URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2647

Decision Maker: Executive Mayor

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: This report seeks the Executive Mayor’s approval to proceed with the Ex-Right to Buy (RTB) and Street Property acquisitions programme and to delegate authority to the Corporate Director of Housing to approve Ex-Right to Buy (RTB) and Street Property acquisitions up to a value of £1,000,000.   The Ex-Right to Buy and Street Property Acquisitions Programme is a three year programme commencing in 2024. Its objective is to acquire a minimum of 300 properties (2, 3 and 4+ bedroom homes) across the London Borough of Croydon between 2024 and 2027. This provides an estimated cost saving of £351,000 for tax year 2056 -2026, as a result of acquiring the properties the service is able to move people out of nightly paid into secure tenancies resulting in the cost saving in the housing General Fund.   The additional supply of homes will support the Council in delivering its corporate priorities by: Increasing the supply of temporary accommodation; Providing decant properties for Regina Road tenants; Providing replacement homes for tenants occupying the Croylease (PRS) scheme

Content: This report seeks the Executive Mayor’s approval to proceed with the Ex-Right to Buy (RTB) and Street Property acquisitions programme and to delegate authority to the Corporate Director of Housing to approve Ex-Right to Buy (RTB) and Street Property acquisitions up to a value of £1,000,000.   The Ex-Right to Buy and Street Property Acquisitions Programme is a three year programme commencing in 2024. Its objective is to acquire a minimum of 300 properties (2, 3 and 4+ bedroom homes) across the London Borough of Croydon between 2024 and 2027. This provides an estimated cost saving of £351,000 for tax year 2056 -2026, as a result of acquiring the properties the service is able to move people out of nightly paid into secure tenancies resulting in the cost saving in the housing General Fund.   The additional supply of homes will support the Council in delivering its corporate priorities by: Increasing the supply of temporary accommodation; Providing decant properties for Regina Road tenants; Providing replacement homes for tenants occupying the Croylease (PRS) scheme For the reasons set out in the report and its appendices, the Executive Mayor AGREED to:   2.1 Approve continuing with the Ex-Right to Buy and Street Property Acquisitions Programme.   2.2 Delegate authority to the Corporate Director of Housing, to approve any Right to Buy Buy-Back acquisition or transaction up to a financial threshold of £1,000,000.   2.3 Notes that the exercise of the delegations at recommendations 2.2 and 2.3 above are subject to:   -       Approved capital budgets and funding envelopes -       Valuations and appropriate due diligence -       Consultation with the Head of Finance for transactions at or below £1,000,000. -       Consultation with the S151 Officer for transactions at or above £1,000,000. -       The Executive Mayor retaining ultimate decision-making authority for any acquisition or transaction exceeding £1,000,000. The Council’s financial stabilisation plan for Housing general fund requires temporary accommodation to deliver £3,943,000 in-year savings to deliver an underspend against budget and to deliver a permanent base budget reduction of £3,943,000 in 2026-27 financial year. The Ex-Right to Buy and Street Property Acquisitions Programme contributes to this saving of circa £351,000 annually, by reducing reliance on costly temporary accommodation. The delegation framework is critical to maintain continuity and momentum, ensuring these savings are achieved.   Delays risk:   Missed property acquisition opportunities Failure to meet statutory deadlines (e.g., Right of First Refusal) Reduced delivery of planned financial savings   Delegating authority for acquisitions enables swift operational decision making within approved budgets and acquisition criteria, while maintaining clear accountability. This is particularly important due to the nature of the property market.   The Ex-Right to Buy Buy-Back and Street Property Acquisitions Programme operates in a fast-moving housing market where opportunities are time-limited and, in some cases, subject to statutory completion deadlines, including the eightweek requirement under section 156B of the Housing Act 1985 (Right of First Refusal).   The current approval process creates risks of delay, missed acquisition opportunities, statutory non-compliance and reduced value for money. The proposed delegation framework mitigates these risks by enabling proportionate and timely decision-making. This, in turn, supports the Council’s ability to realise savings earlier.   All delegated decisions will operate within the approved capital programme and funding envelopes, with appropriate due diligence housing and regeneration objectives. Retaining the current approval process, where acquisitions above £500,000 require Executive Mayor approval, has been considered. This approach has proven resource-intensive and has introduced delays due to weekly approval cycles and the time required for Forward Plan scheduling. These arrangements are not well suited to time-sensitive property acquisitions and increase the risk of missed opportunities and statutory non-compliance. This, in turn, impacts the Council’s ability to achieve savings earlier.

Date of Decision: February 4, 2026