Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

1) Summary of Decision Area:

1.1. This report seeks to establish a strategy for dealing with eight dwellings owned by the County Council at Mitchell Buildings, Monteagle Lane, Yateley and Velmead Road, Fleet. The dwellings have been made available by the County Council as housing for new members of staff (primarily teachers), but they have suffered high levels of vacancies for a number of years.

1.2. The proposals support the corporate priorities and, in particular, Hampshire Safer and More Secure for All, by ensuring that management issues associated with vacant dwellings are avoided through increased occupation of the dwellings.

2) Issues Covered in Report:

2.1. The report sets out details of the properties, the background to the County Council's ownership, the present letting arrangements, and the recent levels of occupancy. The report suggests some options which could be pursued to ensure these dwellings are brought into better use. The options range from retaining the dwellings in County Council ownership and investing in improvements, to disposal.

3) Recommendations:

3.1. The eight dwellings at Mitchell Buildings, Yateley and Velmead Road, Fleet be marketed to new members of staff joining schools in the north-east of the County; and

3.2. The Director of Property Business and Regulatory Services (Interim Head of Estates) be asked to report back in the autumn on the level of take-up by staff, and with proposals for the long-term ownership and occupation of the dwellings.

MAIN REPORT

1) The Properties:

1.1. Mitchell Buildings in Monteagle Lane, Yateley is a development of twelve flats, constructed in the 1970s specifically to provide affordable housing for local teachers. A total of five flats remain in County Council ownership, the other seven flats having been sold between 1987 and 1993 to the occupying secure tenants under the Right to Buy provisions of the Housing Act 1985. The County Council retains the freehold of the development.

1.2. All five remaining flats have continued to be made available to new members of staff moving to the area for employment reasons, but take-up has been slow for a number of years and a very high level of vacancies has existed. Over the past five years, vacancy rates have been running at around 65%.

1.3. The County Council's ownership at Velmead Road, Fleet, comprises a mixed development of houses and flats, again constructed in the 1970s to provide housing for teachers. A total of ten dwellings were sold to the secure tenants between 1988 and 1993, leaving two houses and two flats in County Council ownership. Again, the County Council retains the freehold of the flats and common areas.

1.4. One of the houses continues to be occupied by a secure tenant who could, if they wished, exercise their right to buy under the Housing Act 1985. The other three dwellings have continued to be made available to new employees, although again take-up has been slow in recent years. Over the past five years, vacancy rates on these three dwellings have been running at about 40%.

2) Key Issues:

2.1. Whilst the availability of these properties is given publicity at local schools and on websites, there has been a limited take-up of the accommodation by teachers. Part of the reason is the attractiveness of the premises. Whilst the buildings are properly maintained, they have remained unimproved since the 1970s in terms of their amenities (primarily kitchens and bathrooms) and they now require complete modernisation. The poor facilities have been a deterrent to some potential tenants.

2.2. A further disincentive to use is the basis on which the County Council can make the premises available to staff, which is severely restricted by legislation. Essentially, a secure tenancy (and a Right to Buy ) is created, unless the tenancy is restricted to new members of staff taking up new employment close by, but this can then only be for a maximum of one year, after which a secure tenancy is created.

2.3. It is also considered that the drop-off in demand for this accommodation, especially from teachers over the last few years, reflects the greater range of alternatives now open to teachers moving to the area to join a local school. There is generally a far greater amount of private rental accommodation available in the area, and also a number of specific initiatives for the provision of key worker accommodation. The properties are also unfurnished.

2.4. In addition to the usual costs of maintenance at these dwellings, further costs are incurred by the County Council because of the type of development and the current under-utilisation. In relation to vacant properties, the County Council will be liable for council tax and standing utility charges. The County Council also has responsibility for maintenance of all communal areas and grounds, and must carry this cost in relation to the dwellings which have been retained. There are substantial management costs associated with recovery of services charges from the privately owned flats.

2.5. All schools in the north-east of the county are notified twice a year of the availability of the Mitchell Buildings and Velmead Road premises. This is undertaken via email to the various school administrators.

3) Available Options and their analysis:

3.1. Retain the dwellings in County Council ownership and invest in their improvement:

It is possible that investing in modernising the dwellings, including the provision of new kitchens and bathrooms, may assist in raising the levels of occupancy. However, the unimproved condition of the dwellings is not the only reason for the high vacancy rates, as there are low numbers of enquiries from teachers moving into the area. The restrictions whereby tenancies of up to one year only can be granted may also have affected occupation rates. The cost of the necessary improvements to the eight dwellings is estimated at a total figure of around £160,000.

3.2. Dispose of the dwellings individually on the open market:

This is likely to produce the highest total capital receipt, but may take some time to achieve. Market conditions are poor, but there is still some activity in the housing market. A phased approach to the sales may be appropriate, with some minor works of redecoration being undertaken to improve the prospects of disposal. This approach provides a good opportunity to bring some relatively low cost houses to the market.

3.3. Dispose of the dwellings to a housing association:

It is possible that a local housing association may be interested in acquiring a group of dwellings, although the fact that those dwellings remaining in County Council ownership comprise only 25-40% of each original development may make the opportunity less attractive to the associations. This approach could potentially lead to disposal at an earlier date, although perhaps at a lower total receipt.

3.4. Retain the dwellings in County Council ownership and establish demand from any new members of staff in current school recruitment rounds.

Recent consultation has identified that, although school administrators have been made aware of the availability of these dwelling on a regular basis, this information may, at times, not have reached those responsible for the recruitment of new staff. If this is so, then there may be a demand which remained unidentified. It would be possible to promote the availability of the accommodation through local schools who will be recruiting new teachers for the autumn 2009 term in order to establish whether a hidden demand exists.

4) Conclusions:

4.1. It is clear that these dwellings have been underutilised for several years. The reasons for the under-utilisation are unclear, but the unimproved condition of the dwellings is likely to be a factor, together with the greater choice now available to key workers, particularly teachers, in terms of low-cost housing. Alternatively, it may be that new members of staff are simply unaware of the availability of the dwellings.

4.2. In order to assess any hidden demand, it is proposed to again promote the availability of the dwellings to schools in the north-east of the County over the coming months, and link with recruitment of teachers for the autumn 2009 term. The results will then help inform a further report to be brought to the Executive Member for Policy and Resources in the autumn with recommendations for the long-term future of the dwellings.

5) Recommendations:

Please see Executive Summary for recommendations.

CORPORATE OR LEGAL INFORMATION:

COMPREHENSIVE RISK & IMPACT ASSESSMENTS:

Race and equality impact assessment

Race and equality impact assessment has been considered in the development of this report and no adverse impact has been identified.

Crime prevention issues

The County Council has a legal obligation under Section 17 of the Crime and Disorder Act 1998 to consider the impact of all the decisions it makes on the prevention of crime. The proposal in this report aims to bring these dwellings into increased occupation thus removing risks associated with the management of vacant properties.

Climate change

The impact of the proposal on the climate change agenda has been considered and no impact has been identified.

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