Agenda item

Purpose

To update the Cabinet Member on the year-to-date progress of the Council's buy backs and the current housing service development pipeline.

Jo Bennett, Assistant Director Housing Supply and Need, introduced the information only report and updated the meeting on:

·         The year-to-date progress of the Council's buy backs and the current housing service development pipeline.

PCC continues to actively purchase property from those previously sold through Right to Buy.  Statistics are monitored monthly.

Appendix A provides a detailed breakdown of the properties that have been purchased to date and provides year to date information by property archetype.

PCC have now purchased 370 properties and continue to develop new council housing.  The pipeline of developments is in addition to the work carried out by the Regeneration Directorate across the city and in addition to the Ravelin Housing work.

Appendix B details the development sites which have been approved or gone through the democratic process.  These are likely to return 657 units.  There is an overall pipeline of 750 units as some have not yet gone through the democratic decision process.

A number of different types of accommodation are being developed along with the Patey Court development in Paulsgrove, being supported housing for adults.

Questions from Residents' Consortium

In response to questions and comments the following points were clarified:

·         In theory any leasehold property is available to buyback.  Leaseholders are reminded every time the accounting for service charge is issued to consider PCC first if they are going to sell their property.  No slowing down in offers had happened and PCC was currently buying back just over 100 properties a year.  There was a potential pool of about 2000 properties.

Members'' questions

In response to members' questions and comments the following points were clarified:

·         In order to ensure value for money on buybacks, an external valuer is used who provides a window of negotiation.  The Acquisition officer works with the vendor to understand what they are looking for. Average prices are surprisingly low, and vendors tend to appreciate not having to engage estate agents and pay those fees.  Vendors also appreciate the lack of stress and hassle working with PCC and the assured transaction.

·         The buyback process and any associated housing need for the vendor are dealt with as separate transactions.  Vendors' situations are considered on a case-by-case basis and where needed some vendors had remained in the property as a PCC tenant although this was very rare.

·         Under 'Right to Buy' legislation, a leaseholder can exercise their right to buy at a discount, live in the property and can sell whenever they want subject to a tapering repayment of discount.  After 5 years, they are free to sell with no repayment of the discount.

·         In legislation, PCC have the right not to lose money spent on a development or on purchasing an asset, which is in place for 15 years.  There is a tapering of discount available on situations where PCC has bought back a property and the tenant then applies to buy it back under 'right to buy'.

·         Venture Tower was considered by the directorate as an investment.  Careful consideration was given to the archetype of homes which were needed, and it was considered Venture Tower was an opportunity better suited to the private sector.

·         The consultation was continuing on Horatio and Leamington with a planning application due to come in the Autumn.  The blocks were sorted, and the interiors and community spaces were now being considered.

·         The current rate of 'Right to Buy' sales completed in each year for the last 5 years is:

2018-19              58

2019-20              82

2020-21              28

2021-22              75

2022-23              13 (completed so far, this financial year in Qtr 1)

·         PCC only issue secure tenancies.  All developments proposed are currently at affordable housing levels.  For every development, the 3 rent levels are considered.  The social rent option is discussed with Homes England to see if they would bridge the gap in terms of a grant to allow development at a social rent.  PCC are building high specification homes to ensure residents have as low an energy bill as possible.  These often do not meet the affordability criteria for social rent.

·         In relation to the purchase of Viking Court and Shootpool and the residents of those properties, Jo advised that the exchange of contracts is imminent, and she stressed that it is PCC intention to purchase the properties.  It is not appropriate for PCC to contact tenants until the exchange has happened.  At that time, there will be quality engagement with residents so they understand their rehousing situations and how they will be impacted.

·         In relation to housing association properties, PCC officers work closely with RP partners to ensure that tenants receive appropriate services. Any RSL properties that are up for sale will go through an open tender and bid.  Occasionally, the RP of any poorly managed properties are challenged, and PCC have on occasion picked up these properties.

Summing up, Councillor Sanders thanked officers for the report to highlight the lack of affordable homes for Portsmouth residents.  Money was previously set aside to buy council properties back whilst the new build development programme was established. There had also been a push to reduce the time that properties remain empty between lets (the void period) which had now been reduced by 25% with the Voids & Allocations Intervention.  There was an issue in terms of reconciling the creation of passive homes with providing social rents and PCC need to be open and honest about the trade-offs going forward.  Councillor Sanders noted the level of community engagement and general approach with Horatio and Leamington houses which he considered revolutionary.

Moving forward, PCC was keen to buy back 500 council homes by March 2024 and was currently on course to achieve that target whilst also looking for value for money.  £100 million over 5 years was being invested in the programme.

The Cabinet Member noted the report.