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The Client Services Manager submitted a report a copy of which had been circulated to each Member.
Councillor Rippingale attended and with the consent of te Chair addressed to cabinet to ask the following questions of the Portfolio Holder for Housing:-
• Despite the financial pressures on the Council, new housing was welcomed. The cost of living crisis was increasing homelessness, particularly for private renters who could not afford rent increases and homeowners who were facing interest rate rises. How would the Portfolio Holder adapt to these changing circumstances and what would be done to ease the looming housing crisis facing these two groups?
• Given the increasing pressure temporary accommodation was putting on the general fund, Councillors had recently received complaints about the standard and management of temporary emergency accommodation. Could the Portfolio Holder provide reassurance that temporary accommodation paid for by the Council was regularly checked to ensure that it was of a good standard. Could he assure Councillors that the temporary accommodation met the necessary standards within the Statutory Code of Guidance, particularly in relation to the Globe Hotel and Riverside development.
Councillor King, Leader of the Council and Portfolio Holder for Strategy, explained that Councillor Smith was not present but that a written response would be sent. He was aware of the challenge posed by the looming housing crisis which would be exacerbated by the eviction of Afghan refugees from hotel accommodation. The administration would continue to work with the Labour group and look for radical solutions to mitigate the crisis as far as it could.
Councillor Sommers, Portfolio Holder for Communities, explained that the Financial Support Team worked hard with residents to provide support before they were made homeless to relieve the pressure on temporary accommodation.
Councillor Cory, Portfolio Golder for Resources, endorsed the proposals in the report and on the following item. They provided a good deal to taxpayers and to those on the housing waiting list. The purchases would be part funded by the disposal of 106/106A Shrub End Road, elsewhere on the agenda.
Councillor Goss, Portfolio Holder for Neighbourhood Services and Waste, explained that none of the houses on this part of the Chesterwell Development were owner occupied. All the properties had been sold by the developer to a rental company, which was an indication of the changing housing market.
RESOLVED that:-
(a) The Council shall pursue this opportunity as set out in the Client Services Manager’s report and proceed with the offer, as outlined in Part B of the report, for the 4 units.
(b) Authority be delegated to the Chief Operating Officer, in consultation with the Portfolio Holder for Housing, to agree and negotiate any subsequent purchases of homes closer to completion, subject to normal viability and valuation considerations.
(c) Authority be delegated to the Chief Operating Officer, in conjunction with the Portfolio Holder for Housing, to approve the exchange of conditional contracts to acquire the units, and any other related matters, to complete the purchase when all conditions are satisfied.
(d) Colchester Borough Homes be appointed as a “clerk of works” or “employers agent” to supervise the quality of the construction of the homes to be acquired.
REASONS
There are approximately 2,560 households on the Council’s Housing Register seeking social housing and approximately 285 households in temporary accommodation. It is a priority of the Council, as shown by its New Housebuilding Programme, to try and find new ways to provide more homes in response to this need.
The Council is delivering affordable homes, but it is still continually seeking new and innovative ways to increase the supply of affordable housing and provide good quality, affordable and secure homes for Colchester’s residents who are in housing need.
Although there is a supply of new affordable housing through Section 106 provision via Registered providers, alongside Council led projects, supply is not meeting the need. The impact of Covid slowed affordable housing delivery in the market, and for the first year the Council delivered more affordable homes through its delivery Programme (including the Acquisition Programme/100 Homes) than all other Registered Providers combined; which evidences the importance of the Council’s role.
These acquisitions will increase the Council’s housing stock and diversifies the methods to bring forward additional affordable housing.
In Colchester, within the priority Bands A-C, there are approximately 640 applicants on the Housing register with a need for a 1 bed property. This makes up for 24% of the housing register need. There is an average waiting time of 11.7 months for a 1 bed property for applicants in bands B and C (Average waiting time of 4.4 months for applicants in Band A).
There are approximately 156 applicants in temporary accommodation within Colchester with a studio/1 bed need. Residing in temporary accommodation, over a prolonged period of time, may have a negative impact on the residents and their support network, as well as placing the Council’s allocated general fund budget under significant pressure.
There are approximately 14 applicants, in priority bands, with a need of a 1 bed property in the Mile End Ward alone.
There are approximately 13 applicants on the housing register with a Code 1 need (fully Wheelchair accessible), in priority bands A-C, who require a 1 bed property. These applicants can often be waiting for an extended period of time, in unsuitable properties, due to a lack of supply of adapted properties, within the Council’s housing stock.
Proceeding with this opportunity and other similar opportunities, to work with developers to acquire units as part of their development, will help to alleviate pressure on the housing register, temporary accommodation and relevant budgets as well as allowing developers to continue to develop within the Colchester area.
It is estimated that these units will be available between August 2023 and October 2023, providing much needed homes within a short timeframe.
ALTERNATIVE OPTIONS
The Council could do nothing, but this will mean the Council will miss out on opportunities to maximise the delivery of newbuild social rent housing in Colchester and it will mean that households on the housing register and in temporary accommodation will wait longer for a secure affordable home.