Meeting documents

Contact Officer: Will Rysdale (01296) 585561

Matthew Applegate, Chief Executive of the Vale of Aylesbury Housing Trust (VAHT) provided the Environment and Living Scrutiny Committee with an update on VAHT’s operations over the past 12 months and also with a briefing on its strategic direction for the next year.  The presentation received by the Committee is attached to these minutes.

Councillors were advised that new developments with more than 25 residences were required to provide at least 30% as affordable housing.  This could be either shared ownership or affordable rented accommodation. It was noted that affordable rent was above social rent levels, but below market rent, and was typically round 80% of market rent levels.  Vale of Aylesbury Housing Trust did not have any properties subject to a rural exception scheme, but it was noted that some exception schemes were in place in the Vale.  This could increase, as rural exception schemes could be included in Neighbourhood Plans. 

The Environment and Living Scrutiny Committee asked for clarification of the impact of the ‘pay to stay’ policy, whereby households with a combined income of £30,000 outside of London could be asked to pay rent at market rate levels.  It was noted that this policy was voluntary for housing associations.  VAHT would be looking into this policy, and would engage with HMRC regarding gaining information about residents’ incomes so that a decision could be made about whether to charge the market rent.  It was noted that there would be an increase in administration costs to implement the policy, and this would need to be offset by an increase in income.  A decision would be made regarding implementation after the final legislation was known.  It was questioned whether this could lead to rent arrears, or whether it could lead to more residents looking at purchasing their home rather than paying the rent at the market rate.  There were concerns that this could lead to a loss of social housing.

Parish Councils had noted that new developments rarely included bungalows, and existing bungalows were regularly converted.  It was stated that there was no established need for bungalows, and there was an increase in land cost for developers in relation to the living space of the property.  Matthew Applegate informed the Committee that there were bungalows in VAHT’s existing housing stock, and there were no plans to convert these properties.  There had been some new build bungalows on the Buckingham Park development.

VAHT’s policy regarding garages was questioned, as there were concerns that some of the garage stock may be demolished and housing built in place.  Members were advised that there was demand for garages, and that the policy was to renovate and improve existing garage stock.  An additional 250 garages were now let that had previously been in a dilapidated state.

Councillors asked for clarification regarding VAHT’s financial position, and were informed that the company had a £44million turnover, and that £55million was due to be spent in the coming year.  The shortfall in funding would be financed by bank loans, and this additional funding would enable development, which would in turn lead to an increase in turnover.  This financial model had been in place for decades, and it was noted to be sustainable over the 30 year business plan.

It was noted that there was not a high level of demand from residents to buy the property they rented.  It was questioned whether there was higher demand for more attractive properties in rural areas.  Members were advised that the price of the properties in more rural locations was higher.  Tenants would be entitled to a discount on the market price of the property, but it was likely that the majority of tenants would not be able to afford the rural properties even with the discount.

Members thanked Matthew Applegate for his attendance, and

RESOLVED –

That the report and update presented at the meeting be noted.