Decision

The Director of
Regeneraton of place has approved the acquisition of the properties
listed in the appendix including the additional expenditure on HM
Land Registry Fees, Stamp Duty Land Tax and associated costs.

Reasons for the decision

The
Department for Levelling Up, Housing and Communities (DLUHC) has
recognised that Local authorities such as Wirral, who have welcomed
Ukrainian and Afghan arrivals are facing challenges in securing
settled accommodation for these households, which unless alleviated
will further impact on existing housing pressures.
 
Local
Authority Housing Fund 2 (LAHF2) provides an opportunity for Local
Authorities such as Wirral to use this funding to support these
immediate pressures, as well as build a sustainable stock of
affordable housing for the future.
 
Wirral
Council has been allocated £1.93 million LAHF2 from DLUHC for
the rapid acquisition by the end of March 2024 for a total of 20
properties or up to the budget allocation. Decisions have already
been made for the acquisition of 20 properties and these additional
properties will bring the total number up to 22 and total spend up
to £3,886,240 (excluding associated costs which will also be
met from this funding).  Although 20
properties have been previously approved and are in conveyancing,
there are various risks regarding four properties which may result
in them not proceeding to completion. Therefore, there is a need to
have additional properties within the programme.  If all 22 properties proceed, these additional
properties can still be acquired within the budget and the agreed
MOU with DLUHC.  As with the delivery of
affordable housing generally, there is a requirement for Local
Authorities to part fund (60%) of the required capital to purchase
these homes, recognising that they will receive an ongoing long
term rental income from them.
Wirral
Council is utilising existing eligible ring fenced
grants  from a number of sources to
provide the remaining 60% (just over £2.29m) funding needed
to deliver this programme, including the use of income secured
through the planning system (commuted sums for affordable housing),
Recycled Affordable Homes Capital Grant funding from Homes England,
Better Care Funding along with existing income received in relation
to refugee resettlement programmes already being delivered in the
borough. There is therefore no additional requirement for any
capital funding from the Council’s own resources and no cost
to the council's capital borrowing or core budgets.
 
14 of
these properties must be provided to Afghan nationals who have been
given settlement status by the UK and have been living in bridging
hotels but must now move to settled long-term accommodation. 6
properties must be used as temporary accommodation, helping to
alleviate significant homelessness pressures in the
borough.
 
Officers from Strategic Housing Services and the Asset
Management Team are working collectively to identify suitable
properties to purchase utilising this funding.
 
Given
the need to progress this scheme within DLUHC’s very
ambitious timescales, the Council had to enter into a Memorandum of
Understanding (MOU) in August 2023 with DLUHC in recognition of its
allocation and the target to progress the acquisition of 20 homes,
or up to the allocated budget to add to its existing small social
housing stock base.
Costs
associated with compliance checks and any essential repairs
required to the properties will also be met from this
funding.
 
Property acquisition details are set out in the attached exempt
appendix.
 
The Appendix is exempt from
publication pursuant to paragraph 3 of the part 1 of Schedule
12 A of the Local Government Act 1972 (Information relating to the
financial or business affairs of any particular person (including
the authority holding that information) because it contains or
refers to information relating to the financial and business
affairs of the Council and the public interest in maintaining the
exemption outweighs the public interest in disclosure.

Alternative options considered

The
Council could have given this grant funding to Registered Providers
to acquire additional housing stock in the borough, but the
preferred option is to acquire the properties for Council Ownership
so that an income can be generated in the future from rental income
and reduce the burden on housing subsidy loss for use of bed and
breakfast.
 
The
Council already has an existing management agreement in place with
a local Registered Provider of Affordable housing in relation to
its small social housing stock base and these homes can be added to
this agreement without the need to procure a further
partner.