Agenda item

(a)       That the aspirations for developing the housing service be supported;

(b)       That the development of proposals to establish a housing company for consideration at a future Cabinet meeting be supported; and   

(c)        That a workshop be arranged to provide additional information on the proposals and that all Members be invited.         

The Head of Housing introduced a report to explain potential long term strategic aspirations for housing provision in Flintshire and to seek support in principle to the establishment of a housing company that could be instrumental in delivering this vision. 

The Council had a range of housing services for which there had been positive improvement at a time when residents of the County were facing increasing difficulty in accessing affordable housing due to economic pressures, welfare reform and the challenges in accessing mortgage finance.  The number of new homes being developed to meet emerging needs had been stagnant for the last few years despite planning approvals being provided and land being available for development.  Officers, with the support of Senior Members, were working on a number of new initiatives to meet local needs and grow the Council’s service delivery offer and had found that a number of new opportunities could not be taken forward satisfactorily due to the constraints placed on the Council through its current arrangements for service delivery.  The Head of Housing detailed the potential service developments which included:-

• private sector leasing – exploring leasing options with private landlords but there were currently limits on the tenancies the Council could offer
• elderly homes owners who were prevented from accessing more suitable accommodation (for health reasons) as they received insufficient priority on the Council’s waiting list 
• regeneration schemes – when looking at homes to be developed, the Council wanted to be able to offer assured rather than secure tenancies but again there were limits on the tenancies that could currently be offered
• gifted units – the benefit of this arrangement was that the Council had properties it could let to meet local needs for social and affordable housing

Discussions had been undertaken with colleagues from Legal and independent advice had been sought and one possible way to deliver several of these aspirations would be to establish a housing company, which was detailed in paragraph 3.09. 

            The Head of Legal and Democratic Services said that there were implications to setting up a housing company but added that once the issues raised had been addressed and the Council was satisfied with the level of protection and flexibility it provided, there was no reason it could not be undertaken. 

            Councillor Peter Curtis queried what would happen if a property was leased from an elderly person and they were re-housed and their property was let but the elderly person then passed away.  He also said that landlords would prefer to have a say of who their property was let to and felt that the proposals were a good idea but raised concern about possible problems.  In response, the Head of Legal and Democratic Services said that mechanisms would need to be in place to bring the tenancy to an end if the homeowner passed away and the family wanted to sell the property.  He said that the provision of a management company would allow for greater flexibility to do this than was currently in place.  The Head of Housing said that some homeowners were currently prevented from accessing social housing as they would be deducted points based on the value of their dwelling, but added that the home owner leasing their property to the Council would not mean that they jumped the queue for social housing.  She confirmed that the home owner would also not be able to choose the tenant.  Work needed to be undertaken about appropriate notice periods if the family wanted to sell the property following the home owner’s death. 

            Councillor Rosetta Dolphin welcomed the idea but raised concern that there were issues that could mean additional costs to the council.  She also queried where the gifted units were and asked whether these properties would be in place of 106 monies such as for educational contributions.  The Housing Strategy Officer advised that gifted units were in Penyffordd, Penymynydd, Abermoddu and Hawarden.  They were usually on large developments of 40 to 45 dwellings and the numbers provided was calculated on a sliding scale.  She explained that the gifted units would be in addition to other planning permission obligations required from the developer such as educational contributions.  On the issue of who was placed in the properties, the Head of Housing said that the Council needed more mixed tenure housing and from April 2015 would be able to discharge homeless duty into the private rented sector.  The Housing and Learning Overview & Scrutiny Facilitator advised that a joint meeting with Environment Overview & Scrutiny Committee was to be arranged to consider proposals about empty homes. 

            The Head of Legal and Democratic Services commented on the gap in the market rents and those charged by the Council and said that the option to set up a housing company would allow flexibility to provide properties for a cheaper rent with fewer restrictions than those requested by some private landlords. 

            Councillor Alison Halford raised concern about the small amount of information contained in the report and about the elderly homeowners passing away during the period of leasing their property to the Council.  She also referred to the verbal update provided at Cabinet on 17 September 2013 and queried if there was a conflict of interest.  Councillor Halford spoke of other ‘arms length’ companies that had been set up in the past.  The Head of Legal and Democratic Services said that a written report on the issue was to be submitted to Cabinet on 15 October 2013.  Councillor Halford also queried whether existing rental agencies would be tendered to establish whether they could provide the services proposed in the report. 

            The Head of Housing said that other Councils had successful trading companies in place and in response to the concerns raised by Members, she provided assurance that the company would be well managed.  The Head of Legal and Democratic Services said that the Council would be to be able to terminate the tenancy and return the property back to the family if the homeowner passed away during the period of them leasing their property to the Council.  The company would be under the control of the Council and it was anticipated that it would have a high level of Member influence.  He reminded Members that no decision had been taken at present and that views were being sought before taking the proposals forward. 

            Councillor Halford felt that the proposals should be agreed in principle but that more information was required.  Councillor Gareth Roberts commented on schemes which already existed at Cae Mefir and Llys Jasmine and added that a trading company would not be required if the work could be undertaken by a Housing Association. 

            Following a discussion, it was agreed that the proposals be supported but that further information be provided in a workshop to which all Members would be invited. 

RESOLVED:

(a)       That the aspirations for developing the housing service be supported;

(b)       That the development of proposals to establish a housing company for consideration at a future Cabinet meeting be supported; and   

(c)        That a workshop be arranged to provide additional information on the proposals and that all Members be invited.