To comment on the Cabinet report.

The Panel considered the report that provided an operational update on RBWM Property Company Ltd.  The report updated on the work of the property company covering:

·         Delivery plans

·         Governance

·         Human resources

·         Value for money/added value

·         Health and safety

·         Property Portfolio

·         Development programme update.

It was highlighted that the company was currently projecting a pre-tax profit of £248,000 for 2018/19 and was a key vehicle in the councils’ ambition to provide affordable housing that had been seen in previous Cabinet reports and the investment report on this agenda. 

Cllr Brimacombe said that the occupational profile of tenants on page 29 was good news showing the range of key worker support.

The Chairman asked if the property company was sufficiently resource for the level of large developments in the pipeline.   The Panel were informed that there was a scalable approach with  a core set of staff recruited at a director level who are supported by consultants when required.  A further project manager was to be recruited and the company could scale up or down when required.

The Chairman mentioned that there are people who criticise property companies so it was important to inform residents that the benefits from this company are for our residents and not for profit.  The money the company makes goes back into providing services.

Cllr Sharma asked if the recruitment of the additional project manager was within budget or was further funding required.  The Panel were informed that the costs were within budget and capitalised against projects. There were no costs for the Council.

Cllr Sharma also asked about the borrowing arrangements and was informed that the Council lent money to the company at a commercial rate.  The Council borrowed at 2.25% and would currently lend to the company at 5%.  It was the law that the Council had to lend at a commercial rate.

Cllr Quick said that it would be useful to see the graphs of the rental profile and occupation profile overlapped.  She also asked how we communicated the availability of properties to key worker.  The Pane were informed that this was done via Housing Solutions, the company’s website and by directly contacting the different sectors.

The Chairman asked about the different rent levels and was informed that social rent was 60% of market rent whilst affordable rent was at 80% and local housing allowance rates were at 70%.

The Lead Member for Finance said that it was a pleasure to see the property company going from strength to strength and it was a great vehicle for the council in getting our assets developed for affordable housing.  However he felt that the majority of Members did not appreciate what the property companies strategy was.  There needed to be clarity in what the company was doing, what it would do in the future and how it would do it.  There needed to be a brief guide to the company to help Members understand the company and help them scrutinise it.

The Lead Member explained the functions of the company as being identifying the strategic intent of the Council, advising the Council if this intention was viable, affordable and achievable.  Identifying opportunities to achieve the strategic intention and effective delivery of the strategy.  It also had a role in reporting how we are doing.

Cllr Brimacombe felt that Council and our residents could do with a paper that explained the Council’s strategic intention that has been passed to the company.  There should also be an explanation of why the Council has chosen its direction.

Resolved unanimously: that the Corporate Services O&S Panel considered the Cabinet report and unanimously endorsed the recommendations.  The Panel felt that there should be better communication to Members and our residents about the good news contained within the report.  The Panel also felt that there needed to be better understanding amongst Councillors regarding the role of the RBWM Property Company and recommended that a training session be held to help Members understand the company’s objectives.