Agenda item

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)

Contact Officer, telephone number and email: Contact Officer: Nicky Debbage/Graham Connolly, Housing Strategy & Delivery Manager, tel: 01263 516027/516282

Cllr E Seward – Deputy Leader introduced the report and stated that there were significant underlying issues with the housing market, and whilst the Council could not resolve these issues, the use of reserves aimed to plug as many gaps as possible. He added that the report did not cover S106 funding for affordable housing, which would be addressed in the months ahead. Cllr E Seward referred to the Energy Officer post, and noted that similar posts had been highly successful at neighbouring authorities. It was noted that funding would also be used to increase the Council’s temporary housing stock, which would both save money and provide stability to residents in need. Cllr E Seward reported that the next proposal was a rent guarantee scheme, which would enable residents on low incomes the ability to rent privately. Finally, the shared ownership scheme would convert properties to affordable rent, which would assist ten to twelve families in meeting their housing needs.

Questions and Discussion

       i.          The Chairman referred to the contributions made by the private rental sector, and noted that there appeared to be a significant migration of properties from this sector into second homes and holiday lets. He asked whether the Council understood what was happening in the private rental sector, and whether it was in a position to try to prevent these changes, rather than treating the symptoms. Cllr E Seward replied that the changes to the private rental sector appeared evident and had emerged in-part as a result of the pandemic. He added that once more was known about these changes, measures could be put in place to address the issue. The HSDM stated that the private rental sector was an important gap filler between those who could afford to buy and those who were in greater need of affordable housing. She added that the private rental sector in North Norfolk remained small compared with other parts of the Country, and was further exacerbated by property prices and the prevalence of second and holiday homes. It was noted that demographics also played a role in the limited number of private rental properties available, as older residents did not tend to live in privately rented properties. The HSDM stated that whilst the private rental sector was small, it was still an important part of the housing mix for the District, and efforts had to be made to work with private landlords to retain as much of this housing as possible. She added that ultimately the private rental sector was determined by income, and many landlords could earn more from holiday lets, or by selling their property, which was very difficult for the Council to address. It was stated that anecdotally, the increases in second and holiday homes appeared to be at the expense of private sector rental properties, though Census information would be required to confirm this.

      ii.          The Chairman asked whether private landlords were known to the Council and to what extent the Council communicated with them to help maintain the supply of housing. The HSDM replied that the Council had a reasonable understanding of private landlords across the District, with most being single property owners as opposed to commercial businesses. She added that the Council maintained a working relationship with the Eastern Landlords Association, who supported private landlords. It was suggested that more could be done to support smaller private landlords, and that this could help to address further loss of private rental properties.

     iii.          Cllr L Withington referred to the preventative approach taken in the Peoples Services restructure, and suggested that this ethos must be taken across the Council. She added that there was more that could be done to support landlords, but it was crucial to invest in these services as residents with complex needs were often forced to rely on private rental accommodation. It was suggested that the rent guarantee scheme was a key example of how the Council could help, but there was still more that could be done.

    iv.          Cllr H Blathwayt stated that waiting for evidence to reveal changes to the housing market would limit the Council’s ability to get ahead of the curve in rental property decline. He asked whether there was any anecdotal evidence of commercial properties being converted to residential, and whether it would be private or social housing. The HSDM replied that the Council did not have any evidence of commercial property being converted for residential use, though this was happening at scale elsewhere in the Country. She added that this had been given consideration as part of the NWHSHAZ project, though it was in its early stages and would be difficult to deliver.

      v.          Cllr A Brown referred to comments on the nature of the housing market, and suggested that the need for social housing was driven by a lack of security for private sector tenants and Section 21 notices that allowed landlords to evict tenants at short notice. He added that more work was required at a national level to ensure greater security for tenants in the private sector.

    vi.          Cllr C Cushing suggested that it could be worth working with local estate agents to better understand the private rental market. He added that he did see value in both the Energy Officer post and shared ownership to affordable rent scheme.

   vii.          Cllr E Spagnola provided an example of how the private sector rental market was increasingly difficult to access for residents on low incomes, and stated that she fully support the proposals.

  viii.          Cllr J Rest asked whether the rent guarantee scheme would be classed as an income for applicants, and whether this would effect any benefits received. He added that he felt conversion from shared ownership to affordable rent was not the right approach, as it would be more beneficial to help residents purchase property. The HSDM replied that the rent guarantee scheme would not be classed as an income, as the Council would only provide funding in situations where tenants were unable to pay their rent. On the shared ownership to affordable rent scheme, she added that shared ownership was not a realistic option for all residents, so a small number of conversions to affordable rent would increase the options available.

    ix.          Cllr E Seward referred to comments on commercial property conversion in North Walsham and confirmed that some properties would be converted as the NWHSHAZ project progressed.

      x.          The Chairman suggested that a further recommendation could be included to consider what more could be done to work with private landlords to retain and promote the supply of private sector housing. The ADPS replied that this was being actively considered by officers, and would be taken further as a result of the People Services restructure. The Chairman’s suggested recommendation was proposed by Cllr H Blathwayt and Cllr A Brown, alongside the substantive recommendations proposed by Cllr E Spagnola and Cllr A Brown.

RESOLVED

1.     The Committee supports the recommended uses of the £2.516m of housing reserves to fund the continuation of posts and restructure of Peoples Services, continuation of community-led housing activity and an energy officer role (as set out in paragraphs 2.1 – 2.11)

2.     The Committee supports the use of the remaining £890,246 of reserves to accelerate housing delivery (as set out in paragraphs 2.12 – 2.25), including the purchase of two further units of temporary accommodation for homeless households.

3.     The Committee supports the delegated authority given to a Chief Officer, in consultation with the Portfolio Holder for Housing & Benefits, for the purchase of the specific properties within the overall re-allocated budget of £640,000 (with all purchases subject to an independent valuation and survey).

4.     To recommend to Cabinet, that CLT and the Housing Portfolio Holder task officers to investigate what more can be done to work with private landlords to support and retain privately rented accommodation across the District.