9. The above process has been checked and verified by Director, Head of Service or Deputy (report author to complete) Date. Name of DSO Jonathan Regal

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1 DELEGATED POWERS REPORT NO. 547 SUBJECT: Discontinuation of Social HomeBuy Control sheet All of the following actions MUST be completed at each stage of the process and the signed and dated report MUST be passed to Democratic Service for publishing All reports 1. Democratic Services receive draft report Name of DSO Nick Musgrove 2. Democratic Services cleared draft report as being constitutionally appropriate 3. Finance clearance obtained (report author to complete) 4. Staff and other resources issues clearance obtained 5. Trade Union response received (Staffing issues only) 6. Legal clearance obtained from (report author to complete) 7. Policy & Partnerships clearance obtained 8. Equalities & Diversity clearance obtained 9. The above process has been checked and verified by Director, Head of Service or Deputy 10. Signed & dated report, scanned or hard copy received by Democratic Services for publishing 11. Report published by Dem Services to website Name of DSO Nick Musgrove Name of Fin. officer Helen Gardner Name of Res. officer Nick Walkley 1/5/08 Name of TU rep. n/a Name of Legal officer Margaret Martinis 6/05/08 Name of P&P officer Andrew Nathan Name of officer Julie Pal 7/5/08 Name Graham Cutts Name of DSO Jonathan Regal 14/5/08 Name of DSO Jonathan Regal 14/5/08 Officer reports: 12. Head of Service informed report is published and can be implemented. Name of DSO Cabinet Member reports: 13. Expiry of call-in period 14. Report circulated for call-in purposes to COSC Name of DSO members & copied to Cabinet & Head of Service Jonathan Regal 14/5/08

2 ACTION TAKEN UNDER DELEGATED POWERS BY OFFICER IN CONSULTATION WITH CABINET MEMBER(S) (EXECUTIVE FUNCTION) ON BEHALF OF DIRECTOR OF PLANNING, HOUSING AND REGENERATION Subject Officer taking decision Cabinet Member(s) Closure of Social HomeBuy (SHB) Scheme Interim Head of Housing and Environmental Health on behalf of Director of Planning, Housing and Regeneration Cabinet Member for Community Services of decision 13 May 2008 Summary The Social HomeBuy pilot ended in March 2008 and resulted in no sales in the scheme. An evaluation of the scheme has been undertaken and it is recommended that Social HomeBuy is discontinued. Officer Contributors Status (public or exempt) Wards affected Enclosures Reason for exemption from callin (if appropriate) Chloe Horner, Housing Strategy and Business Improvement Manager Public All N/A N/A Contact for further information: Chloe Horner ext 4775 Serial No. 547

3 1. RELEVANT PREVIOUS DECISIONS 1.1 Delegated Powers Report No 103 (Head of Housing in consultation with the Cabinet Member for Community Services) dated 1 November 2006 agreed start up costs for the Social HomeBuy (SHB) pilot. 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 The Council s Corporate Plan 2008/9 to 2010/11 identified making a decision on whether to implement SHB as a permanent scheme as an action under the Council s Barnet- a successful city-suburb priority. The Corporate Plan commits Barnet Council to deliver housing growth in a sustainable way by developing opportunities and reviewing low cost home ownership options. 2.2 The Council s Housing Strategy identifies the need to provide more opportunities for people on low or moderate incomes to access home ownership. 2.3 Evaluating the SHB pilot was listed as an action in the Housing Service Business Plan RISK MANAGEMENT ISSUES 3.1 There is a risk that after closure of the scheme there will continue to be enquires about SHB from interested tenants. However, Barnet Council, in partnership with Barnet Homes, does offer a variety of home ownership schemes and options for secure tenants, including Cash Incentive Scheme. SHB has been advertised widely to tenants in the past year and it resulted in only 9 applications, none of which proceeded. 3.2 I have considered whether the issues involved are likely to raise significant levels of public concern or give rise to policy considerations and have concluded that they do not. 4. EQUALITIES AND DIVERSITY ISSUES 4.1 The pilot was offered to all qualifying tenants. The mandatory qualification criterion was followed, as specified in the DCLG guidance: Social HomeBuy Guidance for Local Authorities, April The remaining home ownership schemes, Right to Buy and Cash Incentive Scheme are open to all qualifying tenants. Again, the qualification criterion is set by government. 5. FINANCIAL, STAFFING, ICT AND PROPERTY IMPLICATIONS 5.1 There are no financial, staffing, ICT or property implications arising out of this action. 6. LEGAL ISSUES 6.1 None.

4 7. CONSTITUTIONAL POWERS 7.1 The Constitution Part 3, Paragraph 6.1- Chief Officers can take decisions. In consultation with the Cabinet Member concerned, to discharge the functions allocated to them or dealt with by them or their staff. 8. BACKGROUND INFORMATION 8.1 SHB is a low-cost home ownership scheme for secure tenants piloted by Barnet Council from April 2007 to March The scheme allows eligible tenants to purchase at least a 25% stake in their home and the Council charges rent on the remaining share. 8.2 The SHB pilot ended in March 2008 and the Government has announced that the scheme will continue to operate and be offered out to all local authorities in England and Wales. It is up to the pilot authorities to decide whether to continue to offer the scheme. 8.3 Barnet set a target of achieving 20 sales in the first year but has achieved 0 sales. There were 6 applications that did not meet the initial qualification criteria. There were 3 applications that did meet the qualification criteria. One of these 3 applications was referred to an Independent Financial Advisor who advised that the applicant could not afford to purchase on their current income. The second eligible applicant chose not to take the application forward and the third also chose not to proceed due to major works costs that they would be liable for. 8.4 An evaluation of the pilot showed that SHB is not an affordable route to home ownership and that there is not anything that the Council can do to make the scheme substantially more affordable. 8.5 It is not cost effective for the Council to continue to operate a scheme that attracts so few applications that are unlikely to result in any sales. 8.6 The Council will write to the three remaining applicants to inform then that the scheme is closed down. 8.7 The Council will continue to operate the Right to Buy Scheme and Cash incentive Scheme to eligible tenants who want to access low cost home ownership. Right to Buy allows tenants to purchase their current home at a discount of up to 16,000. Cash incentive Scheme gives tenants 18,000 to 29,000 to help them buy any home anywhere in the UK. 8.8 Social tenants are also prioritised for shared ownership properties in the borough. 9. LIST OF BACKGROUND PAPERS 9.1 Copies of progress reports and the evaluation and options paper are available from Chloe Horner on

5 10. CONSULTATION WITH CABINET MEMBER(S) 10.1 The Cabinet Member for Community Services has been consulted and is in agreement with the action described in this report. 11. OFFICER S DECISION I authorise the following action 11.1 Discontinuation of Social HomeBuy scheme Signed Graham Cutts Interim Head of Housing and Environmental Health on behalf of the Director of Planning, Housing and Regeneration 13 May 2008