Minutes:
The Corporate Director
introduced the report and stated that this had gone to Cabinet
following discussion at Housing Overview & Scrutiny Committee,
with some amendments based on the committee’s comments, such
as the introduction of a Sheltered Housing Register. He commented
that this was being sent back to the Housing Overview &
Scrutiny Committee to consider the financial qualifications. The
Housing Strategy & Quality Manager elaborated that the
financial qualification used an affordability ratio, which was the
national guideline of housing costing 1/3rd of a
person’s net income. He continued that the council then
looked at property size to determine affordability and used the
30th percentile as the affordable benchmark to rent and
buy. He commented that the calculation worked out a person’s
net salary affordability for both renting and buying, and then used
the more expensive of the two figures to set the threshold. He drew
the Committee’s attention to page 27 of the agenda, and the
table at 3.7 which set out the five thresholds and rationale behind
them. He stated that the majority of thresholds used renting as it
was the highest value, other than three and four bedroom
properties, where it was more expensive to purchase. He summarised
by stating that the council then used local earning salaries which
were below the thresholds to work out how much money residents
bought home, and how much they would need to earn to qualify for
council housing.
Councillor Redsell asked if there were people what didn’t
qualify for council housing as they earnt too much, but were
earning too less to afford to rent and buy. The Assistant Director
Housing replied that Cabinet had believed this because section 5 of
the report had originally used net incomes rather than gross
incomes, which made the figures look lower. The Corporate Director
clarified that Cabinet had asked the Committee to consider whether
they felt the threshold should be higher, and stated that the more
detailed analysis had shown there were very few people who could
not afford to rent or buy, but earnt too much for social
housing.
Councillor Pothecary stated that she felt concerned as the
threshold had been set using the 30h percentile, and asked whether
the 50th percentile would have been more representative.
The Housing Strategy & Quality Manager confirmed that the
threshold used the more expensive figure of either buying or
renting depending on property size, which ensured the figure was
representative. Councillor Liddiard then drew the Committee’s
attention to the problem of residents over 55 who could afford
mortgages, but the banks would not allow them. Councillor Pothecary
asked when the threshold would be reviewed as it was a good idea to
do this every year, and the Corporate Director replied it would be
every year, although the review may not be as detailed as the
report in the agenda. Councillor Redsell summarised by stating this
was a comprehensive report and felt it would be good to see the
review next year.
RESOLVED: That:
1. The Committee noted the contents of the report and advise
Cabinet of the findings.
Supporting documents: