To receive a verbal update from the Strategic Director for Places.

The Chairman, Miss Waller, advised Members of the Committee that she had requested an update from the Places Directorate following an Audit Report in November 2017 on Shared Ownership.

Mr Steve Ingram, Strategic Director for Places, provided a verbal report noting the following points:

·       Shared ownership was an acceptable form of affordable housing and was often used in rural areas to provide an option for those unable to access the housing market, subject to certain eligibility criteria.

·       Terms of ownership are usually part of the planning permission and in most cases apply in perpetuity.  The terms can also be imposed as a condition of the sale of land.

·       Shared ownership allows for occupier to own a percentage of the property, typically between 25% and 80%.

·       When the property is sold the occupier will get market value for the percentage that they hold.

·       The sale of Shared Ownership properties will be managed by the Housing Association.

·       The report to the Committee in November 2017 recommended that where new S.106 agreements included this element of affordable housing, there would be a requirement that the authority would be notified of potential sales of these types of property the authority would be notified.

·       Housing Associations may seek variation of the restricted occupancy terms in the planning permission where they are unable to find qualifying people to occupy the properties.

During discussion the following points were noted:

i.      Mr Conde noted that it appeared that the stock of Shared Ownership housing was diminishing locally.  Mr Ingram highlighted that the Policy may have been different historically, but it was now accepted that the terms be imposed in perpetuity.  If there were specific examples he could investigate further;

ii.     Miss Waller requested information about the process that had been put in place to prevent Housing Associations from departing from the terms of the Shared Ownership.  For example where one of the terms was to require occupiers with a local connection, how could the authority ensure that attempts had been made to try to attract people from the local community before the house was offered on the open market?  Mr Ingram confirmed that new applications were now subject to the requirement notify the authority of potential sales, issues could also be picked up through Land Charges if issues are raised;

iii.    Where there is an application to amend the terms of occupancy, this would usually require a new planning application;

iv.   Miss Waller clarified that other authorities had systems n place to ensure that the criteria were being complied with and it was important that Rutland had a mechanism for checking the appropriate processes had been followed;

v.     Mr Brown, Portfolio Holder for Planning, Environment, Property and Finance, suggested that it would be appropriate for an audit to be carried out on the Housing Associations to ensure they are following criteria and terms set out in the Covenant.  He would discuss ths with the relevant department and look to have a report back to the Committee in January if possible.

RESOLVED

The Committee NOTED the verbal update and REQUESTED a further report be brought back to the January meeting.