Agenda item

The Committee received for consideration the Carmarthenshire Homes Standards Plus (CHS+) Business Plan 2018-21 the purpose of which was threefold. Firstly, it explained the vision and detail of the CHS+ over the next three years and what it meant for tenants. Secondly, it confirmed the financial profile, based on current assumptions for delivery of the CHS+ over the next three years and, thirdly, produced a business plan for the annual application to the Welsh Government for Major Repairs Allowance (MRA) for 2018/19 equating to £6.1m.

The Following questions/issues were raised on the report:

·        Clarification was sought on the level of support to be provided to tenants under the following bullet point “Focus on providing more advice and support to tenants in managing their monthly budgets. We will deliver a range of support and services to help tenants cope with the cultural change of Universal Credit, and mitigate the impact as much as we are able”.

The Head of Homes and Safer Communities reminded the Committee that the Council had recognised the possibility some of its tenants could, over the next 18 months, face financial difficulties as a consequence of the introduction of Universal Credit. As a result, measures had been introduced to try to mitigate its impact on tenants which included for example:

-        working with the benefits agency and the Council’s benefits team to target those tenants having the biggest potential to suffer financial difficulty.

-        Introduction of pre-tenancy discussions to ensure prospective tenants were prepared for taking on a tenancy

-        Adoption of a Universal Credit Action Plan

-        Investment in software to identify and target those tenants most at risk and to provide them with appropriate levels of assistance.

The Head of Homes and Safer Communities advised that whilst the Council had recognised and introduced various measures to help tenants affected by Universal Credit, one area beyond its control was the approach the private sector may adopt with the possibility some landlords may not accept tenants in receipt of universal credit. One potential area to combat that was the possibility of the Council managing private sector homes on behalf of landlords.

The Council had also reflected the above concerns within the Business Plan.

·        Reference was made to the statement within the report of the proposed establishment of the local housing company to deliver a mix of new affordable homes for sale or rent. Clarification was sought on that statement which conflicted with existing council policy of not selling council homes.

The Head of Homes and Safer Communities confirmed the council’s policy prevented the sale of any of its current 9,000+ properties, and that had not changed. The above statement referred to the establishment of the local housing company as a vehicle to facilitate the construction of good quality housing within Carmarthenshire via a variety of means/tenure to enable local people to access the housing ladder and could, for example, include homes for sale, rent, sharehold, leasehold and rent to buy.

The Head of Homes and Safer Communities in response to a number of questions on the proposed establishment of the local housing company, reminded the Committee of the comprehensive debate undertaken at its meeting held on the 24^th November 2017 (minute 5 refers) where a wide range of issues were raised in relation thereto including governance arrangements, borrowing capability and the appointment of company directors. He also re-iterated the primary reasoning behind the company’s establishment was to increase the supply of much needed additional homes, whilst also creating jobs, training and apprenticeship opportunities, supporting the supply chain and delivering the Council’s regeneration ambitions.

·        In response to a question on the proposal within the report to bring back over 160 empty homes into use, the Head of Homes and Safer Communities advised that the target was considered deliverable and would involve the department liaising with private owners, on a case by case basis, to secure improvements to their properties thereby returning them to habitable use either for sale or rent.

·        Clarification was sought on the reason for the increased provision in the business plan for bad debt from £494k in 2018/19 to £784k by 2020/2.

The Head of Homes and Safer Communities reminded the Committee of the earlier debate in relation to the potential for tenants to suffer financial difficulty as a consequence of the introduction of Universal Credit. Having regard to that potential it was considered prudent to make proper provision within the Business Plan to cater for an increased level of bad debt.

The Director of Corporate Services advised that the Council, in recognising the potential for debt levels to increase as a result of the roll out of Universal Credit, had increased its debt provision within the Business Plan in accordance with good accounting practice. To date, the Council was managing to contain debt levels to within its provision by working with tenants to manage their financial affairs. Currently, the level of bad debt was approximately £300k which, whilst not insignificant, was small in comparison to the £39m of annual rental income.

·        The Director of Corporate Services in response to a question on the reports implications of delivering the CHS+ and its potential for posing a significant financial challenge and risk to the County Council, advised that as the business plan was set over a 30 year period it could be susceptible to a number of vagaries over that time frame. For example, interest rate rises or a decision by the Welsh Government to cease payment of the Major Repairs Allowance of £6.1m per annum. Currently some £230m of borrowing had been incurred to achieve the CHS, £120m of which had been funded through the prudential borrowing programme and management of that debt was a key factor for the Council.

The Head of Homes and Safer Communities advised that whilst it was doubtful a single event could severely impact on the plan’s viability, it was considered any impact would more likely to be cumulative involving many different factors for example, withdrawal of the Major Repairs Allowance, increase in interest rates, increased bad debt and reduced rental levels.

·        Reference was made to the £30m of investment to be made to the CHS+ over the next three years and clarification sought on whether local members would be consulted over any investment within their wards.

The Head of Homes and Safer Communities reminded the Committee that as part of the initial major investment under the CHS, local members were consulted on the works to be undertaken within their wards. As that major investment had now concluded, with the emphasis having moved to the future maintenance of the housing stock, it was opportune to consider how local members could be involved/informed of any works being undertaken within their wards. The committee was assured consideration would be given to the involvement of local members in future maintenance arrangements within their wards. 

·        Reference was made to the identification within the report of the Council’s approach to Fire Management and to whether the Council’s residential homes/complexes had fire sprinklers installed and tilt and turn windows for ease of escape.

The Head of Homes and Safer Communities confirmed that whilst sprinklers were not installed in the Council’s residential homes, as they were staffed 24 hours a day, they were installed in those council properties constructed post 2001. However, as a consequence of recent national and local fire incidents, the department had revisited its fire management plan to ensure all processes were in place. A report on general fire safety, linking in with members concerns on sprinklers and tilt and turn windows, could be presented to a future meeting of the committee.

·        In response to a question on the pricing of affordable homes, the Head of Homes and Safer Communities advised that related directly to the ability to pay, and was generally applied to 3.5 times the household income. With regard to the affordability of rented properties, that was linked to the Local Housing Allowance.

·        Clarification was sought on whether the report’s reference of undertaking in-depth visits to tenants’ homes was linked with creating good communities.

The Head of Homes and Safer Communities confirmed the proposal related to engaging with tenants and local members to obtain their views on what they wished to be provided within their communities, and to provide an element of funding for environment works with the aim of generating and promoting community resilience. The more that balance was achieved via housing, the less reliance there would be on demands for health and social care provision. It was envisaged the visits would commence within the next three to six months.

·        The Head of Homes and Safer Communities in response to a question on those homes not improved under the CHS, at the tenants’ request, reminded the committee that it was current council policy to respect tenants’ wishes and not undertake improvements works to their properties if that was their wish. Approximately 6% of the Councils’ housing stock fell within that category, and the time may be opportune for the council to consider whether it wished to revisit its policy. 

UNANIMOUSLY RESOLVED:-