Agenda, decisions and minutes

1.1.   RESOLVED: that Councillor Rosie Parry be elected as Vice-Chair of the Committee.

1.1.   RESOLVED: that Councillor Rosie Parry be elected as Vice-Chair of the Committee.

2.1.   RESOLVED: that the minutes of the last meeting be agreed as a true record.

2.1.   RESOLVED: that the minutes of the last meeting be agreed as a true record.

3.1.   Councillor Penfold declared an interest as a Director at J49- which is a registered social housing provider that operates within Lewisham.

3.1.   Councillor Penfold declared an interest as a Director at J49- which is a registered social housing provider that operates within Lewisham.

RESOLVED:

·        that the report be noted.

·        that the position for the informal co-optee representing private renters in Lewisham be advertised.

Nidhi Patil (Scrutiny Manager) introduced the report. This was followed by a discussion by the Committee members. The following key points were noted:

4.1. A report on the co-optee proposals was first presented to the Committee at its September 2023 meeting. At that meeting, it was discussed that the Committee would temporarily implement an informal attendee approach before considering a formal co-option scheme.

4.2. Nominations for informal co-optees had been sought from Regenter B3 and Lewisham Council housing (formerly Lewisham Homes).

4.3. The Committee also wanted to appoint an informal co-optee from the private rented sector in Lewisham and, because there was no clear Lewisham-based private renters organisation, it had been agreed that the ‘Private Rented Sector in Lewisham Task and Finish Group’ would explore how to identify a suitable informal co-optee.

4.4. The Task and Finish Group had recently published a survey for the private renters in the borough. This survey asked respondents to express their interest in participating in a focus group discussion regarding the private rented sector in Lewisham. It was discussed that attendees of that focus group could potentially be approached for the informal co-optee position.

4.5. However, the Committee agreed that a better approach would be to advertise this position on the Council’s website. This method would ensure that any private renter in the borough could apply for the position. While the focus group would be a valuable platform for promoting this position, the role itself should be open to all private renters in the borough.

4.6. Councillor James Rathbone attended the meeting as a guest of the Committee and shared that he had recently participated in appointing formal co-optees to another Council Committee- the Audit and Risk Committee. There were 3 positions, and a formal application process, followed by interviews had led to the ultimate selection of candidates.

4.7. It was noted that completing the recruitment process for the private rented sector informal co-optee by the Committee’s next meeting on the 4^th of January 2024 would be challenging.

4.8. The Committee discussed that the recruitment process was likely to have some budget and resourcing implications, such as the cost of advertising the position and the officer time involved in the recruitment process. It was important to assess the scope of these implications.

RESOLVED:

·         that the report be noted.

·         that the position for the informal co-optee representing private renters in Lewisham be advertised.

RESOLVED:

·        that the report be noted.

Simone Russell (Interim Director of Housing Resident Engagement and Services) introduced the report. This was followed by questions from the Committee members. The following key points were noted:

5.1. Engagement meetings on rents, service charges and garage rent proposals took place through tenant representatives and leaseholders. Comments received from residents during these meetings were included in Appendix 1.

5.2. The increase in service charge for RB3 managed properties was higher than those for Lewisham Council properties. This was because of the PFI contract which allowed for the additional increase for RB3 properties.

5.3. The Council’s HRA (Housing Revenue Account) had been subject to inflationary increases, difficult labour and supply chain issues, increased regulatory burden and other pressures such as challenging climate change targets.

5.4. An error last year resulted in delayed rent increases for Lewisham Homes, with the rent going up in the month of May instead of April. Officers reported that legal advice was being sought on this as rents could only be changed once within a 12-month period. It had been proposed that once this year’s rent setting process was completed, an external specialist would be consulted to ensure the Council’s compliance with the regulator’s rent standard and to explore solutions to revert to April rent increases.

5.5. While RB3 rent increases were linked to RPI, Council properties’ rent increases were based on CPI. This was because the RPI calculation was part of the PFI contract. When RB3 properties came back in-house to the Council, it was expected that the CPI calculation would be used, aligning with the regulator’s rent standard which required social rents to be set at formula rent.

5.6. The 2020 regulatory rent standard allowed variations to formula rent, including exemptions for PFI contracts, making it legally permissible for the Council to adjust charges based on contract prices.

5.7. A Committee member enquired about how rent rises and support offers were being communicated, especially to residents on benefits. Officers confirmed that residents received rent change letters, and that the Council consistently communicated its support offers, assuring residents of continued support.

5.8. RB3 officers operated a welfare advice surgery twice a week and had seen an increase in caseload. The uptake of support services was expected to increase going into December.

RESOLVED:

·         that the report be noted.

RESOLVED:

·        that the report be noted and that ‘Building For Lewisham Programme Update’ be added as an annual standing item to the Committee’s work programme.

Patrick Dubeck (Director of Inclusive Regeneration) introduced the report. The following key points were noted:

6.1. In February 2023 Lewisham Homes’ delivery function merged with the Council’s Strategic Development team and the Building for Lewisham (BfL) programme was now being delivered in-house within the Council’s Place directorate.

