Agenda item

Purchase of Housing Stock

(Cabinet Member with Special Responsibility Councillor Caroline Jackson)

 

Report of Chief Officer Housing & Property (report published on 7.2.25)

Minutes:

(Cabinet Member with Special Responsibility Councillor Caroline Jackson)

 

Cabinet received a report from the Chief Officer Housing & Property which sought approval to accept government grant funding to increase housing provision for specific groups of refugees and homeless temporary accommodation.

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

 

Option 1: Do not accept the grant funding

Option 2: Accept the grant funding

Advantages

No advantages identified - current BAU remain

Dedicated housing provision for this cohort will be increased at expected minimal financial input from the Council

Disadvantages

The Council will not increase provision of suitable housing for the specific cohort. The Council will continue to utilise costly bed and breakfast – hotel provision for accommodating homeless households.

Officer capacity will be required across different Council services to ensure the schemes funding requirements are met.

 

Some financial resources may be required if a purchase price is above the limit provide by MHCLG or where renovation work requires more than the £21,000 figure awarded. This information will be presented within a full business case for further consideration.

Risks

By not accepting the funding and increasing dedicated housing provision for this specific cohort is likely to increase pressure on already stretched local housing both within social and private rented sector.

 

It is likely that the homelessness service will continue to see increased demand putting additional pressures on temporary accommodation and the Council’s budget. Increasingly it is likely as such by having to accommodate families the maximum threshold of 6 weeks for families placed in B+B provision will continue to be breached.

Timescales for delivery are tight with local authorities expected to use best endeavours to have properties available for occupation by 31st March 2026.

 

Risks remain around the availability of suitable accommodation within the financial envelope available to ensure schemes are viable.

 

A full business case will be developed should funding be secured to consider opportunities for purchasing properties in the local area.

 

The officer preferred option is Option 2 : for the Council to accept the grant funding so as to seek to provide much needed accommodation for specific cohorts of refugees and homeless households.

 

Councillor Caroline Jacksom proposed, seconded by Councillor Dowding:-

 

“That the recommendations, as set out in the report, be approved.”

 

Councillors then voted:-

 

Resolved unanimously:

 

(1)           That should Lancaster City Council be successful in its Expression of Interest Cabinet accepts the Local Authority Housing Fund grant as set out in the report and authorises the s.151 Officer to sign off the MOU.

 

(2)       That Cabinet endorse City Council Officers work to identify appropriate accommodation for this purpose and bringing forward a business case for further approval.

 

Officer responsible for effecting the decision:

 

Chief Officer – Housing & Property

 

Reasons for making the decision:

 

Lancaster has placed itself firmly as a welcoming district for refugee’s seeking to settle in the UK and make new lives. However, this has put additional strain on an already stretched rented housing market, at a time when the local authority is facing financial pressure through the burden of accommodating homeless households within expensive hotel provision. The grant funding available from MHCLG provides an opportunity to increase housing provision for this cohort albeit on a small scale, and should not be over-looked.

 

The decision is consistent with Council Priorities:

 

A Sustainable District –Climate Emergency: Properties brought forward will be renovated to a high standard, therefore benefitting residents who moved with quality and warm homes.

 

An Inclusive and Prosperous Local Economy – opportunities for local contractors to be employed as part of the programme and local businesses to benefit through supply contracts.

 

Happy and Healthy Communities – proposals contribute to the well-being of Refugees and homeless households and provide quality housing for those in need.

 

A Co-operative, Kind and Responsible Council – providing much needed settled accommodation for refugees.

 

The decision is also consistent with the Housing Strategy and will link directly to the Homes Strategy for Lancaster District 2020-2025 by increasing provision of affordable housing.

Supporting documents: