Agenda item

To set out the proposed aspiration of the Council to deliver good quality, affordable housing to support economic growth within the District and to ensure that the Council delivers on its commitment to further underpin the housing led renewal process in Jaywick Sands by providing safe new housing as part of the housing led regeneration strategic priority.

RESOLVED that Cabinet –

(a)    endorses the approach proposed in respect of building new Council owned homes;

(b)    approves, “in principle”, to build 200 new Council houses on the basis that any proposed specific site development opportunities will be approved by Cabinet on an individual business case and will reflect the overarching direction established via the emerging Housing Strategy;

(c)    approves the accepting of Gifted Units under Section 106 Planning Agreements with on-going responsibility for service charges incurred by management companies and, in some instances, a requirement for the Council to become shareholders in such companies; and

(d)   authorises the Corporate Director (Operational Services), in consultation with the Portfolio Holder for Housing and the Head of Governance and Legal Services, to agree the final terms and conditions for the transfer of Gifted Units including the management company governance arrangements.

Councillor G V Guglielmi declared a personal interest during the discussions on this item when such discussions touched on the subject of Gifted Units insofar as he was a Director of the Lawford Housing Enterprise Trust.

The Cabinet gave consideration to a report of the Housing Portfolio Holder (A.1) which set out the proposed aspiration of the Council to deliver good quality, affordable housing to support economic growth within the District and to ensure that the Council delivered on its commitment to further underpin the housing led renewal process in Jaywick Sands by providing safe new housing as part of the housing led regeneration strategic priority.

Members were aware that the District of Tendring, together with London and other parts of the South East, was facing a shortage of homes of all tenures and, in particular, a shortage of good quality homes which were affordable to those on lower to middle incomes. The shortage of homes was pushing up market sale prices and rents to unaffordable levels for some households.  Equally it was recognised that to attract new employment a good mix of aspirational as well as more affordable housing must be available for workers. Currently, many new developments were designed to maximise development profit and so properties were frequently small, lacking storage space and were unimaginatively designed.

However, it was reported that recent planning approvals and build out rates across Tendring suggested that the local market might be reacting differently but this might also be just a lag ahead of the slow down which had seen house prices fall in London, indeed they had fallen for 18 consecutive months, which would no doubt have an impact on build out rates and would also squeeze the space standards and suitability of new homes.

The Cabinet was advised that until such time as the housing market stabilised it would be premature to look to undertake new build other than to deliver housing at social rents in order to ensure that for those priced out of the market the Council could support those households. Should the market change and the option for the Council to enter the “home ownership” market then at that time a further options report would be brought forward.

Members were further advised that clearly there were also areas such as Jaywick Sands where it was difficult to attract traditional developers due to the lack of market confidence.  This was another area where Tendring District Council could take a lead to reshape the market.  The Council had been recognised as “Housing Business Ready” following an audit by the Housing and Finance Institute and so it needed to build upon the good foundations already established within the Council to influence the market and deliver new homes.

Cabinet was made aware that detailed proposals would be brought forward on a site specific basis as and when development opportunities were identified, but that this report set the overall framework and context within which such decisions would be made. Each site specific proposal as well as that framework would also take into account the overarching direction which would be established by the emerging Housing Strategy.

Members were also informed on the proposed approach to some small complications which had arisen on gifted units, which, as this was a unique proposition, did not appear to have arisen previously or anywhere else in the country and, therefore, there were no precedents to rely upon.

Having considered the information provided in the report including the financial, risk and other implications and the legal advice provided by Officers:-

It was moved by Councillor P B Honeywood, seconded by Councillor G V Guglielmi and:-

RESOLVED that Cabinet –

(a)   endorses the approach proposed in respect of building new Council owned homes;

(b)   approves, “in principle”, to build 200 new Council houses on the basis that any proposed specific site development opportunities will be approved by Cabinet on an individual business case and will reflect the overarching direction established via the emerging Housing Strategy;

(c)    approves the accepting of Gifted Units under Section 106 Planning Agreements with on-going responsibility for service charges incurred by management companies and, in some instances, a requirement for the Council to become shareholders in such companies; and

(d)   authorises the Corporate Director (Operational Services), in consultation with the Portfolio Holder for Housing and the Head of Governance and Legal Services, to agree the final terms and conditions for the transfer of Gifted Units including the management company governance arrangements.