Agenda item

Having complied with the advance written notice requirement in Standing Order 18.1 and the subject requirement in Standing Order 18.2 of the Chichester District Council Constitution the attached motion will be proposed by Cllr Hughes and if duly seconded it will then be discussed at this meeting.

The Chairman invited Mr Hughes to move his motion. Mr Hughes moved his motion which was seconded by Miss Lishman.

 

Mr Hughes then outlined his motion below:

 

It is recommended that the Council notes the following:

 

1.    Home-ownership has fallen to a thirty-year low; the average home now costs 13.5 times the average annual pay packet in Chichester and 1.7 million households nationally pay over a third of their income each month to a private landlord.

 

2.    Building more market-price homes can help lower prices only over the long term, so more supply alone cannot fix the problem or help thousands of families in Chichester District with the housing pressures they face now. The crisis requires action to build genuinely affordable homes at scale, and ensure a better balance in the new homes built.

 

3.    Affordable housing is one of the best investments councils can make: not only does it create a home for a family, and regular rental income for the council as landlord, it reduces housing benefit spending in the more expensive private rented sector too. A recent report by Capital Economics confirmed that a national programme of 100,000 genuinely affordable homes a year “will deliver a sustained structural improvement to public sector finances”.

 

4.    Investing in affordable housing creates jobs and boosts local economies. It’s estimated that every £1 spent on house building generates £2.84 in extra economic activity, and social landlords are also significant local buyers and employers: for every £1 million of housing output, 12 jobs are created.

 

5.    There is a pressing need for urgent additional council, social and affordable housing in the District of Chichester as local residents face spiralling rents and house prices, meaning there is a grave shortage of affordable housing for families in the District, which may increasingly force residents’ children and grandchildren to move away from the area. This is an unacceptable situation which this council has a moral duty to act upon. There are currently 1358 households on the Council’s housing register; there are also currently 42 households in council-owned temporary accommodation and a further 18 households are in non–council-owned temporary accommodation. 

 

6.    Many of the residents on the District’s housing register will be in private rented accommodation, which costs the taxpayer greater amounts in housing support benefits because private rents are extremely high, and temporary accommodation, which means that this council has to spend money that could otherwise be used for other vital council services.

 

7.    This council also notes that there is an additional cost to the Council in the difference between the housing benefit paid and what the council can claim back from government, based on Local Housing Allowance rates: in the last year this was estimated to be around £20K.

 

8.    It is unacceptable for this council to fail to act positively to meet the housing needs this District has, particularly as significant investment in new council housing will in the long term make savings which will relieve the costs to this council in its duties as a local housing authority. 

 

9.    However, the council recognises that reactivating the Housing Revenue Account would be a task needing a considerable amount of work. Therefore, as national law permits councils to build up to 199 council houses without an HRA, the council states the following:

 

It is recommended that the Council resolves to:

 

1.    Change the council’s definition of affordability to that of the formula used for Social rent and Intermediate housing, which is pegged to local incomes.

 

2.    Launch a review of our affordable housing target with a view to increasing the minimum in the Local Plan to 40 per cent.

 

3.    In the medium term, establish a scrutiny panel to examine the viability of setting up a Local Housing Company (LHC) as an independent, arms-length organisation wholly owned by the council and operated on a not-for-profit basis.

 

However, in the meantime, it is recommended that the council resolves to:

 

4.    Commit to building up to 199 Council Houses, available at affordable rent prices, and for rental income to be ring-fenced to reinvest in housing stock.

 

The Chairman invited Mrs Graves to respond as the Cabinet member for Housing. Mrs Graves thanked Mr Hughes for his motion. She acknowledged the difficulties faced by local people trying to secure a home in the district and emphasised that housing is a key priority for the council and the Corporate Plan includes the aim that the council will improve the provision of and access to suitable housing. Mrs Graves drew attention to two key pieces of work underway that address the issues raised, namely, the review of the Local Plan and the preparation of new Housing Strategy. She confirmed that these pieces of work will consider the points raised in the proposed motion. Mrs Graves explained that members also had the opportunity to attend a workshop on 5 September 2019 which considered the viability of the forthcoming Local Plan and also the Housing and Economic Needs Assessment. She confirmed that a pre-Council session is also planned on 26 November 2019 to present the draft new Housing Strategy to all members. The Housing Strategy will then go on to Overview and Scrutiny Committee (OSC), Cabinet and Full Council.

 

Mrs Graves explained that it would be premature for the Council to accept the recommendations as Council will have the opportunity to debate these issues at a future meeting once all the relevant evidence has been provided.

 

Mrs Graves then commented on each recommendation in turn as follows:

 

Recommendation 1: The definition of affordable housing is set down in the National Planning Policy Framework for planning purposes so the Council is unable to change this definition locally.

 

Recommendation 2: The Local Plan review will take into account the evidence received in the Housing and Economic Needs Assessment and Viability assessment when considering what percentage of affordable homes should be delivered on market sites. The new Housing Strategy will also consider what additional affordable homes the Council can enable by working with registered providers and community led housing groups. A new affordable housing delivery target will, therefore, form part of the Housing Strategy under consideration by members in the coming months.

 

Recommendation 3: It is not for the Council to establish scrutiny panels. This is a matter for the Chairman of OSC in consultation with the Committee and the Business Routing Panel. As said, however, the new Housing Strategy will be considered by OSC at its meeting in January 2019.

 

Recommendation 4: This suggestion has been considered in the past and the Housing strategy will consider our options to identify the best way for us to continue to deliver affordable housing. It is not a decision the Council can make today as the Constitution clearly sets down the requirements for expenditure of capital, which include a project initiation document, with an options appraisal, detailed capital estimates, revenue implications and approval by Cabinet.

