Agenda item

The first CNHAS plan was endorsed at Cabinet in September 2021, approved by full council in November 2021 and reviewed by both in April and May 2022 respectively.

It has been a significant success to date, in respect of progressing the direct delivery of housing at pace and scale.  The following provides an update and presents some key decisions to continue momentum. 

1.    The report makes 2 recommendations in respect of budget uplift, firstly for the Princess Road scheme due to predominantly, inflationary increases, external funding is also under threat, the numbers are supported by a detailed cost analysis by Kier Construction who have worked on the project for 5 months.  This scheme is mixed tenure including affordable housing, private rent and a family hostel.  It generates income for the Council in the medium and longer term and will provide cost avoidance from bed and breakfast provision for the council too. Approval to progress this quarter is sought but other options are presented also.

2.    The second is in respect of the housing unit profile of the 250 street acquisitions (known as Programme 4a within CNHAS). This has matured since inception to reflect the diverse needs across BCP – particularly temporary accommodation types - several larger family homes are now needed – see item 4.2 below.

3.    Specific private rented sector (PRS) opportunities have also evolved - which are ‘income generation ready’ and deliver rent this year!  These mitigate the extra budget demands of those larger family homes in homeless accommodation and make the additional overall acquisition investment of the better in the long term. Approval of some block purchases both newbuild and remodelled existing buildings to be integrated into programme 4a, is also requested.

In order to secure Homes England capital grants, we should approve the execution of the AHP 21 - 26 Grant Agreement (LA)

The Portfolio Holder for Development, Growth and Regeneration presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'D' to these Minutes in the Minute Book.

Cabinet was advised that the first CNHAS plan was endorsed at Cabinet in September 2021, approved by full council in November 2021 and reviewed by both in April and May 2022 respectively.

In relation to this Cabinet was advised that it has been a significant success to date in respect of progressing the direct delivery of housing at pace and scale, and that the report provides an update and presents some key decisions to continue momentum.

Cabinet was informed that the report makes 2 recommendations in respect of budget uplift;

• firstly for the Princess Road scheme due to predominantly inflationary increases, external funding is also under threat, the numbers are supported by a detailed cost analysis by Kier Construction who have worked on the project for 5 months, and that this scheme is mixed tenure including affordable housing, private rent and a family hostel, and that it generates income for the Council in the medium and longer term and will provide cost avoidance from bed and breakfast provision for the council too, in relation to this Cabinet was informed that approval to progress this quarter is sought but other options are presented also.
• second is in respect of the housing unit profile of the 250 street acquisitions (known as Programme 4a within CNHAS). This has matured since inception to reflect the diverse needs across BCP – particularly temporary accommodation types – several larger family homes are now needed – see item 4.2 below.

Cabinet was advised that specific private rented sector (PRS) opportunities have also evolved - which are ‘income generation ready’ and deliver rent this year, and that these mitigate the extra budget demands of those larger family homes in homeless accommodation and make the additional overall acquisition investment of the better in the long term, and that approval of some block purchases both newbuild and remodelled existing buildings to be integrated into programme 4a, is also requested.

In addition, Cabinet was informed that in order to secure Homes England capital grants, approval should be given of the execution of the AHP 21 - 26 Grant Agreement (LA).

RECOMMENDED that Council approves: -

a)              The increase to acquisition Programmes 4a’s (street acquisitions) budget previously approved by Council in February 2022 from £47.9 million to £68.8 million, subject to confirmation by the Council’s Chief Finance Officer in advance of committing sums contractually, that appropriate capital funding has been identified and approved and that the investment demonstrates robust value for money and there is certainty that the investment is an improvement on the current budget’s financial performance. 

b)             The expansion/amendment of the types of building and housing units within them that can be purchased through Programme 4a to include - where part of regeneration and/or permitted development activity: -

                    (i)           Newbuild residential units, both as individual acquisitions      and;

                   (ii)           Block purchases of multiple units whose total costs exceed £1m but are delivered within the budgetary constraints of programme 4a and have the average individual new unit total scheme cost below £0.5m each.

(a)            Delegation to the Chief Operations Officer, in consultation with Director of Finance, Director of Housing, Monitoring Officer and Portfolio Holders for People & Homes & Development, Growth and Regeneration the approval through an Officer Decision Record process of any purchase of a Block of housing units in b)ii

(b)           Delegation to the Chief Executive to agree a process for securing an independent assessment of value for money relating to any acquisitions where Council officers or elected members have an interest. Refer 10.3 for further explanation.

(c)            BCP Council execute the Homes England Agreement entitled Bournemouth, Christchurch and Poole Council (5069) - AHP 21 - 26 Grant Agreement (LA).

(d)           Option 1 be agreed as the appropriate option for the Princess Road development as detailed in the report attached as Confidential Annex 1.

Voting: Unanimous

Portfolio Holder: Development, Growth and Regeneration

Councillors M Greene and N Greene declared pecuniary interests in this item and left the meeting for the discussion and voting thereon.