Waverley Borough Council Council Offices, The Burys, Godalming, Surrey GU7 1HR www.waverley.gov.uk

To: All Members of the Council Fiona Cameron, Interim Democratic Services Manager Policy and Governance E-mail: [email protected] Direct line: 01483 523226 Calls may be recorded for training or monitoring Date: 13 April 2018

Dear Councillor

COUNCIL MEETING - TUESDAY, 24 APRIL 2018

A MEETING of the WAVERLEY BOROUGH COUNCIL will be held in the COUNCIL CHAMBER, COUNCIL OFFICES, THE BURYS, GODALMING on TUESDAY, 24 APRIL 2018 at 7.00 pm and you are hereby summoned to attend this meeting.

The Agenda for the Meeting is set out below.

Yours sincerely

ROBIN TAYLOR

Head of Policy and Governance

Agendas are available to download from Waverley’s website (www.waverley.gov.uk/committees), where you can also subscribe to updates to receive information via email regarding arrangements for particular committee meetings.

Alternatively, agendas may be downloaded to a mobile device via the free Modern.Gov app, available for iPad, Android, Windows and Kindle Fire.

Most of our publications can be provided in alternative formats. For an audio version, large print, text only or a translated copy of this publication, please contact [email protected] or call 01483 523351.

The meeting will be webcast and can be viewed by visiting www.waverley.gov.uk/committees AGENDA

1. MINUTES (Pages 7 - 18)

To confirm the Minutes of the Council meeting held on 20 February 2018 (herewith).

2. APOLOGIES FOR ABSENCE

The Mayor to report apologies for absence.

3. DECLARATIONS OF INTEREST

To receive from Members, declarations of interest in relation to any items included on the agenda for this meeting in accordance with the Waverley Code of Local Government Conduct.

4. MAYOR'S ANNOUNCEMENTS

5. QUESTIONS FROM MEMBERS OF THE PUBLIC

To answer questions from members of the public, received in accordance with Procedure Rule 10.

The deadline for receipt of questions is 5pm on Tuesday 17 April 2018.

6. QUESTIONS BY MEMBERS

To answer any questions received in accordance with Procedure Rule 11.2.

7. MOTIONS

To receive any motions submitted in accordance with Procedure Rule 12.1.

8. LOCAL PLAN PART 1

At its meeting on 10 April 2018, the Executive APPROVED a Supplementary Estimate of £100,000 and,

RECOMMENDS to the COUNCIL that a further Supplementary Estimate of £100,000 be approved, for external legal costs to defend the Council’s position on the Judicial Review challenges to Waverley’s adoption of Local Plan Part 1, to be met from the Revenue Reserve Fund.

[Reason: to enable the Council to defend the legal challenges to Waverley’s adopted Local Plan Part 1.] 9. COMMUNITY INFRASTRUCTURE LEVY: APPROVAL TO SUBMIT DRAFT CHARGING SCHEDULE FOR EXAMINATION (Pages 19 - 42)

The attached report feeds back to Members the outcome of the consultation on the Community Infrastructure Levy (CIL) Draft Charging Schedule, held in December 2017/January 2018, and to seeks approval to submit the Draft Charging Schedule for Examination.

The Executive considered this item at its meeting on 10 April 2018, and RECOMMENDS to the COUNCIL that:

1. the Draft Charging Schedule and the Schedule of Minor Modifications be approved for submission to the Planning Inspectorate for Examination; and

2. authority be delegated to the Head of Planning Services, in consultation with the Portfolio Holder for Planning, to o approve any subsequent minor changes to the Draft Charging Schedule and schedule of minor modifications, and

o approve supporting documents to be submitted, including the Draft Regulation 123 list, policies on instalments, phasing and payment in kind, the Statement of Representations and the Viability Addendum Report.

[Reason: to enable Draft Charging Schedule to be submitted for Examination.]

10. PROPERTY INVESTMENT STRATEGY (Pages 43 - 70)

The attached report presents a revised Property Investment Strategy and proposes delegations to the Executive to progress general fund investment opportunities. The report also sets out a revised composition for the Investment Advisory Board to strengthen the governance in the decision making for property investments.

The Executive considered this item at its meeting on 10 April, and RECOMMENDS to the COUNCIL that

1. the General Fund Property Investment Strategy be approved, as set out in Annexe 1 with a commitment to review it again after 6 months;

2. subject to a positive recommendation from the Investment Advisory Board and agreement from the Chief Executive and Strategic Director, authority be delegated to the Executive:

a. to bid, negotiate and complete on property acquisitions and investments with a total individual cost of up to £10m, within a total aggregate sum of £30m over the period 2018/2019 to 2020/21, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy; b. to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

c. to complete the legal matters and signing of contracts to execute the transactions referred to above; and

3. the proposed composition of the Investment Advisory Board be approved and revised Terms of Reference take effect immediately.

[Reason: to agree the revised Property Investment Strategy and delegations to the Executive to progress General Fund investment opportunities; to agree a revised composition and Terms of Reference of the Investment Advisory Board.]

11. TREASURY MANAGEMENT FRAMEWORK 2018/19 (Pages 71 - 94)

The attached report sets out the proposed Treasury Management Framework for 2018/19, comprising:  revised Treasury Management Policy;  2018/19 Treasury Management Strategy;  2018/19 Treasury Management Investment Strategy; and  Prudential Indicators for 2018/19 to 2020/21.

The Executive considered the Treasury Management Framework for 2018/19 at its meeting on 10 April 2018, and RECOMMENDS to the COUNCIL that the proposed Treasury Management Framework for 2018/19 be approved.

[Reason: to agree the the Treasury Management Framework for 2018/19.]

12. HOUSING STRATEGY 2018-23: HOUSING STRATEGY AND DELIVERY (Pages 95 - 170)

This attached report presents a revised Housing Strategy for Strategic Housing and Delivery. This Housing Strategy will be a key Council document, setting out a clear direction of travel for our Strategic Housing Services over the next 5 years.

The Executive considered the Housing Strategy at its meeting on 10 April 2018, and RECOMMENDS to the COUNCIL that the Housing Strategy 2018-23 – Housing Strategy and Delivery be adopted.

[Reason: to adopt the Housing Strategy 2018-23 – Housing Strategy and Delivery] 13. HOMELESSNESS STRATEGY 2018-23 (Pages 171 - 212)

The Council is legally required to produce a Homelessness Strategy at least every five years. Waverley’s current strategy runs from July 2013 - July 2018. Waverley’s revised Homelessness Strategy for 2018 – 2023 is attached.

The Executive considered the revised Homelessness Strategy at its meeting on 10 April 2018, noted the Council’s continued success in preventing homelessness, and RECOMMENDS to the COUNCIL that the Homelessness Strategy 2018-23 be adopted.

[Reason: to adopt the Homelessness Strategy 2018-23.]

14. MINUTES OF THE EXECUTIVE (Pages 213 - 222)

To receive and note the Minutes of the meeting of the Executive held on 10 April 2018 (attached - coloured grey).

Matters considered by the Executive and recommended to Council for decision are detailed in this agenda as separate items.

15. MINUTES OF THE AUDIT COMMITTEE (Pages 223 - 230)

To receive the Minutes of the Audit Committee held on 27 March 2018 (attached – coloured lilac).

16. EXCLUSION OF PRESS AND PUBLIC

To consider the following motion, to be moved by the Mayor, where appropriate:-

That, pursuant to Procedure Rule 20 and in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of any matter on this agenda on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during the item(s), there would be disclosure to them of exempt information (as defined by Section 100I of the Act) of the description specified in the appropriate paragraph(s) of the revised Part I of Schedule 12A of the Local Government Act 1972 (to be identified at the meeting). This page is intentionally left blank Agenda Item 1. 1 MINUTES of the WAVERLEY BOROUGH COUNCIL held in the Council Chamber, Council Offices, The Burys, Godalming on 20 February 2018 at 7.00 pm

* Cllr Simon Inchbald (Mayor) * Cllr Denise Le Gal (Deputy Mayor)

* Cllr Brian Adams * Cllr Carole King * Cllr Mike Band * Cllr Robert Knowles * Cllr Andrew Bolton * Cllr Martin Lear * Cllr Maurice Byham * Cllr Denis Leigh Cllr Carole Cockburn * Cllr Andy MacLeod * Cllr Kevin Deanus Cllr Peter Martin Cllr Jim Edwards * Cllr Tom Martin * Cllr Patricia Ellis Cllr Kika Mirylees * Cllr David Else * Cllr Stephen Mulliner * Cllr Jenny Else * Cllr Nabeel Nasir * Cllr Paul Follows * Cllr Libby Piper * Cllr Mary Foryszewski * Cllr Julia Potts * Cllr John Fraser * Cllr Sam Pritchard * Cllr Pat Frost * Cllr Wyatt Ramsdale * Cllr Michael Goodridge Cllr Stefan Reynolds * Cllr Tony Gordon-Smith * Cllr David Round Cllr John Gray * Cllr Richard Seaborne * Cllr Ged Hall Cllr Jeanette Stennett * Cllr Jill Hargreaves Cllr Stewart Stennett * Cllr Val Henry * Cllr Chris Storey * Cllr Christiaan Hesse * Cllr Liz Townsend Cllr Stephen Hill * Cllr Bob Upton * Cllr Mike Hodge Cllr John Ward * Cllr Nicholas Holder Cllr Ross Welland * Cllr David Hunter * Cllr Liz Wheatley * Cllr Jerry Hyman * Cllr Nick Williams * Cllr Peter Isherwood Cllr John Williamson * Cllr Anna James

*Present

Apologies Cllr Carole Cockburn, Cllr Jim Edwards, Cllr John Gray, Cllr Peter Martin, Cllr Kika Mirylees, Cllr Stefan Reynolds, Cllr Jeanette Stennett, Cllr Stewart Stennett, Cllr John Ward, Cllr Ross Welland and Cllr John Williamson

Prior to the commencement of the meeting, prayers were led by the Reverend Jane Vlach

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48/17 MINUTES (Agenda item 1.)

The Minutes of the Meeting of the Council held on 5 December 2017 and of the Extraordinary Meeting held on 19 December 2017 were confirmed and signed.

49/17 APOLOGIES FOR ABSENCE (Agenda item 2.)

Apologies for absence were received from Cllrs Carole Cockburn, Jim Edwards, John Gray, Peter Martin, Kika Mirylees, Stefan Reynolds, Stewart and Jeanette Stennett, John Ward, Ross Welland and John Williamson.

50/17 DECLARATIONS OF INTEREST (Agenda item 3.)

There were no interests declared under this heading.

51/17 MAYOR'S ANNOUNCEMENTS (Agenda item 4.)

The Mayor thanked all councillors who had taken part in the joint bowling evening with the Mayor of Guildford. The event raised £2,400 for the two mayoral charities.

52/17 QUESTIONS FROM MEMBERS OF THE PUBLIC (Agenda item 5.)

The following question was received from Mr Daniel Kuszel of Godalming in accordance with Procedure Rule 10:

“Why has it taken this Council over 2 years and counting to simply remove the private and large commercial waste bins located within the conservation area of Crown Court?”

The following response was provided:-

“Whilst the presence of waste bins in conservation areas can detract from the appearance of the area and is something the council continually works to minimise, the solution is never as simple as just removing the bins. In such densely occupied areas, residents and businesses often struggle to find space to store rubbish and recycling and the council has to work with them to try to find mutually acceptable solutions which minimise the impact of the area but enable them to store refuse and recycling securely so that it does not become strewn throughout the area and become an even greater environmental issue.

Councils can use powers to enforce keeping areas clear of waste storage containers. Currently, the applicable powers are Public Spaces Protection Orders and Community Protection Notices as part of the Antisocial Behaviour Crime and Policing Act 2014. Both powers require there to be a persistent and detrimental effect on the quality of life of those in the locality by the behaviour or activity and that the activity is unreasonable. Evidence of the activity needs to be provided, including evidence of how this is negatively impacting individuals and the community. Both powers can be appealed so the Council has to demonstrate the above and also demonstrate that any action taken is reasonable and proportionate to the issue. Officers have been working with Portfolio Holders for several years to find acceptable and workable solutions.

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In 2014, the Portfolio Holder for Environmental Services at the time, Cllr Thornton, requested that officers investigated wheelie bin storage in public areas within Godalming and whether this could be reduced. Officers approached local businesses directly to ascertain ownership and were successful in reducing the number of bins present in areas with frequent public use by approximately half in 2014. Following the exercise, Cllr Thornton and the community were positive in his feedback for what had been achieved.

In 2016, Waverley undertook public consultation with a view to restricting the presentation times of commercial waste in high street areas. This primarily followed interest from Farnham Town Council. The consultation received limited feedback and highlighted that there were specific localised areas of concern, as opposed to a broader problem. Further work then took place with Farnham Town Council to identify where focus could be made and work to reduce commercial storage in public areas of Godalming was also continued.

In relation to the Crown Court area specifically, a recent inspection confirmed that there were 3 commercial bins. One was stored adjacent to a business on land leased from Waverley Borough Council and 2 were stored under cover of buildings at the margin of the pedestrian area. All 3 bins were typically stored tidily, locked and without adjacent littering or side waste, and the businesses have a right of access and a lack of dedicated external storage areas. Therefore, it was considered that the bins are not being stored in an unreasonable fashion and it is simply their presence which could be viewed as being antisocial.

Additionally, there are currently very few complaints received by Waverley, to justify further investigation as to whether a PSPO or CPN would be appropriate. A more recent inspection of the area has revealed that additional residential recycling bins were present in the area near to the High Street. Officers will further investigate the source of these bins and will discuss with their owners options such as reducing bin sizes and/or increasing frequency of collection so that they do not remain on the street. Officers are also about to start working with Godalming Town Council, Planning Conservation, Planning colleagues and local councillors to develop potential bin storage improvements in Great George Street, Godalming.

Addressing waste storage issues will inevitably be an ongoing area of work across the borough and officers will continue to work closely with Town and Parish Councils, residents and businesses to minimise the impact of waste storage on the community and the environment.”

53/17 MINUTES OF THE SPECIAL EXECUTIVE - 20 FEBRUARY 2018 - LOCAL PLAN (Agenda item 10.b)

Due to the public interest in this item, the Mayor agreed to re-order the agenda to take the minutes of the Special Executive meeting held earlier in the evening at this point (formerly agenda item 10b).

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It was moved by the Chairman of the Committee and duly seconded that the minutes of the Special Executive meeting held on 20 February 2018 be approved and adopted.

i. Waverley Borough Local Plan Part I: Adoption (Minute No. 109)

Following lengthy discussion on this item, the Leader moved that in accordance with Procedure Rule 17.4, the voting on this item should be by roll-call and recorded in the minutes. She was supported by more than 5 others present at the meeting, including Cllrs Andrew Bolton, Mike Band, Mary Foryszewski, Ged Hall and Jerry Hyman.

The voting was recorded as follows:-

Voting for (41)

Cllrs Brian Adams, Mike Band, Andrew Bolton, Maurice Byham, , Patricia Ellis, David Else, Jenny Else, Mary Foryszewski, John Fraser, Pat Frost, Michael Goodridge, Tony Gordon-Smith, Ged Hall, Jill Hargreaves, Val Henry, Christiaan Hesse, Mike Hodge, Nicholas Holder, David Hunter, Simon Inchbald, Peter Isherwood, Anna James, Carole King, Robert Knowles, Denise Le Gal, Denis Leigh, Tom Martin, Stephen Mulliner, Nabeel Nasir, Libby Piper, Julia Potts, Sam Pritchard, Wyatt Ramsdale, David Round, Richard Seaborne, Chris Storey, Liz Townsend, Bob Upton, Liz Wheatley and Nick Williams.

Voting against (1)

Cllr Jerry Hyman

Abstentions (3)

Cllrs Kevin Deanus, Paul Follows and Andy MacLeod.

RESOLVED that the Minutes of the Special Executive held on 20 February 2018 be approved and the recommendations contained therein adopted.

