Agenda item

1.       That the policy as set out in the report to Cabinet and    Appendices A, 1 and 2, be approved

2.      That delegated authority be given to the Corporate Director Housing and Regeneration in consultation with the Corporate Director Finance and Operations and the Assistant Director, Corporate and Contracted Services and the Portfolio Holder Housing and Portfolio Holder Finance and Resources to purchase assets of a value up to £5,000,000 in line with the objectives of this policy.

Decision

1.       That the policy as set out in the report to Cabinet and    Appendices A, 1 and 2, be approved

2.      That delegated authority be given to the Corporate Director Housing and Regeneration in consultation with the Corporate Director Finance and Operations and the Assistant Director, Corporate and Contracted Services and the Portfolio Holder Housing and Portfolio Holder Finance and Resources to purchase assets of a value up to £5,000,000 in line with the objectives of this policy.

Corporate objectives

The Strategic acquisition policy contributes to the following corporate objectives:

Providing good quality affordable homes, in particular for those most in need

Building Strong and vibrant communities

Deputy Monitoring Officer:

Local authorities have wide ranging powers to buy and develop land as set out in various statutes including:-

·         Section 120 Local Government Act 1972 – power to acquire land by agreement for any purposes for which it is authorised.

·         Section 9 Housing Act 1985 – power to erect houses, convert buildings on land acquired or acquire houses in order to provide accommodation.

It is good practice to adopt a policy to which sets out how the above powers are used.

Deputy S.151 Officer:

The authorisation policy and delegated authority as outlined in section 2 and section 3 of Appendix A1, details the requirement for a full cost appraisal and benefit analysis to be undertaken prior to any purchase.

It also details the requirement for officer and member scrutiny of the cost implications prior to approval.

Advice

F Williamson introduced the report. This policy is to supplement the existing development programme and sets out how the council can use other opportunities to purchase properties or land from the open market on a selective basis, similar to the council’s disposal policy. This is in response to opportunities that have arisen recently where developers have been unable to sell all their properties and ask registered providers to take on additional s.106 affordable housing. This policy would be used on an exception basis rather than looking proactively for properties.

Councillor Elliot asked what the main changes in the policy were.

F Williamson said this was a new policy. A combined acquisitions and disposal policy was considered but at the time, new build costs were lower than acquiring property on the open market. Now, there has been an increase in land and build costs.

Councillor Tindall raised the issue of London boroughs purchasing properties in Dacorum.

M Gaynor said they are supposed to inform the council when they do purchase properties in Dacorum.

Councillor Williams queried the £5 million in the recommendation.

F Williamson said this was a limit on any acquisition and is the same delegation as the new build programme. Any acquisition will need to be within the business plan.

J Deane said it makes sense to have delegation in place to respond when required. The budget will need to be approved by Full Council before the portfolio holder signs off the purchase.

Councillor Williams asked about the purchases subject to the business case and the case for social rent.

F Williamson said there would be a viability assessment on social rent and whether the council could deliver a similar property for that value. New build costs are increasing so has greater relevance now.

M Gaynor said on new builds, the affordable housing grant would discount £90k off the sale price. Developers are unlikely to offer this kind of discount so would only acquire properties if it made financial sense.

Recommendations agreed.