Issue - meetings

  Report HPR2024/010

The report recommended the development and funding of the West Wickham Housing Scheme as a fully socially rented housing scheme in an amendment to the previously agreed scheme, which was approved in February 2023 as a mix of affordable and private housing.

A Member welcomed the move to delivering a fully socially rented housing scheme and underlined the need to take a similar approach to other mixed-use developments.  The Head of Regeneration confirmed that work was underway to review the viability of all planned development schemes to increase the proportion of social rented housing and that this would be a key priority going forward, particularly as temporary accommodation costs continued to rise.  A Member noted the increased capital financing requirement for delivering 26 social rented units and asked about the payback period for the project.  The Head of Regeneration explained that as the Local Authority held fewer than 199 properties, it was able to hold its social housing stock in the General Fund via an exemption from the Secretary of State for Levelling Up, Housing and Communities which allowed for an immediate payback.  When there were more than 199 properties, the Local Authority would be required to hold its stock in the Housing Revenue Account which had a significantly longer payback period of 25 years.  In light of this significant disparity, the Local Authority and other local authorities in a similar position were actively lobbying the Secretary of State to increase the number of social housing units that could be held in the General Fund.

RESOLVED: That the Council’s Executive be recommended to:

1)  Approve the Capital Investment for the delivery of 26 new homes, on the basis that all homes will be held for affordable housing, on the assumption the increase of Greater London Authority grant is approved. Noting this requires £4,717k of external borrowing for the Council (as detailed in Section 6 of Report HPR2024/010). If the revised Greater London Authority grant is not received, the scheme will remain as was previously agreed;

2)  Approve an additional revenue contribution of £244k to part-finance the capital costs of the Library element of scheme, as detailed in Section 6 of Report HPR2024/010. Provision for this sum will be identified in central contingency as part of the 2023/24 revenue budget outturn;

3)  Approve required changes to be submitted via a planning variation; and,

4)  Accept any additional grants in relation to this scheme.