6.2. On the direct delivery aspect of the programme, there had been 164 completions in the last 12 months. The following were the key successes to note from the programme-

6.2.1.   In Creekside, Deptford, the Council ventured into shared ownership, with 70% of units selling off plan before completion, demonstrating high demand.

6.2.2.   The Mayow Road scheme introduced a new tenure mix for the Council to be delivering directly. This scheme had a combination of temporary accommodation and supported housing tenure, facilitated via specific grants and partnership working with NHS.

6.2.3.   The Council had a significant focus on housing acquisitions. There was a GLA programme in the last financial year, that incentivised acquisition of homes that had previously been sold under Right-to-Buy. The report stated that under the Right to Buy Buyback scheme, the Council successfully purchased 111 properties. At the meeting, it was discussed that this number was actually 117, including 6 late additions.

6.2.4.   The Brasted Close scheme showcased an innovative partnership with London Community Land Trust and Lewisham Citizens. Lewisham Council was one of the few organisations to have successfully achieved a CLT (Community Land Trust) scheme of this scale.

6.3. The following were some key challenges to note from the programme- 

6.3.1.   High levels of cost inflation, with increases of around 25% over the last 2 years, posed significant challenges to the deliverability of the programme. During this period, grant rates didn’t increase, rent was capped, and the Council’s rate of borrowing experienced an upward trend.

6.3.2.   The economic climate had an adverse impact on the contractor market, which was the most pronounced at Edward Street and Home Park developments. The modular scheme contractor at these 2 sites went into administration in 2022. Despite efforts with Phoenix to retain delivery options, the viability of that endeavour had become increasingly challenging.

6.3.3.   The Algernon Road scheme contractor had also gone into administration. Ongoing efforts were being directed towards finding a way to procure completion of that scheme.

6.4. It was reported that various models were being explored to ensure the continued delivery of the programme. This involved maximising grant delivery and ensuring a diverse development programme.

The Committee members were invited to ask questions. The following key points were noted:

6.5. Contractor failure was a significant issue in the market. A key factor contributing to this issue was the commitment to contractors before the economic shock, resulting in contractors being bound to prices they could no longer sustain. Regardless of contractual obligations, failure to meet these prices could lead contractors into receivership or liquidation. In the realm of development, inherent risks were always present. It remained impossible to fully insure against the entirety of financial risk involved in development, especially  ...  view the full minutes text for item 6.

RESOLVED:

·        that the report be noted.

·        that the Committee members, while expressing specific concerns about repairs, acknowledged that officers and Cabinet Members were aware of the issues and working towards resolving them.

Fenella Beckman (Director of Housing Strategy) and Lynne Sacale (Housing Transformation Programme Lead) introduced the report. This was followed by questions from the Committee members and the following key points were noted from the discussion:

7.1. This report marked the conclusion of the Housing Futures transition programme. Key achievements from the programme included the smooth transition of 550+ staff members on the 1st of October 2023, timely payroll processing of all transitioned staff members, establishment of the new Housing Directorate, successful migration of all transitioned staff to Council IT and adherence to high-level costs within approved budget.

7.2. Although progress had been made in resolving IT issues, some joint inboxes still posed challenges due to their size. The data transition had enabled timely responses to complaints and queries, minimising resident impact. However, certain staff and teams were grappling with difficulties in accessing old systems. The IT team was actively addressing these challenges, and Phase 2 of the IT transition was underway.

7.3. The Committee Chair recounted their experience of calling the Council’s repair service phoneline revealing that on one occasion they had to wait for 45 minutes before being answered and on another occasion they waited 17 minutes before being put through to an answering machine. This underscored a significant problem with the repairs service. It was suggested that a queuing system for call waiting could be introduced, providing users with estimated call wait times. Officers acknowledged the challenges, noting that with the service transition now complete, the focus had shifted to service transformation. The Housing Transformation Board was commencing its work and would be prioritising the issues with the repairs service.

7.4. Acknowledging the shortcomings of the repairs services, Councillor Will Cooper reassured the Committee that short term actions were being taken such as three members from the Council call centre moving to the repairs phone line. An update on the repairs service transformation was being presented at the Cabinet Briefing next week.

RESOLVED:

·         that the report be noted.

·         that the Committee members, while expressing specific concerns about repairs, acknowledged that officers and Cabinet Members were aware of the issues and working towards resolving them.

RESOLVED:

·        that the agenda for the Committee’s January 2024 meeting be confirmed after the agenda planning meeting scheduled for the 29^th of November 2023.

8.1. The Committee briefly discussed its work programme and the agenda for its January 2024 meeting.

8.2. It was discussed that the Committee should receive an update on repairs transformation at its January 2024 meeting but that a final decision on this would be made at the agenda planning meeting.

RESOLVED:

·         that the agenda for the Committee’s January 2024 meeting be confirmed after the agenda planning meeting scheduled for the 29^th of November 2023.