54/17 FINANCIAL STRATEGY 2018/2019 - 2020/2021 (Agenda item 8.) (Pages 13 - 16)

The Leader delivered a Budget Statement to the Council, a copy of which is attached as Annexe 1 to these minutes, following which the Portfolio Holder for Finance presented the reports at Agenda Item 8a-8c. Cllr Jerry Hyman delivered a budget speech on behalf of the Leader of the Farnham Residents’ Group.

The Local Authorities (Standing Orders) (England) Regulations 2014 make it mandatory for Councils to conduct a recorded vote at budget-setting Council meetings. With the agreement of the Council, a recorded vote was taken on all three budget reports (Agenda Item 8a – recommendations 1-11, Agenda Item 8b – recommendations 1-9 and Agenda Item 8c – recommendations 1.1-1.3), with a unanimous (nem com) vote in favour of the whole budget. The voting was as follows:-

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Voting for (44)

Cllrs Brian Adams, Mike Band, Andrew Bolton, Maurice Byham, Kevin Deanus, Patricia Ellis, David Else, Jenny Else, Paul Follows, Mary Foryszewski, John Fraser, Pat Frost, Michael Goodridge, Tony Gordon-Smith, Ged Hall, Jill Hargreaves, Val Henry, Christiaan Hesse, Mike Hodge, Nicholas Holder, David Hunter, Jerry Hyman, Simon Inchbald, Peter Isherwood, Anna James, Carole King, Robert Knowles, Denise Le Gal, Denis Leigh, Andy MacLeod, Tom Martin, Stephen Mulliner, Nabeel Nasir, Libby Piper, Julia Potts, Sam Pritchard, Wyatt Ramsdale, David Round, Richard Seaborne, Chris Storey, Liz Townsend, Bob Upton, Liz Wheatley and Nick Williams.

Voting against (0)

Abstentions (0)

RESOLVED that the reports of the Executive at Agenda Item 8a (General Fund Budget 2018/19) and 8b (Housing Revenue Account Business Plan, Revenue Budget and Capital Programme 2018/19 be approved and the recommendations contained therein adopted.

Council Tax Setting 2018/2019(Agenda Item 8c)

RESOLVED that

1.1 The following amounts have been calculated for the Council for 2018/2019 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992:

(a) £73,515,712 being the aggregate of the amounts that the Council estimates for the items set out in Section 31A 2 (a) to (f) of the Act taking into account all precepts issued to it by Parish Councils;

(b) £60,792,455 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) (a) to (d) of the Act;

(c) £12,723,257 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 31A (4) of the Act, as its council tax requirement for the year;

(d) £234.79 being the amount at (c) divided by 54,191.0, calculated by the Council in accordance with Section 31B (1) of the Act and rounded for administrative purposes, as the basic amount of its Council Tax for the year;

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(e) £3,129,287.12 being the aggregate amount of all special items referred to in Section 34 (1) of the Act;

(f) £177.04 being the amount at (d) above less the result given by dividing the amount at (e) above by 54,191.0 calculated by the Council in accordance with the Section 34 (2) of the Act and rounded for administrative purposes, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special item relates;

(g) Part of Council’s area £ Alfold 229.65 being the amounts given by adding Bramley 201.64 to the amount at (f) above the Busbridge 204.27 special item or items relating to Chiddingfold 271.41 dwellings in those parts of the Churt 230.73 Council’s area mentioned above Cranleigh 243.72 divided in each case by the amount Dockenfield 202.47 calculated by the Council, in Dunsfold 253.00 accordance with Section 34(3) of the Elstead 211.08 Act, as the basic amounts of its Ewhurst 246.04 Council Tax for the year for dwellings Farnham 239.66 in those parts of its area to which one Frensham 235.69 or more special items relate. Godalming 245.35 Hambledon 204.97 Hascombe 223.12 Haslemere 217.61 Peper Harow 181.37 Thursley 218.79 Tilford 273.49 Witley 239.06 Wonersh 200.08

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(h) Valuation Bands

Part of the Band A Band B Band C Band D Band E Band F Band G Band H Council's £ £ £ £ £ £ £ £ Area

Alfold 153.09 178.61 204.12 229.65 280.68 331.71 382.74 459.30

Bramley 134.42 156.82 179.23 201.64 246.45 291.25 336.06 403.28

Busbridge 136.17 158.87 181.56 204.27 249.66 295.05 340.44 408.54

Chiddingfold 180.93 211.09 241.24 271.41 331.72 392.03 452.34 542.82

Churt 153.81 179.45 205.08 230.73 282.00 333.27 384.54 461.46

Cranleigh 162.47 189.55 216.63 243.72 297.88 352.04 406.19 487.44

Dockenfield 134.97 157.47 179.96 202.47 247.46 292.45 337.44 404.94

Dunsfold 168.66 196.77 224.88 253.00 309.22 365.44 421.66 506.00

Elstead 140.71 164.17 187.62 211.08 257.98 304.89 351.79 422.16

Ewhurst 164.02 191.36 218.69 246.04 300.71 355.39 410.06 492.08

Farnham 159.77 186.39 213.02 239.66 292.92 346.17 399.43 479.32

Frensham 157.12 183.31 209.49 235.69 288.06 340.44 392.81 471.38

Godalming 163.56 190.82 218.08 245.35 299.87 354.39 408.91 490.70

Hambledon 136.64 159.41 182.19 204.97 250.52 296.06 341.61 409.94

Hascombe 148.74 173.53 198.32 223.12 272.70 322.28 371.86 446.24

Haslemere 145.07 169.24 193.42 217.61 265.97 314.32 362.68 435.22

Peper Harow 120.91 141.06 161.21 181.37 221.67 261.97 302.28 362.74

Thursley 145.85 170.16 194.47 218.79 267.41 316.03 364.64 437.58

Tilford 182.32 212.71 243.09 273.49 334.26 395.04 455.81 546.98

Witley 159.37 185.93 212.49 239.06 292.18 345.30 398.43 478.12

Wonersh 133.38 155.61 177.84 200.08 244.54 289.00 333.46 400.16

being the amounts given by multiplying the individual amounts contained within (g) above by the number which, in the proportion set out in Section 5

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(1) of the Local Government Finance Act 1992, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36 (1) of the Local Government Finance Act 1992 as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands. Waverley and Parish/Town charges are calculated separately then added together;

1.2 it be noted that for 2018/2019 the Surrey County Council and the Police and Crime Commissioner for Surrey have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below.

Valuation Bands

A B C D E F G H £ £ £ £ £ £ £ £ Surrey County Council BASIC 872.60 1,018.03 1,163.47 1,308.90 1,599.77 1,890.63 2,181.50 2,617.80

Surrey County Council ADULT SOCIAL CARE 68.26 79.64 91.01 102.39 125.14 147.90 170.65 204.78

Surrey County Council TOTAL 940.86 1,097.67 1,254.48 1,411.29 1,724.91 2,038.53 2,352.15 2,822.58

Surrey Police and Crime Commissioner 157.71 184.00 210.28 236.57 289.14 341.71 394.28 473.14

1.3 having calculated the aggregate in each case of the amounts at 1.1 (h) and 1.2 above, the Council, in accordance with Section 30 (2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the financial year commencing on 1st April 2018 for each of the categories of dwellings shown below:-

Part of the Council’s Area (NOT including Adult Social Care)

Valuation Bands A B C D E F G H £ £ £ £ £ £ £ £

Alfold 1,183.40 1,380.64 1,577.87 1,775.12 2,169.59 2,564.05 2,958.52 3,550.24

Bramley 1,164.73 1,358.85 1,552.98 1,747.11 2,135.36 2,523.59 2,911.84 3,494.22

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Busbridge 1,166.48 1,360.90 1,555.31 1,749.74 2,138.57 2,527.39 2,916.22 3,499.48

Chiddingfold 1,211.24 1,413.12 1,614.99 1,816.88 2,220.63 2,624.37 3,028.12 3,633.76

Churt 1,184.12 1,381.48 1,578.83 1,776.20 2,170.91 2,565.61 2,960.32 3,552.40

Cranleigh 1,192.78 1,391.58 1,590.38 1,789.19 2,186.79 2,584.38 2,981.97 3,578.38

Dockenfield 1,165.28 1,359.50 1,553.71 1,747.94 2,136.37 2,524.79 2,913.22 3,495.88

Dunsfold 1,198.97 1,398.80 1,598.63 1,798.47 2,198.13 2,597.78 2,997.44 3,596.94

Elstead 1,171.02 1,366.20 1,561.37 1,756.55 2,146.89 2,537.23 2,927.57 3,513.10

Ewhurst 1,194.33 1,393.39 1,592.44 1,791.51 2,189.62 2,587.73 2,985.84 3,583.02

Farnham 1,190.08 1,388.42 1,586.77 1,785.13 2,181.83 2,578.51 2,975.21 3,570.26

Frensham 1,187.43 1,385.34 1,583.24 1,781.16 2,176.97 2,572.78 2,968.59 3,562.32

Godalming 1,193.87 1,392.85 1,591.83 1,790.82 2,188.78 2,586.73 2,984.69 3,581.64

Hambledon 1,166.95 1,361.44 1,555.94 1,750.44 2,139.43 2,528.40 2,917.39 3,500.88

Hascombe 1,179.05 1,375.56 1,572.07 1,768.59 2,161.61 2,554.62 2,947.64 3,537.18

Haslemere 1,175.38 1,371.27 1,567.17 1,763.08 2,154.88 2,546.66 2,938.46 3,526.16

Peper Harow 1,151.22 1,343.09 1,534.96 1,726.84 2,110.58 2,494.31 2,878.06 3,453.68

Thursley 1,176.16 1,372.19 1,568.22 1,764.26 2,156.32 2,548.37 2,940.42 3,528.52

Tilford 1,212.63 1,414.74 1,616.84 1,818.96 2,223.17 2,627.38 3,031.59 3,637.92

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Witley 1,189.68 1,387.96 1,586.24 1,784.53 2,181.09 2,577.64 2,974.21 3,569.06

Wonersh 1,163.69 1,357.64 1,551.59 1,745.55 2,133.45 2,521.34 2,909.24 3,491.10

Part of the Council’s Area (including Adult Social Care)

Valuation Bands A B C D E F G H £ £ £ £ £ £ £ £

Alfold 1,251.66 1,460.28 1,668.88 1,877.51 2,294.73 2,711.95 3,129.17 3,755.02

Bramley 1,232.99 1,438.49 1,643.99 1,849.50 2,260.50 2,671.49 3,082.49 3,699.00

Busbridge 1,234.74 1,440.54 1,646.32 1,852.13 2,263.71 2,675.29 3,086.87 3,704.26

Chiddingfold 1,279.50 1,492.76 1,706.00 1,919.27 2,345.77 2,772.27 3,198.77 3,838.54

Churt 1,252.38 1,461.12 1,669.84 1,878.59 2,296.05 2,713.51 3,130.97 3,757.18

Cranleigh 1.261.04 1,471.22 1,681.39 1,891.58 2,311.93 2,732.28 3,152.62 3,783.16

Dockenfield 1,233.54 1,439.14 1,644.72 1,850.33 2,261.51 2,672.69 3,083.87 3,700.66

Dunsfold 1,267.23 1,478.44 1,689.64 1,900.86 2,323.27 2,745.68 3,168.09 3,801.72

Elstead 1,239.28 1,445.84 1,652.38 1,858.94 2,272.03 2,685.13 3,098.22 3,717.88

Ewhurst 1,262.59 1,473.03 1,683.45 1,893.90 2,314.76 2,735.63 3,156.49 3,787.80

Farnham 1,258.34 1,468.06 1,677.78 1,887.52 2,306.97 2,726.41 3,145.86 3,775.04

Frensham 1,255.69 1,464.98 1,674.25 1,883.55 2,302.11 2,720.68 3,139.24 3,767.10

Godalming 1,262.13 1,472.49 1,682.84 1,893.21 2,313.92 2,734.63 3,155.34 3,786.42

Hambledon 1,235.21 1,441.08 1,646.95 1,852.83 2,264.57 2,676.30 3,088.04 3,705.66

Hascombe 1,247.31 1,455.20 1,663.08 1,870.98 2,286.75 2,702.52 3,118.29 3,741.96

Haslemere 1,243.64 1,450.91 1,658.18 1,865.47 2,280.02 2,694.56 3,109.11 3,730.94

Peper Harow 1,219.48 1,422.73 1,625.97 1,829.23 2,235.72 2,642.21 3,048.71 3,658.46

Thursley 1,244.42 1,451.83 1,659.23 1,866.65 2,281.46 2,696.27 3,111.07 3,733.30

Tilford 1,280.89 1,494.38 1,707.85 1,921.35 2,348.31 2,775.28 3,202.24 3,842.70

Page 16 11

Witley 1,257.94 1,467.60 1,677.25 1,886.92 2,306.23 2,725.54 3,144.86 3,773.84

Wonersh 1,231.95 1,437.28 1,642.60 1,847.94 2,258.59 2,669.24 3,079.89 3,695.88

[NB Cllr Libby Piper left the meeting at 9.06pm following the recorded vote on this item]

55/17 REPORT OF INDEPENDENT REMUNERATION PANEL (Agenda item 9.)

RESOLVED that the report of the Independent Remuneration Panel be adopted.

56/17 MINUTES OF THE EXECUTIVE (Agenda item 10.)

It was moved by the Chairman of the Executive, duly seconded and

RESOLVED that the Minutes of the Meeting of the Executive held on 6 February 2018 be approved and the recommendations contained therein adopted.

57/17 MINUTES OF THE LICENSING AND REGULATORY COMMITTEE (Agenda item 11.)

19 DECEMBER 2017 (Agenda Item 11a)

It was moved by the Chairman of the Committee, duly seconded and

RESOLVED that the Minutes of the Meeting of the Licensing and Regulatory Committee held on 19 December 2017 be approved.

15 JANUARY 2018 (Agenda Item 11b)

It was moved by the Chairman of the Committee, duly seconded and

RESOLVED that the Minutes of the Meeting of the Licensing and Regulatory Committee held on 19 December 2017 be approved and the recommendations contained therein adopted.

58/17 MINUTES OF THE STANDARDS PANEL (Agenda item 12.)

It was moved by the Chairman of the Panel, duly seconded and

RESOLVED that the Minutes of the Meeting of the Standards Panel held on 29 January 2018 be approved and the recommendations contained therein adopted.

59/17 CHANGES TO COMMITTEE MEMBERSHIPS (Agenda item 13.)

RESOLVED that the changes to Committee memberships in accordance with the Scheme of Delegation and as set out in the agenda papers, be noted.

11 Page 17 12

The meeting concluded at 9.40 pm

Mayor

Page 18 Agenda Item 9.

WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 10 APRIL 2018

COUNCIL - 24 APRIL 2018

Title:

COMMUNITY INFRASTRUCTURE LEVY: APPROVAL TO SUBMIT DRAFT CHARGING SCHEDULE FOR EXAMINATION

[Portfolio Holder: Cllr Chris Storey] [Wards Affected: All]

Summary and recommendation:

The purpose of this report is to feedback to Members the outcome of the consultation on the Community Infrastructure Levy (CIL) Draft Charging Schedule, held in December 2017/January 2018, and to seek approval to submit the Draft Charging Schedule for Examination.

The Executive considered this item at its meeting on 10 April 2018, and RECOMMENDS to the COUNCIL that:

1. the Draft Charging Schedule and the Schedule of Minor Modifications be approved for submission to the Planning Inspectorate for Examination; and

2. authority be delegated to the Head of Planning Services, in consultation with the Portfolio Holder for Planning, to

o approve any subsequent minor changes to the Draft Charging Schedule and schedule of minor modifications, and o approve supporting documents to be submitted, including the Draft Regulation 123 list, policies on instalments, phasing and payment in kind, the Statement of Representations and the Viability Addendum Report.

How this report relates to the Council’s Corporate Priorities:

The implementation of CIL will support the corporate priorities relating to Community Wellbeing, Environment and Value for Money.

