Agenda item

The Cabinet considered a report of the Corporate Director of Regeneration, Economy and Growth which provided Cabinet with an update on work undertaken to develop a viable council house delivery programme since initial approval was given by Cabinet in October 2020 to deliver 500 council homes by 2026.

The report provided information on how the Council had responded to a number of challenges, including:

·      inflationary pressures in the construction sector;

·      rising interest rates; and

·      the quality and size of some of the allocated sites in Phases 1 and 2, which have presented additional challenges for the delivery of the programme.

The report also provided an updated business case for the delivery of both general needs and bungalow accommodation, provided an updated business plan model and outlined new governance and delivery arrangements. The report sought Cabinet approval for the development of three sites to commence the programme (for copy of report see file of minutes).

Councillor R Bell, Deputy Leader of the Council and Cabinet Portfolio Holder for Finance highlighted that there remained a need for more affordable homes across County Durham. The council house delivery programme would provide a valuable new route of supply of affordable homes in the County.

Homes would be developed to meet general affordable needs for families and couples, helping to tackle homelessness and bring down the cost of temporary accommodation. Bungalows would be built which would meet the needs of older people within communities.

The homes would be owned by the Council and therefore the Council could utilise its stock to provide move on accommodation, which would reduce the reliance on more costly forms of temporary accommodation and provide permanent accommodation for those in need.

Councilor E Scott, Cabinet Portfolio Holder for Economy and Partnerships explained that the council house delivery programme would consist of new development within communities alongside acquisition of properties, including empty homes. In addition to meeting affordable housing needs, the programme would also contribute to creating and maintaining sustainable, mixed and balanced communities.

Alongside the delivery of the council house programme, the Council would continue to work closely with registered providers and other partners to deliver homes to meet housing needs.

Councillor J Shuttleworth asked if sites could be identified in the West of the County.

Councillor Wilkes, Cabinet Portfolio for Neighbourhoods and Climate Change commented that the last time the council built any council houses under a Labour Administration was way back in 2012. Councillor Wilkes recalled he was Councillor for the Electoral Division which included Bearpark at the time where he helped secure new council homes at Taylor Avenue on Colliery Road. Councillor Wilkes recalled meeting one of the residents and seeing how happy that resident and their family were moving into their new home. For a decade after that the Labour run Council did not build a single council home, apart from their unwanted, expensive Headquarters at The Sands, which had been sold for a significant profit to help fund the priorities of residents.

Councillor Wilkes was delighted that the Joint Administration was not only purchasing properties to help with temporary accommodation costs, having already purchased six council homes in Gilesgate from Chapter Homes. It was now rapidly ramping up the building of more brand new council homes.

Councillor Wilkes thanked Cllr Rowlandson and officers for their work on this and fully endorsed the next tranche of housing in three different parts of the County in Burnhope, Spennymoor and Seaham and would look forward to achieving even more in the future.

Resolved:

That the recommendations in the report be agreed.