Agenda item

The Assistant Director for Programmes, Investment and Development’s report provided an overview and introduction to Build and Buy, a housing investment and delivery plan for East Devon.  The report was in response to a growing housing need and feedback from the Housing Strategy consultation to increase the supply of affordable homes for residents in East Devon and contribute to the wider housing and community objectives, including estate regeneration.

The purpose of the Build and Buy Plan was to maximise the use of the Council’s assets, address housing need and support the Council's strategic objective of having a supported and engaged community that had the right homes in the right places with the appropriate infrastructure.  The Plan aimed to deliver an aspirational target of 500 homes over the next five years, with an equal split between homes built on Council owned land and homes acquired through partnerships with private developers.  This mixed delivery approach was intended to accelerate housing supply, make efficient use of public assets, and ensure the Housing Revenue Account (HRA) had a range of housing stock to meet local needs.  It was noted that the intention was that the majority of homes would be social rented rather an affordable rented.  All would be funded through the HRA.  A local authority development company was not being proposed.

Key considerations contained in the report were:

·        Site development and feasibility.

·        Construction type, procurement and delivery models.

·        Housing mix and design standards.

·        Community and stakeholder engagement.

·        Risk assessment.

·        Funding implications:

o   Capital investment.

o   Funding sources.

o   Revenue implications.

o   Governance.

·        Communications and engagement strategy.

·        Regular Portfolio Holder updates.

·        Housing Review Board – routine reporting to provide oversight on delivery, risks and track performance against the plan proposals.

·        Decision making and delegated authority.

Build and Buy – A Housing Investment and Delivery Plan for East Devon was a bold,

ambitious and proactive response to the district’s housing challenges. The Board noted that the development process could be lengthy and complex with the potential for lengthy delays, particularly at the planning and pre planning stage. Multiple external factors such as inflation, particularly on build costs and labour, could adversely affect development viability and necessitate a deviation from the plan target. As such, the hugely ambitious target of 500 homes over 5 years should be seen as an aspirational target.

The next steps included:

• Finalising site feasibility prioritisation and engagement plans.

• Establishing delivery partnerships and a pipeline of acquisitions.

• Regular progress reporting to Members, in addition to regular review to monitor

delivery, risks, and financial performance.

• Seeking formal approval of the HRA Business Plan which would provide the strategic financial investment framework for financing the plan.

Concern was expressed over the resources that could be required to deliver such an ambitious plan.  It was acknowledged that not all of the resource was currently available in-house and this would be built into the plan.  It was currently a conceptual piece of work, with broad figures in principle.  There would be precise costings and sustainability credentials on site specific schemes, which would be brought to the Board and considered on an individual basis.

The Board were pleased to see ambitions for the future and officers were thanked for presenting the build and buy plan.

RECOMMENDED:

1.     that Cabinet recommend that Council endorse the Build and Buy Plan.

2.     that Cabinet note that the financing of the Build and Buy Plan was subject to approval of the Housing Revenue Account Business Plan and the 2026/27 budget setting process in due course.