Agenda item

Report HPR2022/050

The report outlined the Council’s current Private Sector Leasing and Housing Management Contract provided by Orchard & Shipman (Pinnacle) and set out the options for future procurement.

The current contract was due to end on 31^st March 2023. A further one-year extension option was available (Report DRR 20/025) and approval for the extension was sought.  The report set out the commissioning intentions for this requirement beyond the extension period.  It recommended separating the contract into a distinct Private Sector Leasing contract and a separate Housing Management contract.  It recommended entering into a new contract for Private Sector Leasing via exemption to competitive tendering; and to commence a compliant procurement process for the Housing Management requirement.  Given the complexities of being a Social Housing Provider and importance of the tender exercise the report referred to the resource requirements required to carry out this procurement exercise and where this would be funded from. Further reports would be presented to the Executive in 2023 as set out in the report including a report on the skills and resources required for effective long-term management and operations of the Housing Revenue Account.

A Member highlighted that specialist management was required for traveller sites and that should be key to any consideration of contract options.  In response the Assistant Director for Housing highlighted that the aim of the report was to ensure that all options received due consideration and at this point nothing was being ruled out.  It was noted that it was difficult to secure specialist provision for the management of traveller sites and it may be that a broader management contract would be the best option going forward but at this point all options were on the table.

In response to a question concerning the issue of Housing Management going forward, the Assistant Director for Housing explained that one consideration was to bring in a Project Officer, but it was clear that there was currently not the expertise in-house.  Consideration needed to be given to the requirements of the service, but it was unlikely that the Housing Team would be able to manage a large quantum of properties without significant additional resourcing.  As such Officers would present the available option and the associated costs.

The Committee noted that whilst there were currently no HMOs as part of the Private Sector Leasing Scheme, all options were being considered and where HMOs may be considered appropriate in the future there would be a need to ensure that they met all requirements such as space standards.

A Member noted that whilst Bromley’s Homelessness and Corporate Strategies were seeking to deliver 10,000 new homes, 1000 of which would be affordable housing; waiting lists were increasing along with levels of homelessness and the Member questioned what action could be taken to address the gap.  In response the Assistant Director for Housing highlighted that there were ongoing challenges, and the Department would continue to see increases in demand.  This would require Officers to continue to be innovative in their approach.  The Portfolio Holder highlighted that the Council was not the only supplier, there were also Housing Associations although the Council was looking at other schemes to secure additional homes.

RESOLVED: That the Executive be recommended to

For the current Private Sector and Housing contract with Orchard & Shipman:

(a)  Authorise the remaining one-year extension for the period 1 April 2023 to 31 March 2024 at an estimated value of £3m.

For future Private Sector Leasing arrangements with Orchard & Shipman:

(b)  Separate this element from the Housing Management arrangements (as described in paras 3.8 to 3.17 of the report) and approve award of  a further contract, via exemption to competitive tendering (as set out in para 3.48/49), to commence from 1 April 2024 for a period of ten years at an estimated value of £3m per annum (whole life value of £30m).

(c)  Delegate authority to the Director of Housing, Planning, Regeneration & Property to vary the contract to secure additional leases/properties from the provider subject to due diligence.

For future Housing Management arrangements:

(d)  Approve in principle proceeding to procurement via a compliant process, as set out in paras 3.18-3.22 and 3.48 of the report for Housing Management provision for a contract to commence from 1 April 2024 for a fifteen-year term (with the option to extend for a further five years) at an estimated annual value of up to £2m (estimated whole life value of £40m).

(e)  Note that a Gateway 1 report setting out the full detail of the proposed procurement will be presented for decision in early 2023, prior to commencing a tender process.

(f)  Agree the drawdown £183k from the Housing Feasibility and Viability Fund earmarked reserve for the resources required in paras 3.28 to 3.36 of the report.

For the Beehive Scheme:

(g)  Agree the drawdown of £32k from the Housing Investment Fund earmarked reserve to procure specialist advice to determine options for the best mechanism for future management of the Beehive scheme, as set out in paras 3.23 to 3.27 of the report.