Agenda item
BUDGET SCRUTINY
Presented by Mark Baigent, Interim Divisional Director Housing & Regeneration. (10 min presentation followed by 15 min Q&A).
(18:50-19:15)
Minutes:
[The Chair decided to take agenda items in a different order than published. Item 6: Service Charges for Leaseholders was taken first followed by items 4 and 5. For convenience the minutes will follow the order published in the agenda].
The committee received a report from Mark Baigent, Interim Divisional Director Housing & Regeneration on the Housing Budget.
In response to Members, Officers provided the following:
- Officers explained that the annual repairs and maintenance figures listed in appendix 1 had gone up due to cost inflation.
- Officers explained that the issue with Universal Credit was that it was paid every six weeks and directly to the individual rather than the landlord. The payment schedule exacerbated the rent arrear issue. Officers said a financial service centre had been set up to support tenants with money management.
- Officers said they were not expecting additional costs associated with the Fit for Human Habitation Bill.
- A Member asked if the 42 block flat purchased on Burdett Road would be social rent and whether the social rent would be maintained. Officers said that the development in question was built via a s106 agreement with the intention of providing affordable housing so the Council would not charge beyond affordable rates. Officers explained that the council had purchased some temporary accommodation properties and there was greater flexibility in the tenure.
- Although Members did not take issue with the report, there was a consensus that the budget report had arrived late to the meeting. Members advised that it would have been useful to have an outline of the budget at the last meeting for in-depth discussion at the current meeting. Officers explained that budget reports to a scrutiny sub- committee was a new agenda item. Previously all budget reports had gone to the main Overview & Scrutiny Committee and Members were invited to participate at that meeting. Members were invited to submit any comments regarding the budget to Abidah Kamali, Strategy and Policy Manager, who passed on advice that Members could feedback comments before the Budget Council meeting in February.
- The GLA has made an arrangement with the government to hold unspent right to buy money for three years. Officers said this took the pressure off spending right to buy money within the set period.
- Right to buy sales have slowed down. There were between 50-100 sales this year.
- The Seahorse Company had made offers but had not purchased property as of yet. The Company intended to buy a block of flats to privately manage as investment. The money from the investment would not go into the Housing Revenue Account. The fund could pay a dividend to its shareholder the Council, invest, or give to charity.
- Some of the 2,000 new Council homes (to meet the Mayoral Pledge) are for use as temporary accommodation and were acquired through funds from the general fund but are still considered to be council housing.
- Officers clarified delivery of affordable homes was lower than the target ending quarter 2, (appendix 6 on page 38 of the agenda pack), the majority of these homes come from developments where there was commitment to providing affordable housing. However, the Council does not have control over when developments complete which are influenced by a number of factors. One pressing issue is Brexit, which may have delayed housing completions. It is expected that housing delivery will pick up once there was further clarity around Brexit. Officers said the Council was committed to building its Council homes within planned timeframes.
RESOLVED:
- To note the report.
Supporting documents: