The Executive considered the update and asked for policy advice on continuing with the current approach given the changes in the property market.  The advice given was that the current operating environment had changed in both positive and negative ways, the market now offered more opportunities for value but construction costs had increased.  On balance the advice was therefore to maintain the current approach.

It was also noted that the Medium Term Financial Strategy process included reviewing the Capital Strategy so there would be opportunities to make changes if needed.  The Executive were also advised of the need to be flexible and consider opportunities when they arose, for example to take advantage of other parties being interested in Council projects.

The Executive reiterated how ambitious the delivery of the project was and how difficult to deliver but reaffirmed their commitment to it.

RESOLVED:  That the report be noted.

The Lead Member for Housing and Health introduced the report, stating that the Councils housing portfolio had increased to 238 units across the past five years. The next capital programme proposed a further £261.7 million towards achieving the 1000 affordable homes programme, purchasing temporary accommodation units, private rental sector units and the proposed Heathlands Garden Community. The changes to the Council’s staffing structure and the three consultants appointed to support the projects’ delivery were outlined.   

The Lead Member for Housing and Health drew attention to the risks which included increased build costs, inflation, static local housing allowances and rising borrowing costs. It was hoped that there would be opportunities to offset the risks, such as modern construction methods and more realistic land purchase prices.

A grant from Homes England to support affordable housing would be secured, although the Council would still need to provide a subsidy per unit; in January 2022 this was estimated to be £17,600, but this had risen to £50,000 due to increased construction costs. In total £50 million of internal subsidy would need to be provided to deliver the 1000 affordable homes programme, and it was imperative that the Council set side funding annually for that purpose. The programme’s progress was outlined alongside its wide promotion.

In response to the Visiting Member’s statement, the Director of Regeneration and Place reiterated the importance of ensuring that the housing provided was of good quality, irrespective of construction method.  The employer’s agent, Calfordseaden, would be monitoring on-site works to ensure the buildings’ high standards, with the building regulations to be signed-off by the Council’s Building Control Team where possible.  

In response to a question, the Director of Regeneration and Place outlined the parameters of the Council’s choice-based letting system alongside the use of Rural Exception Sites to restrict additional housing to local residents.

RESOLVED: That the report be noted.