Agenda item

(Housing Portfolio Holder) To consider the attached report (C-022-2011/12).

(1)        That authority be delegated to the Director of Housing to agree future requests to vary restrictive covenants on former Council houses, in order to grant permission for their use as privately-rented shared accommodation, provided all of the conditions below have been met:

(a)        That an agreement is entered into between the owner and the Council, varying the restrictive covenant to grant permission for its use as privately rented shared accommodation, rather than releasing the covenant in full, ensuring that the Council maintains control over any future changes of use to the property; 

(b)        That the agreement includes conditions to ensure that occupiers do not cause any general management problems including anti-social behaviour, or excessive noise nuisance, or that their occupation does not create excessive parking problems in the area;

(c)        That the agreement be terminated if there are any justified complaints from the local community;

(d)        That the Council’s reasonable legal and management fees relating to the execution of the agreement are met by the owner;

(e)        That Planning Permission is granted for the change of use, which would also take into account available parking at the property and the surrounding area;

(f)         That the Director of Housing is satisfied that the property complies with the Housing Act 2004 and the Houses in Multiple Occupation (England) Regulations 2006;

(g)        That the Director of Housing has no reasons why the Council should not vary the covenant; and

(h)        That no request results in more than five houses being used as privately-rented shared accommodation within a 400 metre radius, in which case a report shall be submitted to the Housing Portfolio Holder for consideration and decision.

The Housing Portfolio Holder presented a report regarding the restrictive covenants for houses in multiple occupation, and to agree a policy for approving the variation of restrictive covenants placed on any sale of a former Council house, to grant permission for its use as privately-rented shared accommodation.      

The Portfolio Holder stated that the Director of Housing currently did not have delegated authority to vary restrictive covenants which prevented houses being used for privately-rented shared accommodation. It was proposed that delegated authority be granted to the Director of Housing to vary any of these restrictive covenants on request, provided that a number of conditions had been met by the owner/freeholder, as set out below. It had also been suggested that should any request result in more than five houses being used as privately-rented shared accommodation within any 400 metre radius, a report should be submitted to the Housing Portfolio Holder. Furthermore, the terms of leases for flats - where the Council owned the freehold, and had provided a leasehold interest to the occupiers - would not be released due to legal complications.   

The Portfolio Holder added that Housing Management staff were aware of a large number of former Council houses on estates that appeared to be in use as privately-rented shared accommodation without the covenant referred to being varied. If the policy was agreed and delegated authority was granted, then Officers would contact the owners of these properties and make arrangements for the covenant to be varied, provided the new policy was being complied with.

Decision:

(1)        That authority be delegated to the Director of Housing to agree future requests to vary restrictive covenants on former Council houses, in order to grant permission for their use as privately-rented shared accommodation, provided all of the conditions below have been met:

(a)        That an agreement is entered into between the owner and the Council, varying the restrictive covenant to grant permission for its use as privately rented shared accommodation, rather than releasing the covenant in full, ensuring that the Council maintains control over any future changes of use to the property; 

(b)        That the agreement includes conditions to ensure that occupiers do not cause any general management problems including anti-social behaviour, or excessive noise nuisance, or that their occupation does not create excessive parking problems in the area;

(c)        That the agreement be terminated if there are any justified complaints from the local community;

(d)        That the Council’s reasonable legal and management fees relating to the execution of the agreement are met by the owner;

(e)        That Planning Permission is granted for the change of use, which would also take into account available parking at the property and the surrounding area;

(f)         That the Director of Housing is satisfied that the property complies with the Housing Act 2004 and the Houses in Multiple Occupation (England) Regulations 2006;

(g)        That the Director of Housing has no reasons why the Council should not vary the covenant; and

(h)        That no request results in more than five houses being used as privately-rented shared accommodation within a 400 metre radius, in which case a report shall be submitted to the Housing Portfolio Holder for consideration and decision.

Reasons for Decision:

To provide the Council with a clear policy on when restrictive covenants, preventing a former Council house from being used for privately-rented shared accommodation, would be varied. 

Other Options Considered and Rejected:

To not vary restrictive covenants and not allow former Council houses to be used for privately-rented shared accommodation.

To vary restrictive covenants preventing the owners/freeholders of former Council houses to use the property for privately-rented shared accommodation under different conditions to those set-out above. 

To not submit a report to the Housing Portfolio Holder on whether the restrictive covenant should be varied should any request result in more than 5 houses being used as privately- rented shared accommodation within any 400 metre radius.