Issue - meetings

Priority Worker Help to Buy Scheme (WRIF)

Meeting: 14/10/2021 - Cabinet (Item 5)

5 Priority Worker Help to Buy Scheme pdf icon PDF 304 KB

A report seeking Cabinet approval for the establishment of a Warwickshire Priority Worker Help to Buy scheme.

 

Cabinet Portfolio Holder – Councillor Peter Butlin

Additional documents:

Minutes:

Councillor Peter Butlin (Deputy Leader, Finance and Property) summarised the published report, noting that permission was sought to further explore a Priority Worker Help to Buy Scheme, subject to the financial principles set out in paragraph 4.10 of the report.  Ultimately the scheme would only be offered through Warwickshire County Council developed housing schemes where a business case justified the need and the financial analysis supported the ability to offer the Priority Worker Help to Buy Scheme, with the final decision resting with the County Council.  Councillor Butlin noted that there had been a very positive discussion at Resources and Fire and Rescue Overview and Scrutiny Committee on the proposed scheme with their comments and recommendations summarised in the report (paragraph 1.4).

 

Resolved:

 

That Cabinet:

 

1.     Agrees to further explore the setting up of a Priority Worker Help to Buy (PWHTB) Scheme on the basis set out in paragraph 2 of the report, subject to compliance with the financial principles set out in paragraph 4.10 of the report;

 

2.     Notes the observations made by the Resources and Fire and Rescue Overview and Scrutiny Committee and requests officers to continue to work with financial institutions to gather input as to how to further develop the final product to provide affordable help to priority workers who are or will be residents of Warwickshire; and

 

3.     Requests officers make a further report to Cabinet on the detail of the PWHTB at the appropriate time in line for the first Warwickshire Property and Development Group (WPDG) site specific development likely to apply PWHTB.


Meeting: 15/09/2021 - Resources and Fire & Rescue Overview and Scrutiny Committee (Item 6)

6 Priority Worker Help to Buy Scheme pdf icon PDF 382 KB

The report is attached.

Additional documents:

Minutes:

Rob Powell (Strategic Director for Resources) introduced the report which provided an outline of the concept to establish a Warwickshire Priority Worker Help to Buy (PWHTB) scheme which could be offered for new-build properties built by Warwickshire Property and Development Group (WPDG) on selected sites. The Committee’s recommendations would be progressed to Cabinet ahead of its meeting on 14 October 2021.

 

Rob Powell advised that the proposed scheme supported the Council’s Recovery Plan objective 7.8: “Working in partnership with Homes England, we will remove the blocks that have prevented some sites in Warwickshire from being developed, providing more and affordable housing whilst also supporting the recovery of our local economy.” He stated that this provided a clear policy context for the introduction of the PWHTB scheme.

 

Rob Powell advised that the scheme was designed to encourage homeownership and support priority workers with affordable homes. Consequently, it would seek to address recruitment and retention challenges in key areas of the economy, providing a means to attract and retain priority workers in Warwickshire. He stated that, with effective targeting, the scheme would support levelling-up objectives.

 

Rob Powell stated that the PWHTB scheme constituted an attractive product for prospective homeowners. It offered high loan to value mortgages, lower deposits, and would be available to eligible applicants irrespective of whether they were first time buyers. The criteria were less restrictive than national schemes; it would be attuned to local market considerations.

 

Rob Powell advised that the scheme would apply exclusively to new build properties built by WPDG and must be the homeowner’s only home. The scheme would not apply to all WPDG developments, a decision would be taken on a site-by-site basis as to whether PWHTB properties could be made available. He stated that financial considerations would limit the extent to which the scheme could be offered. WPDG would assess each site when developing a business plan to ascertain whether availability of help-to-buy homes would support sales and delivery of policy objectives. The Council would then review financial risks and make a site-specific value for money assessment. He stated that a robust decision-making framework would support targeted implementation of the scheme.

 

Rob Powell reported that the proposal was for the definition of what constituted a ‘priority worker’ to be decided on a site-by-site basis. This enabled flexibility, allowing the scheme to be tailored to and targeted to address local market requirements.

 

Rob Powell advised that an eligibility cap would be set. This would be based upon household income. A separate maximum price cap would also be set on a site-by-site basis in recognition of the variance in housing markets across Warwickshire.

 

Rob Powell reported that the PWHTB product was an equity-based loan, meaning that WCC would, in effect, take a share of the property. This tied the loan to the current house value, so if house prices fell, the loan would reduce in value. If house prices increased, the value of the loan would rise proportionately. He advised that an interest-free equity loan  ...  view the full minutes text for item 6