Agenda item

The Corporate Risk Manager submitted a report and confirmed the Committee had the opportunity to highlight any suggestions for improvement for the Housing Register.

The Head of Landlord Services explained that one risk which had remained as red on the risk register was meeting the decent homes standard.   At the present time, the Decent Homes standard cannot be reached for all properties.  There was a report which was going to Cabinet on 28^th July 2010 with further details and information on the current situation.  There is an investment gap of in the region of £77m.  Also to ensure the stock information was robust the stock condition survey would be updated with a new survey, a significant amount of it now being more than five years old.  They were waiting for the outcome of the HRA finance reforms and what the Government’s next step was.  At present the resources which were available would not meet the decent homes standard.  48% are non decent and this would be reduced to 31% by 2015 using existing resources.

In response to a question, the Head of Landlord Services confirmed that the stock condition survey had been updated every year except from last year.  They have found that when they go into the property, the levels were less then expected.  The survey would be completed this year.

Councillor Palethorpe commented that the Council was never going to have to money available and he believed to meet the decent homes standard would be nearly impossible for this organisation if it was kept in house.

The Chair suggested that there were also two further elements being if the PFI money was no longer available then there would be an issue for Eastfield and Thorplands areas.  Also there could be new Government proposals for what was in place of the HRA when that ceased to exist in its current form.

The Head of Landlord Services confirmed that they were waiting to see what the Government is going to do.

Councillor Hawkins commented that an institute like NBC had a hefty housing issue for which it is responsible for and would have to go to the Government and ask what alternative measures would be put in place for extra lending provided that we were clear of how much money we needed to borrow.

The Head of Landlord Services confirmed that the existing stock was detailed and the investment gap in the Cabinet report was £77 million.  If approved by government, PFI would commence in 2014.  31% of properties would still be non decent by 2015 but the PFI arrangement would reduce that.

In response to a question, the Head of Landlord Services confirmed that the stock condition survey would be as robust as can be although it was standard practice not to inspect every single property.  It remained red on the risk register, as there was nothing that could be done to mitigate it into amber at the present time under the current financial regime. Councillor Palethorpe noted that if 48% of stock failed the decent homes standard then that would have a knock on effect on other priorities on the risk register which would turn it from amber to red.  This was in relation to reaching top quartile performance for all PI’s which he suggested should be shown as red as the Council could not meet the Decent Homes target.  The Head of Landlord Services agreed and said that this risk would be re-evaluated.

The Chair agreed that this would have a high likelihood of happening and the Council may have to make decision that it did not want to make.  Under the current rules they were unable to borrow against the asset of houses themselves although risk maybe mitigated if the Government changed the rules.

The Head of Landlord Services confirmed that there were a number of other Local Authorities in the same situation.  The Council’s Head of Finance had advised that it was reasonable to wait and see what the Government does and the outcome of the reforms.

The Director of Finance and Support suggested there were two other mitigating factors which could be added, firstly the evaluation of the new Government proposals when they were received on the HRA finance reform.  Once we receive the full valuation the second option would be to consider further options around housing stock to increase decency.  The further option appraisal would be carried out when it was relevant.

In response to a question, the Head of Landlord Services confirmed that the IBS software had gone very well and went live on the 5^th July 2010, but it was too early to evaluate this or move this to green on the risk register. Tenants would be able to review their rent account balance online within the next couple of weeks.

Resolved:  That the report be noted.