Cabinet will be asked to approve the proposal to enter into a nominations agreement with Inspired Solutions for the delivery of up to 600 build to rent properties across Havering.

Report Title: Inspired Solution- Build to rent at the Local Housing Allowance

Presented by: Councillor Natasha Summers (Cabinet Member, Living Well Housing Demand)

Cabinet:

5.1.      Approved in principle the proposal to enter into an overarching nominations agreement with Inspired Solutions under which property-specific nominations agreements for the delivery of up to 600 build to rent properties across Havering can be agreed and further under which the Council will  have the benefit of a 40 year 100% nominations agreement with Inspired Solutions upon practical completion of developments that meet the Council’s assessed housing needs, regulatory requirements and relevant standards (the Overarching Nomination Agreement).

5.2.      Approved in principle the proposal to enter into the first property-specific nominations agreement in respect of up to 100 units under which the Council will provide rent guarantees up to current (2024) LHA for the forty year term and from the date of practical completion of those units in exchange for the unfettered right to nominate tenants from the Council’s housing lists (the Property Nomination Agreement).

5.3.      Delegated authority to the Director of Living Well to negotiate and complete the Overarching Nomination Agreement with Inspired Solutions subject to:

5.3.1.  the Overarching Nomination Agreement containing satisfactory safeguards that ensure that the Council will only be required to enter into a Property Nomination Agreement in respect of properties:

5.3.2.  that will make a material contribution to meeting the Council’s assessed housing needs;

5.3.3.  that benefit from all necessary consents, approvals and permissions; and

5.3.4.  That comply with standards published by the Regulator of Social Housing from time to time;

5.3.5.  an assessment of any potential subsidies under the Subsidy Control Act 2022 through which assessment it is determined either that no subsidy will be provided to IS or that a subsidy can lawfully and transparently be provided to IS in accordance with the Act; and

5.3.6.  consultation with the Strategic Director of Resources and the Monitoring Officer.

5.4.      Delegated authority to the Director of Living Well to negotiate and complete the first Property Nomination Agreement for up to 100 units with Inspired Solutions subject to:

5.4.1.  the Council’s total estimated liabilities under the Property Nomination Agreement being no greater than the offset TA costings set out in this paper;

5.4.2.  the Director of Living Well in consultation with the Strategic Director of Resources being satisfied that there is provision within the Council’s existing budget for any costs that the Council is likely to incur in entering into the Property Nomination Agreement and that the decision is accordingly wholly in accordance with the Council’s Budget and Policy Framework;

5.4.3.  the Property Nomination Agreement containing safeguards that adequately mitigate the financial risk(s) to the Council (set out in section 30 of this report);

5.4.4.  the Director being satisfied that the properties are wholly in accordance with the Council’s assessed housing needs;

5.4.5.  the property units satisfying the standards prescribed by the Regulator of Social Housing;

5.4.6.  the Property Nomination Agreement including positive covenants on Inspired Solutions to maintain the properties in accordance with those standards for the duration of the term;

5.4.7.  an assessment of any potential subsidies under the Subsidy Control Act 2022 through which assessment it is determined either that no subsidy will be provided to IS or that a subsidy can lawfully and transparently be provided to IS in accordance with the Act; and consultation with the Strategic Director of Resources and the Monitoring Officer.