Purpose

This report seeks the Executive
Mayor’s approval to proceed with the Ex-Right to Buy (RTB)
and Street Property acquisitions programme and to delegate
authority to the Corporate Director of Housing to approve Ex-Right
to Buy (RTB) and Street Property acquisitions up to a value of
£1,000,000.
 
The Ex-Right to Buy and Street
Property Acquisitions Programme is a three year programme
commencing in 2024. Its objective is to acquire a minimum of 300
properties (2, 3 and 4+ bedroom homes) across the London Borough of
Croydon between 2024 and 2027. This provides an estimated cost
saving of £351,000 for tax year 2056 -2026, as a result of
acquiring the properties the service is able to move people out of
nightly paid into secure tenancies resulting in the cost saving in
the housing General Fund.
 
The additional supply of homes
will support the Council in delivering its corporate priorities by:
Increasing the supply of temporary accommodation; Providing decant
properties for Regina Road tenants; Providing replacement homes for
tenants occupying the Croylease (PRS)
scheme

Content

For the reasons set out in the
report and its appendices, the Executive Mayor AGREED
to:
 
2.1 Approve continuing with the
Ex-Right to Buy and Street Property Acquisitions
Programme.
 
2.2 Delegate authority to the
Corporate Director of Housing, to approve any Right to Buy Buy-Back
acquisition or transaction up to a financial threshold of
£1,000,000.
 
2.3 Notes that the exercise of
the delegations at recommendations 2.2 and 2.3 above are subject
to:
 

-      
Approved capital budgets and funding
envelopes

-      
Valuations and appropriate due diligence

-      
Consultation with the Head of Finance for
transactions at or below £1,000,000.

-      
Consultation with the S151 Officer for transactions
at or above £1,000,000.

-      
The Executive Mayor retaining ultimate
decision-making authority for any acquisition or transaction
exceeding £1,000,000.

Reasons for the decision

The Council’s financial
stabilisation plan for Housing general fund requires temporary
accommodation to deliver £3,943,000 in-year savings to
deliver an underspend against budget and to deliver a permanent
base budget reduction of £3,943,000 in 2026-27 financial
year. The Ex-Right to Buy and Street Property Acquisitions
Programme contributes to this saving of circa £351,000
annually, by reducing reliance on costly temporary accommodation.
The delegation framework is critical to maintain continuity and
momentum, ensuring these savings are achieved.
 
Delays risk:
 
Missed property acquisition
opportunities
Failure to meet statutory
deadlines (e.g., Right of First Refusal)
Reduced delivery of planned
financial savings
 
Delegating authority for
acquisitions enables swift operational decision making
within approved budgets and
acquisition criteria, while maintaining clear accountability. This
is particularly important due to the nature of the property
market.
 
The Ex-Right to Buy Buy-Back
and Street Property Acquisitions Programme operates in a
fast-moving housing market where opportunities are time-limited
and, in some cases, subject to statutory completion deadlines,
including the eightweek requirement
under section 156B of the Housing Act 1985 (Right of First
Refusal).
 
The current approval process
creates risks of delay, missed acquisition opportunities, statutory
non-compliance and reduced value for money. The proposed delegation
framework mitigates these risks by enabling proportionate and
timely decision-making. This, in turn, supports the Council’s
ability to realise savings earlier.
 
All delegated decisions will
operate within the approved capital programme and funding
envelopes, with appropriate due diligence housing and regeneration
objectives.

Alternative options considered

Retaining the current approval
process, where acquisitions above £500,000 require Executive
Mayor approval, has been considered. This approach has proven
resource-intensive and has introduced delays due to weekly approval
cycles and the time required for Forward Plan scheduling. These
arrangements are not well suited to time-sensitive property
acquisitions and increase the risk of missed opportunities and
statutory non-compliance. This, in turn, impacts the
Council’s ability to achieve savings earlier.