Issue - meetings

The Cabinet Member for Housing introduced a report on proposals to establish a non-statutory Tenant Shared Ownership Scheme which would be open to all Council tenants in the Borough, subject to certain qualifying requirements.

The Cabinet Member advised that the report was one of three on the evening’s agenda aimed at offering affordable home ownership products, provided or facilitated by the Council.  She commented that the range of proposals reflected the Council’s status as London’s growth opportunity and would help to reverse the negative impact that so many of the Government’s initiatives were having on the Council and its community.

The Cabinet Member explained that the Tenant Shared Ownership Scheme would be aimed at Council tenants who aspired to become homeowners but who were unable to secure a mortgage to buy their property outright.  A key component of the Scheme was that the tenant would be entitled to own between 25% and 70% of the property, thereby making it affordable to those on lower incomes while ensuring that the Council, as landlord, was able to stipulate the conditions for eligibility and the terms of the lease.  The Cabinet Member confirmed that by retaining equity in the property, the Council would retain control over re-sales and sub-letting to ensure that the property was retained as a long lasting, affordable housing option that could be allocated according to the Council’s priorities.

Members spoke in support of the innovative scheme, believed to be the first of its kind amongst local authorities in England, and the Leader confirmed that the initiative would enable the Council to reinvest more than £100m in its housing stock which would not have otherwise been available.  It was also noted that the Shadow Minister for Housing and Planning, The Right Honourable John Healey MP, had given his support to the initiative during his visit to the Borough the previous week.

Cabinet resolved to:

(i)  Approve the proposals for the introduction of a Tenant Shared Ownership Scheme as detailed in the report;

(ii)  Agree that the proposals be subject to public consultation for a minimum six week period; and

(iii)  Note that a report advising on the outcome of the public consultation and proposing the final policy and implementation date shall be presented to the Cabinet in due course.