Financial Implications:

CIL will make an important contribution towards the funding of infrastructure to support new development. Waverley would benefit from a contribution towards administrative costs, and parishes would receive a contribution to use within the parish. Further investigation will take place to refine the processes which are covered in this report. The suggested CIL contribution is approximately 3 times the previous PIC contribution.

Page 19 Legal Implications:

The comments set out in this report are a comprehensive assessment of the relevant issues and no further comment is therefore required.

Introduction

1. The Community Infrastructure Levy (CIL) is a tariff system that enables contributions to be collected from development towards infrastructure projects in the form of a rate charge per square metre (m2) of additional internal floorspace for different types of development. CIL will largely replace ‘Section 106’ developer contributions, although these will still be used for site-specific infrastructure and to provide affordable housing. There are some mandatory exemptions from CIL, including affordable housing, self build housing and development of less than 100m2.

2. The Council has to prepare a CIL Charging Schedule, which will outline what we are proposing to charge. This has to go through two stages of consultation, before being considered at an independent examination.

3. Following a first round of consultation during summer 2017, a revised Draft Charging Schedule (DCS) was published for consultation for 6 weeks consultation which ended on 26 January 2018. The DCS sets out a range of proposed CIL charges for residential development of between £372 and £470 per square metre (except for development at Dunsfold Aerodrome, which is zero rated), as well as lower charges for older persons’ housing and retail development.

Analysis of responses to Second Consultation

3. A total of 53 representations were made within the consultation period, plus 2 late responses. Attached as Annexe 1 is a summary of the main issues raised, together with the Officers’ response. Officers would like to draw Members’ attention to the five main themes arising:

 The development industry considers that the proposed rates, being higher than many other authorities’ rates, will affect the deliverability of housing.

 A number of the assumptions in the viability work have been challenged, including land values, build costs and the size of sites used in the case studies.

 Several respondents queried why Dunsfold Aerodrome had been excluded from CIL charges, with some saying that the additional 800 dwellings should be treated separately from the application scheme for 1800 dwellings.

 Several respondents have suggested that developers should fund SANG in addition to CIL, rather than CIL money being used to fund SANG.

 Finally, a number of respondents raised issues relating to how CIL monies will be spent.

4. Officers and Waverley’s technical CIL consultants, Three Dragons, have reviewed the representations. In the light of the consultation responses, Three Dragons have revisited some of the key assumptions in the Viability Report and confirmed that they are satisfied as to the robustness of the approach. Whilst the proposed rates

Page 20 are higher than many other authorities’ rates, they are viable, although it is acknowledged that the Council will need to manage and monitor any risk in the short term that the CIL rates could have on housing delivery, whilst the market adjusts. Three Dragons will be producing an Addendum to the Viability Report ready for the CIL examination, with the intention of assisting the Examiner through the clarification of the approach used and filling in any gaps in the information.

5. With regard to Dunsfold Aerodrome, it is not generally permissible, within the CIL Regulations, to treat different phases of a site separately in terms of CIL rates. Officers consider that there is strong evidence that for large sites the S106 regime is a better mechanism for ensuring the delivery of both the development and its supporting infrastructure.

6. With regards to the SANG comments set out in paragraph 3 above, the provision of SANG as part of the Thames Basin Heaths SPA avoidance and mitigation measures falls within the definition of infrastructure and therefore cannot be excluded from CIL. With regard to the comments made on how CIL will be spent, governance arrangements are being developed separately and are not directly related to the CIL rates in the Charging Schedule and will not, therefore, be part of the remit of the examination.

7. It has therefore been concluded that there is no need for any changes to be made to the proposed CIL rates set out in the Draft Charging Schedule that was consulted on in December 2017 and January 2018. With regard to the Charging Schedule itself, this has been slimmed down so that it only contains the key information required for the CIL Examination. This amended Charging Schedule is attached as Annexe 2. Given that the Charging Schedule has been amended, albeit that the proposed CIL rates have not changed, a Schedule of minor modifications to the Charging Schedule has also been produced and is attached as Annexe 3.

8. In addition, it is possible that the Regulation 123 infrastructure list will need to be amended to reflect representations made to the Draft Charging Schedule. This is a list of those projects or types of infrastructure that the Council intends to fund, or may fund, through the levy. The document will also set out which types of infrastructure would continue to be sought through Section 106 agreements (such as affordable housing and site specific infrastructure), therefore ensuring that there is no double counting/duplication between CIL and the scaled back S.106 regime. The Regulation 123 list is not a part of the Charging Schedule and is not examined directly. However, for transparency, Government advice (in the planning practice guidance for CIL) is that a draft should be available for Examination.

9. Three Dragons have suggested that the Council should also consider developing its supporting policies on instalments, phasing and payment in kind before submission. Whilst these are not examined, it is good practice to have drafts of these ready by the time of the examination as, for example, an instalment policy can assist the viability and delivery of development. However, this needs to be balanced with the need to secure infrastructure payments expeditiously.

9. Finally, Regulation 19 of the CIL Regulations (as amended) requires that the Council submits, alongside the Draft Charging Schedule and other submission documents, a Statement of Representations. This will set out details of the representations made to the Draft Charging Schedule and a summary of the main issues raised.

Page 21 Conclusions and Next Steps

10. The Council’s viability consultants, Three Dragons, have confirmed that no issues have emerged from the representations that indicate a need to change the CIL rates to be submitted for examination. It is therefore recommended that the Draft Charging Schedule can be submitted for Examination.

11. The Executive’s decision will be a recommendation to Council. Subject to approval by the Council, it is anticipated that the CIL Draft Charging Schedule will be submitted for examination at the end of April / early May, with the examination hearings held in June/July 2018. The Planning Inspectorate has been appointed to provide an Examiner. A Programme Officer has also been appointed. It is anticipated that the Charging Schedule will be adopted by the Council in September or October, with implementation in December 2018. When the Council adopts the Charging Schedule, an exact date for implementation will need to be given.

Administrative and Governance arrangements for CIL

12. Alongside progressing the Draft Charging Schedule to submission and examination, officers are also putting in place appropriate resources and IT support ready for the implementation of CIL. Recruitment for a CIL Officer is underway and it is hoped that an appointment can be made in April. Arrangements are also being made to procure a specialist CIL IT system.

13. Governance arrangements and decision-making processes need to be put in place to prioritise and agree the spending of CIL funds. The Value for Money and Customer Service Overview and Scrutiny Committee has been identified as most appropriate to lead on this piece of work. It is proposed that a report on this issue be taken to this committee in June, enabling the Committee to contribute views and suggestions about how the governance arrangements should be shaped. The report will then be considered by the Executive and Council in due course.

Recommendation

The Executive RECOMMENDS to the COUNCIL that:

1. the Draft Charging Schedule and the Schedule of Minor Modifications be approved for submission to the Planning Inspectorate for Examination; and

2. authority be delegated to the Head of Planning Services, in consultation with the Portfolio Holder for Planning, to

o approve any subsequent minor changes to the Draft Charging Schedule and schedule of minor modifications, and o approve supporting documents to be submitted, including the Draft Regulation 123 list, policies on instalments, phasing and payment in kind, the Statement of Representations and the Viability Addendum Report.

Background Papers There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

Page 22 CONTACT OFFICER:

Name: Ian Motuel Telephone: 01483 523458 Principal Planning Officer E-mail: [email protected]

Page 23 This page is intentionally left blank Annexe 1

Key Issues arising from Consultation

Issues Council Response The proposed CIL rates are The rates proposed are higher relative significantly higher than for other to neighbouring authorities base rates, nearby authorities and this will affect but this is without reference to any deliverability and maintaining a five indexation or other policy requirements. year land supply. It will also affect Whilst the technical viability exercise affordable housing delivery. suggests they are viable, the council is aware their introduction will have to be carefully managed and monitored. to avoid a shock to the market andimpact on delivery. General support from older persons’ The council will need to provide further housing providers, but concern over clarity with the evidence as to how older some aspects of the viability testing person housing has been tested. where clarification is required. Many of the assumptions used in the There is no formal way of setting the CIL viability testing have been rate – the Council has been informed by questioned, including: the evidence and set the rates  The use of a buffer against the accordingly.. 10 dwellings is used as the average CIL rate rather than the split point as this is the affordable lowest rate. housing threshold, where viability  How the buffer of 50% has been used changes. to inform the rates.  The split of large and small sites. Due to the number of comments on  Site typologies, including insufficient values, costs and typologies, further large sites. explanations will be set out to inform the  Market values, both for market and examination. affordable housing.  Mix and density  Benchmark land values.  Build costs  Opening up costs  S.106 allowance assumed for sites. Some respondents consider that CIL guidance suggests that sites that Dunsfold Aerodrome has been are crucial to the delivery of the plan wrongly excluded from CIL charges, should be considered separately. The especially phase 2 (800 dwellings), whole of the Dunsfold Aerodrome on the basis that the S.106 for this strategic site needs to be considered as phase will not be as significant as for one as the application of different phase 1 for 1800 dwellings. charging regimes where there is interlinked infrastructure needs would not in this circumstance be a robust approach. Notwithstanding that most of the site could have planning permission prior to CIL being charged, the application of CIL on very large sites can cause issues in respect of delivery. In this case it is suggested that the S106

Page 25 regime is a better mechanism for ensuring the delivery of the development and its supporting infrastructure. Several respondents suggest that The provision of SANG as part of the developers should fund SANG in Thames Basin Heaths SPA avoidance addition to CIL, rather than CIL and mitigation measures falls within the money being used to fund SANG. definition of infrastructure and therefore The approach to CIL in different cannot be excluded from CIL, although habitat areas has been questioned – contributions towards the management e.g. consistency between approaches and maintenance of existing SANG can for Thames Basin Heaths and be secured through Section 106 Wealden Heaths SPAs. agreements. Natural England submitted a ‘no comment’ response to the recent consultation.

Lack of supporting policies – concern The Council should consider coming to over lack of policies on instalments, a position on these prior to Examination. payment in kind, relief etc. The inputs and outputs are set out in the Also concern that appraisals were not report. The testing has been undertaken published along with the evidence using a toolkit and is not easily base. published. However, to assist the Examiner a summary appraisal for each of the siteswill be supplied. There is support in principle for CIL Support welcomed. from town and parish councils and residents groups. There is support from the Education skills & Funding agency on the approach to funding schools through CIL. There is general concern, especially Concern is noted. The Infrastructure from individuals, over traffic Delivery Plan seeks to identify the congestion and poor public transport. transport improvements required and how these would be delivered. There is also concern that CIL has This is noted, although the Council has come too late for Cranleigh, where sought to secure the infrastructure many large permissions have been required for these permissions through granted. S.106 agreements. Several respondents request that This is noted. However, the Council is there is a clear and open process of progressing governance arrangements, allocating funds, including role of including how to prioritise schemes to parish councils and state that. CIL be delivered using CIL funds, and the revenues should be spent where the involvement of town and parish councils, development takes place. separately. Surrey CC suggests a wording This is noted. The Council will consider amendment to the 123 list under whether a minor modification should be transport exclusions. Another made to the 123 list to address these respondent suggests that the wording points. generally of the infrastructure excluded from CIL should be tighter

Page 26 to comply with the CIL Regulations. One parish Council is concerned that Noted. However the viability evidence small shops are attracting a higher suggests that small convenience shops rate of CIL than supermarkets. are able to support a higher CIL than supermarkets. It is not proposed to levy a charge on non convenience shops in town centres. Some comments on the details of the Noted. The importance of clear administrative arrangements and the documentation when CIL is need for clarity in the final implemented is acknowledged. documentation setting out the charges, exclusions etc. Includes a specific comment on the status of ancillary accommodation at retirement villages. Some comments on the information Noted. The IDP is a living document contained within the Infrastructure and will be updated when necessary. Delivery Plan (IDP) and the need for it to be kept up to date. Some comments on detailed matters This will be addressed in supporting such as the approach to CIL in kind. documents alongside the Charging Schedule. Comment from Town Council that This has not previously been identified there should be a CIL rate for student for modelling as substantial new housing. accommodation is not identified in the Local Plan. Given the limited amount of such accommodation in Waverley it may be difficult to meaningfully assess the viability of such developments. In addition whether such a development would be liable for CIL would depend on the landowner/developer.

Page 27 This page is intentionally left blank

WAVERLEY BOROUGH

COMMUNITY INFRASTRUCTURE LEVY

DRAFT CHARGING SCHEDULE

April 2018

Page 29 CONTENTS

1. INTRODUCTION 1

2. THE CIL CHARGING SCHEDULE 2

Appendix 1 CIL Charging Zone Maps

Page 30 Waverley CIL Schedule

INTRODUCTION

1.1 This document sets out Waverley Borough Council’s Charging Schedule for the Community Infrastructure Levy (CIL).

1.2 The Community Infrastructure Levy (CIL) is a new tariff which will allow funds to be raised from new building projects in Waverley. It is intended to supplement other funding streams in providing new infrastructure to support local growth. The purpose of the levy is to give developers more certainty over costs and to give councils and communities more choice and flexibility in how infrastructure is funded.

1.3 CIL is intended to supplement rather than replace other funding streams, and to provide infrastructure alongside residential and commercial development, promoting sustainable development. Charges are meant to help fund new, or to upgrade existing, infrastructure to support growth, not to cover the cost of remedying existing deficiencies.

1.4 With the introduction of CIL, the use of S106 planning obligations will mainly be limited to site-specific mitigation measures which are required to make a development acceptable and for affordable housing.

Who will pay CIL? 1.5 CIL will be applied to most buildings that people normally use and where more than 100 square metres of floorspace (net) or a new dwelling is created (even if it is less than 100 sq. m). CIL will be payable on the commencement of development or, for larger developments, in instalments over an agreed phased period. The tariff for each type of development will be set out in the CIL Charging Schedule (see Section 3).

1.6 There will be no charge for change of use applications unless additional floorspace is created, as well as none for the sub-division of existing dwellings. CIL is also not payable on: . structures into which people do not go . all affordable housing . custom and self-build housing . redevelopments that do not result in a net increase in floorspace (subject to caveats) and . development for charitable purposes.

Page | 1 Page 31 Waverley CIL Schedule

2 THE CIL CHARGING SCHEDULE

2.1 The rates are informed by the viability evidence base at a level that does not put the overall quantum of development proposed in the Local Plan at risk. CIL charges should not be set near the margins of viability and therefore the proposed rates accommodate an adequate buffer to allow for potential section 106/278 costs and changes in site specific circumstances. CIL charges will apply to residential dwellings, older persons’ housing and certain forms of retail use. In accordance with the CIL Regulations, for any types of uses that are unable to sustain a CIL charge a £0 CIL rate has been applied.

2.2 The Council proposes to set the following range of CIL charges:

Use CIL rate

Residential dwellings – schemes of £395 per sq. m (where there is no SANG/SAMM tariff (g) more than 10 units – Zone A)

£372 per sq. m (where the SANG/SAMM tariff is charged – Zone B) (h)

£452 per sq. m (where there is no SANG/SAMM tariff Residential dwellings – schemes of – Zone A) (g) 10 or less £435 per sq. m (where the SANG/SAMM tariff is

charged – Zone B) (h)

All uses at Dunsfold Aerodrome £0 per sq. m Strategic Site (a)

£118 per sq. m (where there is no SANG/SAMM Older person housing (retirement tariff– Zone A) (g) and supported living) with affordable housing (b) £100 per sq. m (where the SANG/SAMM tariff is charged– Zone B) (h)

£280 per sq. m (where there is no SANG/SAMM tariff Older person housing (retirement – Zone A) (g) and supported living) without affordable housing(b) £268 per sq. m (where the SANG/SAMM tariff is charged– Zone B) (h)

Small Convenience Store(c) £75 per sq. m

Supermarket(d) £65 per sq. m

Town Centre Retail (other than £25 per sq. m convenience) (e)

Out of Centre Retail (other than £95 per sq. m convenience) (f)

Page | 2 Page 32 Waverley CIL Schedule

All other uses £0 per sq. m

CIL Charging Schedule Notes Ref. Notes (a) Dunsfold Strategic site is identified on Map 4 in Appendix 1 (b) These uses are defined as follows:

Retirement housing - This is often known as “Sheltered Housing” or “Retirement Living”. Retirement Housing usually provides some facilities that you would not find in completely independent accommodation. These can include (secure main entrance, residents’ lounge, access to an emergency alarm service, a guest room. Extra facilities and services are paid for through a service charge on top of the purchase price or rent. To move into retirement housing you are assumed to be independent enough not to need care staff permanently on site

Supported housing - This is often known as “Extra Care Housing” or “Assisted Living”. Everyday care and support will be available. Facilities will include those available in retirement housing plus others (such as a restaurant, communal lounges, social space and leisure activities, staff on site 24 hours a day). Service charges are likely to be higher than in retirement housing but this reflects the more extensive range of facilities.

