Agenda item

Sefton Council Housing Development Company- Sandway Homes Limited

Report of the Head of Corporate Resources

Minutes:

 

The Cabinet considered the joint report of the Chief Executive and the Head of Corporate Resources in relation to the Housing Development Company, Sandway Homes Limited (SHL) and the work that had been undertaken to update the Company’s Business Plan for the Phase 1 programme that included a full re-cast of all financial information. 

 

The Cabinet also took into consideration the information contained in annexes 1 to 3 of the exempt agenda item No.14 (Minute No. 27 refers).

 

Decision Made:  That:

 

(1)

the Updated development appraisals for Sandway Homes Limited be approved and authority be granted to proceed to the delivery of Phase 1;

 

(2)

the updated financial return that is due to the Council from the company through Phase 1 be noted and authority be granted to include this within the Council’s 3-year Medium Term Financial Plan (2020/21 to 2022/23);

 

(3)

the basis for the transfer of land to the Company as set out in the report be approved;

 

(4)

the Company’s approach to risk management and financial control as set out in the report be approved and the internal and external factors that could influence and impact upon the final financial return to the Council be noted;

 

(5)

the level and principles that will underpin the peak debt that can be accessed to the Company as set out in the report be approved;

 

(6)

the loan agreement included at Annex 3 between the Council and Sandway Homes Limited be approved;

 

(7)

the accounting treatment of Sandway Homes Limited within the Council’s Statement of Accounts as set out in the report be noted;

 

(8)

the Council’s governance arrangements in relation to Sandway Homes Limited as set out in the report be approved; and

 

(9)

the request to Sandway Homes Limited to identify up to 5 affordable homes for purchase by the Council for the purpose of providing Council Housing and that a subsequent report, detailing the exact assets to be purchased and the financial implications be provided to support the decision in accordance with the Council’s Constitution and Financial Procedure Rules be approved. 

 

Reasons for the Decision:

 

Since 2016 the Council has been considering its role in the provision of housing throughout the Borough to complement an active third and private sector market. There is significant demand for housing sites and housing development within Sefton, with over 11,000 housing units being required, over the Local Plan period, in order to meet with the local housing demand.

 

There is a national shortfall of circa 1m homes (of which 400,000 fall into affordable homes) whilst across the Liverpool City Region a total of circa 50,000 housing units will be required in the medium term. The creation of a Housing Development Company will be able to increase housing completions and the availability of choice for residents and those whom wish to live in Sefton.

 

Alternative Options Considered and Rejected:

 

The Council set out its evaluation criteria in October 2017 that led to the decision to establish a wholly owned Housing Development Company.

 

 

 

Supporting documents: