Agenda item
Annual Review of Beach Huts and Chalets
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Executive Summary |
This report provides an annual review of the Beach Huts and Chalets service, for a 12-month period between 2023/24 and 24024/25.
Leased sites, which continue to have high demand, have seen an increase in income due to the 350 lease renewals undertaken during the year.
It continues, to be a challenging period for weekly let bookings during summer peak periods. In recent years occupancy has increase, however this year has seen a small fall in occupancy. Whilst advertising has been undertaken, the lack of bookings may be due to current economic situation (cost of living crisis) impacting on discretionary spend across a wide range of sectors, poor weather conditions and coastal works.
A new customer feedback exercise, this year, has found a high level of weekly let customers are repeat customers and in the main, their feedback is very positive and helpful.
In order to optimise the service, 7 key options ranging from a change of marketing and administration alongside various alternative management strategies have been considered and presented in this report.
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Options considered
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The following options have been considered: · Convert existing weekly lets to leased units · Subscribing to a national beach hut letting website and booking system · Subscribing to an international holiday accommodation booking system · Converting weekly lets to leased sites · Lease all weekly lets on a commercial basis · Lease of both weekly lets and leased units commercially · Sell beach huts and chalets on a long leasehold with annual ground rent. · Operating through a trading company
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Consultation(s) |
None
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Recommendations
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It is recommended:
• To consider the annual review and,
• For the Asset Strategy Manager to be delegated authority to proceed with the alternative management Option E - Lease of both weekly lets and leased units to one commercial operator or create 4 smaller location-based opportunities, subject to viable bids being received. |
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Reasons for recommendations
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Considered to be the most optimal of all options available, with less disruption to existing tenants, creates the most savings, generates a consistent rental income and improves capacity issues with existing resources.
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Background papers
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Beach Hut and Chalet Review 2018 |
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Wards affected |
Cromer, Mundesley, Overstrand, Sheringham |
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Cabinet member(s) |
Cllr Lucy Shires. Portfolio Holder for Finance, Estates & Property Services |
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Contact Officer |
Renata Garfoot, Asset Strategy Manager tel: 01263 516086. Email. Renata.Garfoot@north-norfolk.gov.uk |
Decision:
The 33 existing weekly lets be converted into leased (5 year) units, with delegated authority given to the Asset Strategy Manager in consultation with the Portfolio Holder for Finance, Estates & Property Services, to consider market demands for weekly lets in future when voids arise and act accordingly.
Minutes:
a. Cllr L Shires thanked the Overview and Scrutiny Committee for their comments and cross-party contributions. She noted the recommendation from the Committee that half of the weekly let units be transferred to longer leases, with a review of whether the remaining units should also be transferred for longer lets. The Committee and Cllr L Shires considered that more information would have been beneficial to provide a clear steer. Cllr L Shires was uncertain how the 14% figure for the increase of lets had been determined and confirmed that the estates team were reviewing charges for lets.
Following comments from the Overview and Scrutiny Committee, and discussions with the Estates Team, Cllr L Shires proposed a bolder course of action given the known demand for longer-term lets and recommended that all 33 short-term leases be converted into long-term leases. She noted frustration from some local residents about the length of time they had been on the waiting list and considered that the revenue provided by the short-term lets did not justify the level of officer time or resources.
She confirmed she would speak with the Estates Manager regarding the increased charge for new lets.
Cllr L Shires noted that circumstances may change in the future with respect to weekly let demand and reflected that it would be beneficial for Officers to be able to consider the matter and respond accordingly.
b. The Chairman agreed that a flexible approach was required to allow Officers delegated authority, in consultation with the Portfolio Holder, to respond and react to changes in demand.
c. Cllr J Toye asked whether, when allocating beach huts, weight could be given to North Norfolk residents.
d. Cllr L Shires clarified that the wait time figures were somewhat erroneous, as some on the waiting list had very specific requests for a certain town or plot. It was not the case that those on the waiting list always lacked the opportunity to have a beach hut.
e. Cllr L Withington welcomed the approach suggested. She considered the weekly lets involved a greater level of resourcing compared to the revenue provided. She agreed with Cllr J Toye that a local priority should be introduced.
f. Cllr H Blathwayt considered the Beach Huts offered fantastic value for money for the occupiers.
g. Cllr W Fredericks expressed her support for the recommendation and noted usage figures detailed in the officer’s report, reflecting the lack of use in April and May 2024.
h. Cllr L Shires asked if the new lets should be limited to North Norfolk residents only. She advised that the majority of those on the list already lived in the district.
i. The Chairman suggested the allocation system should not be reviewed at this time but could be reviewed in the future.
Cllr L Shires proposed, and Cllr J Toye seconded.
RESOLVED
The 33 existing weekly lets be converted into leased (5 year) units, with delegated authority given to the Asset Strategy Manager in consultation with the Portfolio Holder for Finance, Estates & Property Services, to consider market demands for weekly lets in future when voids arise and act accordingly.
Supporting documents:
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