Agenda item

(a)  That it be noted that following detailed preliminary investigations, the creation of a subsidiary housing company remains a viable and worthwhile option to improve the quality of housing available to residents of Slough and to generate a financial rate of return to the council which maximises the value of its land assets; and

(b)  That the development of a detailed business plan and outline governance rules from within existing and previously approved financial resources be approved and to bring a final report for consideration to Cabinet by October 2014.

The Assistant Director, Housing & Environment updated Commissioners on the progress made regarding the options appraisal for the establishment of a Subsidiary Housing Company.

The Cabinet was reminded that the purpose of establishing a special purpose vehicle would be to bring forward housing development on a number of smaller, difficult sites which were less attractive to private sector developers and to maximise the value of land assets to the Council.  Since the last Cabinet report in April 2014, Officers had further investigated the legal and financial viability of a subsidiary housing company, utilising professional advice where appropriate.  Members were advised that this preliminary work had clearly demonstrated that there were no legal impediments to prevent the Council from establishing a subsidiary company for these purposes and that it would be financially viable and make best use of the Council’s assets.  It was proposed to continue the feasibility work and bring a further report to the Cabinet by October 2014 which would include a final business case.

Commissioners recognised the potential benefits of a subsidiary housing company in terms of regenerating smaller sites for much needed residential accommodation and the opportunity to realise a better financial return, either by sale or from ability to manage the stock, for example by making properties available for market rent.  A number of issues were discussed including the financial viability of the sites likely to be brought forward under this mechanism and the potential to engage local construction companies in delivery.  The Cabinet believed that the company could be a useful tool to address some of the housing supply requirements in Slough and agreed to proceed with the further feasibility work prior to receiving a further report in the autumn.

Resolved –

(a)  That it be noted that following detailed preliminary investigations, the creation of a subsidiary housing company remains a viable and worthwhile option to improve the quality of housing available to residents of Slough and to generate a financial rate of return to the council which maximises the value of its land assets; and

(b)  That the development of a detailed business plan and outline governance rules from within existing and previously approved financial resources be approved and to bring a final report for consideration to Cabinet by October 2014.