Decision details

The council’s LEAF Corporate Plan includes the commitment to ‘prioritise actions to make housing truly affordable’. This scheme represents a cost-effective way for the council to enable 4no. newly built four bedroom houses to be let at rents below 60% of market rents, akin to social rent levels.

Jonathan Geall, Head of Housing and Health is acting under authority delegated by the Executive on 4 March 2014 to the Director of Neighbourhood Services, in consultation with the Executive Member for Health, Housing and Community Support, to make decisions on any future funding contributions to aid sustainable affordable housing development in the District.

The Head of Housing and Health is the successor to the Director of Neighbourhood Services with regard to affordable housing matters (see section 10.16 of the council’s Constitution).

The Executive Member for Neighbourhoods is the successor to the Executive Member for Health, Housing and Community Support with regard to housing matters (see section 4.26.2 of the council’s Constitution). Cllr Mione Goldspink has been consulted and in agreement – recorded in notes of monthly 1:1 meeting between Cllr Goldspink and Jonathan Geall held on 13th September 2024.

Use s106 commuted sums secured by the council as part of the South Street Commercial Centre development, Bishop’s Stortford planning agreement for the provision of a grant of £40,000 to Paradigm Homes Charitable Housing Association to reduce rents on 4no. four bedroom houses in Bishop’s Stortford to a level commensurate with the local housing allowance for a three bedroom property.

Option 1 - Use the £40,000 towards the building of homes at social rents. NOT RECOMMENDED as estimates would suggest that the grant required to fund the building of a 1no. four bedroom home with an social rent, without any other subsidy, would be c£150,000 - £200,000. The value for money of the proposed rent reduction scheme is thus self-evident.

Option 2 - Retain the £40,000 and seek other registered partners’ suggestions on how the amount could be used to reduce rents. NOT RECOMMENDED as Paradigm Homes Charitable Housing Association was the only register provider open to exploring the potential use of the grants in a considered way. In addition, the council’s grant is, in fact, unlocking Paradigm’s own internal subsidy such that the combined impact of the council’s and registered provider’s subsidy is able to fund a significant reduction in the rent of £165 per calendar month, this being down to level which equates to a social rent.

Option 3 - Use £40,000 of commuted sums as proposed as this represents very good value for money in terms of delivering housing which is truly affordable, in this case, having a rent below 60% of market rent levels.