URL: https://www.southampton.gov.uk/modernGov/ieDecisionDetails.aspx?ID=3560

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To consider the report of the Cabinet Member for Housing seeking approval to spend an already agreed Capital Budget as part of the Homelessness Prevention Transformation Project.

Content: Subject to Council approval on 24 September 2025:   (i)  To approve the additional borrowing of £3,000,000 through the Housing Revenue Account (HRA) Capital Programme for purchasing additional units of emergency accommodation, that once purchased will sit in the HRA. (ii)  To delegate to the Director of Housing following consultation with the Executive Director of Enabling Services, Executive Director of Growth and Prosperity, the Director of Legal and Governance and the Cabinet Member for Housing, to agree and approve the detail of the additional property investment in line with the details set out in this paper. In the Cabinet report dated 25 February 2025 and the Council meeting of 26 February 2025, capital expenditure of £3,000,000 from the General Fund was approved for the purchase of additional emergency accommodation units, aimed at reducing the council’s expenditure on nightly paid accommodation. Following further review from Legal and Finance Teams, it has been determined that funding for these additional units should be sourced from the HRA, as the properties should to be held under the HRA rather than the General Fund to enable appropriate maintenance and management of the properties. Approval of these recommendations will enable officers to initiate the Delegated Decision Notice process for viable opportunities and ensure the acquisition process is carried out efficiently. The properties will generate a rental income for the HRA. If any additional resources are required to administer these properties this will be funded through general fund activity. Option 1 – Do Nothing . If we do nothing, then our spend on emergency accommodation will continue to increase and could exceed that of previous years. Option 2 – Continue to look at alternative options for prevention  Currently we are exploring other options which focus on preventing homelessness which includes working with landlords in the private rented sector, working with households to prevent them from becoming homeless where possible. The prevention work will continue alongside this initiative, alongside the other activity within the Homelessness Transformation Programme. Option 3 – To purchase the properties out of General Fund Capital   Consideration has been given to the option of purchasing the properties with General Fund Capital but this would require an income stream and housing land generally falls under the HRA, where the income from rents is used to manage and maintain the properties. The properties could be appropriated from the General Fund into the HRA, but this would need a formal resolution under the Local Government Act 1985 (section 74). A valuation at the time of appropriation would be required as the HRA must pay the GF for the asset, usually at market value unless the Secretary of State consents to a different approach. It was agreed in principle to add £1.7million to the Emergency Accommodation Acquisitions budget from Revenue Savings subject to a business case demonstrating value for money and approval by Council.

Date of Decision: September 25, 2025