Issue - meetings

Report of Executive Director: Finance and Governance

Purpose of report

To consider joining a version of the existing Local Authority Mortgage Schemes (LAMS) which was developed by Arlingclose to promote access to self/custom build home ownership within the district. It sets out the Bespoke/Custom Build (BCB) scheme which offers support to local people to access self/custom build houses by reducing the risk of self-build and provides a return to the council which could be reinvested in housing related activities.    

Recommendations

The meeting is recommended to:

 1.1        Agree to join the Bespoke/Custom Build (BCB) scheme, but limited to an initial pilot scheme of 10 BCB mortgages, for launch in early 2018. 

1.2       Delegate authority to the Executive Director: Finance and Governance, in consultation with the Lead Member for Financial Management, to extend the scheme to new applications once the success of the pilot has been assessed and further capital funding is in place for additional bridging loans.

1.3       Delegate authority to the Executive Director: Finance and Governance, in consultation with the Monitoring Officer and Lead Member for Financial Management, to enter into legal agreements required for the BCB scheme where land is owned by third parties.

1.4       Delegate authority to the Executive Director: Wellbeing, in consultation with the Executive Director: Place & Growth and the Lead Member for Housing and the Lead Member for Estates & Economy to set the criteria for prioritising access to the scheme for applicants with a local connection.

Resolved

(1)          That agreement be given to join the Bespoke/Custom Build (BCB) scheme, but limited to an initial pilot scheme of 10 BCB mortgages, for launch in early 2018. 

(2)          That authority be delegated to the Executive Director: Finance and Governance, in consultation with the Lead Member for Financial Management, to extend the scheme to new applications once the success of the pilot has been assessed and further capital funding is in place for additional bridging loans.

(3)          That authority be delegated to the Executive Director: Finance and Governance, in consultation with the Monitoring Officer and Lead Member for Financial Management, to enter into legal agreements required for the Bespoke/Custom Build scheme where land is owned by third parties.

(4)          That authority be delegated to the Executive Director: Wellbeing, in consultation with the Executive Director: Place & Growth and the Lead Member for Housing and the Lead Member for Estates & Economy to set the criteria for prioritising access to the scheme for applicants with a local connection.

The Executive Director: Finance and Governance submitted a report to consider joining a version of the existing Local Authority Mortgage Schemes (LAMS) which was developed by Arlingclose to promote access to self/custom build home ownership within the district. It sets out the Bespoke/Custom Build (BCB) scheme which offers support to local people to access self/custom build houses by reducing the risk of self-build and provides a return to the council which could be reinvested in housing related activities. 

Resolved

(1)          That agreement be given to join the Bespoke/Custom Build (BCB) scheme, but limited to an initial pilot scheme of 10 BCB mortgages, for launch in early 2018. 

(2)          That authority be delegated to the Executive Director: Finance and Governance, in consultation with the Lead Member for Financial Management, to extend the scheme to new applications once the success of the pilot has been assessed and further capital funding is in place for additional bridging loans.

(3)          That authority be delegated to the Executive Director: Finance and Governance, in consultation with the Monitoring Officer and Lead Member for Financial Management, to enter into legal agreements required for the Bespoke/Custom Build scheme where land is owned by third parties.

(4)          That authority be delegated to the Executive Director: Wellbeing, in consultation with the Executive Director: Place & Growth and the Lead Member for Housing and the Lead Member for Estates & Economy to set the criteria for prioritising access to the scheme for applicants with a local connection.

Reasons

The scheme has been developed as an evolution of the local authority mortgage scheme (LAMS) to be relevant and available for customers wanting to self or custom build. The approach generates small returns for the authority and as a partnership activity does not require significant investment in people and expertise to run the scheme. The primary benefits are the ability to start small and test the extent to which the product may increase access to the self-build market.

Alternative options

Option 1: To not join the scheme. This option has been rejected because the council may fail to meet housing needs in the district.

Option 2: To join the scheme without first conducting a pilot. This option has been rejected because it is more prudent to test the waters with a pilot to manage the expectations of the custom and self build community.