Purpose

To agree to the disposal of 23 shared
ownership homes under the grand union phase 1 scheme to the
preferred bidder.

Content

Cabinet NOTED the following
comments made by Councillor Georgiou who had requested to speak at
the meeting on the report.  In
addressing Cabinet, Councillor Georgiou began by advising that
whilst the properties being considered were located within his ward
(Alperton) it was felt the issues raised had borough-wide
implications.  On this basis, Councillor
Georgiou advised he was seeking further clarification, following
the response provided by Councillor Knight (as Cabinet Member for
Housing, Homelessness and Renters Security) to a question he had
raised at the Full Council meeting on 10 July 2023, on the
reference made to repurposing as opposed to disposal of the
homes.  In addition, details were sought
on the original classification of the 23 homes and how this applied
to their status and inclusion as part of the New Council Homes
Programme, with Councillor Georgiou advising that in his view
shared ownership did not represent an affordable housing model.
 
In reiterating the need to understand the
process in terms of delivery of the New Council Homes Programme,
Councillor Georgiou advised he was also seeking confirmation that
any release of the units to an alternative provider would be at
London Living Rent and, should that not be the case, for further
clarity to be provided on the new model of ownership which had been
referred to in the report.  Councillor
Georgiou also felt there was a need to be clear on the length of
lease being offered in relation to the release of the properties,
the potential financial impact arising from the disposal and any
requirement for Secretary of State approval.  Concerns were also highlighted regarding the
timescale for the decision and impact on the availability of the
properties since October 2022 along with the cost of financing any
associated debt during this period in relation to the Housing
Revenue Account.  In concluding,
Councillor Georgiou advised that as a result of the issues raised
and what he felt was further uncertainty around the Council’s
plans for the ongoing delivery of affordable housing across the
borough, he was calling for an Independent Scrutiny Task Group to
be established to undertake a further detailed review of the
approach, chaired by a member of the Opposition Group.
 
In responding to the comments
raised, Councillor Butt (as Leader of the Council) advised that
given the wide ranging nature of the issues raised he would arrange
for a full response to be provided outside of the Cabinet
meeting.
 
Having noted the comments
received and content of the report Cabinet RESOLVED:
 
(1)      To authorises the proposed disposal of the 23
shared ownership homes at Block D, Grand Union (the Property) in
accordance with the Council’s Constitution.
 
(2)     
To recognise that in order
to proceed with the proposed disposal of the Property reliance may
be placed on the Secretary of State’s general housing
consent.
 
(3)      To
recognise that Heads of
Terms will need to be agreed with relevant third parties in respect
of the proposed disposal of the Property and authorise
officers to negotiate and agree such
Heads of Terms as may be necessary with the relevant thirds parties
in relation to the same (which may include agreeing terms in
respect of any variation which may need to be negotiated and agreed
with regard to existing deeds).
 
(4)      To support
the recommendation to proceed with the preferred option, offer 3
(as detailed in Appendix 1 of the report containing exempt
information).