On selling the housing stock in 1996 the Council gave a commitment to spend £21m on affordable homes and social housing over a 5-year period. The chapter sets out the financial position to underpin the strategy.
Principles of housing investment
The Council has adopted criteria used in evaluating and guiding capital investment decisions. These are to:
remain debt free, and not make use of Basic Credit Approvals.
meet the aims of the Community Plan and develop sustainable communities
meet the objectives as set out in the Housing Strategy.
facilitate enabling and partnership working.
work with other funders to make effective use of limited resources.
satisfy the principles of Best Value.
The Housing Investment Programme is funded in the following ways:
Investment of the remaining part of the LSVT proceeds via local authority social housing grant
Capital receipt income generated via the sale of land and our share of the "Right to Buy" proceeds
Grant allocation from the Housing Corporation
Specified capital grant from central government for disabled facilities grants
Revenue reserves arising on the closure of the Housing Revenue Account, which have been retained for housing purposes.
The objective of the Council's housing strategy is aimed at meeting housing need within the Borough by working in partnership with a small number of Registered Social Landlords (RSL's). There is a massive shortage of affordable housing within the Borough and priorities are influenced by the findings of the recent housing needs survey and other related research including homelessness statistics.
As the Council no longer has a housing stock of its own, investment in housing is generally provided via housing improvement grants to householders for private sector renewal and social housing grants to local RSL's working within the Borough. Land resources are very scarce within the Borough and the Council plays an important role in enabling RSL's to get access to sites for the provision of affordable housing via purchase and resale of land and property, and via planning regulations.
Over the past three years the Council has invested in excess of £19 million in the provision and improvement of housing, financed as follows;
Fig. 9 . Financial Expenditure 1999 - 2002.
Fig. 10 Sources of Finance
At the current level of capital investment the Council is able to enable the provision of approximately 100 units per year and it is proposed to increase this to 165 units by 2003/04. Achievement of the programme relies heavily upon the continued use of capital receipts generated by the purchase and resale of houses and land. The Council provides revenue funding for other initiatives including Rentstart, Care and Repair and Home Improvement Agencies (supported by government grant) all of which are covered elsewhere in this strategy. In addition, approximately £275,000 is spent each year on homelessness in particular the placing of families in bed and breakfast accommodation. With an increasing revenue deficit the Council needs to be constantly looking at ways of reducing these costs.
Over the next four years the Council has allocated a further £26 million for capital investment in housing in the Borough. Details of the programme for the next four years are set out shown below including available resources.
Future Housing Investment
The housing capital programme is drawn up and considered as part of the Councils overall capital programme and in the context of its Capital Strategy. The Housing and Environmental services programme, including financing, are considered by members and officers within a single report and common criteria are used.
Quarterly monitoring of progress are reported to the management team and the Council's Executive.