For the avoidance of doubt ‘Care homes’ are excluded from this older person housing charge and are separately considered as ‘All other uses’ and therefore a zero CIL rate will apply to development meeting the following definition - residential care homes or nursing homes where integral 24 hour personal care and/or nursing care are provided together with all meals. A care home is a residential setting where a number of older people live, usually in single rooms and people occupy under a licence arrangement. (c) A small convenience store has a majority (in excess of 50%) of its net selling area conditioned for the sale of convenience goods in a total gross store size of no larger and including 300 sqm gross. (d) A supermarket store has a majority (in excess of 50%) of its net selling area conditioned for the sale of convenience goods in a total gross store size of greater than 300 sqm gross. (e) Applies to qualifying floorspace within town centres identified on Maps 5 to 8 and to all retail development within A use class other than convenience floorspace as described above. (f) Applies to qualifying floorspace outside of town centres identified on Maps 5 to 8 and to all retail development within A use class other than convenience floorspace as described above. (g) Areas to which the charge applies are shown on Map 1 (h) Areas to which the charge applies are shown on Maps 1, 2 and 3

Page | 3 Page 33 Waverley CIL Schedule

Page | 4 Page 34 Waverley CIL Schedule

APPENDIX 1

CIL CHARGING ZONES MAPS

Map 1 – Charging Zones

Page | 5 Page 35 Waverley CIL Schedule

Map 2 – Hindhead Concept Statement Area (Zone B)

Map 3 – Thames Basin Heaths SPA and 5km buffer zone (Zone B)

Page | 6 Page 36 Waverley CIL Schedule

Map 4 – Dunsfold Aerodrome (Zone C)

Map 5 – Cranleigh Town Centre

Page | 7 Page 37 Waverley CIL Schedule

Map 6 – Godalming Town Centre

Map 7 – Farnham Town Centre

Page | 8 Page 38 Waverley CIL Schedule

Map 8 – Haslemere Town Centre

Page | 9 Page 39 This page is intentionally left blank ANNEXE 3

Schedule of Minor modifications to the Draft Charging Schedule

The table below sets out the modifications to the Revised Draft Charging Schedule and the reasons for these modifications. Throughout the document, paragraph numbers will be updated to accommodate these amendments.

Modification Document Modification Reason for modification Number Reference 1 New New paragraph to read: “This document sets Clarity paragraph 1.1 out Waverley Borough Council’s Charging Schedule for the Community Infrastructure Levy (CIL).” 2 Paragraph 1.4 Delete paragraph This paragraph is out of date as it refers to the

Page 41 Page consultation. 3 Paragraphs Deletion of these paragraphs and table. This part of the document dealt with the 2.1 to 2.15 evidence base and the funding gap and is not and Table 1 required as part of the Charging Schedule. 4 Paragraph 2.1 Insert new sentence before last sentence to For clarity (formerly 3.1) read: “CIL charges will apply to residential dwellings, older persons’ housing and certain forms of retail development.” 5 Table within Changes to the presentation of the table For clarity paragraph 2.2 setting out the proposed CIL rates (previously 3.2) 6 Paragraphs Deletion of the section relating to the Not required as part of the Charging Schedule 3.9 to 3.12 administration of the CIL Charge 7 Page 9 of the Deletion of the section: “How to get involved” This section is no longer needed. consultation document

1 8 Appendix 1 Deletion of Appendix 1: Draft Waverley The Regulation 123 list is a separate Infrastructure (‘Regulation 123’) List and document and does not form part of the renumbering of Appendix 2 accordingly Charging Schedule itself 9 Appendix 3 Deletion of Appendix 3: “Proposed policies for This information will be in a separate administering the CIL Charge, including supporting document and not part of the phasing and CIL-in-kind” Charging Schedule itself. Page 42 Page

2 Agenda Item 10.

WAVERLEY BOROUGH COUNCIL

EXECUTIVE - 10 APRIL 2018

COUNCIL - 24 APRIL 2018

Title: PROPERTY INVESTMENT STRATEGY

[Portfolio Holder: Cllr Ged Hall] [Wards Affected: All]

Summary and recommendation:

This report presents a revised Property Investment Strategy and proposes delegations to the Executive to progress general fund investment opportunities. The report also sets out a revised composition for the Investment Advisory Board to strengthen the governance in the decision making for property investments.

The Investment Strategy will cover all property acquisition whether this be by the Council direct or by a subsidiary company should that direction of travel be taken at some point in the future.

The Executive considered this item at its meeting on 10 April, and RECOMMENDS to the COUNCIL that:

1. the General Fund Property Investment Strategy be approved, as set out in Annexe 1 with a commitment to review it again after 6 months;

2. subject to a positive recommendation from the Investment Advisory Board and agreement from the Chief Executive and Strategic Director, authority be delegated to the Executive:

a. to bid, negotiate and complete on property acquisitions and investments with a total individual cost of up to £10m, within a total aggregate sum of £30m over the period 2018/2019 to 2020/21, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy;

b. to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

c. to complete the legal matters and signing of contracts to execute the transactions referred to above; and

3. the proposed composition of the Investment Advisory Board be approved and revised Terms of Reference take effect immediately.

Page 43 How this report relates to the Council’s Corporate Priorities:

1. The expansion of Waverley’s portfolio of investments, covering investment in property and assets, supports the Council’s priority of achieving value for money and its desire to enhance financial resilience in the longer term. The arrangements proposed in this report will also allow for investment in schemes that will support economic growth in the Borough.

Financial Implications:

2. The objective of the Property Investment Strategy is to use the council’s resources to invest in income generating assets to help offset the budget deficit over the longer term and to protect service provision while minimising the burden on local council tax payers.

3. The Council may fund investments through using its reserves, capital receipts and prudential borrowing, where the council has the powers to do so. Any borrowing required would need to be made in accordance with the conditions of the Prudential Code, which includes the council approving any changes required to the prudential indicators. The code requires borrowing to be affordable, sustainable and provide value for money. The return on any investment would therefore need to be in excess of the capital financing costs of the borrowing, which consist of the interest payable and the statutory minimum revenue provision (MRP) that sets aside funds for the repayment of the borrowing.

4. The Investment Strategy is being brought forward under the extended powers created by the Localism Act 2011. The legal advice enables certain investment transactions to be undertaken under these powers but every proposal would need to be individually assessed. The underlying principles of investment by local government are governed by the priority of security, liquidity and yield-in that order of priority.

5. All investments will require a robust business case to ensure that each investment is affordable, sustainable and provides value for money and that any borrowing is sustainable

Legal Implications:

6. The proposal to create an Investment Strategy is made possible by the “general power of competence” introduced by Section 1 of the Localism Act 2011. Local authorities now have a general power that enables them to do anything that a private individual is entitled to do, subject to certain statutory limitations. The power is designed to give local authorities considerable breadth of operation.

7. There are, however, some specific restrictions and it would be important that each individual investment proposal is thoroughly examined before proceeding, particularly if the sole purpose is to achieve a commercial gain.

Page 44 Introduction

8. Waverley’s Medium Term Financial Plan identifies a significant funding shortfall over the next 3 years, mainly due to reductions in Government grant. In order to address this deficit, as well as looking at existing services and budgets, Waverley must:

 take steps to ensure that the Council maintains its financial resilience and protects its long term financial position;  explore and develop alternative sources of funding that reduce its reliance on Government grants in the future;

Waverley’s Treasury Management Strategy already identifies property investments as a priority and the Strategic Asset Plan approved by Council in 2015 sets out the foundation for developing the strategy further.

9. The expansion of Waverley’s portfolio of investments, covering investment in property and assets, supports the Council’s priority of achieving value for money and its desire to enhance financial resilience in the longer term. The arrangements proposed in this report would also allow for investment in schemes that will support economic growth in the Borough.

10. The proposed strategic approach to investment is based upon the following;

 prioritising use of the Council’s cash reserves and balances to support income generating investment through an Investment Fund;

 using the Investment Fund to support investments in order to generate additional income for the council that can be used to provide additional financial support for the delivery of functions and services;

 investing in a diversified and balanced portfolio to manage risk and secure an annual overall rate of return to the Council;

 investing in schemes that have the potential to support economic growth in the Borough; and

 retaining assets where appropriate and undertaking effective property and asset management, and if necessary associated investment, to enhance income generation.

Governance

11. Decisions on taking forward each investment opportunity will be taken by the Executive. However, the development of the Investment Strategy is likely to mean more decisions coming forward for consideration and the Investment Advisory Board (IAB) has been established to provide advice to the Executive. This will ensure appropriate rigour in advance of the Executive decision: by ensuring only credible options are progressed to the Executive; and providing

Page 45 the forum for strategically managing the overall portfolio of investments consistent with the aims of the Investment Strategy. The current composition of the IAB is set out in Appendix 1 to the Investment strategy. It is suggested that the Investment Advisory Board is changed and in future the composition is as follows:

 Portfolio Holder for Finance and Property (Chairman)  One other Executive Member  Non-Executive Member  Non-Executive Member  Non-Executive Member  Non-Executive Member

12. Officer support will continue to be provided by a range of senior and technical officers including finance, legal and property. All meetings will be serviced by the Democratic Services Team. In approving a business case, the Investment Advisory Board will satisfy itself that the investment is within the Council’s legal powers, it has properly considered the advice from its advisors (both internal and external) and its structure provides the best value for money taking into account all financial considerations, including taxation.

13. Other than the change to composition outlined above, minor changes are proposed to Investment Advisory Board’s Terms of Reference (see Appendix 1 to the Investment Strategy).

Risk Management Implications:

14. The adoption of the Investment Strategy and its implementation will have an impact on the council’s finances and the council may need to manage risk differently to now in relation to these investment decisions. Decisions made under this strategy and by the Executive will need to take into account the financial stewardship duty that the council holds towards its residents.

15. It will be essential that the Investment Strategy and the governance arrangements are legally sound and are deemed to be reasonable and robust by the Council’s external auditors.

16. The implementation of the Investment Strategy means the council will be managing different financial risks. Investments will be subject to inherent economic and market risks, and therefore a balanced portfolio of investment may be preferable. Achieving a balanced portfolio will take some time to create and will be dependent upon appropriate opportunities coming to the market.

17. The governance process is designed to mitigate these risks. All investment opportunities will continue to be based upon a robust business case developed using appropriate technical advisors and which take into account due and proper consideration of the balance between risk and reward and an assessment of the underlying security of the investment to ensure compliance with the fiduciary duty the council holds.

Page 46 Conclusion

18. The revised Investment Strategy provides a strengthened framework for the Council to progress this important work stream. The Council has successfully acquired four properties within the Borough over the past 12 months generating a gross rental income of >£800k. There are risks associated with property investment and the governance arrangements outlined, including the requirement for each investment to have a robust business case approved by the Investment Advisory Board, provide the appropriate control of these risks.

Overview and Scrutiny Committee

19. The Value for Money O&S Committee considered the report and the Strategy at its meeting on 26 March 2018. The Committee thanked the members of the Working Group who had been involved in refining the Strategy document. Members commented that the governance structure was very positive and agreed that performance monitoring would be key going forward. The Committee endorsed the proposed changes to the Investment Advisory Board membership, and agreed that it was important that the Board be supported by external professional advisors where required.

Recommendation

The Executive RECOMMENDS to the COUNCIL that:

1. the General Fund Property Investment Strategy be approved, as set out in Annexe 1 with a commitment to review it again after 6 months;

2. subject to a positive recommendation from the Investment Advisory Board and agreement from the Chief Executive and Strategic Director, authority be delegated to the Executive:

a. to bid, negotiate and complete on property acquisitions and investments with a total individual cost of up to £10m, within a total aggregate sum of £30m over the period 2018/2019 to 2020/21, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy;

b. to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

c. to complete the legal matters and signing of contracts to execute the transactions referred to above; and

3. the proposed composition of the Investment Advisory Board be approved and revised Terms of Reference take effect immediately.

Page 47 Background Papers

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

CONTACT OFFICER:

Name: Graeme Clark Telephone: 01483 523099 Strategic Director E-mail: [email protected]

Name: Anne Cains Telephone: 01483 523315 Estates & Valuations Manager E-mail: [email protected]

Name: Sophie Thorp Telephone: 01483 523113 Deputy Borough Solicitor E-mail: [email protected]

Page 48

Property Investment Strategy Estates

Coxbridge Enterprise Centre Acquired March 2017

Owned by: Anne Cains Created Date: March 2018 Equality Impact Assessment completed: N/A JCC Consultation Date: April Executive/Council Approval date: Target March 2018 Council for approval Date for review: March 2019

Page 49 Content Page

1. Introduction 3 2. Structure 3 3. Legal and Funding considerations 4 4 Investment principles 5 5. Sourcing Acquisitions 6 6. Investment Criteria 7 7. Business case & Financial Modelling 9 8. Decision Making 9 9. Due Diligence 10 10. Portfolio Management 10 11 Performance reporting 11 12 Long term governance 11 Appx 1 IAB Terms of Reference 13 Appx 2 Flow chart 16 Appx 3 Example Risk Analysis Spreadsheet 17 Glossary 19

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Page 50 1. Introduction 1.1. Waverley Borough Council’s (The Council) Medium-Term Financial Plan has identified a significant funding shortfall over the next three years 2018-2021, mainly due to reductions in Government grant funding. It is foreseeable that such funding will become negative in future. It is therefore necessary that the Council should take steps to protect its medium and long-term financial position by: a) reviewing existing services, levels of service provided and their associated budgets; and b) exploring and developing alternative sources of income.

1.2. Accordingly, in 2016, the Council decided that it should seek to add to its General Fund Property Portfolio (“GFPP”) both to increase its income and, where possible, to support the local Borough economy by ensuring the availability of suitable office and other commercial space. Investment decisions are taken by the Council’s Executive on advice provided by the Investment Advisory Board (“IAB”) which comprises elected Members advised by relevant officers and external professional advisers. (see Appendix 1)

1.3. The Council has held and managed a range of commercial property for many years but the proposed expansion of the GFPP makes it appropriate to publish this document as the update of its formal Property Investment Strategy (“the Strategy”) as originally approved by the Council in October 2016. This will set out the basis on which and the process by which the Council intends to:

a) make property investments; b) provide on-going management of the properties acquired; and c) report portfolio performance to officers and elected members.

1.4. All Council owned land and property in the GFPP is held as a corporate resource for a clearly defined purpose, whether to support and sustain services, provide revenue or to enhance the Council’s strategic role including the development and support of the local economy. The GFPP is managed in accordance with the Strategic Asset Plan for General Fund Properties 2015 (“SAP”). This includes a list of GFPP assets held at that time.

1.5. The Council’s intention is that new property acquisitions will usually be undertaken by the Council in its own name. However, in July 2017 the Council agreed to establish a Property Investment Company (“PIC”) as a wholly-owned subsidiary of the Council to provide an alternative vehicle for property investments for use in certain circumstances. The business case for this Company will be examined by the Value for Money O & S working Group in 2018.

