At the Environment, Enforcement & Housing Committee held on the 25^th June 2019 approval was given in relation to three recommendations concerning future housing development projects.

• The Environment, Enforcement & Housing Committee approved the following recommendations: That the Committee formally approve Option 1 (to implement the capital receipts expenditure mechanism.

• That the Committee formally approves delegated authority for the Housing Services Manager to designate sites for redevelopment and submit outline planning permission for those sites.

• That if agreed, the proposal is referred to the Council’s Policy, Resources and Economic Development Committee for approval.

An excerpt of the Minutes of the Environment, Enforcement & Housing Committee are as per Appendix A. The Committee approved the recommendations unanimously.

This report sets out proposals to adopt a formal capital receipts expenditure mechanism relating to Right to Buy (‘RTB’) sales. The mechanism will allow for a more focussed and transparent approach to expenditure of monies from  the sale of HRA housing stock (known as ‘RTB capital receipts’).

The mechanism is a high-level approach to ensuring that capital receipts are retained by the Council and allocated to garage site re-developments with outline planning permission. The purpose is to increase efficiency and to provide improved value for money through site-specific building projects.

The mechanism will adopt the procedure of seeking outline planning permissions and then linking earmarked capital receipts. Protection of the receipts in a timely manner will allow for subsequent approval of site specific projects by Committee and consideration of detailed feasibility reports.

Cllr Tumbridge MOVED and Cllr Mrs Hones SECONDED the recommendations in the report.

A vote was taken by a show of hands and it was RESOLVED UNANIMOUSLY.

1. That the PRED Committee formally approve Option 1 (to implement the capital receipts expenditure mechanism).

2.  That the PRED Committee formally approves delegated authority for the Housing Services Manager in consultation with the Chair and/or Vice Chair of Environment, Enforcement and Housing Committee to designate sites for re-development and submit outline planning permission for those sites.

Reasons for Recommendation

Option 1 is recommended as the most transparent option for the Council and supports the ‘Getting our House in Order’ transformation programme for Housing Services. It works towards ensuring financial stability and revenue protection.

Taking no further action will fail to advance corporate priorities and would be counter to our modernisation approach and monetary responsibilities.

Option 1 ensures the Council meets the requirement of the agreement the Council entered into on 26th June 2012 with the Secretary of State, to retain additional RTB receipts and commit these within 3 years of disposal.

By not committing the investment there is a high degree of financial risk imposed on the Council. Any retained funds not committed within 3 years is subject to interest chargeable on the retained amount at 4% above base rate, compounded quarterly.

Every quarter, officers have to submit a return to MHCLG, detailing the RTB’s completed, the amount that has been spent and the projected future spend on  affordable housing. This return calculates whether deadlines of spend have been adhered to.

Therefore Option 1, allows the Council to commit investment of retained right to buy receipts when outline planning permission is granted, due to the outline planning application, allocating assumed build costs to the project.

Appendix B details the spend that has yet to be incurred by the Council. Option 1 ensures the Council can meet the short-term spending requirements, whilst a mid to long term strategy is developed around the Council’s garage site developments and Affordable housing developments aligned with current spending requirements and future projections.