 

Mrs Graves then proposed a counter motion as follows which was seconded by Mrs Lintill:

 

·         That recommendation 1 of the previous motion is not taken forward as the definition is set down in the NPPF

·         That recommendations 2 and 4 be considered as part of the work being undertaken for the Local Plan review and Housing Strategy update, both of which will come to Full Council in due course.

·         That recommendation 3 is referred to the OSC for their consideration.

 

Mr Moss then proposed a counter motion as follows which was seconded by Mr Brown:

 

 

That Council resolves to:

 

1.    Receive a report by officers at the next DPIP on the possibility of implications of changing the council’s definition of affordability to that of the formula used for social rent and intermediate housing, which is pegged by local incomes.

2.    Request that when the council’s consultants provide members with their final conclusions on their review of possible changes to the affordable housing target (of “at least 30%” and allowing Neighbourhood Plans to include their own Affordable Housing Strategy) members be presented with a range of options which enable us to see the trade offs between changing the target, raising the CIT for investment in vital infrastructure and improving energy efficiency plans i.e. members should be presented with a range of options not simply a single recommendation or even two diametrically opposed options.

3.    Establish a scrutiny panel to examine the medium to long term viability of setting up a Local Housing Company (LHC) as an independent, arms-length organisation wholly owned by the council and operated on a not-for-profit basis.

4.    Write to the Housing Minister to request that councils be given the power to suspend the right to buy at the very least for newly-built council houses.

5.    Receive a report by officers at DPIP on the risks to capital invested in council housing presented by the current right to buy, specifically referencing how other councils are managing this risk and building new council houses.

6.    Review land under council control and/or which has the potential for being brought under council control which could be used for the building of up to 199 council houses. If this option was pursued, these would be made available at affordable (definition as per point one) rent or for part ownership. Rental income to be ring fenced to reinvest in housing stock.

 

Mrs Shepherd addressed each point in turn:

 

·         Point one would be more appropriately directed to OSC.

·         Point two is premature as officers are working on the evidence base and members need to fully understand the consequences prior to making such as decision.

·         Point three would be more appropriately directed to OSC.

·         Point four can remain as is.

·         Point five would be more appropriately directed to the OSC to establish a task and finish group.

·         Point six would be more appropriately directed to an OSC task and finish group.

 

Mrs Rudziak added that affordability clauses could be considered in the Housing Strategy subject to viability.

 

Mr Hughes emphasised the importance of points two and three which could make the lives of residents better. He requested a commitment to agreeing point four.

 

Mr Briscoe drew attention to the resources that are already in place such as Community Land Trusts (CLT) which Mr Hughes acknowledged.

 

Mr Oakley commented that Mrs Graves proposal remained clear and evidence based. He warned of avoiding unintended consequences if the long term viability is not carefully considered.

 

Mr Plowman noted his agreement in principle with building 199 council houses as he acknowledged the lack of an affordable house in Chichester.

Mr Brown acknowledged the need for social housing but emphasised the importance of doing it properly with information required.

 

Mrs Hume supported the motion in principle but emphasised the need for the housing to be genuinely affordable. Mrs Sharp supported Mrs Hume’s comments. She explained that the idea of a CLT relies heavily on volunteers and asked if the council could provide officer time to put into such projects.

 

(Mrs Plant gave her apologies as she left).

 

Mr Hobbs explained that it is important that members have fully thought out the options before making a decision.

 

Mr Dignum proposed a motion to go to the vote which was seconded by Mr Elliott.

 

Mrs Lintill then read out a counter motion which had been seconded by Mrs Taylor as follows:

 

Recommendation 1 of the previous motion is not taken forward as the definition is set down in the NPPF, that recommendations 2 and 4 be considered as part of the work being undertaken for the Local Plan review and Housing Strategy update, both of which will come to Full Council in due course, and that recommendation 3 is referred to the OSC for their consideration and that Council invites OSC to establish a scrutiny panel to examine the medium/long term viability of setting up a local housing company as an independent arms length organisation wholly owned by the council and operated on a not for profit basis. That panel is to receive a report by officers on risks to capital invested in council housing presented by the current right to buy specifically referencing how other councils are managing this risk and building new council houses and that they also review the land under council control and/or which has the potential to be under council control which could be used for the building of up to 199 council houses. If this option is pursued the properties would be made available under affordable rent or part ownership. Rental income to be ring fenced to reinvest in housing stock. The council will also write to the Minister for Housing to request that council’s be given the power to suspend the right to buy at least for the newly built council houses.

 

Mr Moss then withdrew his counter motion.

 

In a show of hands the Council voted in favour.

 

RESOLVED

 

1.   That recommendation one of the previous motion is not taken forward as the definition is set down in the NPPF

2.    That recommendations two and four be considered as part of the work being undertaken for the Local Plan review and Housing Strategy update, both of which will come to Full Council in due course.

3.    That recommendation three is referred to the OSC for their consideration and that Council invites OSC to establish a scrutiny panel to examine the medium/long term viability of setting up a local housing company as an independent arms length organisation wholly owned by the council and operated on a not for profit basis. That panel is to receive a report by officers on risks to capital invested in council housing presented by the current right to buy specifically referencing how other councils are managing this risk and building new council houses and that they also review the land under council control and/or which has the potential to be under council control which could be used for the building of up to 199 council houses. If this option is pursued the properties would be made available under affordable rent or part ownership. Rental income to be ring fenced to reinvest in housing stock.

4.    The council will also write to the Minister for Housing to request that council’s be given the power to suspend the right to buy at least for the newly built council houses.