Decision - Home Purchase Policy update

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Decision details

Home Purchase Policy update

Decision Maker: Housing & New Homes Committee

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

 

That the Housing & New Homes Committee:

 

(1)      Notes the outcomes of the Home Purchase Policy pilot to date.

 

(2)      Agrees the revised Home Purchase Policy attached at Appendix 2 which broadens the range of properties which the council can purchase beyond just those which were formerly owned by the council, with the following amendments

 

 

That all references to property being situated amongst existing Brighton & Hove City Council housing stock be amended to read ‘situated near by Brighton & Hove City Council stock.’ 

 

To amend the recommendations, as shown below in bold italics:     

 

          3 Criteria

 

3.1 The decision to purchase properties will be dependent on a business case on a property by property basis which would be determined by the following factors:

 

· The purchase price (up to £250,000) and availability of capital funds

 

· The viability of the purchase against rent levels as set out in the council’s rent policy.

 

· The cost of any refurbishment work required to bring the property up to the Brighton & Hove Standard (maximum of 10% of purchase price)

 

· Whether ongoing maintenance costs are considered to be excessive (or greater than average stock levels)

 

· There is a specific housing need for the type of property that is being offered, as established by the Housing Register

 

· Whether a purchase of a property would free up land or enable access to a site suitable for development of affordable housing

 

· Savings to the council through reduced need for temporary accommodation or specialist accommodation

 

·The impact of a subsidy in addition to the rental income on the viability of the purchase (to a maximum of £10,000) The impact of net subsidy provided to the overall programme

 

          8 Other opportunities

 

8.1 Alongside the purchase of homes, other opportunities may become available to purchase properties or land for housing including securing affordable housing units as part of new housing developments in the city (S106 sites). The viability of each potential purchase would need to be completed taking account of:

 

· The purchase price and nature of the property/land

 

· The cost of any conversion and refurbishment work to bring it into use

 

· The viability of the purchase against rent levels as set out in the council’s rent policy

 

· Grant funding opportunities to support delivery of new housing

 

· Planning considerations

 

· There is a specific housing need for the type of property that is being offered, as established by the Housing Register

 

· The property/land is situated amongst existing Brighton & Hove City Council housing stock 8.2 The viability of each potential S106 site would need to be completed taking account of:

 

· The number of units and purchase price proposed

 

· Management viability e.g. would the units need to be in a separate block

 

· Financial viability of the property

 

· The viability of the purchase against rent levels as set out in the council’s rent policy

 

·Timing of the purchase. An early discussion with developers would be essential, particularly if we propose to take forward affordable rented only units

 

· Planning considerations as we would only be seeking affordable rented properties at present

 

· There is a specific housing need for the type of property that is being offered, as established by the Housing Register

 

8.2 The viability of each potential S106 site would need to be completed taking account of:

 

· The number of units and purchase price proposed

 

· Management viability e.g. would the units need to be in a separate block

 

· Financial viability of the property

 

· The viability of the purchase against rent levels as set out in the council’s rent policy

 

·Timing of the purchase. An early discussion with developers would be essential, particularly if we propose to take forward affordable rented only units

 

· Planning considerations as we would only be seeking affordable rented properties at present

 

· There is a specific housing need for the type of property that is being offered, as established by the Housing Register

 

(3)    For Committee to receive a report in a year’s time on the updated version of Appendix 1, with such a report to include estimates of the subsidy modelled for 27.5% living wage rents as well as an assessment of the estimated saving to the council as a whole, should the property assessed be let as temporary accommodation.

 

Report author: Diane Hughes

Publication date: 19/09/2018

Date of decision: 19/09/2018

Decided at meeting: 19/09/2018 - Housing & New Homes Committee

Accompanying Documents:

 


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