Agenda item

14.1

The Executive Director, Communities submitted a report setting out the strategic case for building and acquiring additional affordable homes, beyond the initial 75, and sought authority to undertake the required planning and consultation work to do so. This followed the approval by Council on 5 February 2014 of the HRA Business Plan Update for 2014/15 which outlined the potential within the Business Plan to deliver approximately 600 Council homes through a mixed programme of acquisitions and new build over the next 6 years.

14.2

RESOLVED: That:-

(a)

Cabinet approves the development of a mixed programme of acquisitions and new build to renew the Council’s housing stock;

(b)

delegates authority to the Director of Regeneration and Development Services in consultation with the Director of Commissioning and the Interim Director of Council Housing Services to identify properties for acquisition for Council Housing and prepare the necessary capital approval submission in line with Council’s approval process;

(c)

delegates authority to the Director of Capital and Major Projects, in consultation with the Director of Regeneration and Development Services to negotiate and agree terms for the acquisition of the properties identified and delegates authority to the Director of Capital and Major Projects  to instruct the Director of Legal and Governance to complete the necessary legal documentation;

(d)

delegates authority to the Director of Regeneration and Development Services in consultation with the Director of Commissioning, the Interim Director of Housing Services and the Director of Capital and Major Projects to identify sites for new build Council Housing, specify the type and size of homes required and prepare the necessary property disposal and capital approval submission in line with Council’s approval process; and

(e)

delegates authority to the Director of Commissioning in consultation with the Director of Finance to set such charges for the tenancy of each dwelling acquired or built under this programme as he deems reasonable.

14.3

Reasons for Decision

14.3.1

Sheffield’s Strategic Housing Market Assessment estimates that an additional 725 affordable homes would be required each year for the next 5 years to meet projected need in the City.

14.3.2

Delivering the proposed programme of additional Council housing would maintain the authority’s housing stock at a sustainable level in the light of continuing loss of stock through Right to Buy.

14.3.3

Delivering a significant element of new build Council housing within the programme would contribute towards overall housing and economic growth in the City whilst increasing the choice of housing locally.

14.4

Acquiring additional stock would have wider strategic benefits including bring empty properties into use and increasing choice within the housing stock.

14.4

Alternatives Considered and Rejected

14.4.1

The alternative to delivering the programme is for the Council’s housing stock to continue to both age and reduce. This would leave the HRA with less debt but it would leave the City with less affordable housing when more is needed.

14.4.2

Officers considered the possibility of extending the role of the Sheffield Housing Company (SHC) to provide new Council homes. However, building of council houses on Council land was not part of the SHC’s procurement and would be a new public works contract that must be tendered for under public sector procurement rules. The 30 new Council homes to date were acquired from the SHC, not built for the Council by the SHC. If the SHC wanted to build houses for the Council they would need to respond to the tender along with any other interested parties.

14.4.3

The alternative option for the potential new build sites would be disposal on the open market. A specific option appraisal would be undertaken for each site within the Strategic Business Case required for the Council’s capital process.

14.5

Any Interest Declared or Dispensation Granted

None

14.6

Reason for Exemption if Public/Press Excluded During Consideration

None

14.7

Respective Director Responsible for Implementation

Richard Webb, Executive Director, Communities

14.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Safer and Stronger Communities

14.1

The Executive Director, Communities submitted a report setting out the strategic case for building and acquiring additional affordable homes, beyond the initial 75, and sought authority to undertake the required planning and consultation work to do so. This followed the approval by Council on 5 February 2014 of the HRA Business Plan Update for 2014/15 which outlined the potential within the Business Plan to deliver approximately 600 Council homes through a mixed programme of acquisitions and new build over the next 6 years.

14.2

RESOLVED: That Cabinet:-

(a)

approves the development of a mixed programme of acquisitions and new build to renew the Council’s housing stock;

(b)

delegates authority to the Director of Regeneration and Development Services in consultation with the Director of Commissioning and the Interim Director of Council Housing Services to identify properties for acquisition for Council Housing and prepare the necessary capital approval submission in line with Council’s approval process;

(c)

delegates authority to the Director of Capital and Major Projects, in consultation with the Director of Regeneration and Development Services to negotiate and agree terms for the acquisition of the properties identified and delegates authority to the Director of Capital and Major Projects  to instruct the Director of Legal and Governance to complete the necessary legal documentation;

(d)

delegates authority to the Director of Regeneration and Development Services in consultation with the Director of Commissioning, the Interim Director of Housing Services and the Director of Capital and Major Projects to identify sites for new build Council Housing, specify the type and size of homes required and prepare the necessary property disposal and capital approval submission in line with Council’s approval process; and

(e)

delegates authority to the Director of Commissioning in consultation with the Director of Finance to set such charges for the tenancy of each dwelling acquired or built under this programme as he deems reasonable.

14.3

Reasons for Decision

14.3.1

Sheffield’s Strategic Housing Market Assessment estimates that an additional 725 affordable homes would be required each year for the next 5 years to meet projected need in the City.

14.3.2

Delivering the proposed programme of additional Council housing would maintain the authority’s housing stock at a sustainable level in the light of continuing loss of stock through Right to Buy.

14.3.3

Delivering a significant element of new build Council housing within the programme would contribute towards overall housing and economic growth in the City whilst increasing the choice of housing locally.

14.4

Acquiring additional stock would have wider strategic benefits including bring empty properties into use and increasing choice within the housing stock.

14.4

Alternatives Considered and Rejected

14.4.1

The alternative to delivering the programme is for the Council’s housing stock to continue to both age and reduce. This would leave the HRA with less debt but it would leave the City with less affordable housing when more is needed.

14.4.2

Officers considered the possibility of extending the role of the Sheffield Housing Company (SHC) to provide new Council homes. However, building of council houses on Council land was not part of the SHC’s procurement and would be a new public works contract that must be tendered for under public sector procurement rules. The 30 new Council homes to date were acquired from the SHC, not built for the Council by the SHC. If the SHC wanted to build houses for the Council they would need to respond to the tender along with any other interested parties.

14.4.3

The alternative option for the potential new build sites would be disposal on the open market. A specific option appraisal would be undertaken for each site within the Strategic Business Case required for the Council’s capital process.