Decision details
Property Acquisitions for Local Authority Housing Fund (LAHF) 2 Officer Decision Notice 12
Decision Maker: Director of Regeneration and Place
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Decision:
The acquisition of the properties listed in
the exempt appendix including the additional expenditure on HM Land
Registry Fees, Stamp Duty Land Tax and associated costs are
approved.
Reasons for the decision:
The Department for Levelling Up, Housing and
Communities (DLUHC) has recognised that Local authorities such as
Wirral, who have welcomed Ukrainian and Afghan arrivals are facing
challenges in securing settled accommodation for these households,
which unless alleviated will further impact on existing housing
pressures.
Local Authority Housing Fund 2 (LAHF2) provides an opportunity for
Local Authorities such as Wirral to use this funding to support
these immediate pressures, as well as build a sustainable stock of
affordable housing for the future.
Wirral Council has been allocated £1.93 million LAHF2 from
DLUHC (£1.53 million grant plus £400,000 top up) for
the rapid acquisition of 20 properties or up to the budget
allocation. Decisions have already been made for the acquisition of
22 properties which took the budget to £3,886,240, however
the construction of two new build properties previously agreed have
not progressed and have been removed from the list. Two alternative
properties have been identified which will bring the total number
back up to 22 and total spend up to £3,896,240 (excluding
associated costs which will also be met from this funding).
Although 22 properties have been previously approved and the
conveyancing process for those has commenced there are various
risks regarding four properties which may result in them not
proceeding to completion. Therefore, it is prudent given the
funding availability to have additional properties within the
programme. If all 22 properties proceed, these additional
properties can still be acquired within the budget and the agreed
MOU with DLUHC. As with the delivery of affordable housing
generally, there is a requirement for Local Authorities to part
fund (60%) of the required capital to purchase these homes,
recognising that they will receive an ongoing long term rental
income from them.
Wirral Council is utilising existing eligible ring fenced grants
from a number of sources to provide the remaining 60% (£2.29
million is 60% with the 40% grant allocated of £1.53 million)
funding needed to deliver this programme, including the use of
income secured through the planning system (commuted sums for
affordable housing), Recycled Affordable Homes Capital Grant
funding from Homes England, Better Care Funding along with existing
income received in relation to refugee resettlement programmes
already being delivered in the borough. There is therefore no
additional requirement for any capital funding from the
Council’s own resources and no cost to the council's capital
borrowing or core budgets.
14 of these properties must be provided to Afghan nationals who
have been given settlement status by the UK and have been living in
bridging hotels but must now move to settled long-term
accommodation. 6 properties must be used as temporary
accommodation, helping to alleviate significant homelessness
pressures in the borough.
Officers from Strategic Housing Services and the Asset Management
Team are working collectively to identify suitable properties to
purchase utilising this funding.
Given the need to progress this scheme within DLUHC’s very
ambitious timescales, the Council had to enter into a Memorandum of
Understanding (MOU) in August 2023 with DLUHC in recognition of its
allocation and the target to progress the acquisition of 20 homes,
or up to the allocated budget to add to its existing small social
housing stock base.
Costs associated with compliance checks and any essential repairs
required to the properties will also be met from this
funding.
Property acquisition details are set out in the attached exempt
appendix. The Appendix is exempt from publication pursuant to
paragraph 3 of the part 1 of Schedule 12 A of the Local Government
Act 1972 (Information relating to the financial or business affairs
of any particular person (including the authority holding that
information) because it contains or refers to information relating
to the financial and business affairs of the Council and the public
interest in maintaining the exemption outweighs the public interest
in disclosure.
Alternative options considered:
The Council could have given this grant
funding to Registered Providers to acquire additional housing stock
in the borough, but the preferred option is to acquire the
properties for Council Ownership so that an income can be generated
in the future from rental income and reduce the burden on housing
subsidy loss for use of bed and breakfast.
The Council already has an existing management agreement in place
with a local Registered Provider of Affordable housing in relation
to its small social housing stock base and these homes can be added
to this agreement without the need to procure a further
partner.
Publication date: 17/04/2024
Date of decision: 17/04/2024
Accompanying Documents:
- Restricted enclosure View reasons restricted