Agenda item

B Report of the Interim Chief Executive (Copy herewith)

(a)   Cabinet approved the 3-track approach to housing development (described in Paragraph 3.1.32 of this report);

(b)   Cabinet approved the establishment of a charitable Community Benefit Society that will utilise grants, loans, land and 1-4-1 Right To Buy receipts to invest in or fund new affordable rented housing within the Borough of Northampton;

(c)    Cabinet approved the principle of the Council and/or Northampton Partnership Homes acquiring and/or building homes for market rent or sale;

(d)   Cabinet approved the expansion of Northampton Partnership Homes’ role to include the delivery of new housing (including affordable rented housing, market rented housing and housing for sale) outside of the Housing Revenue Account and within the Northampton Related Development Area (NRDA);

(e)   Cabinet instructed Officers to commence negotiations to set up a minority-interest Community Benefit Society, propose appointments for the initial members and trustees of the Community Benefit Society and prepare the necessary draft paperwork for approval by Full Council;

(f)     Cabinet recommended to Full Council that the appropriate funding (subject to detailed business cases, as appropriate), development agreements and governance arrangements be put in place to ensure that, when suitable sites are identified for development, the Community Benefit Society and Northampton Partnership Homes are supported to secure the necessary funding and decisions are made in a timely manner;

(g)   Cabinet noted that, in approving this 3-track approach, it would not preclude the Council from also pursuing other options such as forming a Housing Development Company itself or in conjunction with appropriate partners such as NPH (see Paragraph 3.1.39 of the report); and

(h)   Cabinet instructed Officers to bring regular reports back to Cabinet seeking approvals for the key documents required to implement the recommendations in this report and the governance arrangements approved by Full Council.

Councillor Beardsworth commented that she welcomed the report and recommendations and noted that she welcomed it wholeheartedly. She further commented that the Government did very little to help Councils deliver social housing.

Councillor B Markham commented that it was a welcome report and requested that more information be provided for the timetable of the 3 track approach. He stated that there was a need to invest in the future housing stock and expressed his wishes for Councils be legally be able to suspend the Right to Buys. He confirmed that he considered the maximisation of the supply of new homes.to be a positive step in the right direction.

Councillor Ashraf noted she too welcomed the 3 point strategy and commented that she would have like to have seen it put before an Overview and Scrutiny Panel.

Councillor Hibbert as the relevant Cabinet Member commented that NPH had presented an ambitious proposal and noted that he was glad that it had been received favourably by many. He noted that they had gone through due diligence and stated that the report was in places, very technical. He commented that Capita had given positive views on the proposal and was pleased with the work undertaken by officers of the Council and NPH.

In response to questions asked, he confirmed that the Right to Buy existed and that it was a legal requirement and therefore the Council would have to comply with it.

Councillor Hibbert further commented that the supply of new homes was the biggest housing project that the Council had undertaken within the last 30 years.

It was confirmed by Capita that the project had been well managed by both the Council and NPH and considered to be very positive.

The Chief Executive of NPH elaborated on the report and noted that NPH had spent over 2 years bringing the project together and had gone through due diligence. He reported that there were over 3000 applicants on the housing list and stated that there was an increasing in the number of people presenting themselves as homeless and noted that there was a need to help those vulnerably housed and homeless. With regards to the Right to Buys he commented that 145 properties were being sold through this each year and nationally it was expected to rise. He commented that this approach to housing development would provide a mechanism for the provision of funding outside the HRA gap and could generate an income for the Council. He noted that the New Homes Bonus would provide approximately £6k per property and that money, alongside that generated in Council tax would prove beneficial to the Council. He explained that NPH would be able to deliver the ambitious programme and this would be done effectively and robustly.

The Leader of the Council thanked those who had contributed to the programme and stated that it was exciting new steps for the Town to be taking.

RESOLVED:

(a)   That the 3-track approach to housing development (described in Paragraph 3.1.32 of the report) be approved;

(b)   That the establishment of a charitable Community Benefit Society that will utilise grants, loans, land and 1-4-1 Right To Buy receipts to invest in or fund new affordable rented housing within the Borough of Northampton be approved;

(c)    That the principle of the Council and/or Northampton Partnership Homes acquiring and/or building homes for market rent or sale be approved;

(d)   That the expansion of Northampton Partnership Homes’ role to include the delivery of new housing (including affordable rented housing, market rented housing and housing for sale) outside of the Housing Revenue Account and within the Northampton Related Development Area (NRDA) be approved;

(e)   That officers be instructed Officers to commence negotiations to set up a minority-interest Community Benefit Society, propose appointments for the initial members and trustees of the Community Benefit Society and prepare the necessary draft paperwork for approval by Full Council;

(f)     That it be recommended to Full Council that the appropriate funding (subject to detailed business cases, as appropriate), development agreements and governance arrangements be put in place to ensure that, when suitable sites are identified for development, the Community Benefit Society and Northampton Partnership Homes be supported to secure the necessary funding and decisions are made in a timely manner;

(g)   That it be noted that, in approving this 3-track approach, it would not preclude the Council from also pursuing other options such as forming a Housing Development Company itself or in conjunction with appropriate partners such as NPH (see Paragraph 3.1.39 of the report); and

(h)   That Officers be instructed to bring regular reports back to Cabinet seeking approvals for the key documents required to implement the recommendations in this report and the governance arrangements approved by Full Council.