To approve the acquisition of a limited number of properties to enable the council to help meet some strategic priorities.

The council faces challenges in finding accommodation to meet the needs of some groups of vulnerable young people. Social housing providers have to prioritise commercial considerations and are unwilling to take the risk of letting homes to certain groups.  Therefore, the council must find alternative accommodation solutions which are economic and sustainable in a limited range of circumstances. These include accommodating care leavers and other young people with complex needs, such as chaotic and high risk lifestyles and self harm.

There are several other priority groups and vulnerable people who have accommodation needs and these might be best met through acquisition of property.  These would require further analysis and business case, as part of governance. Capital funding for housing or accommodation will be used only where the council has significant statutory duties and other means of discharging them have been exhausted. In some instances, investment may also provide economic benefits.

It is proposed to purchase properties from the open market and make appropriate arrangements for housing management, usage of rental income and management of risk. It is envisaged that a modest number of properties of different types and sizes would be acquired over the period to 2022.

That:

(a)        the principle of acquisition of properties to meet the needs of care leavers and other people with complex needs be approved,

(b)        authority be delegated to the director for economy and place, following consultation with relevant cabinet members, the director for children and families and the chief finance officer, to approve acquisition of individual properties including those with a value requiring a key decision, and subject to the usual capital funding approval processes.

1.            Do not acquire properties in order to house care leavers or other young people with high risk, complex needs. This option is not recommended as it would continue the reliance on social housing providers to meet the needs of these small but complex cohorts. Providers’ existing stock will seldom offer accommodation which is of suitable size and location, as this is in high demand through the housing register. In addition, providers will see the specific cohorts of vulnerable people as significantly risky tenants. Therefore, it will continue to be very difficult to find accommodation locally for care leavers with complex needs and chaotic, high risk behaviour. Lack of appropriate accommodation often leads to increased risk to the vulnerable person and others, whilst in some cases to continuation of very expensive specialist placements.

2.            The council provides grant aid to housing providers to source accommodation and underwrites the risk of default. This option is not recommended as providers would still be unlikely to accept the wider risks and complexities arising from accommodating care leavers with high needs and similar groups of vulnerable people. These risks and complexities include self-harm, violent or aggressive behaviour and third party involvement in supporting people. In addition the capital costs to the council of this option might not be significantly lower. This approach has proved viable in addressing other types and levels of need but would not be attractive to housing providers for these user groups.