Decision details

To consider the report of the Cabinet Member for Housing Operations seeking approval on the current Right to Buy receipt rules for expenditure, and Council proposals for the spend and guiding principles until March 2026.

(i)  That Cabinet approve the expenditure of up to £5m of the Right

    to Buy receipts collected in 2019/20 on a pilot programme of

    property purchases under the temporary flexibilities granted by

    Government during the 2024/25 and 2025/26 financial years.

(ii)   That Cabinet grant delegated powers to the Director of Housing

    after consultation with and the Executive Director of Enabling

    Services, Executive Director of Growth and Prosperity, the

    Director of Legal and Governance and the Cabinet Member for

    Housing, to agree and approve the detail of the pilot programme

    of purchases in line with the details set out in this paper.

To utilise the Council’s pooled Right to Buy Receipts, taking advantage of the

temporary flexibilities granted by Government, to acquire properties to help

alleviate housing need in Southampton.

To allow sufficient delegated authority to enable properties to be secured

efficiently and mitigate the risk of delays beyond the spend deadline which would trigger payment of Right to Buy monies with interest to government.

This pilot programme has the potential do deliver estimated savings of £657k

per annum, based on the purchase of 24 properties saving £27,375 per annum each. If the pilot programme is successful, there Page 115 is potential to seek further approval(s) from Council or Cabinet to extend the programme and delivery greater savings.

This proposal would help to reduce the annual expenditure on emergency

accommodation, increase the Council’s affordable housing stock, improve the

quality of service provided and move towards delivering services within the

confines of the cash limited budget.

The Council could decide not to spend its pooled Right to Buy Receipts. Any

Right to Buy Receipts not utilised need to be paid to Ministry of Housing,

Communities and Local Government (MHCLG) with interest within the annual

deadlines set out. Given that the Council has an extensive housing waiting list

and unprecedented demand for emergency homeless families’ accommodation, this would be a missed opportunity to meet a small proportion of that need.