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12.1
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This policy will
provide for the shared ownership model that the Council will
implement and the associated model lease that the Council is
required to use for Shared Ownership properties owned by the
Council. Once in place it will guide how the council will manage
Shared Ownership properties delivered as part of the Councils Stock
Increase Programme.
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12.2
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RESOLVED: That Cabinet:-
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- That
Cabinet approve and resolve that the Council shall become a
Provider of Shared Ownership Homes in the City of Sheffield on or
after 1 April 2021;
- That
in pursuance of establishing the Council’s Shared Ownership
Homes provision the Cabinet authorise and direct
that:
- The
Council shall apply for Homes England funding under the Shared
Ownership Affordable Homes Programme 2021-26 (“SO AHP
2021-26”);
- Upon
acceptance of the Councils application for funding the Council
shall thereafter enter a grant funding contract with Homes England
in accordance with SO AHP 2021-26;
- The
Council shall adopt and adhere to the Governments Capital Funding
Guide and Homes England Model for the Shared Ownership Homes under
SO AHP 2021-26;
- The
Shared Ownership Policy attached at Appendix A of the report is
approved and shall be adopted and implemented by the Council from
18th March 2021;
- The
Shared Ownership Policy may be amended to reflect any changes in
legislation or guidance from the Government. Any material
amendments to the Policy shall be undertaken in consultation with,
and following the approval of, a Cabinet Review Group that shall be
convened for this purpose; and
- The
Cabinet now delegates all authority and powers necessary for the
execution of its decisions and directions set out in 1 and 2 above
to the Director of Housing & Neighbourhood Services in
consultation with the Cabinet Member for Neighbourhoods and
Community Safety subject only to the authority of the Cabinet
Review Group insofar as approval for Policy change is required
pursuant to paragraph 2.v. above.
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12.3
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Reasons for Decision
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12.3.1
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- Sheffield City Council has a shortfall of
affordable housing. The annual shortfall in Sheffield is currently
estimated at 902 units. This shortfall includes all forms of
affordable housing, including Shared Ownership this information is
from the SHMA July 2019.
- Numbers of bids for housing across the city are
high for most property types and waiting times are high and there
is pressure on existing stock. New affordable homes in a range of
affordable tenures, including Shared Ownership will increase the
quality and range of housing tenure options available to people.
- Deposit costs for Shared Ownership
are much lower as they only have to get
a deposit for the percentage that they are purchasing, for example,
a deposit of a 25% share is much lower than the deposit for the
full 100% of a property. This means the Shared Ownership route of
purchasing a property is once again easier for people who cannot
save or have a deposit ready.
- This Strategy is aligned with current corporate
priorities and supports the Council’s ambition for providing
a range affordable homes in the city.
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12.4
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Alternatives Considered and Rejected
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12.4.1
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Do
Nothing - One alternative is not to develop a
Shared Ownership product and rely on other Council programmes to
provide affordable housing in the City. Although this is an option
to consider, Shared Ownership is a product that provides a
route towards home ownership which meets the aspirations of
Sheffield and is at the forefront of future government funding for
affordable housing. By not offering this option in Sheffield, our
citizens have fewer options than in similar
cities.
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12.4.2
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Develop a Sheffield Model for Shared Ownership – Although the Council could use HRA budget to deliver a
Sheffield Model the ambition is to deliver 3000+ affordable homes
which will only be possible with the HE Grant funded contribution
which requires us to use the HE standard model. There is also the
point to consider that the more caveats or rules the Council have
with a Sheffield own model the more restrictive and less inclusive
the product could be. Mortgage lenders, insurers etc are familiar
with the standard model. A step away from the standard model might
mean mortgage and insurance options are reduced for potential
purchases, which could lead to more restrictions and the product
being able to reach less people.
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12.4.3
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Develop a Person Led Model – The
Council has considered a person led model which allows the customer
to purchase existing properties on the open market then the Council
will purchase the S/O shares. This model allows the Council to
access Homes England Capital Grant Funding. The changes to the HE
model which place responsibility on the
Council for some repairs in the first 10 years only applies to new
build properties and so would not apply with this model. There are
currently only two other councils who use this model and so there
is not much evidence regarding this method. We have therefore
discounted this as an alternative at this stage until the Council
can gather more information and until the Council are familiar with
delivering the standard model.
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12.5
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Any
Interest Declared or Dispensation Granted
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None
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12.6
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Reason for Exemption if Public/Press Excluded During
Consideration
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None
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12.7
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Respective Director Responsible for
Implementation
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Executive
Director - Place
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12.8
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Relevant Scrutiny and Policy Development Committee If Decision
Called In
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Safer and Stronger Communities Scrutiny
Committee
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