To approve the variation of the LSVT with Herefordshire Housing Limited to waive the council's right to clawback on property disposals to 2020 so as to enable increased housing development consistent with the council's strategic priorities.

The cabinet member for health and wellbeing introduced the report. She highlighted the need to provide appropriate accommodation to allow individuals in need of support to live at home. The proposed variation of the Large Scale Voluntary Transfer Agreement (LSVT) would enable the delivery of around 35 additional homes for supported living.

The community capacity and wellbeing manager summarised the report. Close to 6,000 properties had been transferred from the council to an independent housing provider, Herefordshire Housing Limited (HHL), in 2002. It was sometimes necessary for properties to be disposed of that were uneconomical to maintain, unsuitable for their purpose or difficult to let. The terms of the LSVT required the council to approve any disposals and the associated disposal clawback agreement entitled it to 50% of net capital receipts. The LSVT would expire in 2020 and at that point the council would no longer have any entitlement to capital receipts arising from disposal of properties.

HHL had requested that the council agree to the disposal of up to 20 properties and to waive its clawback entitlement so that the full capital receipt could be reinvested in the development of around 35 housing units, focused on supported housing for vulnerable people. HHL had indicated clearly that if the council was not minded to waive its entitlement then the disposals would be postponed until the agreement had expired. This being the case the council would not realise any capital receipt regardless of the decision made.

A group leader asked whether the council would be likely to take a similar approach on clawback entitlements regarding properties taken on by parish councils. The cabinet member for health and wellbeing stated that the HHL situation was quite unique but any similar proposals would be considered where there was a sound business case.

Resolved that:

a)    a variation of the LSVT with HHL be approved to waive the clawback of capital receipts by the council where up to 20 properties are sold, conditional upon those properties meeting specified criteria for disposal and all net receipts from sales being invested in new social and affordable housing in Herefordshire; and

b)    the director for adults and wellbeing be authorised to determine the criteria and conditions to which the waiver will be subject in allowing disposals.