Issue - meetings

The Head of Housing and Health submitted a report that outlined the proposed approach to assessing the financial viability of setting up a housing company owned by East Herts Council.  It was proposed to first assess the case for establishing a housing investment company to acquire properties then rent them out at market rents thereby generating a revenue income for the Council.

Members were advised that should a housing investment company be established, it was proposed that the feasibility of a council-owned housing development company would be explored.  The policy aimed for the establishment of a housing investment and development company as detailed in the report now submitted.

Officers stated that a business case would be considered by Corporate Business Scrutiny Committee on 29 November 2016 and by Executive on 6 December 2016 before determination by Council on 14 December 2016.  Members were reminded of the proposed phasing and were advised that the above dates were provisional.

In response to comments to Councillor J Wyllie, the Head of Strategic Finance and Property advised that the investment detailed in the report would be more productive than investments in the financial or banking sector due to the ongoing low interest rate.  The Head of Housing and Health responded to a number of other comments and queries from the Committee.  Members received the report and supported the recommendations now detailed.

RESOLVED – that (A) the preparation of a full business case be supported; and

(B)   the establishment of a housing development company be supported as detailed in paragraph 2.10 of the report submitted.