Agenda item

(a)  That it be agreed that officers build a business case and structure for two subsidiary housing companies: a) Herschel Homes, which will provide market rent properties and b) Slough Homes, which will provide homes which are affordable to local people and assist the Council better discharge its duties to homeless and other groups of people - these homes will be part of the assets  of the Companies  and their acquisition will be funded by the Council from the General Fund.

(b)  That it be noted that both Herschel Homes and Slough Homes will  be companies that are limited by shares with the Council being the sole shareholder.

(c)  That the Strategic Director Housing, Regeneration and Resources be given delegated authority to establish a project team to progress the realisation of the proposed company structures

(d)  That the list of ‘next steps’ as set out in section 5.33 of the report be noted.

(e)  That it be noted that an update report on Herschel Homes and Slough Homes will be presented to Cabinet by December 2016, which will be supported by a detailed business plan and indicative programme.

The Commissioner for Housing & Urban Renewal introduced a report that sought approval to establish a company group structure to introduce two new wholly Council owned subsidiary housing companies.  The principle aims were to improve choice, increase quality and meet varying forms of housing need locally.  The two companies would be Herschel Homes to provide market rent properties and Slough Homes (which was a working title) to provide affordable homes and help the Council better discharge its duties to homeless and other groups of people.  Approval was sought for officers to develop a full business case and structure and bring a further report to Cabinet by December 2016.

Commissioners recognised the importance of both seeking to address local housing need and generate income to support the Council’s revenue budget.  It discussed the differing purposes of both companies and particularly the potential of Slough Homes in improving provision and reducing the cost of temporary housing.  The previously considered proposals for a subsidiary housing company differed insofar as that was for a development company for smaller sites and that function was now being taken forward by Slough Urban Renewal.

Councillors Nazir, Bains, Amarpreet Dhaliwal, Swindlehurst and Anderson asked questions and commented on the proposals under Rule 30.  It was noted that advice would be sought and best practice used on the governance arrangements and the use of non-executive directors; the rationale for two separate companies was clearly explained; and that the companies would be in scope of the Council’s scrutiny arrangements.  Slough Homes would offer properties at affordable rents and the balance would be carefully assessed in the business case development.  It was recognised that the proposal did not in itself increase the supply of housing, however, it was one part of a wider strategy on housing that was emerging.

The Cabinet agreed the recommendations to take the proposal forward and receive a further report by December 2016 on the business case.

Resolved –

(a)  That it be agreed that officers build a business case and structure for two subsidiary housing companies: a) Herschel Homes, which will provide market rent properties and b) Slough Homes, which will provide homes which are affordable to local people and assist the Council better discharge its duties to homeless and other groups of people - these homes will be part of the assets of the Companies and their acquisition will be funded by the Council from the General Fund.

(b)  That it be noted that both Herschel Homes and Slough Homes would be companies limited by shares with the Council being the sole shareholder.

(c)  That the Strategic Director Housing, Regeneration and Resources be given delegated authority to establish a project team to progress the realisation of the proposed company structures.

(d)  That the list of ‘next steps’ as set out in section 5.33 of the report be noted.

(e)  That an update report on Herschel Homes and Slough Homes be presented to Cabinet by December 2016, which would be supported by a detailed business plan and indicative programme.