Agenda item

Joint Report of the Assistant Chief Executive and Corporate Director of Regeneration and Economic Development – Area Based Housing Regeneration Manager and Special Housing Projects Manager, Regeneration and Economic Development.

The Chairman introduced Area Based Housing Regeneration Manager, Dianne Hedley and  the Special Housing Projects Manager, David Siddle who were in attendance to update Members on the actions made on the recommendations from the Empty Homes Overview and Scrutiny Review (for copy see file of minutes).

The Area Based Housing Regeneration Manager reminded Members that the Empty Homes Review had been triggered by Members concerns as regards the performance of the Authority in bringing empty homes back into use.  Members noted that in respect of the recommendations made from the review, the Area Based Housing Regeneration Manager and Special Housing Projects Manager would update accordingly.

In respect of recommendation 1, it was explained that after looking at legacy schemes from the former District Authorities pre-Local Government Reorganisation (LGR) they were evaluated and from this the regeneration areas were set out and alongside this, there was the “cluster areas” that would be able to access the HCA and DCC funding for improvements to 120 properties.  Members were reminded of the review of the selective licensing scheme at the Wembley area of Easington which would be presented to Cabinet in November 2013.

The Area Based Housing Regeneration Manager noted that in relation to recommendations 2 and 3, Cabinet had supported the HCA Cluster Bid and subsequent to a poor response from Housing Associations in respect of accessing the funding, 2 new products were developed within the Financial Assistance Policy (FIP), an Interest Free Loan and a small Grant of up to £5,000.  Members noted the FIP was approved and the new products would be marketed within the next few weeks in cluster areas.  Members noted that the HCA were also encouraging other Agencies to access other grants via another programme that could enable a further 120 empty homes to be brought back into use.

The Special Housing Projects Manager explained that 2 research projects had been instigated following recommendation 4 looking at homesteading and a leasing model.  Members noted homesteading would involve a discount to an owner/occupier who committed to 3 years at the property, access to interest free loans and so on.  It was explained that the leasing model was for Registered Social Landlords (RSLs) to take on the management of a property from a private landlord, improve a property, collect rent, with a percentage of rent being paid to the landlord.

Members noted that recommendation 5, to allow for any surplus realised via the move to a new Local Council Tax Support Scheme to be use to target empty properties, was not possible as no surpluses had been identified.  Councillors noted that in relation to recommendation 6, a draft Action Plan dedicated to Empty Homes had been developed and was attached to the agenda papers.

The Area Based Housing Regeneration Manager noted that recommendation 7 had referred to performance targets, and a benchmarking process.  Councillors noted that the performance for this financial year, up to 30 June 2013, was 31 properties being brought back into use.  Councillors noted that in respect of recommendation 8, of invest to save utilising New Homes Bonus (NHB), this had not progressed as following the Government’s Spending Review, this was cross-linked to funding of the Local Enterprise Partnerships (LEPs).

The Chairman thanked the Area Based Housing Regeneration Manager and Special Housing Projects Manager and asked Members for their questions on their report.

The Committee raised questions on: why the previous reduction in the target for empty homes being brought back into use was cut from 70 to 50 and then raised back to 75; further information as regards cluster bid funding, with perhaps a future seminar for Members’ information; figures relating to the use of the Council’s assistance to private sector landlords in tackling empty homes; caution in a return to “Category D” allocations; and the opportunities for job creation and social enterprises in this respect.

The Area Based Housing Regeneration Manager noted that the successful cluster bid had enabled the target for bringing empty properties back into use to be raised, though the number of staff to deliver had remained the same.  It was added that Registered Providers (RPs) had been approached in connection with helping to deliver on the cluster bid, however there had been no expressions of interest from them and that other funding streams did exist that could be used in tackling empty homes, albeit outside of the cluster areas.  The Special Housing Projects Manager noted that the main grant conditions with the cluster bid was that the target was “long term private sector empty homes”, and indeed if RPs wished to participate in the future, the Authority would look at how this could be  made to work.  It was added that the figures relating to the Private Sector Landlord advice line and e-mail contact would be obtained for Members’ information.

Councillor P Stradling referred to the additional funding that had been secured as part of the cluster bid programme and enquired if all RPs had been invited to bid into this funding. Councillor P Stradling noted he knew of a particular RP who might be keen to work with the Council to formulate projects to bring homes up to an improved standard in the Horden area.  The Special Housing Projects Manager stressed that these funds could only be utilised in specifically defined areas where an proportion of the housing stock had been stood empty for longer than 6 months and were geared towards bringing empty properties back into use rather than bringing occupied homes up to the decent homes standard.

The Special Housing Projects Manager explained that cluster areas were not the same as regeneration renewal areas, cluster areas being where 10% of the housing stock or more was empty and funding was available up until March 2014, or with a commitment to spend by the end of 2014, early 2015. 

Members were reminded of the fragile property market in County Durham and that the Housing Renewal Policy did not only reflect empty homes, was not simply wholesale demolitions and that there was constant dialogue and consultation with local communities.  It was added that a Community Land Trust operating at Craghead had been successful and if that could be replicated elsewhere it would be very positive.

Resolved:   

(i)         That the report be noted.

(ii)        That the Economy and Enterprise Overview and Scrutiny Committee receive a further update at the meeting on the 7April 2014 detailing progress made against the recommendations contained in the Scrutiny review report.