Councillor Damian White, Cabinet member for Housing, introduced the report
The report before Cabinet sought its agreement to a policy which would enable existing Council tenants to purchase a share in their home, subject to the limitations and restrictions set out in the report.
Cabinet was informed that the proposed scheme was intended to increase opportunities for Havering Council tenants to take the first steps into home ownership by purchasing a share in their existing Council home. All Council tenants would be eligible under the scheme subject to the restrictions as set out.
The scheme was not a national requirement but a voluntary arrangement similar to those operated by a number of other London Boroughs. The scheme had some strong similarities to that introduced under the 2010 Guidance for Local Authorities issued by Communities and Local Government but did not replicate it in its entirety.
Reasons for the decision:
The proposal would increase the range of home ownership options available to Havering tenants. This would support the general aim to increase access to affordable homeownership as set out within the 2014–17 Housing Strategy.
A range of other options for accessing affordable home ownership already existed, including shared ownership which was targeted at first-time buyers in general and not Council tenants.
In common with the Right-to-Buy legislation the proposal was specifically restricted to qualifying Council tenants but this option opened-up accessibility to low-cost home ownership through assisting those Council tenants who did not have sufficient financial resources to purchase outright.
Other options considered:
The option of not developing a social HomeBuy scheme for Council tenants was considered and rejected as it would not meet the objective of expanding the options for Council tenants wishing to access low-cost home ownership.
It would also have been possible to determine different parameters for the scheme, qualifying criteria, and rules of operation but the proposed scheme appeared to be the fairest in the circumstances.
Cabinet:
1. Agreed to the introduction of a social HomeBuy scheme to allow existing Council tenants to purchase a share in their home the principal terms of which are set out in the report.
2. Authorised the Head of Housing Services in consultation with the Cabinet Member for Housing to prepare and approve a detailed social HomeBuy scheme in line with principles outlined in the report.
3. Authorised the Head of Housing Services to amend the categories of properties exempt from the scheme after consultation with the Cabinet Member for Housing.