Issue - meetings
Developing a Homes Strategy for Lancaster District
Meeting: 14/07/2020 - Cabinet (Item 22)
22 Developing a Homes Strategy for Lancaster District 
PDF 670 KB
(Cabinet Member with Special Responsibility Councillor Caroline Jackson)
Report of Director for Economic Growth & Regeneration
Additional documents:
Minutes:
(Cabinet Member with Special Responsibility Councillor Caroline Jackson)
Cabinet received a report from the Director for Communities and the Environment to enable Cabinet to agree the key elements that will comprise the Homes Strategy. A Homes Strategy for the Lancaster District was currently being drafted. The report provided evidence of need and sought agreement for the four strategic housing projects that will meet those needs. It also sought in principle agreement for the financial and borrowing mechanisms required in order to deliver against these priorities as well as proposing that the council moves forward with setting up a Local Housing Company (LATCo) as a means of generating the finance to support housing and regeneration activities outside of our current social housing provision.
The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:
Option 1: Cabinet endorse the four strategic projects identified in the report, approve the initial feasibility costs associated with setting up the LATCo and agree to using the existing HRA headroom to generate the necessary development finance.
Advantages: Will be instrumental in delivering against the council’s re-affirmed priorities. Maximises the borrowing opportunities available to the council. Could generate some surpluses. Diversifies the council’s existing housing portfolios. The council is more able to meet a growing local housing need.
Disadvantages: Some initial set up costs will be required.
Risks: New area of business for the council particularly if new forms of tenure are being created. Different governance arrangements for the LATCo. Lack of development experience/skills/capacity within the council’s existing structure.
Option 2: Do not proceed with the strategic priorities identified or utilise the borrowing options.
Advantages: No risk or exposure to the council. The council could continue to work in an existing enabling capacity through partnerships to achieve some but not all of the desired outcomes.
Disadvantages: No specialist legal and financial advice will be obtained therefore the council cannot fully consider its options. The council is not delivering against its own key priorities or positively contributing to the provision of good quality housing locally to meet a wide range of need or proactively contributing towards climate change. No opportunities to generate surpluses as part of the council’s investment strategy.
Risks: Could give rise to significant problems if the required investment into the council’s existing stock is not carried out in a timely way. Reputational damage. Loss of opportunity.
The officer preferred option is Option 1. Setting up the LATCo and utilising prudential borrowing provides a number of potential benefits and opportunities for the council in relation to diversification of its existing role, increasing its landlord capacity, offers greater opportunities to cross subsidise mixed tenure schemes which will meet a local need, creates more potential to provide new build residential development that contribute positively towards climate change and improving the thermal efficiency of existing dwellings within areas of significant need. Borrowing through the HRA provides the opportunity to increase and improve the council’s existing social ... view the full minutes text for item 22