Agenda item

HRA New Build Programme

To receive and consider for pre-scrutiny the report of the Portfolio Holder for Corporate Governance, Housing and Public Protection.

Minutes:

The Committee received the report of the Portfolio Holder for Corporate Governance, Housing and Public Protection.

 

The target set by Welsh Government is for 20,000 new homes in Wales. The Cabinet has set a target of 250 new homes in Powys by 2023. Welsh Government has created new funding streams to assist development.

 

Question / Comment: What is meant by affordable? Can the terminology be changed or clarified?

Response: This means social housing i.e. housing coming into Powys stock for rent. A low cost housing strategy is to be produced which will clarify the terminology.

 

The Committee noted the sums allocated in the Housing Revenue Account (HRA) and Affordable Housing Grant for Council house building. An Innovative Housing Project Grant would provide £30m across Wales. Other initiatives were also being introduced such as Self Build and Rent to Own, with Self Build being launched in Autumn 2019. The HRA business plan was in the process of being completed, and the Housing Register was being updated. Work was also being undertaken to attempt to identify hidden need for properties. Events were being undertaken with local businesses / developers to encourage businesses to work together.

 

Question / Comment: One bedroom properties have been identified as the greatest need for single young people and single bedroom properties for elderly people. If the new properties being built were single bedroom properties this could release a number of houses for other occupation. How many of the 250 properties will be one bedroom properties?

Response: One bedroom properties are currently the highest need in Powys. The intention is to build 21 single bedroom properties in Newtown. Figures can be provided to Members as to the numbers of types of properties which are being planned.

 

Question / Comment: Over what period is the commitment by Welsh Government to build 20,000 properties and why is Powys only committing to 250 new homes.

Response: This is the current Welsh Government term which ends in 2021. The target of 250 new homes is the County Council’s commitment. However housing associations will also be building new properties in Powys. Only 11 of the stock retaining Councils in Wales are building new properties with some not building at all. Other Councils are also building larger numbers of new properties due to local demand. Whilst Powys may be a quarter of the land mass of Wales it is very rural. The Council is hopeful that the target it has set can be achieved.

 

Question / Comment: It is estimated that by 2023, £35m will have been spent on new properties which is around £140k per property?

Response: This figure per property will also include the cost of purchasing land as not all of the land will be in public ownership. The Cabinet has also decided that the properties developed will be of mixed tenure rather than just social housing.

 

Question / Comment: Is this a change from was stated earlier in the meeting about the types of property?

Response: No, to clarify, there will be social housing built and there will be opportunities on some estates for mixed tenure properties.

 

Question / Comment: The Council needs to be careful about mixing development as some do not work well together e.g. single young persons and single elderly persons properties together.

Response: The type of tenure is being considered on its merits for each site. Housing Management are involved in these discussions.

 

Question / Comment: In view of recent issues with large building companies should there be a different process for delivering houses where the Council brings different people together to build properties? What can the Cabinet do about this to encourage economic development?

Response: It would be for the contracts manager to look at this as it is they who manage the contract.

 

Members question whether this was a role HOWPS should be undertaking on behalf of the Council. It was suggested that what was required was someone to oversee the building of properties to ensure value for money and to provide accountability. Apprenticeships were not working in Powys and there is a need for a strategy where schools guide young people into apprenticeships.

 

Question / Comment: With the timescale for building the new properties this feels like a slow process – will the timescale slip and can this be completed at a reasonable cost?

Response: Building properties can be a slow process with Housing Associations estimating it can take 3 to 4 years for a development to be completed. The Affordable Housing Team has assessed over 180 sites for their suitability. In addition the Council needs to be careful about building too many single bedroom properties for the elderly as there could be support need if a person falls ill. The other consideration is that the cost of building 2 bedroom properties is not much more than building single bedroom properties.

 

The Head of Housing and Community Development was asked to comment on the recent press speculation regarding Jiscourt going into administration, who had been appointed to develop properties for the Council in Newtown. The Committee was advised that the Council had not received formal notification that Jiscourt had gone into administration. However options were being considered so that in the event that formal notification was received the Council could move quickly following notification. Members would receive an update once further information was available.

 

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