Agenda item

Report of the Director of Community and Children’s Services.

Members considered a report of the Director of Community and Children’s Services in respect of sales and lettings policies for new housing developments.  Members noted that the Housing Management and Almshouses Sub Committee had considered this report in some detail at their last meeting, on 20^th November 2019, and the questions raised and their responses had been circulated ahead of today’s meeting. 

Whilst noting that detail on equity was still to be finalised, Members agreed to amend the recommendation as set out in (2) below.  In response to a question about eligibility to vote in a residents’ ballot, Members noted that the eligibility criteria was captured by the GLA’s funding conditions. These provide that; “any resident whose principal home is on the estate and who has been on the local authority’s housing register for at least one year prior to the date the Landlord Offer is published, irrespective of their current tenure, is eligible to vote in the ballot”. 

RESOLVED, that –

In respect of Leaseholders:

1.    Long leaseholders who occupy their flat as their only or principal home and who wish to remain on the estate will, if their existing flat is subject to demolition, be offered a new flat on a shared-equity basis.  NB If, however, they are able and wish to purchase 100% of the equity, then they will be able to do so.

2.    Any long leaseholder taking up a shared-equity offer will be expected to invest funds from the purchase of their old property and a proportion of any Home Loss payment (plus a potential voluntary contribution from savings). Any value gap will be met by the City Corporation retaining an equity share in the property. Any value gap will be met either directly by the City or indirectly through a funding partner.

3.    The shared-equity terms will not require the leaseholder to pay rental on the equity that they do not own but they will be liable for 100% of the service charge.

4.    The shared-equity opportunity will not be available to long leaseholders who do not occupy their flat as their only or principal home. Instead, they will be offered market value plus compensation if, their flat is subject to demolition as part of the new development.

In respect of Secure Tenants:

5.    Secure tenants must be offered alternative accommodation and if, in line with the previously adopted Local Lettings Plan, their flat is subject to demolition, they will be offered a new flat within the new development and will only need to move once.

In respect of Windsor House:

6.    The Long Leaseholder policy proposed above to be communicated to long leaseholders in an information bulletin.

7.    Long Leaseholders to be asked to register interest in the shared-equity opportunity, so that an assessment of likely project viability can be undertaken.