Decision details

11.1

The Executive Director, Place submitted a report requesting approval to establish a Purchase and Repair scheme whereby Sheffield City Council will purchase Long Term Empty Properties (LTEs) from owners, where the properties have been empty for an average of 2 years across the scheme. The Purchase and Repair Scheme will target properties that help the Council meet its strategic housing objectives, increasing the delivery and range of quality affordable homes, in safe, sustainable places where people want to live. The Council will refurbish the properties to the Homes and Community Agency’s Design and Quality Standards and they will become permanent Council housing. They will then provide affordable rented homes for the City and help to reduce the number of LTE properties on the Council Tax register.

11.2

RESOLVED: That Cabinet:-

(a)

approves the establishment of a Purchase and Repair Scheme as outlined in the report, subject to funding;

(b)

approves the use of prudential borrowing against the Housing Revenue Account of £2,260,000

(c)

resolves that for the duration of the funding agreement with the HCA an affordable rent as set in accordance with the terms of the agreement constitutes a reasonable charge for the occupation of properties purchased for this scheme; and

(d)

notes that a capital approval submission for the expenditure has been submitted as part of the agreed monthly budget monitoring process to authorise and procure the necessary capital.

11.3

Reasons for Decision

11.3.1

The Council has identified a strategic need to deliver more affordable housing across the City, helping to meet the demand for affordable rented properties across Sheffield.

11.3.2

It will contribute towards place shaping and the regeneration of neighbourhoods, enabling the Council to improve (sometimes eyesore) properties through refurbishment. This will benefit local neighbourhoods.

11.3.3

It will bring more long term empty properties back into use and reduce the number of LTEs on the Council Tax register. This will help to maximise the NHB and AHB payable to the Council by government.

11.3.4

It will help reduce anti-social behaviour and the fear of crime that can be associated with LTEs.

11.3.5

The scheme will provide the Council with increased assets by increasing its housing stock.

11.3.6

It has the opportunity to deliver many reputational benefits for the Council as the scheme will result in both reduction in LTEs and provision of affordable housing.

11.3.7

This scheme is an additional tool which can run alongside and compliment the other options the Council have in place to help to bring LTEs back into use.

11.4

Alternatives Considered and Rejected

11.4.1

No Purchase and Repair Scheme:

Outputs

·     No Purchase and Repair Scheme will see fewer LTEs brought back into use. Having fewer methods in which to tackle LTEs will potentially mean fewer LTEs brought back into use and that the Council is less likely to deliver its strategic housing objectives as effectively.

·     No Purchase and Repair Scheme will also result in a potential resource of affordable housing in the City not being utilised.

·     Loss of HCA grant funding.

Benefits

·      There will be no need to use prudential borrowing to fund the scheme and no risk to the HRA.

Outline Costs

·      By not having a Purchase and Repair scheme there will be the potential loss of the NHB and AHB that would be payable for the 31 properties brought back into use by this scheme. There would also be no HCA grant funding.

·      However, no prudential borrowing against the HRA.

Risks

·      Strategic, we fail to utilise on a resource to help us meet the increasing demand for housing of all tenures, but especially affordable, across the City.

·      Empty properties continue to impact negatively on the success and sustainability of the City’s neighbourhoods.

·      Financial, it could have a negative impact on the NHB/AHB.

·      Reputational, an increase in LTEs or lack of methods to deal with them has a detrimental impact on the quality of neighbourhoods.

11.5

Any Interest Declared or Dispensation Granted

None

11.6

Reason for Exemption if Public/Press Excluded During Consideration

None

11.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

11.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Safer and Stronger Communities