The Overview and Scrutiny Board met to discuss a call-in of a recent Cabinet decision regarding a build to rent scheme at the Local Housing Allowance. The Board ultimately voted not to uphold the requisition, meaning the Cabinet's decision can be implemented immediately.

Call-in of Cabinet Decision: Build to Rent at the Local Housing Allowance

The Board considered a call-in of a recent Cabinet decision to enter into a 40-year nomination agreement with Inspired Solutions for the delivery of up to 600 build to rent properties. The agreement aims to provide secure, affordable private rented accommodation for local people and address the council's significant overspend on temporary accommodation.

Inspired Solutions will identify and purchase land with existing planning permission in Havering, fund the development, and retain ownership and management of the properties. The council will have 100% nomination rights for tenants from its housing lists, guaranteeing rental income at current Local Housing Allowance (LHA) rates. The council's financial exposure is limited to void losses, rent arrears, and repairs beyond general maintenance.

Concerns were raised by councillors regarding the procurement process, the identity and track record of Inspired Solutions, the financial risks to the council, and the headline cost avoidance figure. Officers and representatives from Inspired Solutions addressed these concerns, explaining that a formal procurement process was not required as the agreement relates to land interests. They stated that the council has not granted exclusivity and retains the ability to engage with other providers. Extensive due diligence has been conducted, and the financial risks are considered manageable and proportionate to the benefits, especially when compared to the current costs of temporary accommodation. The £580m cost avoidance figure was clarified as a long-term, portfolio-level estimate, with the initial commitment being for a smaller tranche of homes.

After extensive discussion, the Board voted on whether to uphold the requisition. The vote was tied at five members each. Councillor Laurance Garrard, the Chair, used his casting vote to not uphold the requisition, meaning the Cabinet's decision can be implemented immediately.