Issue - meetings

To consider a report of the Executive Councillor (Communities & Housing)

This report outlines the work associated with creating a new housing delivery company for Stockport; the provision of additional funding for new affordable homes, and development of a programme of Council-owned sites for potential redevelopment.

The ambition of the Council is to increase the supply of new affordable housing across the Borough in a challenging environment of reduced availability of Government funding; constraints on viability of sites; and a shortage of suitable land for development.

The Executive is recommended to:-

·         support the creation of the Stockport Housing Commission as outlined in the report;

·         authorise the Corporate Director of Place Management and Regeneration, in consultation with the Executive Councillor (Communities and Housing) to work with Stockport Homes to establish a new Council owned development company that is capable of delivering the Council’s housing aspirations;

·         support the provision of a rolling loan facility to Stockport Homes totalling £77m (providing a total Council investment of circa £109m up to 2020/21 including the repayment of circa £32m relating to shared ownership properties), with any loan finance being provided for market sale or rent meeting state aid requirements;

·         delegate authority for preparation and agreement of individual loan agreements on a scheme by scheme basis to the Borough Treasurer in consultation with the Executive Councillor (Reform and Governance);

·         support the undertaking of further work to look at ways in which the Housing Company model can be further refined to address the challenges set out in the report in relation to Right to Buy and Right to Acquire;

·         authorise the Head of Legal and Democratic Services to take all steps and do all things to give effect to the above resolutions including the consent on behalf of the Council to the establishment of a subsidiary company of Stockport Homes, if required;

·         support further work towards unlocking brownfield sites and accelerating development on priority sites across the Borough.

Officer contact: Andy Kippax, 0161 474 4319, andy.kippax@stockport.gov.uk

The Executive Councillor (Communities & Housing) submitted a report (copies of which had been circulated) inviting the Executive to consider proposals to create a new housing delivery company for Stockport, including the provision of additional funding for new affordable homes, and development of a programme of bringing forward Council-owned sites for potential redevelopment. The proposed company would operate in conjunction with Stockport Homes to increase the availability of rental properties in Stockport.

Executive councillors welcomed the proposals and emphasised the opportunities to use local labour and provide skilled apprenticeships.

RESOLVED – That

·         the creation of the Stockport Housing Commission as outlined in the report be approved;

·         the Corporate Director of Place Management and Regeneration, in consultation with the Executive Councillor (Communities and Housing) be authorised to work with Stockport Homes to establish a new Council owned development company that was capable of delivering the Council’s housing aspirations;

·         support be given to the provision of a rolling loan facility to Stockport Homes totalling £77m (providing a total Council investment of circa £109m up to 2020/21 including the repayment of circa £32m relating to shared ownership properties), with any loan finance being provided for market sale or rent meeting state aid requirements;

·         authority for preparation and agreement of individual loan agreements on a scheme by scheme basis be delegated to the Borough Treasurer in consultation with the Executive Councillor (Reform and Governance);

·         the undertaking of further work to look at ways in which the Housing Company model can be further refined to address the challenges set out in the report in relation to Right to Buy and Right to Acquire be supported;

·         the Head of Legal and Democratic Services be authorised to take all steps and do all things necessary to give effect to the above resolutions including the consent on behalf of the Council to the establishment of a subsidiary company of Stockport Homes, if required;

·         support be given to further work towards unlocking brownfield sites and accelerating development on priority sites across the Borough.

To consider a report of the Corporate Director for Place Management & Regeneration.

The report details a proposal for the creation of a council owned Housing Delivery Company through Stockport Homes to meet the current housing challenge in Stockport and providing employment and training opportunities for local people. 

The Scrutiny Committee is recommended to comment on and note the report.

Officer contact: Andy Kippax on 0161 474 4319 or email: andy.kippax@stockport.gov.uk

The Corporate Director for Place Management & Regeneration submitted a report (copies of which had been circulated) detailing a proposal for the creation of a council owned Housing Delivery Company through Stockport Homes to meet the current housing challenge in Stockport and providing employment and training opportunities for local people.

The Executive Councillor for Communities & Housing (Councillor Sheila Bailey) attended the meeting to respond to councillors’ questions. The following comments were made/ issues raised:-

·         The Scrutiny Committee noted the shortage of affordable housing in the borough and welcomed the proposals.

·         It was noted that officers were exploring how to limit ‘Right to Buy’ in relation to the proposals.

·         The Scrutiny Committee noted the potential risks involved within the proposals and the steps being taken to mitigate this.

·         Members requested that the new company’s full statement of accounts be made available to all councillors and submitted to this Scrutiny Committee as well as financial information being included within the quarterly performance reports.

·         A report would be submitted to the Scrutiny Committee in due course in relation to the proposed governance and management arrangements of the new company.

·         The intention to use local labour wherever possible was welcomed.

RESOLVED – That the report be noted.

To consider a report of the Corporate Director for Place Management & Regeneration.

The report details a proposal for the creation of a council owned Housing Delivery Company through Stockport Homes to meet the current housing challenge in Stockport and providing employment and training opportunities for local people.  

The Scrutiny Committee is recommended to comment on and note the report.

Officer contact: Andy Kippax on 0161 474 4319 or email: andy.kippax@stockport.gov.uk

The Corporate Director for Place Management & Regeneration submitted a report (copies of which had been circulated) detailing a proposal for the creation of a council owned Housing Delivery Company through Stockport Homes to meet the current housing challenge in Stockport and providing employment and training opportunities for local people.

The Executive Councillor for Communities & Housing (Councillor Sheila Bailey) also attended the meeting to answer councillors’ questions.

The following comments were made/ issues raised:-

·         Consideration was being given to possible mechanisms that could be put in place to prevent properties built by the housing delivery company from subsequently being sold under the Right to Buy scheme.

·         The initial development target was relatively modest, however Council owned land was being used initially as a means of expediting development.

·         The use of a rolling loan facility and a strict assessment of each scheme against viability and feasibility meant that the risk to the Council was minimised.

RESOLVED – That the report be noted and that the Executive be recommended to give approval to the recommendations contained within the report.