The Housing and Inclusive Economy Scrutiny Committee was scheduled to consider a range of important reports concerning the council's housing stock, infrastructure funding, and regeneration projects. Key discussions were expected to focus on the Housing Asset Management Strategy, updates on infrastructure funding statements, and the next phases of delivery for major regeneration schemes at Fellowship Square and Avenue Road Estate.

Infrastructure Funding Statement 2024/25 and Infrastructure Planning Update

The committee was scheduled to review the draft Infrastructure Funding Statement (IFS) for the 2024/25 financial year. This statement is a statutory requirement, detailing the Community Infrastructure Levy (CIL) and Section 106 monies received and spent during the previous financial year. It also includes an Infrastructure List outlining the council's priorities for infrastructure funding through CIL in the upcoming financial year. The report was expected to provide an update on the implementation of the council's Infrastructure Delivery Plan (IDP) and progress on delivering strategic infrastructure to support planned growth. Revisions to Neighbourhood Community Infrastructure Levy (NCIL) and Carbon Offset Fund (COF) allocations were also to be discussed.

The IFS report indicated that in the 2024/25 financial year, £1.63 million in CIL was collected, a decrease from previous years, reflecting challenging economic conditions in the construction sector. However, demand notices issued totalled £2.6 million, suggesting a more positive outlook for future income. CIL expenditure for the year was £2.69 million, with significant contributions made towards projects such as the Walthamstow Central Station improvements, borough-wide bike hangars, Lloyd Park refurbishment, and the Wood Street Families and Homes Hub. Section 106 planning obligations generated £3.87 million in the reporting year, with 44 new agreements negotiated, obliging the construction of 433 affordable homes.

The Infrastructure List for 2025/26 was expected to be limited to projects aligned with immediate corporate priorities due to existing CIL commitments exceeding available funds and modest income forecasts. Future CIL receipts might also be reduced if proposed government CIL relief for affordable housing development comes into force. The report also detailed changes to the Neighbourhood CIL funded programme and additions to the Carbon Offset Fund programme.

Housing Asset Management Strategy 2026-2031

A significant portion of the meeting was dedicated to the proposed Housing Asset Management Strategy (HAMS) for 2026-2031. This strategy outlines the council's approach to managing, maintaining, and investing in its housing stock over the next five years, with a focus on building safety, meeting the Decent Homes Standard, sustainability, resident satisfaction, and financial resilience. The strategy aims to support the delivery of the Housing Strategy 2024-2029 and aligns with Mission Waltham Forest, including tackling the housing crisis and working towards net zero.

The HAMS builds on previous work to develop new policies and procedures for repairs and compliance services, including new policies for six key compliance safety areas (Fire, Gas, Electrical, Lifts, Asbestos, and Legionella), as well as new repairs and damp and mould policies and procedures. The strategy sets out priorities for managing, maintaining, and investing in the council's housing assets to ensure they support the needs of current and future residents. It also defines key investment principles for the Housing Revenue Account (HRA) Capital Investment programme.

Resident engagement was a key part of the strategy's development, with feedback gathered through the Let's Talk website, focus groups, and telephone interviews. Key points raised by residents included ensuring sufficient support for vulnerable residents and those with disabilities, holding contractors accountable for repairs performance, increasing resident involvement in decision-making, ensuring clearer governance, greater transparency on investment prioritisation, delivering better value for money, and providing clarity on what the Decent Homes Standard means for existing stock.

The strategy includes a capital programme of £216.15 million over five years (2026/27 to 2030/31), with £168.56 million allocated to the main programme covering compliance, building safety, decent homes, and sustainability. A significant portion of this, £58 million, is earmarked for decent homes improvements. The strategy also addresses estate regeneration and housing supply, with £42 million committed over three years for new build and estate regeneration projects, including the completion of Priory Court and Marlowe Road, and the development of strategies for Avenue Road and Montague Road estates.

Fellowship Square Programme – Next Phase of Delivery

The committee was scheduled to discuss proposals to unlock the next phase of delivery at Fellowship Square (FSQ) and Willow House by revising the terms of the FSQ Development Agreement (DA) with Countryside Homes (Vistry). The original 2020 DA obligated Countryside to deliver 560 new homes across FSQ and Willow House, along with the Civic building and public realm improvements, in return for a land payment.

However, due to global and national events impacting the UK housebuilding sector, including increased construction costs, building regulation changes, and reduced buyer demand, delivering Willow House under the original terms was deemed no longer viable. Council officers have been negotiating Heads of Terms (HoTs) with Countryside to revise the DA. The proposed new terms aim to guarantee land receipt payment timings, protect the level of affordable housing, and unlock the development of Willow House and remaining blocks at FSQ.

Key terms to be agreed included splitting land receipts between FSQ and Willow House, a guaranteed FSQ land payment date, Willow House progressing as a 100% Private Rented Sector (PRS) scheme, a guaranteed payment date for Willow House, reallocation of affordable housing to Block H at FSQ using secured GLA grant (targeting 46% affordable housing across the programme), and flexibility for Block H tenure subject to Registered Provider interest or an option for the Council to acquire. The committee was asked to note the associated risks, including a likely reduction in the Willow House land payment and the change in tenure for Willow House to 100% PRS.

Avenue Road Regeneration Delivery Route

The committee was also scheduled to consider proposals for the regeneration of the Avenue Road estate using an institutional investment model. The estate, comprising 258 homes, was identified as a high priority for intervention due to its deteriorating condition. Following a resident ballot in February 2021, which showed strong support for regeneration, Bellway Homes Ltd was appointed as the preferred partner. However, Bellway terminated the agreement in August 2023 due to adverse market conditions.

Revised proposals aim to progress the scheme by splitting it into two phases. Phase 1 will involve a single housing block (Block A2) delivering 116 social rent homes through an institutional investment model, meaning no upfront capital outlay for the Housing Revenue Account (HRA). The council would grant a long lease to an institutional investor, who would forward fund and deliver Phase 1. The council would then lease the block back and make set annual payments over 50 years. GLA grant allocated to the scheme would be contributed by the council and apportioned to the 116 homes in Phase 1.

A comprehensive resident engagement exercise was planned to inform residents of these revised proposals. The report noted that while the Right to Buy would not apply to Phase 1 homes, existing tenants would be prioritised for decant status, with options to remain on the estate or move elsewhere in the borough while retaining their right to buy. Phase 2 would deliver the remaining consented scheme, with the aim of re-providing all 242 existing social housing homes.

The Scrutiny Report

The committee was also due to review the Forward Plan for the ongoing municipal year, with three meetings remaining. Members were invited to suggest items for the 2025-26 work programme. The Action Tracker from the previous meeting was to be reviewed, detailing tasks requested of officers and their progress. Additionally, the Recommendation Tracker, outlining the committee's conclusions on service improvements, was to be reviewed, along with responses from officers. Key decisions falling under the committee's remit, as published in the Cabinet Forward Plan, were also highlighted, including variations to the Fellowship Square DA, adoption of Local Plan Part 2, the Housing Asset Management Strategy, the Infrastructure Funding Statement, the Temporary Accommodation Housing Delivery Plan, and the Avenue Road Regeneration Delivery Route. The committee was also invited to review and refine its work programme for the upcoming municipal year.