Agenda item

Purpose: 

To brief members on a new affordable housing product ‘First Homes’ introduced into national policy through a Written Ministerial Statement in May 2021, and to consider West Berkshire’s policy position on First Homes.

Resolved that Executive:

(a) Consider the proposed policy position on First Homes in West Berkshire, and

(b) Agree the proposed First Homes policy at Appendix B.

This decision is not subject to call in as:

·      a delay in implementing the decision this would cause the Council serious financial implications or could compromise the Council's position.

therefore it will be implemented immediately.

(Councillor Lee Dillon left the Chamber for the duration of the item)

Councillor Richard Somner introduced and proposed the report (Agenda Item 6), on behalf of Councillor Howard Woollaston. The report briefed Members on a new affordable housing product ‘First Homes’ introduced into national policy through a Written Ministerial Statement in May 2021, and considered West Berkshire’s policy position on First Homes.

Councillor Carolyne Culver expressed concern at the future of shared ownership within such a scheme and queried whether sellers would be bound to sell to a local buyer even if interest was expressed from those further afield. Councillor Culver further queried how the Government would determine the price cap in the future, and the circumstances in which someone could sell without a discount.

Councillor Somner promised to provide a full written response but acknowledged that there was a risk to shared ownership, which meant that having a good mix of housing would be key. Councillor Somner suggested that the price cap and discount would be driven only by any downturn in the market.

Councillor Tony Vickers commented that it was a shame that the Government had failed to pilot the scheme prior to imposing it nationally. Councillor Vickers argued that the scheme was fundamentally flawed and was concerned that it had already caused a delay in the Local Plan programme and a drain on administrative resources. Councillor Vickers requested assurance that it would not impact the Sandleford development detrimentally. 

Councillor Somner thanked Councillor Vickers for recognising the impact to officers. He reported that conversations were taking place with the Sandleford developers and he promised to keep Councillor Vickers updated at forthcoming meetings of the Planning Advisory Group. 

Councillor Adrian Abbs suggested that having reviewed a property website the criteria within the policy would currently suit 27 first time buyers. Councillor Abbs also suggested that the maximum joint income of £80,000 and maximum sale price of £250,000 would be beyond the budget of a large proportion of residents. Further he felt that the policy stifled mobility and was contrary to encouraging a mobile workforce.

Councillor Abbs queried whether major stock holding social landlords had been consulted to assess the impact on social mobility over the next five to ten years.

Councillor Somner agreed to respond to Councillor Abbs following the meeting.

Councillor Macro suggested that the policy should be reviewed more frequently than every five years, given the volatility in house prices and the rate of inflation.

Councillor Somner agreed that a close watch would need to be kept on the policy with a review suggested after 12 months.  

Councillor Boeck seconded the report commenting that the policy would deliver first homes in West Berkshire to those that needed them most, and stating that he was fully behind the policy.

RESOLVED that: Executive

·         Consider the proposed policy position on First Homes in West Berkshire, and

·         Agree the proposed First Homes policy at Appendix B.

Other options considered:

Officers have considered amending the national income threshold and the price cap but there is no evidence to suggest that a different approach is justified in West Berkshire. Officers have considered only having the national eligibility criteria but this would not be sufficient in meeting local housing need and ensuring that local first time buyers are prioritised for this type of affordable housing.