To approve the approach to the delivery housing model options available to the council to increase the supply of affordable housing in the County. Cabinet is also requested to approve Phase 2 of this strategic work to develop a pipeline of sites suitable for development as affordable housing to support discussions with key partners including Homes England.

The cabinet member housing, regulatory services and community safety introduced the report. She highlighted a typographical error in page 36 of the report where the funding from the DRP capital budget should have read £91k. The cabinet member noted the impact of a lack of housing availability and choice on the quality of life of residents and that it pushed up housing prices in the county. The report set out a number of options for the council to deliver affordable housing.

In discussion of the report cabinet members noted that:

•                  Option 1 was felt to be the most efficient and met the stated aspiration to retain ownership of the properties delivered, it would also give maximum flexibility going forward;

•                  There was no general housing support to provide specific accommodation types and development of affordable housing through Section 106 agreements was not necessarily meeting need;

•                  The appointment of an independent expert to advise on compatibility with the council’s net zero carbon goals was welcomed;

•                  By developing housing itself the council would have control over the types and standards of housing produced;

•                  It was hoped that communities would get behind this project and welcome development of these types of homes in their areas;

•                  The purchasing of second homes in the county could also be a problem in making it harder for local people to buy houses.

It was agreed at this point that the meeting should continue beyond 3 hours in length in order to properly conclude this item.

Group leaders were invited to present the comments and queries of their group. The need for more affordable homes was acknowledged and it was noted that:

•                  If the government white paper on planning came to fruition it could make the situation worse by reducing provision of affordable housing on smaller sites;

•                  Housing associations were not meeting all the local needs and it was important that the council retain control of the properties it developed;

•                  The council should look to use local firms to work on the developments;

•                  There was concern from one group leader that this proposal would create a debt burden for the council for the long term future and it was suggested that there were other ways to ensure that more affordable homes were provided, including working with other providers;

•                  Cabinet members highlighted the extraordinarily low borrowing rates and felt that it was the ideal time to borrow to invest in the local economy and produce an asset for the council.

The cabinet member housing, regulatory services and community safety noted the points raised and explained that the next report would bring forward details of the first sites. The decision now would agree the principle of development of council owned affordable housing.

It was resolved that:

a)               Having considered the options set out in the paper to deliver up to 2,500 homes in the County over the next 10 years Cabinet agree that:

i.                 the council own the affordable units initially under the General Fund and then establish a HRA; and

b)               approves to spend up to £72k on the development of the housing model chosen in recommendation (a), by developing a full business case;

c)               asks Engie to develop recommendations for proceedable sites to be reviewed at Cabinet in December 2020;

d)               approves to spend up to £71k to develop recommendations for potential sites to be reviewed at Cabinet in January 2021 to agree how to progress affordable housing delivery in Herefordshire; and

e)               an independent expert be appointed within a budget of £20k to advise on ensuring that housing built through this programme is compatible with our commitment to being a net zero carbon council by 2030.