Issue - meetings

To consider the attached report of the Head of Finance and Housing.

The Head of Finance and Housing and the Housing Development Manager presented the proposed Shared Ownership Sales Policy report.

Members were advised that the Council had recently acquired 3 shared ownership properties via a Section 106 agreement, and these had been made available for sale. In addition, a further 29 shared ownership properties were currently being developed by the Council with handovers expected during 2020. However, the Council did not currently have a policy for directing the Shared Ownership sales process and the proposed policy had been developed in line with Homes England and Planning guidance to resolve this matter.

Members, while welcoming the policy, questioned the annual rent increase level of RPI + 0.5% set out in the policy when it was higher than the CPI rate which the Government was moving towards using. In response it was stated that if the Government switched to the CPI rate then the policy would also change to it. In the case of the William Muge properties as these were grant funded by Homes England the Council was committed to following their guidance as set out in the policy.

There was concern expressed as to how the Council would deal with issues of the shared owner defaulting on their payments or falling into arrears and what impact this would have for the Council. There were particular concerns expressed that the Council would have less control than the mortgage company on an asset it might be the majority owner in. Accordingly, it was the consensus view that paragraph 12 (Rent arrears and non-payment of service charges) of the policy needed to be expanded to reflect these concerns.

The Strategic Director (Corporate Resources) advised that there would be a separate policy for dealing with the issue of rent arrears in shared ownership properties.

RESOLVED:     (a)      That it be recommended to Cabinet:

(i)            That the proposed Shared Ownership Sales Policy be approved.

(ii)           That the Head of Finance and Housing, in consultation with the Portfolio Holder for Housing and Health, be authorised to undertake any necessary minor amendments to the policy prior to the formal review date.

(iii)         That paragraph 12 of the policy be expanded to provide more detail in respect of the Council’s actions in respect of rent arrears and non-payment of service charges occurring.

(b)   That an update be made to the Overview and Scrutiny Committee in 3 months’ time from the Head of Assets and Building Control.

To consider the attached report of the Head of Finance and Housing.

Responsibility: Portfolio Holder for Housing and Health

It was agreed:

(a)  That the proposed Shared Ownership Sales Policy be approved.

(b)  That the Head of Finance and Housing, in consultation with the Portfolio Holder for Housing and Health, be authorised to undertake any necessary minor amendments to the policy prior to the formal review date.