Agenda item

To receive and consider report 38/09 of the Head of Health and Housing.    

The committee considered report 38/09 of the Head of Health and Housing.  The report looked at the impact of the economic recession on social housing providers and the implications of various interventions made by the government in response.  The report also looked at local impacts and the council’s response to the challenges. 

It was reported that the global economic crisis had caused an unprecedented impact on the housing sector.  The council was experiencing the same impact as authorities across the South East.  This was affecting delivery of new affordable housing and the future for some low cost home ownership schemes.  A drop in home ownership had increased demand in the rented sector, putting waiting and transfer lists under increased pressure.  The impact of the mortgage-lending crisis had also affected the registered social landlords (housing associations).  Sales of shared ownership homes had slowed considerably due to lending restrictions and reduced valuations and  as a result demand for housing advice and assistance had increased markedly. 

It was reported that the council was seeking ways to work with its registered social landlord partners, housing developers and the Housing and Communities Agency to unlock major sites to maintain delivery of affordable housing during the economic recession and also to ensure that the council was in a good position to meet demand in the event of economic conditions improving.  To assist, the government had introduced several measures including:

·        increasing stamp duty

·        assisting housing associations offering shared ownership, shared equity or sale and rent back options

·        assisting housing associations to increase their housing stock

·        assisting first time buyers with incomes below £60,000

·        offering “kick start” funding to help major housing sites to progress

·        helping local authorities to build new council homes, although this was aimed at authorities that had kept their housing stock. 

The committee noted the positive steps.  Furthermore, it was noted that the council had managed to restrict the numbers of applicants placed in temporary accommodation through effective homelessness prevention measures.  The five district housing authorities had secured £30,000 in government funding for a joint initiative with the other Oxfordshire district councils aimed at homelessness prevention and reduced use of temporary accommodation.  In addition, the council had secured £38,000 government funding to provide advice aimed at preventing homelessness through avoiding repossession and the provision of hardship loans.  Supplementary funding was available to the Citizens’ Advice Bureau to offset the cost of specialist debt advice.  One councillor queried whether funding was also available for the Independent Advice Centre at Wantage.  The head of service agreed to investigate whether the centre was accredited to give such advice and therefore eligible to receive funding on a case-by-case basis. 

It was reported that having achieved the targets for reward grant funding from Local Area Agreement 1, the council was continuing to work with its neighbouring district councils in Oxfordshire towards further reward grant available through Local Area Agreement 2.  This additional funding would enable the Oxfordshire Housing Partnership to assist directly with future housing projects.  The committee noted that if the government awarded 100 percent of the due grant, there would be approximately £1.4m available for Oxfordshire.  Around 50 percent of this would be available for housing schemes in the county, equating to around three or four homes for the Vale. 

In answer to a question from one councillor, it was explained that the council had a low level of empty properties in its district and therefore bringing empty homes back into use was not a service priority.  However, the council offered renovation grants to bring empty properties back into use in return for tenancy nomination rights. 

Councillors noted that there was no evidence that homelessness was increasing because of the recession.  One councillor asked about the effect on levels of rent arrears to which the head of service agreed to investigate this through the registered social landlords. 

Turning to the impact of the recession on the local economy, councillors asked the Executive portfolio holder for finance to explain what the council was doing to help businesses in the Vale.  He reported that businesses could apply for business rates hardship relief but any applications were subject to criteria.  He reported that the council had to fund these discounts but had a limited budget to do so and therefore the scheme was not actively promoted.  However, he explained that the Federation of Small Businesses gave advice to small businesses. 

RESOLVED

(a)       that the report be noted; and

(b)       that the head of health and housing be requested to investigate whether the Independent Advice Centre at Wantage is accredited to give debt advice and therefore eligible to receive support funding on a case by case basis and also investigate the effect of the recession on levels of rent arrears through the registered social landlords.