Agenda item

Report of the Executive Director, Community & Children’s Services.

The Committee received a report of the Executive Director, Community & Children’s Services concerning the financial challenge of the 10-year housing investment programme.

Officers emphasised the importance of the Housing Investment Programme, clarifying that it applies to all estates under the City’s landlord responsibilities—not just individual ones. A Member raised concerns about potential confusion among residents regarding service charges, and it was stressed that the programme is not about new homes but rather investment in existing social housing stock.

It was noted that the programme outlines a 10-year investment plan, based on current estimates and indexed projections. However, it was discussed that the figures are not based on fully developed or tendered projects, and therefore subject to change. Contingency has been included, but Members were cautioned about the limitations of forecasting costs over such a long period.

Attention was drawn to paragraphs 18 and 19 of the report, which propose the creation of a governance group—referred to as a transition or advisory board—for the Golden Lane Estate. This group would mirror the successful steering group model used at Middlesex Street, which improved collaboration between officers, members, and residents. Members supported the proposal, recognising the value of resident input and engagement.

The discussion acknowledged the historical neglect of social housing by the Corporation and celebrated the progress made in prioritising housing investment. Despite this, a funding gap of £84 million remains, and Members discussed the constraints on using Housing Revenue Account (HRA) funds. Suggestions were made to explore the use of climate budget allocations, although this would require adjustments to current strategy timelines.

Concerns were raised about cost escalation, referencing the Black Raven Court project where costs more than doubled. Officers responded by detailing efforts to improve cost accuracy through early contractor engagement, sample surveys, and market analysis. Nonetheless, they reiterated that final costs would only be confirmed upon receipt of tenders.

Leaseholder recharges were discussed, with an estimated £47 million over ten years—averaging £52,000 per property. Clarification was sought on whether this figure assumes full leaseholder contribution or accounts for landlord responsibilities. Officers confirmed that the estimate is conservative and that further legal review of lease terms is underway.

Staffing costs were also addressed, with a projected £1.5 million increase to support the programme. Recruitment is not yet underway, but the figure reflects anticipated needs across compliance and delivery. The plan includes front-loading resources and tapering off through efficiencies and technology, aiming to create a sustainable HRA model for the next 30 years.

The Committee reaffirmed its support for the governance group proposal and acknowledged the need for accurate figures and inclusive planning to ensure the success of the Housing Investment Programme.

RESOLVED – That, the report be noted.