Cabinet considered the report of the Head of Housing and Community which sought approval to amend the Council’s Temporary Accommodation Investment Strategy (TAIS) to include the ability to purchase residential property which encompassed an element of commercial use as part of the freehold.  These properties were typically town centre located and were competitively priced compared to purely residential properties and offered the Council an additional potential income stream.

The TAIS at Appendix A to the report outlined the approximate number and types of property the Council would target for use as temporary accommodation (TA) alongside how these properties would be purchased, managed, repaired and maintained.  Since 2019, the Council had allocated £9m to purchase accommodation for temporary use by homeless households.

All prospective purchases would be independently valued and kept within the existing strategy’s indicative prices detailed at Appendix B to the report; this figure would include all renovation works required to bring the properties up to the necessary building control standards.  

Purchase and management would be overseen by the Council’s Estates Team, repair and maintenance of the commercial element would depend on the terms of the existing lease and overseen by the Housing Needs team.

Cabinet was supportive of the amendment to the TAIS, as this enabled the Council to secure freehold flats, conveniently located in central locations and generate income through retail leases.  It also provided the Council an opportunity to improve the local area as part of the regeneration agenda through the letting of any currently empty commercial premises that were purchased.  However, to ensure Member oversight of the financial impact, any purchases of TA that encompassed an element of commercial use would be subject to approval by the Property Investment Panel.

RECOMMENDED: That the amended Temporary Accommodation Investment Strategy be approved subject to the additional requirement for purchases that encompass a commercial element to be approved by the Property Investment Panel.