Agenda item

To receive and consider the recommendations of the Cabinet (Minute 239(b) as an amendment to the following Notice of Motion submitted previously to the Council by Councillor Atkinson and referred thereto in accordance with Standing Order 8(2), namely 

 

‘Historically, the Government’s answer to the housing shortage has been to broaden access to home ownership with schemes such as the discounted sale of council housing to sitting tenants. Effectively, this has provided each buyer with a subsidy of up to £100,000 via discount entitlement. The programme has contributed little to the supply of affordable housing in a locality yet its cost to local government is and has been colossal.

 

Because such costs have been incurred by means of accepting a below market price for a publicly owned asset rather than by direct government expenditure, the true cost of the scheme to the public purse has never been easily identifiable.  However, if the government wishes to pursue its recently declared intention to promote housing association right to buy sales this would change as the associations concerned would expect Treasury compensation for the value of discounts approved.

 

What has not been identified is where would this money for the extension of the right to buy to Housing Associations would come from.  It is worth noting that when this was last proposed in 2015 it was to come from the sale of high value council houses, which proved unworkable and the proposal was dropped.

 

This Council believes that the government should instead focus its policy on increasing the supply of affordable houses through measures such as the following first-time buyer assistance proposals and social housing development proposals:

 

1.    Mandating developers to include below-market price housing for sale (as well as affordable rental) in residential developments on the grounds that the discount is effectively financed by taxing land value

2.    Lowering both the income and wealth threshold for home ownership access, to the benefit of lower income households via the shared equity model (e.g. Help to Buy).

3.    Enabling development of for-sale housing offers by state agencies such as local authorities or housing associations as a means of providing dwellings that can be sold to qualifying applicants at cost price (i.e. no need to factor-in profit), while also expanding overall housing supply to the benefit of the wider market

4.    Provide a subsidy per dwelling to local authorities and housing associations to build houses for rent at social housing and affordable rents in areas where there is a waiting list for such properties and for those who do not qualify for the help to buy provisions in 2 & 3 above.

 

This Council resolves to propose the above measures to the Devon Housing Forum and to make representations supporting such recommendations to the government in response to the White Paper.’

 

Having had regard to the aforementioned, any factual briefing/position statement on the matter set out in Report (CSO/22/16) and other suggestions or alternatives considered at that meeting the Cabinet subsequently resolved:

 

‘that Council notes the issues raised and will continue to work as part of the Devon Housing Task Force’.

Decision:

Councillor Hart MOVED and Councillor McInnes SECONDED that the Cabinet’s advice be accepted and that Council notes the issues raised and will continue to work as part of the Devon Housing Task Force.

 

The amendment in the name of Councillor Hart was then put to the vote and declared CARRIED and subsequently thereafter also CARRIED as the substantive motion.

Minutes:

Pursuant to County Council Minute 146 of 6 October 2022 relating to the Notice of Motion set out below as previously submitted and formally moved and seconded by Councillor Atkinson that: 

                       

‘Historically, the Government’s answer to the housing shortage has been to broaden access to home ownership with schemes such as the discounted sale of council housing to sitting tenants. Effectively, this has provided each buyer with a subsidy of up to £100,000 via discount entitlement. The programme has contributed little to the supply of affordable housing in a locality yet its cost to local government is and has been colossal.

 

Because such costs have been incurred by means of accepting a below market price for a publicly owned asset rather than by direct government expenditure, the true cost of the scheme to the public purse has never been easily identifiable.  However, if the government wishes to pursue its recently declared intention to promote housing association right to buy sales this would change as the associations concerned would expect Treasury compensation for the value of discounts approved.

 

What has not been identified is where would this money for the extension of the right to buy to Housing Associations would come from.  It is worth noting that when this was last proposed in 2015 it was to come from the sale of high value council houses, which proved unworkable and the proposal was dropped.

 

This Council believes that the government should instead focus its policy on increasing the supply of affordable houses through measures such as the following first-time buyer assistance proposals and social housing development proposals:

 

1.    Mandating developers to include below-market price housing for sale (as well as affordable rental) in residential developments on the grounds that the discount is effectively financed by taxing land value

2.    Lowering both the income and wealth threshold for home ownership access, to the benefit of lower income households via the shared equity model (e.g. Help to Buy).

3.    Enabling development of for-sale housing offers by state agencies such as local authorities or housing associations as a means of providing dwellings that can be sold to qualifying applicants at cost price (i.e. no need to factor-in profit), while also expanding overall housing supply to the benefit of the wider market

4.    Provide a subsidy per dwelling to local authorities and housing associations to build houses for rent at social housing and affordable rents in areas where there is a waiting list for such properties and for those who do not qualify for the help to buy provisions in 2 & 3 above.

 

This Council resolves to propose the above measures to the Devon Housing Forum and to make representations supporting such recommendations to the government in response to the White Paper.’

 

and having had regard to the advice of the Cabinet set out in Minute 239(b) of 9 November 2022:

 

Councillor Hart MOVED and Councillor McInnes SECONDED that the Cabinet’s advice be accepted and that Council notes the issues raised and will continue to work as part of the Devon Housing Task Force.

                       

The amendment in the name of Councillor Hart was then put to the vote and declared CARRIED and subsequently thereafter also CARRIED as the substantive motion.