12. Housing Revenue Account (HRA) Acquisitions and Disposals – Update
Renfrewshire Council · 13 May 2025
Back to Communities and Housing Policy Board — 13 May 2025 and its agenda
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___________________________________________________________________ To: Communities and Housing Policy Board On: 13 May 2025 ___________________________________________________________________ Report by: Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: Housing Revenue Account (HRA) Acquisitions and Disposals Update ___________________________________________________________________ 1. Summary 1.1 This Policy Board has previously approved a number of reports setting out policies in relation to both the disposal and acquisition of properties held on the Housing Revenue Account. 1.2 This is the first instance of a new annual report providing an update on progress on acquisition and disposal of properties held under the Housing Revenue Account. 1.3 The report also sets out a proposed amendment to the Council’s Acquisition Scheme for Private Housing for the Policy Board’s consideration. ___________________________________________________________________ 2. Recommendations It is recommended that the Communities and Housing Policy Board: 2.1 Note the progress made to date in the acquisition and disposal of properties held under the Housing Revenue Account. 2.2 Note that further updates on this topic will be provided on an annual basis. 2.3 Approves the amendment to the Council’s Acquisition Policy for Private Housing to authorise the voluntary acquisition of privately-owned properties from landlords with a tenant in situ outlined in Section 4 of this report. _________________________________________________________
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3. Background 3.1 The Housing and Community Safety Policy Board on 13 May 2014 approved the ‘Single Council Dwellings in Larger Common Blocks’ policy. An amended policy was approved by this Policy Board on 16 August 2022. The purpose of this policy is to identify blocks where the Council has a minority ownership interest and accordingly will encounter greater difficulties when seeking to bring forward improvement works for the benefit of its tenants due to a failure of a majority of private owners to consent to the works. 3.2 A number of properties that have become naturally vacant within blocks where the Council has a minority interest have been marketed for sale on the open market. A working group of officers has been established which reviews each of the last-in-the-block properties that become naturally vacant and makes recommendations to either invest, retain and relet or sell the property. The proceeds of these disposals are then reinvested, together with available Scottish Government grant finance, in the acquisition of additional residential properties within Renfrewshire that it is considered would meet a particular demand need or consolidate the Council’s ownership within mixed tenure blocks. 3.3 The purpose of this report is to provide the first annual update on the progress made on these disposals in line with the ‘Single Council Dwellings in Larger Common Blocks’ policy and acquisitions made in parallel as part of the Council’s Acquisition Policy, details of which are set out in paragraph 4.1 of this report. 3.4 Since the amended policy was approved in August 2022, 18 properties have been sold in accordance with the disposal policy at 31st March 2025. A breakdown of disposals by locality is contained in Table 1. Table 1 - Disposals by Neighbourhood Neighbourhood No. Properties Property Type/Size Paisley North 7 7 x 1 bed flats Paisley South 2 2 x 2 bed flats Renfrew 6 5 x 2 bed flats and 1 x 3 bed flat Johnstone 3 2 x 2 bed flats and 1 x 4 bed flat Total 18 3.5 Since the amended policy was approved in August 2022, 32 properties have been acquired in accordance with the acquisition policy at 31st March 2025. Acquisitions have been supported by grant finance and receipts from the proceeds of last in the block sales. A breakdown of these acquisitions by locality is contained in Table 2.
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Table 2 - Acquisitions by Neighbourhood Neighbourhood No. Properties Property Type/Size Paisley North 14 6 x 1 bed flats, 6 x 2 bed flats, 1 x 2 bed house, and 1 x 3 bed flat. Paisley South 6 4 x 1 bed flats, 1 x 2 bed flat, and 1 x 4 bed flat. Renfrew 3 2 x 1 bed flats, and 1 x 2 bed flat. Johnstone 9 5 x 1 bed flats, 3 x 2 bed flats, and 1 x 3 bed flat. Total 32 3.6 All potential buy backs are assessed prior to being approved for acquisition as to their suitability and any works required to bring them up to the relevant lettable standards. All sold properties are approved in advance for disposal by an officer working group. Properties identified for sale tend to be in blocks where the Council have been unable to reach owner agreement to proceed with larger investment programmes, where the Council have a lack of demand for the type, size or location of property or where the cost to deliver required investment does not demonstrate value for money. 3.7 The implementation of both policies has, to date, delivered a net increase in the number of lettable properties and has a positive impact in terms of addressing issues for investment and maintenance of properties by seeking to improve the tenure mix in blocks to achieve Council majority. 3.8 Further updates will be provided to the Policy Board annually on the progress of disposal of ‘last in the block’ properties and parallel acquisitions. 4. Acquisition Policy for Private Housing 4.1 The Communities, Housing and Planning Policy Board on 20 August 2019 approved the Acquisition Policy for Private Housing to be overseen by the then Director of Communities, Housing & Planning. The Communities and Housing Policy Board approved the extension of this policy on 16 August 2022 and 20 August 2024 respectively. 4.2 Scottish Government have extended the Affordable Housing Supply Programme to provide grant funding in certain limited circumstances where this meets a clear strategic purpose and where the tenant is at risk of homelessness for local authorities to acquire privately-owned properties from landlords with a tenant in situ.
