Agenda item

The business case to invest £15.4m to purchase approximately 100 houses to let to Gwynedd residents on an affordable rent was approved with every purchase to demonstrate its own financial viability on a case-by-case basis.

It was agreed that the Head of Housing and Property in consultation with the Head of Legal Services and the Head of Finance Department review the statutory arrangements for implementing the Scheme following the publication of revised Government Housing Revenue Account Guidance and report further to Cabinet if additional decisions are needed.

The report was submitted by Cllr Craig ab Iago.  

DECISION

The business case to invest £15.4m to purchase approximately 100 houses to let to Gwynedd residents at an affordable rent was approved with every purchase to demonstrate its own financial viability on a case-by-case basis.

It was agreed that the Head of Housing and Property Department in consultation with the Head of Legal Services and the Head of Finance Department will review the statutory arrangements for implementing the Scheme following the publication of revised Government Housing Revenue Account Guidance and report further to Cabinet if additional decisions are needed. 

DISCUSSION

The report was submitted, noting that Gwynedd was currently in the middle of a housing crisis. It was stated that the Council had been attempting to raise awareness about the problem and had asked both Governments to take action. It was noted that the department was endeavouring to find answers within its ability and to take action. It was highlighted that this scheme was part of the Housing Action Plan and that it was an example of what the department sought to do to assist residents. It was noted that it was a pleasure to submit the scheme as it was a positive and innovative scheme and found ways of housing residents.

The Head of Housing and Property Department added that the scheme was part of the Housing Action Plan.  The purpose of the scheme was highlighted, namely to purchase one hundred houses to renovate and let out to residents. It was noted that the investment in the Housing Action Plan was approximately £77m and the combination of funding sources was noted. It was stated that the Cabinet had highlighted its ambition for the scheme by noting its desire for a loan scheme for this scheme in accordance with a robust business plan. It was noted that the report noted the costs and its funding method and showed that it was a viable scheme. It was explained that risks were being highlighted but that a business case for each individual purchase would reduce the risks, and that the individual purchases would not be made if risks were too high. 

Observations arising from the discussion

¾  Gratitude was expressed for the report and pride was highlighted in turning back the clock to see the Council investing once again in housing for Gwynedd residents. It was asked whether or not there was a difference between housing on the open market and former social housing. It was stated that it was difficult to purchase former social housing and, therefore, there was a need to be operational in getting social housing back within the Council.

¾     The scheme was welcomed and it was enquired whether or not it would be possible to tailor the scheme for specific families. It was noted that there was a need for rented housing within the county and that a range of housing was required for people who needed support but it would obviously have to be prioritised.

¾     It was asked whether or not it would be possible to extend and purchase more than 100 houses should the scheme be a success. It was stated that it would be possible to extend the scheme if it worked easily and that they would come back to the Cabinet to note if there was a case to change the number of housing.

¾     It was emphasised that there was an element of risk to the scheme, but that the Council was currently taking a venturous leap to create an opportunity for Gwynedd residents. If it worked, it was emphasised that it would be possible to borrow more money and to re-visit if it was a success but this would need to be proven over an extended period.