Agenda item - Potential purchase opportunity of properties with restrictive covenant

Report of Executive Director, Neighbourhoods, Communities and Housing (copy attached).

1)       That the range of future options considered for these properties be noted.

2)       That it be agreed to proceed with preferred Option 1 that the council negotiates with the current owners with the aim of exploring the possibility of purchasing and refurbishing the properties for council use, subject to a viable scheme. 

3)       That if a viable scheme is identified then a further report regarding the potential cost of this would be brought to Housing and New Homes committee for consideration, and then to Policy Resources and Growth Committee for a final decision.

74.1   The Committee considered a report of the Executive Director, Neighbourhoods, Communities & Housing which explained the Housing Asset Management Strategy acted as a link between the Housing Strategy and Investment programmes including a priority of supporting new housing supply. The 2017/18 Neighbourhoods, Communities and Housing (NCH) Budget Strategy included savings to be achieved through the potential development of Temporary Accommodation through commissioning a council housing stock review to deliver conversions of existing under-used or unused buildings or spaces into Temporary Accommodation.  A covenant was included in the transfer of two properties in the Carlton Hill, Queen Park area of the city when they were sold by the council to Orbit Housing Association (HA) in 1999. This covenant required the properties to remain as affordable housing and required the council’s approval to remove the covenant to allow sale on the open market. Orbit Housing Association was now seeking to dispose of the properties in question. Options for the properties were set out in section 4 of the report. The report was presented by the Empty Property Officer.

74.2   Councillor Mears stated that she was happy to support Option 1 which she considered was a good way forward. Councillor Mears referred to page 73, paragraph 7.3 which stated that the costs of managing and negotiating the purchase would come from the HRA and General Fund and yet the Committee was looking under the options for it to come solely out of the HRA.  Councillor Mears asked for clarification that costs would come out of the HRA. Depending on what use was decided for it, she wanted to be reassured that if any payment/costings came out the HRA, it became a HRA asset.   

74.3    Councillor Mears noted that further reports would be brought back to the Committee and thought it was a good opportunity to bring properties back into council ownership. 

74.4    The Head of Strategy, Property & Investment stated that at the moment the lead officer on the property negotiation was the Empty Property Officer (general fund). The financial considerations of the report worked on the basis that it would come back through the HRA. That was subject to viability which would be brought back through the Members’ Board and to the Committee.   

74.5    Councillor Gibson fully supported Option 1.  It would provide 15 more units to meet housing need. 

74.6    RESOLVED:-

1)       That the range of future options considered for these properties be noted.

2)       That it be agreed to proceed with preferred Option 1 that the council negotiates with the current owners with the aim of exploring the possibility of purchasing and refurbishing the properties for council use, subject to a viable scheme. 

3)       That if a viable scheme is identified then a further report regarding the potential cost of this would be brought to Housing and New Homes committee for consideration, and then to Policy Resources and Growth Committee for a final decision.