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This marks a departure from the previous policy where grant funding would only be made available under this programme to acquire vacant properties that could immediately be added to the lettable stock. 4.3 It is proposed to extend the Council’s Acquisition Policy for Private Housing to permit the acquisition of privately owned properties with tenants in situ in limited circumstances where a property has been identified that otherwise meets the policy i.e. whilst not immediately vacant the property would, once vacated, meet identified needs and increase the supply of good quality Council housing in areas where there is need and recognised demand. 4.4 Following approval of this amendment to the Acquisition Policy for Private Housing, an update on the acquisition of privately owned properties with tenants in situ will also be provided as part of the annual report on Acquisition and Disposal of HRA Properties going forward. ___________________________________________________________________ Implications of the Report 1. Financial – Acquisitions are funded by proceeds of disposals and grant finance, any acquisition of a privately owned property including where a tenant is in situ would be subject to meeting the objectives of the Councils acquisition strategy and Scottish Government’s grant requirements. 2. HR & Organisational Development – None. 3. Community/Council Planning – Our Renfrewshire is well – Increasing Council ownership in mixed tenure blocks will increase the likelihood of energy efficiency measures being delivered which will bring about health benefits and energy savings to an increased number of tenants. Building strong, safe and resilient communities – The acquisition and Disposal strategy allows for effective management and future maintenance of Council properties where we are the full or majority owner. 4. Legal – Conveyancing required in relation to acquisition of private housing. Additional advice and assistance may be required in relation to conversing of private tenants becoming council tenants under the amended Acquisition Policy for Private Housing. 5. Property/Assets – the implementation of both policies as outlined in this report has to date led to a net increase in available lettable properties. All acquired properties are assessed prior to being approved for acquisition as to their suitability and any works required to bring them up to the relevant lettable standards. All sold properties are approved in advance for disposal by an officer working group.
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Properties identified for sale tend to be in blocks where the Council have been unable to reach owner agreement to proceed with larger investment programmes, where the Council have a lack of demand for the type, size or location of property or where the cost to deliver required investment is not considered value for money. 6. Information Technology – None. 7. Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required, following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – None 9. Procurement – Estate Agency services have been procured through a negotiated tender while a framework of providers is being developed. The current tender will lapse at the end of April 2025 and a new negotiated tender will be in place from 1st May for a period of 6 months. 10. Risk – There is a risk that some areas may experience a higher number of disposals to the number of acquisitions achievable on the open market in any given year. This will be monitored annually to ensure no adverse long-term impact on an overall neighbourhood’s stock basis. 11. Privacy Impact – None 12. Climate Risk - Investment in Council assets improves energy efficiency, reducing the Council’s carbon footprint and helping it towards the Net Zero by 2030 target. 13. Children’s Rights – None. 14. Cosla Policy Position – None. _______________________________________________________ List of Background Papers (a) Report to Housing and Community Safety Policy Board, 13 May 2014, ‘Single Council Dwellings in Larger Common Blocks’ (b) Report to Communities, Housing and Planning Policy Board, 20 August 2019, ‘Acquisition of Private Housing’ (c) Report to Communities and Housing Policy Board, 16 August 2022, ‘Last- in-the-block Sale and Acquisition Policy’ (d) Report to Communities and Housing Policy Board, 20 August 2024, ‘Housing-led Regeneration and Renewal Programme for Renfrewshire – Year 3 Update’
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The foregoing background papers will be retained within Housing Services for inspection by the public for the prescribed period of four years from the date of the meeting. The contact officer within the service is Jennifer Murdoch, Housing Regeneration Manager, 07811 053038, Jennifer.murdoch@renfrewshire.gov.uk ___________________________________________________________________ Author: Jennifer Murdoch, Housing Regeneration Manager Jennifer.murdoch@renfrewshire.gov.uk