Major Social Housing Policy Moves To The Next Stage

A policy to ensure Isle of Wight Council owned land and property assets are, wherever possible, used to prioritise social housing has moved to the next stage.

The policy, finance and resources committee (PFRC) yesterday evening agreed to recommend the draft Land and Property Asset Disposal Policy (LPADP) to full council, noting associated risks outlined in a committee report.

PFRC also agreed the LPADP should be subject to further amendment by council officers and to communicate associated risks to full council.

Full council agreed to develop an LPADP in January, a policy that aims to address the Island’s social housing shortage.

A committee report says:

“At full council earlier this year, it was agreed that a LPADP be developed to provide a framework for the disposal of the council’s land and property assets ensuring that the development of social rent housing (including relocatable homes) by or on behalf of the council was assessed prior to any asset being declared surplus for disposal.”

The initiative was brought to the table by the Empowering Islanders group’s Cllr Peter Spink.

Freshwater North and Yarmouth’s representative told the chamber:

“There has been considerable public disquiet about decisions to dispose council property being made rather secretly – I appreciate that’s not the decision of the officers who are here today.

“Our duty is to make the disposal of council property as open and transparent as possible.”

Though PFRC agreed to move forward with the LPADP, there was however concern raised over its implications.

Cllr Jonathan Bacon said:

“I fully support the overall aim of this policy, but I do note the risks section (of the report).

"If full council becomes the overall decision maker in these matters, that will cause delay.

“If this process with full council approval had been in place, say over the last four or five years, do you think any disposal would have been affected positively or adversely?”

Graeme Haigh, strategic head of asset management and property services, responded:

“It’s difficult to be specific about any of these proposals…as a rule it does make it more difficult.

“The quicker we can make decisions…the better.”

Several risks associated with a LPADP the committee report mentions relate to market demand, market fluctuations, legal challenge and land banking.

The report says:

“When a property asset is declared surplus to council requirements, there is no certainty that it will be sold, or a good price will be achieved, as both are subject to market conditions at the point of disposal.

“The value of land or property assets can fluctuate based on market conditions – hence a need to be able to enter into contract at the earliest opportunity to secure the asset at the agreed price (the greater the level of governance, the greater the potential for market fluctuations to have an adverse impact).

“(There is a) potential challenge from stakeholders or the public – especially if the disposal process is perceived as unfair – hence the need to be as transparent as possible.

“If land or property assets are being disposed of, the council will need to encourage the purchaser to deliver the scheme for which the asset/land is being disposed of as promptly as possible and not to bank the land.”

Full council will vote on the LPADP on July 16.