had not gone as well as had been hoped.

The Chief Officer (Community & Enterprise) spoke of the next 12 months and the consideration being given to borrowing against “gifted units” to produce more properties to let.  A report was to be submitted to the Committee on The Walks scheme for 62 affordable properties being built on the site of the former council maisonettes in Flint as part of a joint development with the Council.  A skills analysis had been undertaken by the Board prior to the appointment of a new member to ensure that all necessary skills were in place to give the Board confidence to take the schemes forward.  Councillor Attridge advised the Committee that there were three elected member vacancies on the board that they were hoping to fill soon. 

Councillor Ian Dunbar welcomed Ms. Lysett to the meeting and the information contained in the report.  He sought clarification on the scheme that had not come forward in 2015/16 under a Section 106 obligation and queried how this could be overcome in the future.  The Service Manager – Housing Programmes said that there had been a delay and following a meeting on site with the developer, a more realistic timeframe had been agreed and it was now anticipated that the scheme would be delivered by November 2016.  Cllr Attridge felt that there was a need to be clearer at the planning stage of when the Council expected any affordable housing gifted by a developer would be available to the Council and added that discussions would continue with planning colleagues. 

Councillor Dunbar welcomed the housing standards in place and commended the work undertaken at the Connah’s Quay site and the scheme at The Walks in Flint.  He sought clarification on the criteria for people to move into properties and referred in particular to elderly council residents living in 3 bedroom properties that were too big for their needs which could be freed up for accommodation for families. 

In response, the Chief Officer (Community & Enterprise) spoke of the Council and NEW Homes building programmes.  She reminded the Committee that the scheme focused on housing options for the ‘squeezed middle’ and that it was important in the development of schemes to identify what was required to meet local need which could include looking at evidence on waiting lists.  She added that the pressure areas were two bed homes and properties for aging residents and explained that there was also ongoing work to influence social house builders in the type of property that they developed.  The Chairman suggested that further information on the issue be submitted to a future meeting of the Committee and in response, the Chief Officer (Community & Enterprise) said that she intended to bring an update report on how the Local Lettings Policy was progressing.

Councillor Paul Shotton said that this was an exciting opportunity and welcomed the projected operating surplus of £33,000 for 2015/16 to add to the surplus of £19,000 for 2014/15.  He praised the scheme for NEW homes to manage properties on behalf of landlords which he felt was an exciting development and queried whether consideration had been given to identifying Council owned land to establish a retirement village which he felt would be a cost effective alternative for elderly residents.  He asked if a report on this could be provided at a future date and Councillor Attridge responded that he would take the suggestion back to the Board for consideration.  Ms. Lysett also said that the Board was to consider other opportunities and welcomed any suggestions of future projects that could be considered. 

On the issue of New Homes not currently employing its own staff but using Council staff to setup and deliver the operational functions,  Councillor Alison Halford asked how it could be calculated if the scheme was running at a profit of a loss.  She referred to the first paragraph on page 21 where it was reported that the relative costs of running this service raised questions about continued investment in the service.  The Chief Officer (Community & Enterprise) gave assurance that staff working on NEW homes completed time sheets and their work was charged to NEW Homes.  She said that in the future the company would reach a point where there was sufficient activity for people to be employed full time by NEW homes.  Currently there was a need for  a wide range of skills but not on a full time basis and therefore in the short term it was best to use Council workers with the appropriate skills which was also delivering efficiencies for the Council but in the longer term the company was keen to employ its own full time workers. 

Ms. Lysett agreed that there was a need for a wide range of skills and added that directors were mindful of costs and of the need to bring in external workers with skills that were not available within the Council.  It was anticipated that a report would be submitted to the Board of the required resources to deliver the schemes in place.  The company could not operate at a loss and Ms. Lysett gave assurance to the Committee that the Board was mindful of how the money was spent and added that resources implications had been factored into the business plan for the company. 

Councillor Halford referred to page 39 on the increase in average let days due to delays from landlords supplying the correct paperwork for the Housing into Homes scheme and sought clarification on whether this could be improved.  The Service Manager – Housing Programmes spoke of the work undertaken with landlords which would continue to alleviate such issues in the future. 

Councillor Rosetta Dolphin felt that the confidence in the Company by the Committee should be taken back to the Board and she spoke of the importance to get it right and of the learning curve for all.  She also welcomed the consideration of local need.  She sought clarification on the Right To Buy scheme and whether this had been deferred and queried whether the company was considering the purchase of already built properties that could be adapted and converted to meet local needs, referring in particular to a property in Greenfield.  On the issue of properties for the over 55’s, she felt that they would prefer developments where they could live independently but which also had communal areas so that they could have company if they wanted it. 

On this issue of the deferment of Right to Buy scheme, Councillor Attridge said that an application had been submitted to Welsh Government (WG) but a reply was still awaited.  The over 55’s scheme had not taken off as had been anticipated and he said that the Board was mindful of the need to give further consideration to this area.  Councillor Helen Brown, said that some residents had come forward expressing an interest in the over 55’s scheme but had decided for whatever reason to not progress their application. 

Councillor Peter Curtis welcomed the report.  He queried whether the over 55’s scheme should be raised to a higher age and queried whether the scheme was attractive enough to attract interest.  He also welcomed the work of the Board.  Ms. Lysett advised that the Board was giving further consideration to a review of the over 55’s scheme and how this could be progressed. 

Councillor Gareth Roberts referred to the issue of landbanking by developers and spoke of the perception of the value of gifted units.  He commented on the standards for the properties and referred to previously built Council properties in Holywell that had been developed to ‘Parker Morris’ standards.  He welcomed the work of the Board and the frustration of a previous decision by WG to not allow Councils to build Council housing.  He felt that the over 55’s scheme was an excellent scheme and suggested that the programme undertaken by Clwyd Alyn Housing which allowed residents to buy the property for 70% of its value and that when they sold the property on, they would receive 70% of the value and the Council would receive the additional 30% of the value.  He sought clarification on the criteria for residents who rented out their property through the Council allowing them to move into sheltered accommodation and whether their income would mean that they were below the threshold to pay for their sheltered property.  The Chief Officer (Community & Enterprise) said that the idea was that the resident would use the income from renting out their property to pay for their sheltered accommodation which would mean that they would not be out of pocket.

Councillor Attridge spoke of the group that had been set up through Strategic Housing and Regeneration Project (SHARP) on Flintshire standards and suggested that these standards would also be applied to NEW homes properties too.  On the issue of shared equity, he said that a scheme was in place and that he would put the suggestion forward to the Board for whether NEW homes could progress the scheme.  On the issue of standards, Councillor Brown spoke of the significant amount of work that had been undertaken with the Tenants Federation representatives.      

Councillor Paul Cunningham asked how much publicity had been given to the over 55’s scheme.  Councillor Attridge said that as much as possible had been done to advertise the scheme such as leaflets at the Flint fun day and added that the board were very mindful of how this could be progressed into the future.  Councillor Cunningham also welcomed the work that had been ongoing to build new Council homes in Flintshire and spoke of the importance of making sure that the public were aware of the ongoing work. 

Councillor Paul Shotton acknowledged that in the past there had been issues of differing standards for sizes of room and gardens in Council properties but welcomed the assurance that had been given about a Flintshire standard across all of the properties. 

Councillor Halford asked if all Town & Community Councils had been made aware of the schemes available including the over 55’s scheme and Councillor Attridge advised that he would raise this with the Board. 

RESOLVED:

(a)       That the Committee welcomed the progress made by NEW homes to date against its business plan and the NEW homes future growth strategy projections and proposals; and

(b)       That the Committee were content that the appropriate governance arrangements were in place.