Issue - meetings

    Report by Corporate Director Alistair Cunningham.      

Cllr Richard Clewer presented a report seeking support for the establishment of a local housing company and a local development company.

Cllr Clewer explained that there are a range of strategic housing needs facing the Council that could not easily be addressed by the Council’s current approaches. These included, (i) The impact of the lack of key worker accommodation on the availability of services in parts of Wiltshire; (ii) Accommodation to meet the needs of specific vulnerable households in a timely manner from the existing housing stock in Wiltshire, is not a priority for the Council’s registered provider partners; and (iii) The Council procures accommodation for homeless households that is costly and the quality and cost could be improved by private rented sector accommodation provided by a local housing company.

The report highlighted that the Council has a successful programme of asset disposal. Over the next three years the Council estimates that it may be able to offer to the market, sites capable of residential development which, subject to planning permission could deliver over 500 units of accommodation. Cllr Clewer suggested that if the Council was to establish a local development company not only would it enable the strategic housing needs across the County to be better met it would also increase the potential return that could be generated from the developments. Cllr Whitehead confirmed that it was important to create a revenue stream for the future, and these proposals met this demand.

Cllr Thorn, Chairman of the Financial Planning Task Group, reported that the Task Group had scrutinised the proposals at its meeting held on 8^th January 2019, and had made the following comments:

1. The Board should include at least two independent directors (rather than one), one of whom should act as chairman, to provide the necessary independence and expertise.
2. Clarity is required regarding projected returns on investment. It is problematic to assume broad success having only modelled a few specific investments.
3. The council’s financial assumptions (outlined in the confidential figures received) were different to Saville’s with regard to construction costs. It should exercise caution if not heeding Saville’s greater expertise in this area.
4. No business plan being forthcoming to Cabinet etc (only to the Board) is a concern.
5. The social priority of meeting unmet keyworker housing need (addressing market failure) and the commercial priority of generating income may be in conflict to an extent.
6. Although there may be a small risk of disrupting markets at a very local level (e.g. where significant development is planned or in progress already) our focus should be on growing Wiltshire’s housing stock as much as possible.

In response to the points made above, Cllr Clewer commented that, (i) the number of Independent Directors initially would be set at 1, as recommended, although this figure may change as the companies are developed; (ii) The Business Plan could be reported to the Cabinet; (iii) the risk of disrupting local markets was a very real possibility, although this would be  ...  view the full minutes text for item 9