1.6. The Strategy has been prepared by officers in the Customer and Corporate Services team and scrutinised by a working group established by the Customer Services and Value for Money O&S Committee and containing members from that committee and the

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Page 51 Audit Committee.

2. Structure of the investment strategy The following framework was agreed by the Working Group and has been used as the structure of this Strategy:

2.1. Legal and funding considerations (section 3) This section describes the legal basis on which the Council is able to invest in commercial properties, what funds it may employ including borrowed funds and the purpose of establishing the PIC.

2.2. Investment principles (section 4) This section sets out the principles which will govern investment decisions.

2.3. The acquisition process (sections 5-9) These sections describe how opportunities are sourced, the investment criteria used and the steps taken by the Estates Team, IAB and the Executive to move from identifying a suitable investment opportunity to completing the transaction. The flow chart in Appendix 2 outlines the process for investment acquisition.

2.4. Post-acquisition activities (section 10-12) These sections describe the performance reporting and governance functions carried out during the holding period of each property investment. Management of the GFPP is in accordance with the SAP.

3. Legal and funding considerations

3.1. Competence 3.1.1. The Council is entitled to make property investments by virtue of the “general power of competence” granted to local authorities by Section 1 of the Localism Act 2011. This enables local authorities to do anything that a private individual is entitled to do, subject to certain statutory limitations.

3.1.2. The power is designed to give local authorities considerable breadth of operation and includes the power to make commercial property investments for the purpose of generating net income.

3.1.3. The Council may rely on other powers to make property investments, such as section 120 of the Local Government Act 1972, which allows the Council to acquire land for the benefit, improvement or development of its area. The Council will also consider property investments which support the Council’s other strategies, such as the Waverley Economic Strategy 2015-2020.

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Page 52 3.2. Funding 3.2.1. Subject to 3.5 below, the Council is permitted to fund property investments made in its own name by using its General Fund reserves, capital receipts and borrowed funds and, in the short term, treasury cash balances.

3.2.2. To this end, the Council has agreed to establish a Property Investment Fund (“PIF”) which will be funded annually by capital receipts and any New Homes Bonus receipts. As at March 2018, the PIF stood at zero following the investment in four properties in 2017.

3.2.3. The Council envisages spending a further £30 million by the end of the 2020/21finacial year of which approximately 20% is expected to be funded by the PIF. This indicates that the great majority of further investments will be funded or part-funded by borrowed funds.

3.3. Prudential Borrowing Code 3.3.1. Borrowing to fund or part-fund a property investment must comply with the conditions of the statutory Prudential Code. This requires borrowing to be affordable, sustainable and provide adequate value for money as reasonably determined by the Council. New rules also require councils to consider total property income as a proportion of their overall net budget and also to have a clear policy justifying any borrowing ahead of need.

3.3.2. The Council’s approved Treasury Management Strategy includes property investment within its scope. All local authority investments are required to display adequate security, liquidity and yield in that order of priority. However, revised guidance refers to the inherent lack of liquidity of property investments.

3.4. Borrowed funds 3.4.1. The only source of borrowed funds currently under consideration is the Public Works Loan Board (“PWLB”). All loans from the PWLB will be for at a fixed rate of interest and for a fixed term of between 20 and 40 years.

3.4.2. The Council must make provision for the repayment of such loans by establishing a Sinking Fund Reserve which will be credited with the statutory annual Minimum Revenue Provision (“MRP”) in respect of each unfunded capital decision. Each MRP will be an annual revenue charge to the General Fund and form part of the annual funding cost used to calculate the net return on each investment funded or part-funded by borrowed funds.

3.5. Location and type of investments 3.5.1. The Council has received legal advice that property investments located inside the Borough may be wholly or partly-funded by borrowed funds.

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Page 53 3.5.2. The Council will consider property investment opportunities both inside and outside the Borough. (See Section 6.3 for further detail) If a company structure is required this will be considered on a case by case basis.

4. Investment Principles Investments in new acquisitions for the General Fund property portfolio will be based on the investment principles set out below. 4.1. Investment quality Investments will be low-risk in nature and therefore limited to:

4.1.1. good quality properties; 4.1.2. located in prime or near-prime locations; 4.1.3. let or lettable to financially-secure tenants; 4.1.4. subject to leases with full repairing and insuring obligations for the tenant; and 4.1.5. generally subject to leases with at least five years unexpired.

4.2. Required Rate of Return 4.2.1. Subject to 4.2.2, a property investment will only be acceptable if it will: a) provide a rental income which is commensurate with the risk undertaken by making the investment given the sector, location, physical condition and occupancy situation of the property; and b) generate an immediate net rate of return after borrowing costs which is not less than the Council’s Required Rate of Return (“RRR”). As at March 2018, the RRR is 2% per annum.

4.2.2. Exceptionally, a property investment will be considered which meets all other criteria but does not generate an adequate immediate gross rental income or net rate of return provided that it is reasonably expected to generate an adequate average gross rental income and average net rate of return over the first five years of ownership.

4.3. Sector diversification At March 2017, extracts from the Annual asset register show the investment or non-operational section of the GFPP may be illustrated as follows:

Units Value Rent Gross % of Sector £000 £000 yield whole Office 5 3,451 180 5.2% 18% Supermarket 1 7,205 305 4.2% 38% Industrial 29 5,088 263 5.2% 27% Retail 6 957 64 6.7% 5% Enterprise 1 2,400 50 12% Total 42 19,101 862 Nb Enterprise rent is all inclusive so yields not comparable Excludes: December 2017 office acquisitions value £7,781,000 rent £509,000 yield:6.5%

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Page 54 New investments will be approximately diversified across the industrial, office retail distribution sectors to provide protection against underperformance in any one sector.

5. Sourcing acquisitions 5.1. The Council may either approach a vendor directly or third party agents to notify its interest in making property investments and invite proposals. It will also accept unsolicited introductions from agents on a ‘first come, first served’ basis in respect of individual properties. It is also possible that an opportunity may arise for the Council to enter into a joint venture with another local authority, developer or investor. The Council’s main point of contact for all these purposes will be the Estates & Valuation Manager.

5.2. Introductory fee

5.2.1. If the Council receives an initial introduction from an agent and wishes to pursue the opportunity further, it will expect to pay an introductory fee if the purchase is completed and to enter into a written agreement with the agent to set out the basis of engagement and the fee payable. The agent undertakes to represent no other purchaser in respect of the property.

5.2.2. Introductory fees are usually 1% of the agreed purchase price. The services for which the fee is paid include:

(a) the preparation of a report on and valuation of the property; (b) the conduct of all negotiations with the vendor; and (c) co-ordination of all parties involved (vendor, lawyers, surveyors and the Council as purchaser).

The fee does not include a building survey, which should be carried out either by a separate department of the introducing agent or another party to avoid a conflict of interest.

5.3. Council role

5.3.1. The Estates and Valuation Manager will undertake the initial consideration of an investment opportunity, including internal and external inspection, appraisal and initial recommendation.

5.3.2. Suitable investment opportunities will undergo qualitative and quantitative appraisal as set out in section 6 (Investment criteria) and 7 (Financial modelling) in order to establish its acceptability as an investment.

5.3.3. All opportunities considered to be suitable and to conform with the Strategy will be referred by the Estates and Valuation Manager to the IAB for consideration in accordance with section 8 (Decision- making).

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Page 55 6. Investment Criteria

6.1. Yield requirement 6.1.1. An investment should offer an initial yield that is appropriate for the risk characteristics of the property under consideration, namely its sector, location, physical condition and occupancy situation.

6.1.2. As at end 2017, typical property transaction yields were reported as shown below.

Source: LSH UKIT Q4 2017 Sector National South-East Prime excluding London Retail (traditional) 6.1% n/a 4% Offices 4.9% 6.3% 5% Industrial 5.5% 4.9% 4% All property 5.6%

6.1.3. It is proposed that the Council should seek properties with strong covenants and offer initial yields of at least 5-6 % in the office, industrial and retail distribution sectors.

6.1.4. Investments requiring initial capital expenditure for re-instatement or refurbishment may be considered if the equivalent yield on the resulting total investment meets the required level.

6.1.5. Each property and its tenant(s) must be fully appraised both physically and financially using industry standard techniques to ensure the initial or equivalent yield offered is acceptable for the level of overall risk undertaken. An example risk spreadsheet is shown at Appendix 3.

6.2. Lease considerations 6.2.1. Nature of occupancy Single occupancy investments will be preferred in order to minimise management expense and risk. Multi-let properties or multi-unit schemes may be considered if all other criteria are met.

6.2.2. Covenant strength Investments will only be considered if existing tenants are low-risk or medium-risk. The financial strength of existing tenants will be analysed using financial appraisal of their company accounts and the use of appropriate methods of risk assessment and credit scoring (e.g. Dun & Bradstreet reports).

6.2.3. Repair and insurance arrangements Investments will only be considered if all costs relating to occupation and repairs are borne by the current occupier(s) during

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Page 56 the lease term, namely either on full repairing and insuring (FRI) terms or on internal repairing and insuring (IRI) terms where such costs are recovered by way of a service charge, or if an all- inclusive rent is paid it produces sufficient net income after expenses and insurance costs are deducted.

6.2.4. Remaining lease length The preference will be to achieve a minimum term of 5 years unexpired with a tenant in occupation. A vacant unit or a shorter term to expiry will not be discounted if the investment offers good potential for a new letting or another strategic benefit to the Council.

6.3. Location 6.3.1. Location will be dictated by the opportunity to acquire investments that are in accordance with the Strategy. It is proposed that the focus should generally be on the South-East but all areas in the UK will be considered. Proximity to the Borough will be a determining factor when all else is equal.

6.3.2. Market sectors and locations with good letting prospects and potential for rental growth will be actively sought. Properties should have a sound physical structure, be well-designed for their current use and enjoy good transport links and accessibility.

7. Business case and financial modelling

7.1. At the point of considering investment opportunity, officers will produce a business case, to support the valuer’s technical assessment of the property, for the IAB.

7.2. The business case will be supported by financial modelling including, where appropriate:

 Yield calculations (Initial, equivalent and reversionary)  Financing costs  Life cycle costs to be borne by the Council  Net rate of return calculation  Discounted cash flow analysis  Sensitivity analysis of cash flow  Financial implications of any planned exit strategy.

8. Decision-making

8.1. The IAB will review promptly each proposal that is referred to it by the Estates Team in accordance with its Terms of Reference (see Appendix 1). At least two Members of the IAB will make a visit in person with an officer to inspect the location and external condition of the proposed acquisition, including its internal condition, if feasible.

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Page 57 8.2. The IAB will consider any further internal and external professional advice that it thinks necessary so that, if it thinks fit, it can decide to refer the proposal to the Executive with a recommendation to bid and proceed to completion subject to satisfactory final due diligence.

8.3. If the Executive approves the proposed investment in principle, the relevant officers will be instructed to bid for the property and, if successful, to complete due diligence. Subject to a satisfactory outcome to the due diligence and after liaison with the Portfolio Holder for Property and Finance, the Council’s solicitors can proceed to completion.

9. Due Diligence

9.1. Due diligence involves:

 Land Registry title checks;  a formal building survey;  a formal estimate of any re-instatement costs;  any necessary environmental and flood risk investigations.

9.2. The Council will instruct a recognised firm of chartered surveyors to carry out an independent valuation and provide a building survey.

9.3. The Council will instruct a suitable firm of solicitors to deal with the legal process leading to completion.

9.4. The appointments made under 9.2 and 9.3 will comply with the Council’s procurement rules and regulations and ensure no conflict of interest.

10. Portfolio management

10.1. General All acquisitions will be managed as part of the GFPP in accordance with the SAP.

10.2. Property management

10.2.1. The Council will normally manage single-let FRI assets in-house if the necessary skills and capacity are available. It will utilise the services of a retained agent only if necessary during the course of the lease.

10.2.2. In the case of multi-let units any management costs can be recharged through the service charge. Therefore, if a managing agent is in place at the time of purchase, the Council may decide to continue the arrangement if it represents best value.

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Page 58 10.2.3. If an agent is retained or appointed, they may be called upon to ensure that repair obligations and statutory matters are complied with.

10.3. Voids and rent arrears The Council is exposed to the risk of void periods or tenants defaulting on payment of rent. Loss of income is an immediate cost but voids also create holding and re-letting costs. Such costs can be substantial if a property is vacant for a prolonged period of time. Voids and rent arrears will be managed in accordance with the current procedure for the GFPP. Regular meetings are held between the Estates and Finance Teams to examine any arrears and institute recovery proceedings if required. The Council set up a provision in 2017 to help mitigate the impact on the revenue budget.

10.4. Any requests from Heads of Service for reduced or subsidised rents must be met from a separate budget identified by that Head of Service and it will need to be specifically approved by the Executive.

11. Performance reporting

11.1. Quarterly individual property reporting The Estates Team will produce a quarterly Performance Report for each property acquired under this Strategy by the end of January, April, July and October (one month after the usual rent quarter days). The Report will set out all charges and receipts and indicate any arrears. These Reports will be available to (but not be limited to) the Executive, the IAB and the Value for Money Overview & Scrutiny Committee (“the VFM Committee”)

11.2. GFPP performance reporting The Estates/Finance Team will also prepare a quarterly report to show GFPP net income performance against budget, both quarterly and cumulatively. It will show the aggregate amounts for each income and costs for all GFPP properties and also show the central costs such as costs of abortive transactions (typically professional fees).

11.3. General Fund Property Portfolio asset report An asset valuation report is prepared annually which sets out the current valuations of all properties in the GFPP. It is prepared in accordance with guidelines published by the Royal Institute of Chartered Surveyors and the Chartered Institute of Public Finance.

12. Long-term governance 12.1. The Strategy will be reviewed after six months by the VFM Committee with input from the IAB and, in relation to the matters covered in paragraphs 6 to 11 above, the Audit Committee.

12.2. If the VFM Committee considers that any material changes to the Strategy are necessary, it will make an appropriate recommendation to the Executive. Any revisions will be subject to Council approval.

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Page 59 Author and feedback

The Council welcomes comments and feedback on its policies and procedures. Please contact: Anne Cains, Estates and Valuation Manager, [email protected] or 01483 523315 if you have any comments.

Related Information

Strategic Asset Plan for General Fund Properties 2015

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Page 60 Appendix 1 Investment Advisory Board Terms of Reference

Membership: (Current agreed 2016)

 Leader of the Council  Deputy Leader of the Council  Portfolio Holder for Finance  Portfolio Holder for Economic Development  Non-Executive Councillor

Membership: (Proposed 2018)

 Portfolio Holder for Finance and Property (Chairman)  One other Executive Member  Non-Executive Councillor  Non-Executive Councillor  Non-Executive Councillor  Non-Executive Councillor

The Investment Advisory Board (“IAB”) will be supported and advised by the following officers of the council:

 Strategic Director  Head of Customer and Corporate Services  Democratic Services Manager  Borough Solicitor or Deputy Solicitor  Estates and Valuation Manager

The IAB will be supported as required by external professional advisors commissioned by the IAB when deemed necessary in relation to specific investment proposals.

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Page 61 1. Scope The Investment Advisory Board (“IAB”) has been established to consider all significant Council investment activity including, but not limited to: 1.1 the acquisition and development of General Fund property and land; and 1.2 the identification of opportunities to maximise the return or value of existing Council owned assets including disposal.

2. Strategic approach The Council’s strategic approach to investment is based on:  allocation of the Council’s cash reserves and balances to create a Property Investment Fund (“PIF”);  use of the PIF and, when necessary and desirable, borrowed funds to fund property investments to increase the General Fund Property Portfolio (“GFPP”) and generate additional income for the Council for the delivery of functions and services;  investment in high-quality properties to strong covenants that maintain an adequately diversified GFPP so that the additional income generated is achieved in return for an acceptable level of risk;  investment in property investments that have the potential to support economic growth in the Borough and the Council’s corporate priorities;  investment, where appropriate, to improve existing or newly-acquired GFPP assets to enhance future income generation; and  disposal, when appropriate, of existing GFPP assets to generate funds for re-investment.

