Agenda item

A report from the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services is attached. This seeks approval to start accommodation provider market engagement to explore the opportunity to secure large volume temporary accommodation supply in partnership with three other Boroughs. (Key decision – reference number 4187)

(Report No.60)

(8.50 – 8.55 pm)

Councillor Ahmet Oykener (Cabinet Member for Housing and Housing Regeneration) introduced the report of the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services (No.60) seeking approval to start accommodation provider market engagement to explore the opportunity to secure large volume temporary accommodation supply in partnership with three other Boroughs.

NOTED

1.      The impact of the current demand for housing within Enfield and across London as a whole.  Whilst demand continued to rise, Enfield had already introduced a number of innovative measures designed to increase the supply of affordable housing for local residents.  These included the small sites developments; regeneration of housing estates; creation of Housing Gateway and Enfield Innovations to bring forward stock as an alternative to the use of temporary accommodation and the Meridian Water development.

2.      As a further measure, Enfield was also working in partnership with three other neighbouring boroughs – Waltham Forest, Redbridge and Newham in order to use combined purchasing power to procure additional large volume supply of temporary accommodation, with approval now being sought to commence an engagement process with the market to explore the potential opportunities in more detail.

3.      The concern expressed at the figure of £81m quoted in relation to costs within Enfield for temporary housing within a recent press article.  The figure had been provided in response to a Freedom of Information (FOI) request and had represented the gross costs.  When adjusted to include the income received from rent and other charges the net figure was closer to £10m and as a result the Council would be requesting a correction from both the BBC and The Independent.

Alternative Options Considered: NOTED the following alternative options considered as detailed in section 4 of the report:

1.            Continue As-Is: The Council was establishing a dynamic purchasing system (agreed by Cabinet in March 2015) to increase the supply of properties under contract and reduce the cost of temporary accommodation arrangements; however, this alone was not anticipated to ease all of the pressure on the temporary accommodation budgets.

2.            Do nothing: As the authority had a statutory duty to place homeless applicants into emergency accommodation, there would always be a need to secure some level of temporary accommodation from private agents/landlords. To ensure effective supply the Council needs to take innovative approaches to create and/or identify cost efficient temporary and permanent housing solutions.

DECISION: The Cabinet agreed to

1.            Approve both targeted and general marketing to draw interest from the provider market for temporary accommodation supply in partnership with the London Boroughs of Waltham Forest, Newham and Redbridge as set out in paragraph 3.9 of the report.

2.            Delegate the decisions on individual contracts, to the Director of Health, Housing and Adult Social Care, Director of Finance, Resources and Customer Services with the Cabinet Member for Housing and Housing Regeneration and the Cabinet Member for Finance and Efficiency.

Reason: The continued pressure to provide temporary accommodation for those facing housing emergencies and homelessness, was placing significant financial pressure and ongoing risk to the Council’s finances. This report set out the intention to take the Council requirements to the market to seek solutions intended to manage the current risk posed by the high reliance on short term contracts for the provision of accommodation.

(Key decision – reference number 4187)