Agenda item

That this Council notes that there is currently a significant surplus of student HMOs in Ormskirk with 69 properties comprising 334 rooms currently available for the 2018/19 academic year on one website alone on 4 July 2018, with at least nine of these properties being currently advertised for sale on the same website.

That it be further noted that the Council has available £850,823 in so-called ‘one-for-one’ monies which must be used to provide additional council housing by 31 December 2019 or be returned to Government and that currently the Council has no plans to expend these funds and therefore they are at risk of being lost to the Borough.

That the Director of Housing and Inclusion be asked to submit a report to Cabinet on 11 September and Council on 17 October 2018 to allow councillors to consider establishing a £1 million fund using £300,000 of so called ‘one-for-one’ monies, with match funds being provided from the appropriate HRA reserve, to purchase empty student HMO properties in Ormskirk and establish them as council homes for families. 

The following Motion was moved and seconded:

"That this Council notes that there is currently a significant surplus of student HMOs in Ormskirk with 69 properties comprising 334 rooms currently available for the 2018/19 academic year on one website alone on 4 July 2018, with at least nine of these properties being currently advertised for sale on the same website.

That it be further noted that the Council has available £850,823 in so-called ‘one-for-one’ monies which must be used to provide additional council housing by 31 December 2019 or be returned to Government and that currently the Council has no plans to expend these funds and therefore they are at risk of being lost to the Borough.

That the Director of Housing and Inclusion be asked to submit a report to Cabinet on 11 September and Council on 17 October 2018 to allow councillors to consider establishing a £1 million fund using £300,000 of so called ‘one-for-one’ monies, with match funds being provided from the appropriate HRA reserve, to purchase empty student HMO properties in Ormskirk and establish them as council homes for families. "

An Amendment was moved and seconded as follows:

"That this Council notes that there is currently a significant surplus of student HMOs in Ormskirk, with 69 properties, comprising 334 rooms, currently available for the 2018/19 academic year on one website alone on 4 July 2018, with at least nine of these properties being currently advertised for sale on the same website.

That it be further noted that the hard work of this Labour administration has contributed significantly to reducing the demand for student HMOs in Ormskirk, by supporting Edge Hill University to build on campus; and, since 2015, by rejecting far more applications for HMO conversions than have been approved. Over four hundred HMO applications were permitted prior to 2015 but under this administration, only four have been approve. Coupled with a national demographic fall in student numbers, this approach now means that many private landlords are left with vacant properties.

That the Director of Housing and Inclusion be asked to report to Cabinet, and Council if appropriate, to look into the viability of a scheme to offer guaranteed, short-term loans, along with other professional services and support, to landlords wishing to convert HMO properties back to a suitable state for sale as family occupation either through the council directly or via the new development company, as is deemed most appropriate.

A charge would be applied to such properties, which, when sold, would be reclaimed in full by the council. Upon sale, properties would have to be returned to private ownership and non-HMO status.  Such a scheme would create little risk for the council, as the loans would be repaid in full on sale of the property and it would not be required to take on ageing housing stock in order to bail out struggling private landlords.

The scheme would also generate increased council tax receipts and help increase the number of affordable properties, in conjunction with the council’s plans to create more affordable housing stock through its proposed development company."

The meeting was adjourned for 10 minutes.

The Amendment was altered with the agreement of the mover, seconder and with the consent of the meeting, to replace "rejecting" with "refusing" in the second paragraph.

A vote was taken on the Altered Amendment, which was CARRIED.

A vote was taken on the Substantive Motion, which was CARRIED.

RESOLVED:   A.   That this Council notes that there is currently a significant surplus of student HMOs in Ormskirk, with 69 properties, comprising 334 rooms, currently available for the 2018/19 academic year on one website alone on 4 July 2018, with at least nine of these properties being currently advertised for sale on the same website.

B.   That it be further noted that the hard work of this Labour administration has contributed significantly to reducing the demand for student HMOs in Ormskirk, by supporting Edge Hill University to build on campus; and, since 2015, by refusing far more applications for HMO conversions than have been approved. Over four hundred HMO applications were permitted prior to 2015 but under this administration, only four have been approve. Coupled with a national demographic fall in student numbers, this approach now means that many private landlords are left with vacant properties.

C.   That the Director of Housing and Inclusion be asked to report to Cabinet, and Council if appropriate, to look into the viability of a scheme to offer guaranteed, short-term loans, along with other professional services and support, to landlords wishing to convert HMO properties back to a suitable state for sale as family occupation either through the council directly or via the new development company, as is deemed most appropriate.

A charge would be applied to such properties, which, when sold, would be reclaimed in full by the council. Upon sale, properties would have to be returned to private ownership and non-HMO status.  Such a scheme would create little risk for the council, as the loans would be repaid in full on sale of the property and it would not be required to take on ageing housing stock in order to bail out struggling private landlords.

The scheme would also generate increased council tax receipts and help increase the number of affordable properties, in conjunction with the council’s plans to create more affordable housing stock through its proposed development company.

(Note:  Councillor Kay left the meeting during consideration of this item.)