3. Responsibility The IAB is responsible for recommending to the Executive that an investment proposal should be approved. The Executive is solely responsible for deciding whether to approve the proposal and to authorise officers to conduct due diligence and, if satisfactory, proceed to completion.

4. Function 4.1 The IAB will consider all acquisition proposals submitted by the Estates Team that comply with the investment principles set out in paragraph 4 of the Strategy and meet the investment criteria set out in paragraph 6 of the Strategy. The IAB will review each proposal in respect of each of the investment criteria to decide if the business case in favour of investment is sufficiently strong.

4.2 The IAB will also consider proposals submitted by the Estates Team for the disposal of GFPP assets.

5. Tests Before deciding to recommend to the Executive that an investment proposal or disposal should be approved, the IAB must satisfy itself that:  it has properly considered advice from its professional advisors, whether internal or external;

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Page 62  the business case is sufficiently strong;  the investment or disposal is within the Council’s legal powers;  the investment or disposal is reasonable;  proper consideration has been to the balance between risk and reward;  making the investment or disposal would not be a breach of the Council’s fiduciary duty;  making the investment or disposal will represent value for money; and  the proposed funding method provides the best value for money after taking into account all relevant financial considerations, including taxation.

6. Use of funds The IAB is entitled to recommend the use of the PIF and the Infrastructure Fund to meet: 6.1 initial revenue costs of appropriate initiatives that deliver income in the longer term. 6.2 the cost of external professional advice including property, legal, financial, and taxation advice.

7. Meetings and reports 7.1 The IAB will have scheduled meetings on a quarterly basis with further meetings arranged as required to consider investment proposals promptly or when required for other purposes. Meetings may be cancelled if there are no items to be discussed. 7.2 The quorum for a meeting of the IAB is three members of which one must be the Portfolio Holder for Finance and Property or their appointed deputy. 7.3 The Chairman will approve the agenda for each meeting. The agenda and papers for consideration must be circulated at least two working days before the meeting. After each meeting, the Chairman will approve the meeting notes and the actions agreed 7.4 The IAB will receive quarterly Performance Reports in respect of recently acquired properties and the GFPP as a whole in accordance with section 11 of the Strategy. 7.5 The IAB will receive reports twice a year regarding the status of the PIF.

8. Review of Terms of Reference The IAB will review its Terms of Reference annually.

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Page 63 Appendix 2

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Page 64 Appendix 3

Example Risk Analysis Spreadsheet

Source Perry Hill Property type Office Address Catteshall Lane Location Godalming Built 1980s Condition Good Area 3,214 sqft

Tenure Freehold Unexpired term Tenant(s) inc Reality Finance Ltd underlettings Use/alienation Office Repair FRI Occupancy 100% rate Rent £36,000 % OMV £50,000 3% management costs Net income Term 9 Years £48,500 omv Rent reviews 2018 Lease renewal 2024 Break option 2018 Asking price £731,000 £227 CV/sqft Yield Net initial 4.92% 4.78% Less man costs net 4.68% 4.54% Less man costs equivalent True equivalent Net 6.84% 6.63% Less man costs reversionary

Strength Weakness Tenants break In borough 2018 Fully let Six years remain FRI Parking Location Modern

Opportunities Threats Rental growth Tenant may exercise break

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Page 65 Restructure of lease WBC could utilise

Conclusion Pursue as potential acquisition subject to restructure lease.

Costs Agents Intro £0 fee Condition £2,700 min Report Due Diligence £1,700 min Legal £7,380 External solicitor fees £ SDLT 26,590 £ Management -

£ Refurb costs - Total £38,370

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Page 66 Glossary of property terms

Current rent: The rent agreed by the landlord at tenant at the last review date.

Due diligence: A post bid process to ensure correct documents and searches are complete and that the proposed purchase is sound.

Freehold: The ownership of a property in perpetuity

FRI: Full repair and insurance; Usually a tenant’s obligation under the terms of a lease.

GF: General Fund (as opposed to the Housing Fund)

GFPP: General Fund property Portfolio

IAB: Investment Advisory Board

IRI: Internal Repair & Insuring

Landlord & Tenant Act (part 2) 1954: The overriding legislation for commercial leases

Lease: Type of tenure, whereby rights to a property are granted for a fixed term.

Management Costs: Costs incurred to ensure both parties comply with their obligations, if done internally the costs will be absorbed by the council, or if externally the charges will be deducted from the total income.

Minimum Return Provision (MRP): Councils are legally required to set aside annual payments to cover repayment of any external loans principal over the period of borrowing.

Non-operational Asset: An asset held by the authority but not directly occupied or used or consumed in the delivery of services.

Open Market value: (OMV) is the most relevant recent price achieved for a similar site.

Operational Asset: An asset held and occupied, used or consumed by the authority in the direct delivery of those services for which it has either statutory or discretionary responsibility.

Passing rent: As per current rent: The rent agreed by the landlord at tenant at the last review date.

PIC: Property Investment Company

PIF: Property Investment Fund

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Page 67 PWLB: Public Works loans Board

Rent free period: An incentive offered to a tenant in lieu of works or to attract a suitable tenant.

Rent Review: The period after which the annual rent for a property can be reviewed in accordance with the terms of the lease, allows for growth on the investment.

RICS: Royal Institute of Chartered Surveyors.

SAP: Strategic Asset Plan for General Fund Properties 2015

SQFT: Square Foot. Measurements should be used in accordance with the RICS international measurement standards.

Yields: (Extract from RICS June 2016 & The Glossary of Property Terms: Parsons 2004)

In general terms, yield is a measurement of future income on an investment. It is generally calculated annually as a percentage based on the asset's or investment's cost or market value. A return on an investment is usually seen in the form of rent.

The yield on a property is regarded as the percentage an annual return an investor is likely to receive on the value of an investment usually rent. The yield varies over the life-cycle of an investment property because rental income will change and there will be periodic revaluations of the capital value.

The yield from an investment in real estate is primarily a function of:

. comparative return on alternative forms of investment . type of property . security and regularity of the income . risk of loss of capital . liquidity of the investment and costs of transfer . cost of management and upkeep . political and taxation risks . specific risks associated with an investment, such as earthquakes All risks yield Implies that the investor had considered all the risks and potential reward in arriving at a purchase price which is then reflected in the yield.

Capital value

The value of an asset or an investment.

Capitalisation

This is the process of converting an income stream from an investment into a capital value. For investment purposes, this would normally involve the conversion of the

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Page 68 annual rental income into a capital value by using a multiplier called the 'Years Purchase (YP) in perpetuity. The YP in perpetuity is the reciprocal of the yield.

Equated yield Describes the yield on a property investment, which takes into account growth in future income. (Initial and reversionary)

(Net) Equivalent yield

The weighted average income a property produces after allowing for voids and costs associated with buying the property.

Initial yield The annualised rent of a property expressed as a percentage of the property value at the date of purchase. Prime yield Describes the remunerative rate of interest appropriate at the date of a valuation if the property is to be let at its full market rental value. Considered as a benchmark to compare against other properties. Required Rate of Return

The minimum required rent expressed as a percentage after the cost of borrowing has been accounted for. To include annual interest and minimum return payments

Reversionary yield Is the anticipated yield to which the initial yield will rise and fall.

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Page 69 This page is intentionally left blank Agenda Item 11.

WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 10 APRIL 2018

COUNCIL – 24 APRIL 2018

Title: TREASURY MANAGEMENT FRAMEWORK 2018/19 [Portfolio Holder: Cllr Ged Hall] [Wards Affected: All]

Summary and recommendation:

This report sets out the proposed Treasury Management Framework for 2018/19, comprising:  revised Treasury Management Policy;  2018/19 Treasury Management Strategy;  2018/19 Treasury Management Investment Strategy; and  Prudential Indicators for 2018/19 to 2020/21

The Executive considered the Treasury Management Framework for 2018/19 at its meeting on 10 April 2018, and RECOMMENDS to the COUNCIL that the proposed Treasury Management Framework for 2018/19 be approved.

How this report relates to the Council’s Corporate Priorities:

An effective treasury management function is critical to all Council services in that it ensures financial resources are available at the right time to deliver the Council’s priorities and services. It supports the Council’s Value for Money priority and is a key element in the management of Waverley’s financial resources.

Equality and Diversity Implications:

Treasury management provides financial resources to support all services including those which promote equality and diversity.

Financial implications:

A sound treasury management policy which achieves an appropriate balance between risk and return is essential to support service provision.

Legal Implications:

The current Code of Practice on Treasury Management (the Code) produced by CIPFA supports the provisions of the Local Government Act 2003 and the Local Authorities (Capital Finance and Accounting) Regulations 2003 and it is expected that local authorities will apply the Code to their individual circumstances.

Page 71 Introduction

1. Treasury management is the management of the Council’s monetary investments and cash flows, its banking and money market transactions, the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks. The Treasury Management Framework for 2018/19 contains only minor changes to the existing framework.

2. For Waverley Borough Council this means collecting around £130m per annum and managing a similar amount of revenue expenditure together with on average £65m each day invested in money markets and, with the introduction of HRA Self- financing in 2012/13, it now also includes borrowing of £192m and in future this could also include borrowing to support commercial investment.

3. The 2018 revised code now requires a separate capital strategy that includes commercial investments held for financial return. This will be developed during 2018/2019 following the approval of the Property Investment Strategy and the Treasury Management Framework. The Capital Strategy will include all of the new disclosure requirements and will take account of the external advice commissioned in March 2018 from Link Asset Services, a leading treasury advisor to local government.

4. The CIPFA code requires local authorities to maintain their Treasury Management Policy in accordance with the code, and any of its revisions, and with legislation. It also requires local authorities to determine their Treasury Management strategies, Investment strategies and their Prudential Indicators on an annual basis. 5. During 2017 CIPFA revised the Code through a series of consultations. The Government also published in March 2018 a revised Prudential Framework for Capital Finance, which includes the Local Authorities Investment Code and minimum revenue provision (MRP) Guidance. These revisions take effect from April 2019 and will be incorporated in Waverley’s Capital Strategy.

Purpose of the Code

6. CIPFA has produced this Code and the accompanying guidance notes to help satisfy nine main purposes:

i. To assist public service organisations in the development and maintenance of firm foundations and clear objectives for their treasury management activities, and thereby to add to their credibility in the public eye.

ii. To emphasise the over-riding importance of effective risk management, as the foundation for treasury management in all public service bodies.

iii. To provide transparency for treasury management decisions including the use of counterparties and financial instruments that individual public service organisations intend to use for the prudent management of their financial affairs.

iv. To encourage the pursuit of value for money in treasury management, and to promote the reasoned use, development and appreciation of appropriate and practical measures of performance.

Page 72 v. To enable CIPFA members to fulfil their professional and contractual responsibilities to the organisations they serve and, in accordance with the members’ charter, “to maintain and develop the professional competence of both themselves and those they supervise”.

vi. To help facilitate a standardisation and codification of treasury management policies and practices in the public services.

vii. To assist those involved in the regulation and review of treasury management in the public services, particularly those charged with the audit of the same

viii. To foster a continuing debate on the relevance and currency of the statutory and regulatory regimes under which treasury management in the various parts of the public services operates.

ix. To further the understanding and confidence of, and to act as a reference work for, financial and other institutions whose businesses bring them into contact with the treasury management activities of public service organisations.

Treasury Management Statements

7. The key documents in line with the requirements of the Code are approved by Council annually as follows:

 Treasury Management Policy Statement is included at Annexe 1 and sets out the headline objectives of the Treasury Management function.

 Treasury Management Strategy 2018/19 is included at Annexe 2 and sets out the way in which Waverley’s policy objectives for Treasury Management will be achieved and the high level approach to borrowing and treasury investment. As required by the Code, the Strategy includes a statement of Waverley’s Treasury Management Practices (TMPs) which set out specific areas of note and how they will be dealt with.

 Annual Treasury Management Investment Strategy 2018/19 is included at Annexe 3 and sets out how Waverley’s treasury investments will be managed, in accordance with the Treasury Management Strategy, and how this will help achieve Waverley’s policy objectives. This Strategy is required by local government investment regulations.

Borrowing

8. With the creation of the Investment Advisory Board and the Government’s significant reduction in Waverley’s New Homes Bonus funding, it is likely that Waverley will need to borrow in 2018/19 and subsequent years to develop and/or acquire property assets in order to develop the local economy and generate revenue for the General Fund budget.

9. In order to respond quickly to opportunities that arise and ensure flexibility in the capital financing arrangements, the decision to borrow to finance capital expenditure was delegated to the Executive by the Council, subject to the limits

Page 73 within this report and provided that the annual revenue cost of the borrowing is within the Executive’s authorised spending limit for each transaction.

Prudential Indicators to 2020/21

10. The Local Government Act 2003 requires local authorities to comply with CIPFA’s Prudential Borrowing Code. This in turn requires local authorities to agree a specified set of prudential indicators relating to their investment and borrowing activities. Waverley’s Prudential Indicators are in line with the requirements of the Code and the current conditions which are included at Annexe 4. The prudential indicators are intended to support decision-making and are ways of targeting and measuring performance.

Value for Money and Customer Service Overview and Scrutiny Committee

11. The Value for Money and Customer Service Overview and Scrutiny Committee considered the Treasury Management Strategy at its meeting on 26 March 2018. The Committee noted that a separate Capital Strategy would also be developed during 2018/2019 following the approval of the Property Investment Strategy and the Treasury Management Strategy. Members looked forward to receiving this in due course.

12. In relation to the Annual Treasury Management Investment Strategy, Members were pleased to note that investments had ongoing ratings checks beyond the day of investment and that this was monitored internally and regularly reported to the Executive; Members suggested that this could be made more explicit in the document.

13. The Committee was also pleased to note that the Strategy was supported by a series of guidance documents setting out processes and delegations to ensure robust day-to-day treasury management.

Recommendation

The Executive RECOMMENDS to the COUNCIL that the proposed Treasury Management Framework for 2018/19 be approved.

Background Papers

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

CONTACT OFFICER:

Name: Peter Vickers Telephone: 01483 523539 Head of Finance E-mail: [email protected]

Page 74 ANNEXE 1

STATEMENT OF TREASURY MANAGEMENT POLICY

The Council adopts the key recommendations of CIPFA’s Treasury Management in the Public Services: Code of Practice (the Code), as described in Sections 5 and 6 of the Code. The full Code is available for Members on request and identifies 3 key principles which organisations should apply:

1) formal and comprehensive objectives, policies and practices, strategies and reporting arrangements for the effective management and control of treasury management activities should be in place.

2) effective management and control of risk are the prime objectives of Treasury Management and are the responsibility of the Council. Waverley’s Treasury Management Strategy must make clear its appetite for risk, the use of which financial instruments are allowed for the prudent management of those risks and that priority be given first to security, then to liquidity and last to yield.

3) treasury management policies and practices should reflect that the pursuit of value for money is, nevertheless, important and performance measures are important and valid tools to be used in support of this.

Accordingly, the Council will create and maintain, as the cornerstones for effective Treasury Management:

 A treasury management policy stating the policies, objectives and approach to risk management of its treasury management activities.  A treasury management strategy on at least an annual basis, including approved treasury management practices (TMPs), setting out the manner in which the Council will seek to achieve its policy objectives and prescribing how it will manage and control those activities.

The content of the policy, strategy and TMPs will follow the recommendations contained in the Code, subject only to amendment where necessary to reflect the particular circumstances of this Council. Such amendments will not result in the organisation materially deviating from the Code’s key principles.

The Council will receive reports on its treasury management policy and practices and the Executive will receive reports on treasury activities and performance, including, as a minimum, the annual strategy in advance of the year, regular monitoring reports during the year and an annual report after its close, in the form prescribed in its TMPs.

