Key questions on Brent Council's disposal of shared-ownership homes at Cabinet this morning

 Cllr Anton Georgiou has just asked this question re Item 13 on today's Cabinet Agenda

I am here to request clarifications on the report which focuses mainly on the proposed disposal of 23 shared ownership homes in my ward of Alperton but has wider implications for other schemes in the borough.  

I note the report has an Appendix which is not publicly available, that I have seen a redacted version of, however have been advised by Officers to not make reference to the information I have seen regarding the bids for these properties.

I also note that at the Full Council meeting on Monday 10^th July, I asked the Lead Member about this report and the response did not seem in line with the content of the document in front of us.

Where this report states that its purpose is to “seek authority to dispose of 23 shared ownership homes on the open market”, the Lead Member implied, with the Leader of the Council’s intervention, that these homes would in fact be repurposed by the Council.

So, my first question is:

-          What did the Lead Member mean by repurposing the 23 homes, is that the same as disposing of them? Perhaps Cllr Knight would like the opportunity to correct the record at this stage?

For historical context, I would like to understand how the Council initially defined these homes.

-          Were these 23 units referred to in this report counted in the 1,000 promised “New Council Homes” programme 2019/24?

 

-          If yes, why did the Council define these Shared Ownership units as Council Homes, something I have received assurances previously does not happen in Brent.

We all know that Shared Ownership is not an affordable housing model let alone helping to reduce the boroughs housing waiting list, which ought to be the Council’s number one housing priority.

This Council is often vocal about its record on Council House building, however, as I have argued we need to understand the full facts on what is actually being delivered and whether it is truly delivering Council Homes for Council tenants at the levels stated in Brent Council press releases and on Brent Council communications.

Assuming the decision is agreed to ‘dispose’ of these 23 homes:

-          Could you confirm that the units disposed of will be disposed to a Housing Association fully, to be rented at the London Living Rent level, which is what I assume is being referred to when a “new model” is mentioned in the report?

 

-          If that is not the case, could you please enlighten us as to what the “new model” the report refers to actually is?

I understand that the Council bought these properties under a 999-year lease.

-          Are the Council’s plans to sell the full 999-year lease, or is your plan to only grant a 125-year lease to the successful buyer?

 

-          This has implications for the legality of the sale, as mentioned in the report. You will be aware that local authorities cannot dispose of HRA assets without permission of the Secretary of State unless they are disposed at equal to market value. Are you confident this will be the case?

The financial implications for this sale are in the public’s interest.

-          How much money will Brent Council be losing or making out of this sell-off?

The delay in deciding what to do with these homes is concerning to me.

-          Can you explain why 22 of these units have remained empty since October 2022 and why this decision was not made earlier? We are now more than halfway through 2023, in light of the housing crisis in our borough and city, it is alarming that there has been such a delay in making this decision.

 

-          What was the cost of debt financing during this period for the Housing Revenue Account?

I would appreciate if Cabinet and Officers could address these questions at earliest convenience, as I believe it is important that when decisions like this are made by the Council, the full facts are known to residents and all stakeholders involved.

It is important to state that this may not be the only time a decision like this will need to be taken by the Council.

Earlier in the General Purposes Committee I made reference to the Shared Ownership units at Watling Gardens. It seems to me that there is considerable uncertainty and confusion around the Council’s plans on the delivery of affordable homes in the borough. In light of this report and potential upcoming decisions that will need to be taken regarding other schemes in the borough, I urge the Cabinet to review its housing plans.

I also recommend that an independent Scrutiny Task Group is set up urgently to provide the accountability and scrutiny needed in this important area, to be Chaired by Member not from the Majority Group on Brent Council.

 

Leader of the Council, Cllr Muhammed Butt, was clearly annoyed by the questions and said they should have been emailed in advance and in a testy exchange said that Cllr Georgiou should be grateful that he had been given the courtesy of an opportunity to speak to Cabinet. Georgiou replied that this was his right as a member of the council.

 

There was no direct response to the questions when the item was discussed. Lead Member Cllr Promise Knight  said that people in Brent still needed shared ownership homes and she was one of those people. Any surplus from the disposal would go back to providing homes via the HRA (Housing Revenue Account).  The model chosen would support reduced service charges.

Cllr Tatler commended the work carried out on this proposal and it was important that this decision still met the needs of local people.

Cllr Muhammed Butt reiterated that any surplus from the sale would go back to the HRA account and there was no loss to the council. The council would continue to provode homes at the right sort of tenure and was working with the GLA and Homes for England. The council was willing to have conversation with 'people out there' to provide homes.