Agenda item

The Portfolio Holder for Council Homes and Landlord Services to present a report on the acquisition of eight houses in Old Dalby.

Cabinet:

1)    APPROVED the acquisition of 8 new-build houses from the ‘Marquis Gardens’ development in Old Dalby to be funded from the Housing Revenue Account capital programme as detailed in Appendix A.

The Director for Housing and Communities (Deputy Chief Executive), Ms Michelle Howard, joined remotely and presented the report the purpose of which was to seek Cabinet approval to acquire 8 new build houses from a development at Marquis Gardens in Old Dalby and for them to be added to the stock of council homes and be available for affordable rent.

Ms Howard confirmed that the Council has a capital programme for the Housing Revenue Account (HRA) and the acquisition and development of these homes is contained within that, therefore the proposed acquisition is affordable and would be funded with a combination of Council reserves and the Right to Buy (RTB) receipts.

Ms Howard confirmed that all 8 properties are due to be completed by May 2023 and having identified a need for this type of property they will be easily allocated.

The Portfolio Holder for Council Homes and Landlord Services, Councillor Ronan Browne, made the following comments:

·       40% of the funds for the purchase of these properties is ringfenced within the HRA account,

·       the remainder would be paid from the Capital Programme which includes the reinvesting in housing stock and development programme

·       reminded Cabinet that it is important that any monies received from the RTB receipts should be reinvested back into providing new social housing for the Council, otherwise that money would be sent back to central government to be handed out to other authorities or housing associations,

·       the latest announcement from government regarding rent caps should provide a better financially situation for the Council.

·       thanked the Housing Development Manager, Tahir Majid, for the work he had done for the report and the discussions and challenges that had taken place over the previous months to get this far.

The Leader confirmed that the developers had been pleased to work with Melton Borough Council on this development and suggested that Cabinet should go and take a visit once they have been signed over.

Cabinet:

1)    APPROVED the acquisition of 8 new-build houses from the ‘Marquis Gardens’ development in Old Dalby to be funded from the Housing Revenue Account capital programme as detailed in Appendix A.

Reasons for Recommendations:

The acquisition of these houses will be in line with the Affordable Housing Development Plan 2022-26 which is designed to address the shortage of affordable homes in the Borough.

The proposed acquisition will add 8 affordable two bedroomed properties to the Council’s Housing Revenue Account.

This will help to meet the corporate priority of ‘providing high quality council homes and landlord services.’ The acquisition will also respond to the corporate priority of ‘protecting our climate and enhancing our natural environment’ as the houses are being built with modern methods of construction to enhance energy efficiency. Energy saving measures will reduce carbon emissions and help to tackle climate change.

The proposed acquisition is affordable to the Housing Revenue Account. There is a budget allocated within the Council’s capital programme for the acquisition / development of new affordable homes. Part of the cost of acquisition will be funded with Right to Buy (RTB) receipts. These must be spent within Government set deadlines and this acquisition will help to meet our target.