The Council delegates responsibility for the regular monitoring of its Treasury Management Policy and practices to the Executive, and for the execution and administration of day-to-day treasury management decisions to the Strategic Director (Section 151 Officer) who will act in accordance with the Waverley’s Policy, Strategy and TMPs and CIPFA’s Standard of Professional Practice on Treasury Management.

Page 75 The Council nominates the Value for Money Overview and Scrutiny Committee to be responsible for ensuring effective scrutiny of the treasury management strategy and policies.

Overall policy:

Waverley Borough Council defines its treasury management objectives as:

The effective management of the Council’s investments and cash flows, its banking, money market and capital market transactions, the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks in order to ensure that financial resources are available at the right time to deliver the Council’s service priorities.

Risk:

Waverley regards the successful identification, monitoring and control of risk to be the prime criteria by which the effectiveness of its treasury management activities will be measured. Accordingly, the analysis and reporting of treasury management activities will focus on their risk implications for the organisation and any financial instruments entered into to manage these risks.

Value for money:

Waverley acknowledges that effective treasury management will provide support towards the achievement of its business and service objectives and is therefore committed to the principles of achieving value for money in treasury management and to employing suitable performance monitoring arrangements within the context of effective risk management.

Borrowing:

The Council’s borrowing will be affordable, sustainable and prudent and consideration will be given to the management of interest rate risk and refinancing risk. The source from which the borrowing is taken and the type of borrowing should ensure the Council is transparent and has flexibility and control over its debt.

Investment:

Waverley’s primary objective in relation to investments remains the security of capital. The liquidity or accessibility of the Authority’s treasury investments followed by the yield earned on investments remain important but are secondary considerations.

Page 76 ANNEXE 2

Treasury Management Strategy Statement 2018/19 (incorporating Treasury Management Practice statements)

Overall policy:

The major objective of managing daily cash balances to meet cash flow commitments remains the priority.

Investments:

Waverley’s policy is to give security of treasury investment a higher priority than rate of return/yield. Waverley’s strategy and day-to-day practice, therefore, continue to be refined, within the boundaries agreed in the Annual Treasury Investment Strategy (Annexe 3), in response to market conditions.

Risk:

Waverley acknowledges that no treasury management activity is without risk. The major area of risk is identified as investment risk. Investment risk will be mitigated in a number of ways as set out in accordance with the specified Treasury Management Practices and Annual Treasury Investment Strategy. The cornerstones of current treasury investment strategy are:

 to lend only to those institutions which fit the Council’s policy in terms of financial standing, credit ratings etc;  generally to restrict lending to terms of one year or less or to cover precept dates or known expenditure commitments, except where the Strategic Director (S.151 Officer) or Head of Finance agree to an investment within Waverley’s criteria over a longer period if interest rates are favourable;  to identify financial limits for each counterparty institution depending on the quality of its financial ratings;  to make all cash investments in GBP sterling thus avoiding exchange rate risk;  that Waverley’s general preference is for fixed rate investments for budgetary certainty and the avoidance of yield risk and  to consider other forms of investment that are not part of treasury management activity, such as property acquisitions, on a case by case basis subject to a comprehensive business case being presented to Members including analysis of risk and viability. This is set out in a separate Property Investment Strategy.

The Council is also committed to using available market intelligence to aid investment and borrowing decision making.

Value for money:

Waverley is committed to the pursuit of value for money in its Treasury Management function and to use performance methodology in support of that aim. This will be achieved through the formal reporting process set out in the Treasury Management Practices as well as the use of comparative performance indicators (including Prudential Indicators) for its investment returns and costs.

Page 77 Borrowing:

Waverley borrowed £192m in March 2012, £5m of which was borrowed internally, for the purposes of HRA self-financing implementation. The Council adopted a flexible approach to this borrowing in consultation with treasury management advisers.

The following issues will be considered prior to undertaking any external borrowing:  Affordability  Maturity profile of existing debt  Interest rate and refinancing risk  Borrowing source

It may be advantageous in future, as the HRA Business Plan is developed, to reschedule some of the HRA debt. Waverley’s debt portfolio can, potentially, be restructured in order to achieve a reduction in risk, savings in interest costs and/or to meet changing cash demands. The rationale for undertaking any future HRA debt rescheduling would be one or more of the following:  Changing the maturity profile of the debt portfolio  Interest rate savings and premiums  Rebalancing the interest rate structure of the debt portfolio

With the creation of the Investment Advisory Board and the Government’s significant reduction in Waverley’s New Homes Bonus funding, it is likely that Waverley will need to borrow in 2018/19 and subsequent years to develop and/or acquire property assets in order to develop the local economy and generate revenue for the General Fund budget.

In addition, temporary borrowing for the purposes of financing day-to- day expenditure commitments is allowed for short periods if economic on the day.

Overall, borrowing will be managed within the Authorised Limit for External Debt (See Prudential Indicator 5) and the HRA debt will not exceed the specified statutory cap.

Minimum Revenue Provision (MRP) Annual Policy Statement - The scheme of Minimum Revenue Provision (MRP) requires Local Authorities to set aside some of their revenues as provision for debt each year of an amount considered to be ‘prudent’. Prudent provision should ensure that debt is repaid over a period that is reasonably commensurate with that over which the capital expenditure provides benefits.

Following the implementation of International Financial Reporting Standards, finance leases may also be subject to the requirements of MRP. However, borrowing to finance capital expenditure on housing assets is not subject to MRP.

Revised Guidance on MRP has been issued by the Government. The guidance is fairly prescriptive but sets out options for making a prudent provision for MRP. If the Council undertakes borrowing requiring an MRP provision, it will apply the most appropriate option having regard to the guidance. It is intended that Waverley will use the Annuity method of calculating MRP as it links MRP to the flow of benefits.

Page 78 TREASURY MANAGEMENT PRACTICES (TMP)

TMP1 RISK MANAGEMENT

General Statement

The Strategic Director, (Section 151 Officer) will design, implement and monitor all arrangements for the identification, management and control of treasury management risk, will report at least annually on the adequacy/suitability thereof, and report as a matter of urgency, the circumstances of any actual or likely difficulty in achieving the organisation’s objectives in this respect, all in accordance with the procedures set out in TMP6 Reporting requirements and management information arrangements. In respect of each of the following risks, detailed arrangements, which seek to ensure compliance with these objectives, are set out in ‘Additional Information’ schedules.

Credit and Counterparty Risk Management

The key risk in Waverley Borough Council’s treasury management activities is the security of the principal sums it invests. Accordingly, it will ensure that its counterparty lists and limits reflect a prudent attitude towards organisations with which funds may be deposited and will limit its investment activities to the instruments, methods and techniques referred to in TMP4 Approved instruments methods and techniques.

Liquidity Risk Management

Waverley Borough Council will ensure it has adequate cash resources, borrowing arrangements, overdraft or standby facilities to enable it at all times to have the level of funds available to it which are necessary for the achievement of its business/service objectives.

Waverley Borough Council will only borrow in advance of need where there is a clear business case for doing so and will only do so for the current approved capital programme or to finance future debt maturities.

Interest Rate Risk Management

Waverley Borough Council will manage its exposure to fluctuations in interest rates with a view to containing its interest costs, or securing its interest revenues, in accordance with the amounts provided in its budgetary arrangements, as revised, in accordance with TMP6 Reporting requirements and management information arrangements. It will achieve this by the prudent use of its approved financing and investment instruments, methods and techniques, primarily to create stability and certainty of costs and revenues, but at the same time retaining a sufficient degree of flexibility to take advantage of unexpected, potentially advantageous changes in the level or structure of interest rates. This should be subject to the consideration and, if required, approval of any policy or budgetary implications considered by the Executive as appropriate.

Page 79 Exchange Rate Risk Management

Waverley Borough Council’s current approved policy allows cash investments solely in GBP sterling because other currency deals expose Waverley to an additional level of risk. Accordingly, Waverley does not have an exchange rate risk management strategy at this time. Should market conditions change such that foreign currency deals become appropriate, this Treasury Management Practice will be developed to cover this and approval for such a policy change will be sought.

Inflation Risk Management

Waverley Borough Council will keep under review the sensitivity of its treasury assets and liabilities to inflation, and will seek to manage the risk accordingly in the context of the whole organisation’s inflation exposures.

Refinancing Risk Management

Waverley Borough Council will ensure that its borrowing is structured and documented, and the maturity profile of the debt is managed with a view to obtaining offer terms for renewal or refinancing, if required, which are competitive and as favourable to Waverley as can reasonably be achieved in the light of market conditions prevailing at the time.

Legal and Regulatory Risk Management

Waverley Borough Council will ensure that all of its treasury management activities comply with its statutory powers and regulatory requirements. It will demonstrate such compliance, if required to do so, to all parties with whom it deals in such activities. In framing its TMP1[1] credit and counterparty risk management, it will ensure that there is evidence of counterparties’ powers, authority and compliance in respect of the transactions they may effect with Waverley, particularly with regard to duty of care and fees charged.

Waverley Borough Council recognises that future legislative or regulatory changes may impact on its treasury management activities and, so far as it is reasonably able to do so, will seek to minimise the risk of these impacting adversely on the Council.

Fraud, Error and Corruption, and Contingency Management

Waverley Borough Council will ensure that it has identified the circumstances, which may expose it to the risk of loss through fraud, error, corruption or other eventualities in its treasury management dealings. Accordingly, it will employ suitable systems and procedures, and will maintain effective contingency management arrangements, to these ends.

Market Risk Management

Waverley Borough Council will ensure that its stated treasury management policies and objectives do not expose the Council to the risk of adverse market fluctuations in the value of the principal cash sums it invests and will accordingly protect itself from the effects of such fluctuations.

Page 80 TMP2 PERFORMANCE MEASUREMENT

Waverley Borough Council is committed to the pursuit of value for money in its treasury management activities, and to the use of performance methodology in support of that aim, within the framework set out in its treasury management policy statement.

Accordingly, the treasury management function will be the subject of ongoing analysis of the value it adds in support of the Council’s stated business or service objectives. The performance of the treasury management function is included in the budget monitoring process, and periodic reports to the Executive and Corporate O&S Committee.

TMP3 DECISION-MAKING AND ANALYSIS

Waverley Borough Council will maintain full records of its treasury management decisions, and of the processes and practices applied in reaching those decisions, both for the purposes of learning from the past, and for demonstrating that reasonable steps were taken to ensure that all issues relevant to those decisions were taken into account at the time.

TMP4 APPROVED INSTRUMENTS, METHODS AND TECHNIQUES

Waverley Borough Council will undertake its treasury management activities by employing only those instruments, methods and techniques detailed in the Treasury Management Strategy and Annual Investment Strategy, and within the limits and parameters defined in TMP1 Risk management.

Should Waverley decide in future to use derivative instruments for the management of risks, these will be limited to those set out in its annual treasury management strategy. The organisation will seek proper advice and will consider that advice when entering into arrangements to use such products to ensure that it fully understands those products

TMP5 ORGANISATION, CLARITY AND SEGREGATION OF RESPONSIBILITIES, AND DEALING ARRANGEMENTS

Waverley Borough Council considers it essential, for the purposes of the effective control and monitoring of its treasury management activities, for the reduction of the risk of fraud or error, and for the pursuit of optimum performance, that these activities are structured and managed in a fully integrated manner, and that there is at all times a clarity of treasury management responsibilities.

The principle on which this will be based is a clear distinction between those charged with setting treasury management policies and those charged with implementing and controlling these policies, particularly with regard to the execution and transmission of funds, the recording and administering of treasury management decision and the audit and review of the treasury management function.

If the Council has to depart from these principles, the Director of Finance and Resources will ensure that the reasons are properly reported in accordance with TMP6 Reporting requirements and management information arrangements and the implications properly considered and evaluated.

Page 81 The Strategic Director (S.151 Officer) will ensure that there are clear written statements of the responsibilities for each post engaged in treasury management and the arrangements for absence cover. The responsible officer will also ensure that at all times those engaged in treasury management will follow the policies and procedures set out. The present arrangements have been agreed with the Portfolio Holder for Finance and the Strategic Director (S.151 Officer) in March 2010 as included in the Additional Guidance document.

The delegations to the Strategic Director (S.151 Officer) in respect of treasury management have been agreed with the Portfolio Holder for Finance and the Strategic Director (S.151 Officer) in March 2010 as included in the Additional Guidance document. The Director of Finance and Resources will fulfil all such responsibilities in accordance with the Council’s policy statement and TMPs and CIPFA’s Standard of Professional Practice on Treasury Management.

TMP6 REPORTING REQUIREMENTS AND MANAGEMENT INFORMATION ARRANGEMENTS

Waverley Borough Council will ensure that regular reports are prepared and considered on:  the implementation of its treasury management policies  the effects of decisions taken and transactions executed in pursuit of those policies  the implications of changes, particularly budgetary, resulting from regulatory economic, market or other factors affecting its treasury management activities  the performance of the treasury management function.

As a minimum:

The Executive will receive:

 An annual report on the strategy to be pursued in the coming year;  Regular monitoring reports during the year on treasury management activities and risks;  An annual report on the performance of the treasury management function, on the effects of the decisions taken and the transactions executed in the past year, and on any circumstances of non-compliance with the organisation’s treasury management policy statement and TMPs.

The Value for Money Overview and Scrutiny Committee will have responsibility for the scrutiny of treasury management policies and practices and will receive the annual strategy documents for comment and periodic performance reports.

TMP7 BUDGETING, ACCOUNTING AND AUDIT ARRANGEMENTS

The Strategic Director (S.151 Officer) will prepare, and the Council will approve and, if necessary, from time to time will amend, an annual budget for treasury management, which will bring together all of the costs involved in running the treasury management function, together with associated income. The matters to be included in the budget will at a minimum be those required by statute or regulation, together with such information as will demonstrate compliance with TMP1 Risk management, TMP2 Performance measurement and TMP6 Approved instruments, methods and techniques. The Strategic Director (S.151 Officer) will exercise effective controls over

Page 82 this budget and will report upon and recommend any changes required in accordance with TMP6 Reporting requirements and management information arrangements.

The Council will account for its treasury management activities, for decisions made and transactions executed, in accordance with appropriate accounting practices and standards, and with statutory and regulatory requirements in force for the time being.

TMP8 CASH AND CASH FLOW MANAGEMENT

Unless statutory or regulatory requirements demand otherwise, all monies in the hands of the Council will be under the control of the Strategic Director (S.151 Officer) and will be aggregated for cash flow and investment management purposes. Cash flow projections will be prepared on a regular and timely basis and the Strategic Director (S.151 Officer) will ensure that these are adequate for the purposes of monitoring compliance with TMP1[1] liquidity risk management.

TMP9 MONEY LAUNDERING

Waverley Borough Council is alert to the possibility that it may become the subject of an attempt to involve it in a transaction involving the laundering of money. Accordingly, the Council will maintain procedures for verifying and recording the identity of counterparties and reporting suspicions, and will ensure that staff involved in this are properly trained. The present arrangements, including the name of the officer to whom reports should be made have been agreed by the Audit Committee.

TMP10 TRAINING AND QUALIFICATIONS

Waverley Borough Council recognises the importance of ensuring that all staff involved in the treasury management function are fully equipped to undertake the duties and responsibilities allocated to them. It will therefore seek to appoint individuals who are both capable and experienced and will provide training for staff to enable them to acquire and maintain an appropriate level of expertise, knowledge and skills. The Strategic Director (S.151 Officer) will recommend and implement the necessary arrangements.

The Strategic Director (S.151 Officer) will ensure that Members tasked with treasury management responsibilities, including those responsible for scrutiny, have access to training relevant to their needs and those responsibilities.

Those charged with governance recognise their individual responsibility to ensure that they have the necessary skills to complete their role effectively.

