Agenda item

Reducing the use and cost of Temporary Accommodation

(Copy herewith)

Decision:

2.1

(a) Cabinet approved the Temporary Accommodation Action Plan (attached to this report as Appendix 1);

 

(b) Cabinet approved the submission to Full Council of a request for supplementary funding in respect of the Housing Revenue Account (HRA) to extend HRA borrowing by up to £25m in order to enable the acquisition of affordable housing under s106 / development agreements via developers;

 

(c) Cabinet agreed to receive a further report in October 2019, providing details of the progress that the Council and Northampton Partnership Homes have made in implementing the Action Plan and what impact this has had on the use and cost of temporary accommodation; and

 

(d) Cabinet noted that, although the implementation of the Action Plan should result in costs being controlled, reduced and avoided, an unforeseen increase in demand may create a further cost pressure.

Minutes:

Councillor Hibbert as the relevant Cabinet Member submitted a report seeking approval of a Temporary Accommodation Action Plan and extension of the Housing Revenue Account (HRA) borrowing to acquire affordable housing.  Realistic short term targets had been set to have an immediate impact, with more council housing also planned in the longer term.

 

It was acknowledged that voids had been a problem, but work was ongoing with NPH to resolve this.  A further report would be made to Cabinet in October 2019 detailing progress in implementing the Action Plan.

 

The Head of Housing and Wellbeing answered the questions raised earlier by Mr Adams as follows:

-       NBC were making best use of the temporary accommodation – using it either the same day or the day after it had become available;

-       Right to buy receipts needed to be used within the timescale set by the Government.  There had been two quarters in the past in which this had not happened due to problems with the new building or buying of properties.  Since NBC were now ahead of the programme, this was unlikely to occur again.

 

The Chief Financial Officer confirmed that if agreed by Cabinet, a paper would be submitted to Full Council to extend HRA borrowing by up to £25m.  The funds would not actually be borrowed unless required, and permission would be sought for this.

 

Councillor Beardsworth expressed concern regarding the increase in numbers of homeless people.  She suggested stopping the right to buy to give breathing space.  Councillor Hibbert pointed out that the accommodation was still being used, even if it was sold.  The Head of Housing and Wellbeing advised that council homes were only used for temporary accommodation where needed.

 

Councillor Smith stated that the report was positive and it promoted safe, appropriate temporary accommodation within Northampton rather than elsewhere.  She considered that problems would continue until developers were forced to use their full capacity of affordable housing.  She asked whether there was any recourse to reclaim costs from Housing Benefit.  Councillor Smith pointed out under Action 3 under 3.3.6 that there were circumstances where it was not safe for applicants to return to their families and safeguarding issues needed to be recognised.

 

Councillor Hibbert agreed that NBC needed to be strong on ensuring 35% of development was affordable housing and confirmed that Housing Benefit was reclaimed.  He also confirmed that it was not the intention to return people to their families if this was not safe.

 

RESOLVED:

 

2.1

(a) Cabinet approved the Temporary Accommodation Action Plan (attached to this report as Appendix 1);

 

(b) Cabinet approved the submission to Full Council of a request for supplementary funding in respect of the Housing Revenue Account (HRA) to extend HRA borrowing by up to £25m in order to enable the acquisition of affordable housing under s106 / development agreements via developers;

 

(c) Cabinet agreed to receive a further report in October 2019, providing details of the progress that the Council and Northampton Partnership Homes have made in implementing the Action Plan and what impact this has had on the use and cost of temporary accommodation; and

 

(d) Cabinet noted that, although the implementation of the Action Plan should result in costs being controlled, reduced and avoided, an unforeseen increase in demand may create a further cost pressure.

Supporting documents: