URL: https://stroud.moderngov.co.uk/ieDecisionDetails.aspx?ID=300

Decision Maker: Council, Housing Committee

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose: To update committee on the successful use of the current budget and propose an increased budget.

Content: In the absence of the Housing Committee Chair, Councillor Luff, the Vice Chair of Housing Committee, Councillor Schoemaker, introduced the report and highlighted the following key points: The report sought approval for an additional £10m to be added to the Acquisition of Housing Capital budget, bringing the total available for the current financial year to £15m, to acquire new affordable homes under the Housing Revenue Account. £3m had previously been approved in early 2025, however an £5m had already been committed due to a quick succession of offers from developers wanting to sell S106 properties. Paragraph 2.3 of the report detailed the acquisition of 30 homes. There was a window of opportunity for the Council to acquire further S106 properties, as other Registered Providers were not bidding, which would help ensure the properties were retained as affordable homes. It was important to have sufficient budget available to submit offers quickly to secure S106 homes when available. S106 homes represented good value for money, being offered at a discounted rate by developers and would increase the Councils Housing stock. The Council could not control the specification of properties which were generally gas-fuelled and achieved an Energy Performance Certificate (EPC) rating of ‘B’. Funding would be provided through further borrowing and capital receipts from the sale of shared ownership properties on the sites. A financial appraisal had been undertaken to ensure the full borrowing amount could be supported by future rent income, with no long-term impact on existing tenants.   The following responses were provided to Members questions: The breakdown between borrowing and capital receipts was not known at the current time due to a variation of shared ownership percentages, however a response would be provided to Councillor Green outside of the meeting. In response to Councillor Robert Brown, it was confirmed that external borrowing would be assessed at the point of making a purchase. The Council would consider the total amount that could be spent, and the Treasury Management process would then determine whether cash reserves or an external loan would be required. In response to Councillor Cook’s questions, new unitary authorities would be keen for programs of social housing as it was a priority of the current government which would give Stroud an advantage. Whilst Government had powers to freeze assets, this would only be under certain circumstances and the Council needed to consider its responsibilities to carry their assets through LGR and deliver for communities. The total number of ex-Council homes being bought back by the Council would be shared with Councillor Robinson outside of the meeting. It was acknowledged that social housing was difficult to achieve due to high interest rates compared to affordable housing. A response would be provided to Councillor Hughes regarding whether S106 properties could be offered at social rent outside of the meeting. The report under consideration related specifically to the acquisition of S106 properties and not other property types. It was not possible to confirm definitively whether the tenure of properties could be changed as properties were assessed on their quality, the need in local area and waiting lists. The viability of schemes were dependant on developers receiving a percentage of financing.   Proposed by Councillor Schoemaker and seconded by Councillor Cook.   Councillors Green, Simkiss, Cook and Braun made comments in support of the proposal.   Councillor Schoemaker stated he was pleased to see the report and commented that the properties would create more harmonious, hopeful and trusting environments. He advised that 60% of the homes were 1-2 bedroom properties which were in demand on the Housing waiting list.   On being put to the vote, the Motion was carried unanimously.     RESOLVED That an additional £10million be added to the Council’s Capital Programme for the HRA's 'Acquisitions of Housing' capital budget for 2025/26.  

Date of Decision: July 17, 2025