Agenda item

To receive the report of Kayt Wilson, Head of Private Housing Solutions.

RECEIVED the report of Kayt Wilson, Head of Private Housing Solutions.

NOTED

1.    The verbal introduction by Joanne Drew, Director of Housing & Regeneration outlining progress to date on the performance of Housing Gateway Ltd (HGL).

2.    HGL was created in 2014 as a response to the Council’s budget pressure on temporary accommodation.

3.    HGL supports the Council in delivering the aims of its housing strategy. HGL’s purpose is to provide quality housing for Enfield’s residents to help the Council end the use of temporary accommodation.

4.    HGL was initially commissioned to purchase 100 properties that could be used as an alternative to temporary accommodation. Since this time HGL has expanded its portfolio to 611 properties and diversified to create an ethical letting agency, provide specialised housing for severely disabled service users and purchased accommodation for rough sleepers.

5.    Good progress has been made on property acquisitions however, it has been a challenging year namely due to the pandemic and the economic impact that this has had on residents and the property market.

6.    HGL had the capital funding to purchase an additional 100 properties in 2021/22. At the end of January 2022 HGL had purchased 46 properties and it is anticipated that a further 24 properties will be purchased by year end.

7.    The current portfolio saves the London Borough of Enfield (LBE) c.£2m per annum (pa) and has saved c.£11.2m to date.

8.    Further information was provided on the Rough Sleeper Accommodation, the Ethical Lettings agency and the integrated learning disabilities accommodation.

9.    In response to members’ queries regarding the acquisitions programme it was advised that the property market has remained buoyant and prices have risen at times, despite the pandemic. The changes to stamp duty stimulated the market and meant that there was not as many properties were available in HGL’s price range. As HGL is committed to renting its properties at a submarket rent, this restricts the amount HGL can purchase a property for and this is significantly lower than most investment landlords that HGL is competing with.

10. Furthermore, it was explained that HGL makes an offer on every available and suitable property on the market, and HGL’s excellent reputation and ability to purchase quickly, often secures a property at less than market value.

11. In response to a question about the Council’s Landlord Licensing Scheme Members were advised that to date, HGL has submitted applications for 92% of its properties. HGL fully renovates all properties when purchased and ensures they are well maintained via regular inspections and using the Council’s repairs team, Enfield Repairs Direct.

12. In response to concerns raised by Members regarding the lack of availability of three- and four-bedroom homes for Enfield residents, it was advised that HGL buys a mix of properties including larger homes whenever possible. However, these are not always as easy to come by as new homes built by third parties are often two-bedrooms as this is where the private market makes most of its money.

13. Further information was provided on the Rough Sleeper Accommodation, the Ethical Lettings Agency and the Integrated Learning Disabilities Accommodation.

14. Enfield Let leases properties from private landlords in the Borough, offering long leases of 3-5 years. Landlords are offered guaranteed rent, paid monthly in advance and a full management service.

15. Enfield Let has grown a portfolio of 195 leased properties since its inception, providing quality homes in private rented sector for families who would otherwise be placed in temporary accommodation.

16.  In response to Members’ concerns regarding the lack of detailed property information and budget/financial figures included in the report it was agreed that further facts/information would be circulated following the meeting.

17. It was also suggested that moving forward an HGL Transfer List would be most useful.

The Scrutiny Panel agreed the following recommendations:

(i)            More facts and financial/budget details to be circulated to Members.

(ii)          An HGL Transfer List to be implemented.