TMP11 USE OF EXTERNAL SERVICE PROVIDERS

Waverley Borough Council recognises that responsibility for treasury management decisions remains with the Council at all times. The Council recognises that there may be potential value in employing external providers of treasury management services, in order to acquire access to specialist skills and resources. When it employs such service providers, it will ensure it does so for reasons, which have been submitted to a full evaluation of the costs and benefits. The Council will also ensure that the terms of their appointment and the methods by which their value will be assessed are properly agreed and documented, and subjected to regular review. Where services are subject to formal tender or re-tender arrangements, legislative requirements will always be

Page 83 observed. The monitoring of such arrangements rests with the Strategic Director (S.151 Officer).

TMP12 CORPORATE GOVERNANCE

Waverley Borough Council is committed to the pursuit of proper corporate governance throughout its businesses and services, and to establishing the principles and practices by which this can be achieved. Accordingly, the treasury management function and its activities will be undertaken with openness and transparency, honesty, integrity and accountability.

The Council has adopted and has implemented the key principles of the Code. This action, together with the other arrangements detailed in this document, are considered vital to the achievement of proper corporate governance in treasury management, and the Strategic Director (S.151 Officer) will monitor and, if and when necessary, report upon the effectiveness of these arrangements.

Page 84 ANNEXE 3

Annual Treasury Management Investment Strategy 2018/19

The Annual Treasury Investment Strategy is required under the Treasury Management code of Practice and Statutory Investment Guidance issued by the Department of Communities and Local Government. Waverley’s primary objective in relation to the investment of public funds remains the security of capital. The liquidity or accessibility of the Authority’s investments and the yields earned on investments are important but secondary considerations.

The 2018/19 Strategy is framed against the backdrop of current market conditions. On a local level, the Strategy also recognises the significant levels of cash accumulated by Waverley, mainly due to the accumulated HRA funds which will be spent on delivering the HRA capital programmes.

The statutory guidance requires the Council to determine a number of limits and guidelines for its investment activity including ‘specified’ and ‘non-specified’ investments. Specified investments are those held in sterling with a maturity of no more than a year and must be with the UK Government, UK local authorities or “high” credit rated institutions. Non- specified investments are any investments that do not meet the above criteria.

To meet the requirements of the Regulations it is proposed that the following policy and limits apply to all of Waverley’s investment activity in 2018/19:

 Cash investments only with UK Local Authorities and the UK Government and institutions assessed as having a ‘high credit quality’  ‘High credit quality’ means having AAA rating for sterling money market funds or a minimum rating of A- for any banks and building societies, and being considered to have high credit credentials after taking account of the factors listed below.  Waverley will not make any non-specified cash investments, other than when the investment is non-specified by virtue of it being for a period of more than one year, subject to it being an approved counterparty and an assessment of risk.  £10million is the maximum investment in any single specified organisation at any one time.  £20m is the total investment with any group - £10m the maximum with any single member of that group.  Up to date information gathered by officers, together with specialist advice if appropriate, will be used to ensure compliance with the strategy.  Every investment will have a ratings check on the day of the investment and a list of potential counterparties will be prepared and approved by the S151 Officer before 1st April each year and updated throughout the year.  The maximum total investment at any one time that can prudently be committed for more than one year is £10 million.  If cashflow certainty can be demonstrated over a longer term, Waverley will consider investing in property provided that a business case is presented to Members including a risk and viability assessment.  The Strategic Director (S.151 Officer) can seek the approval of the Executive to change the above limits during the year if necessary, provided that it is in the best interests of the Council to do so.

Page 85 In practice, day-to-day controls are actually tighter, but still within the bounds of the approved policy, in order to create as much security as possible for Waverley’s investment portfolio. These measures include:

 The major objective of managing daily cash balances to meet cash flow commitments remains the priority although it is recognised that, to some extent, some stability has been evident so longer term investment decisions are potentially possible subject to consideration of capital spending plans.  In addition to the thresholds above, the maximum amount invested in any single specified organisation will generally be restricted to no more than 20% of the overall total external investments at that time.  Investments are also monitored on a sector basis and judgments made as to the appropriate level within each sector taking into account appropriate treasury management information.  General Market information is also used to enable some targeting of investment partners and the objective views of the credit agencies still have a value and are monitored more regularly.  Close monitoring of credit ratings at the point of transaction including consideration of the ‘future outlook’ assessment.  Increased frequency of updating the list of preferred organisations for investment with reduced working maximum limits for lower rated counterparties.

A major problem in the current environment is acknowledged as finding a sufficient number of investment counterparties providing acceptable levels of counterparty risk. In order to diversify an investment portfolio largely invested in cash, investments will be placed with a range of approved investment counterparties in order to achieve a diversified portfolio of prudent counterparties, investment periods and rates of return. Maximum investment levels with each counterparty within the limits set out in this Strategy will be set to ensure prudent diversification is achieved. Introductions to new counterparties (within the allowed criteria) will be sought where appropriate.

In order to continually review the Council’s counterparty list and to make a judgement about whether a counterparty has a ‘high credit quality’, officers will gather and consider information such as:

 Credit rating ‘future outlook’ assessments  Published credit ratings for financial institutions  Economic fundamentals (for example Net Debt as a percentage of GDP)

Banking - Waverley banks with HSBC. At the current time, HSBC meets the minimum credit criteria of ‘A’ long term. The Council continues to monitor the credit rating of HSBC and would report to Members if any major concerns emerged. If the credit rating falls below the Authority’s minimum criteria HSBC would have to be used in the short term for business continuity and liquidity requirements.

However, in practice, it would be impossible to restrict the Council’s own bank, HSBC, to the same £limits as other investment counterparties because there are many instances when cash in excess of £10m is moving through the Council’s HSBC bank accounts. Given also that it is likely that there will often be occasions when Waverley has more cash than the total of its approved counterparty limits, it is therefore necessary to specifically

Page 86 exclude HSBC’s banking activities from the £10m limit. It should be noted that existing HSBC bank accounts are all instant access.

Training - CIPFA’s Code of Practice requires the responsible officer to ensure that all members tasked with treasury management responsibilities, including scrutiny of the treasury management function, receive appropriate training relevant to their needs and understand fully their roles and responsibilities. Waverley’s approach to training is set out in the schedule supporting Treasury Management Practice (TMP) 10.

Page 87 This page is intentionally left blank ANNEXE 4 Prudential Indicators

To fulfil the requirements of the Prudential Code, the Council must produce and maintain a specified set of ‘Prudential Indicators’. In setting and revising these indicators, and more importantly in any decision on borrowing, the Council must take into account affordability, eg implications for Council Tax and housing rents and prudence and sustainability, eg implications for external borrowing. All of the required Prudential Indicators are included below. Explanatory text is included where necessary.

The prudential indicators are there to support decision-making and are not designed to be comparative performance indicators with other councils. The indicators which require future forecasts are rolling scenarios, not fixed for the three-year period. They can be reviewed at any time by the S151 Officer, subject to Council approval. The S151 Officer must monitor performance against each indicator during the year.

There are other major decisions for the Council in the next few years that may have a significant impact on capital financing decisions, such as the ongoing development of the HRA Business Plan and the Brightwells development. As these details become available, the indicators will be reviewed and, if necessary, reconsidered by Members.

Indicator 1 - Estimates of capital expenditure

2016-17 2017-18 2018-19 2019-20 2020-21 Actual Latest Estimate Estimate Estimate Estimate £000 £000 £000 £000 £000 General Fund 5,054 5,743 3,624 1,102 217 HRA 9,803 14,404 14,670 11,335 9,359 Total 14,857 20,147 18,294 12,437 9,576

These estimates are as included in the capital programme report and, in the case of the previous year’s actuals, as shown in the Statement of Accounts.

Indicator 2 - Estimates of the ratio of financing costs to net revenue stream

2016-17 2017-18 2018-19 2019-20 2020-21 Actual Estimate Estimate Estimate Estimate General Fund -2.81% -2.09% -2.17% -2.00% -2.00% HRA 18.71% 18.80% 18.95% 18.52% 18.08%

The net revenue stream is the total net expenditure to be met from Government grant and local taxpayers or, in the case of the HRA, the net amount to be met from rent income. Financing costs are the net of any interest on borrowing, interest earned on investments and any amounts made as revenue provision to repay debt.

The estimates of financing costs include current commitments and the proposals in the budget report. At 31st March 2016, investments totalling £51.5 million were held, much of which represented balances and reserves, with the balance being held for cash flow purposes. The projected reduction in the General Fund ratio reflects estimates of the overall draw on capital receipts and other internal resources to fund the capital

Page 89 programme. The HRA figures are determined by Regulations and reflect the external borrowing rate on the self-financing debt.

Indicator 3 - Capital financing requirement

2016-17 2017-18 2018-19 2019-20 2020-21 Actual Estimate Estimate Estimate Estimate £000 £000 £000 £000 £000 General Fund 0 5,000 15,000 25,000 35,000 HRA 192,187 188,700 184,992 180,769 176,466 Total 192,187 193,700 199,992 205,769 211,466

This indicator is a measure of the underlying need to borrow for capital purposes, it is not the level of actual borrowing held or required or of the actual level of other capital resources held. The requirement increases as capital expenditure is incurred or planned, and reduces when financing from capital receipts, grants or revenue is applied. The HRA self-financing debt is deemed to be capital expenditure under the regulations. The calculation of the CFR is taken from the amounts held in the Balance Sheet relating to capital expenditure and its financing.

Waverley intends to finance most of its General Fund routine capital programme from existing resources in the medium term. The programme will be reviewed as part of each year’s General Fund budget setting process to match planned expenditure to the level of resources available.

Indicator 4 - Actual External Debt

Actual External Debt as at 31/03/2017 £m Borrowing 187.0 Other Long-term Liabilities 0 Total 187.0

This indicator is obtained directly from the Council’s balance sheet. It is the closing balance for actual gross borrowing plus other long-term liabilities. This Indicator is measured in a manner consistent for comparison with the Operational Boundary and Authorised Limit. The HRA self-financing transaction included internal borrowing of £5m from the General Fund which is not included in the prudential indicators.

Indicator 5 - Authorised limit for external debt

2016-17 2017-18 2018-19 2019-20 2020-21 Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m General Fund 5 5 50 50 50 HRA 188 188 188 188 188 Total 193 193 238 238 238

The Authorised Limit sets the maximum level of external borrowing on a gross basis (ie not net of investments) for the Council. It is measured on a daily basis against all external borrowing items on the Balance Sheet ie long and short term borrowing, overdrawn bank

Page 90 balances and long term liabilities. This Prudential Indicator separately identifies borrowing from other long term liabilities such as finance leases.

Whilst cash flows are currently managed using the investment portfolio, it is possible that short-term borrowing may be necessary. As the indicators in this report show, other than the £187m self-financing external debt on the HRA, a significant amount of borrowing for capital purposes is not currently expected to be necessary in the short term. However, it is sensible to have in place an authorised borrowing limit at a prudent level to enable treasury activity if necessary. In approving this limit, the Council is approving the limit as required under section 3(1) of the Local Government Act 2003.

The Authorised Limit has been set on the estimate of the most likely, prudent but not worst case scenario with sufficient headroom over and above this to allow for unusual cash movements.

Indicator 6 - Operational boundary for external debt

2016-17 2017-18 2018-19 2019-20 2020-21 Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m General Fund 5 5 50 50 50 HRA 188 188 188 188 188 Total 193 193 238 238 238

The operational boundary for external debt is the most likely, prudent but not worst-case scenario, without the additional headroom allowed for in the authorised limit to allow for unusual cash movements. As the authorised limit for external debt is currently intended to cover mainly cash flow movements and the £187m HRA self-financing external borrowing, it is not necessary to set the operational boundary at a lower level. If a greater degree of borrowing for capital purposes is required in the future, both indicators will be reviewed.

Indicator 7 - Incremental impact of current capital investment decisions on the council tax

2017-18 2018-19 2019-20 2020-21 £000 £000 £000 £000 Estimate Estimate Estimate Estimate For Band D Council Tax Nil Nil Nil Nil For average weekly housing Nil Nil Nil Nil rents

This indicator shows the impact of the capital investment decisions on the Council Tax and rent levels. It allows the totality of the Council’s plans to be considered at budget setting time. Whilst this is an indicator that Members must consider when taking decisions on borrowing, it doesn’t necessarily follow that council tax or rent has actually been increased by the amount shown in the indicator.

In reality, due to the pressures on Waverley’s budget, any net cost of borrowing will have to be offset by savings in other budgets, therefore the impact on the council taxpayer in cash terms would be zero. This is currently the intention with any future borrowing for General Fund capital schemes. The self-financing debt on the HRA does not impact adversely on housing rents as the HRA 30-year business plan is modelled to meet interest

Page 91 and principal repayments from the cessation of negative housing subsidy payments. If this position changes in the future, this indicator will be revised and reported to Members for approval.

Indicator 8 – Limits on Investments

2017-18 2018-19 2019-20 2020-21 Estimate Estimate Estimate Estimate The upper limit on fixed rate investments as a 100% 100% 100% 100% % of net outstanding principal sums The upper limit on variable rate investments as 10% 10% 10% 10% a % of net outstanding principal sums* *Excludes money held in call or instant access deposit accounts

These indicators allow the Council to manage the extent to which it is exposed to changes in interest rates. The Council calculates these limits on net principal outstanding sums. The upper limit for variable rate exposure has been set to ensure that the Council is not exposed to interest rate reductions which could adversely impact on the revenue budget.

Indicator 9 – Maturity Structure of Borrowing

The maturity structure of 2018-19 2019-20 2020-21 borrowing (as % of Estimate Estimate Estimate overall projected fixed Upper Lower Upper Lower Upper Lower rate borrowing) -under 12 months 100% 90% 100% 90% 100% 90% -between 1 and 30 years 100% 100% 100% 100% 100% 100%

This indicator highlights the existence of any large concentrations of fixed rate debt and is intended to help protect against excessive exposures to interest rate changes in any one period. All borrowing related to the HRA.

Indicator 10 – Upper Limits on Investments >364 days

2017-18 2018-19 2019-20 2020-21 Estimate Estimate Estimate Estimate £m £m £m £m The upper limit of principal sums 10 20 20 20 invested for periods of more than 364 days

The purpose of this limit is to contain exposure to the possibility of loss that may arise as a result of the Council having to seek early repayment of the sums invested.

Indicator 11 – Gross debt and the Capital Financing Requirement

2018-19 2019-20 2020-21 Estimate Estimate Estimate Gross debt (Indicator 4) 180 176 172 Capital Financing Requirement (Indicator 3) 200 206 211

Page 92 In order to ensure that over the medium term debt will only be for a capital purpose, external debt should not, except in the short term, exceed the total of the capital financing requirement in the preceding year plus the estimates of any additional capital financing requirement for the current and next two financial years. Based on the definition of this indicator, Waverley’s figures are showing a prudent position.

Page 93 This page is intentionally left blank Agenda Item 12.

WAVERLEY BOROUGH COUNCIL

EXECUTIVE - 10 APRIL 2018

COUNCIL – 24 APRIL 2018

Title:

WAVERLEY HOUSING STRATEGY 2018 - 2023 STRATEGIC HOUSING AND DELIVERY

[Portfolio Holder: Cllr Carole King] [Wards Affected: All]

Summary and recommendation:

This report presents a revised Housing Strategy for Strategic Housing and Delivery. This Housing Strategy will be a key Council document, setting out a clear direction of travel for our Strategic Housing Services over the next 5 years.

The Executive considered the Housing Strategy at its meeting on 10 April 2018, and RECOMMENDS to the COUNCIL that the Housing Strategy 2018-23 – Housing Strategy and Delivery be adopted.

How this report relates to the Council’s Corporate Priorities:

This report relates to the Council’s Community Wellbeing priority.

Financial Implications:

Any additional costs are set out in the action plan.

Legal Implications:

There are no direct legal implications arising from this report.

Introduction

1. The updated Housing Strategy sets out goals and proposes an action plan for the Council’s Strategic Housing and Delivery services for the next 5 years. The document ‘Housing Need and Local Affordability Analysis’ gives a detailed picture of the affordability problem that affects the Borough and highlights the urgent need for a strategic approach to meet housing need.

2. The Council’s Strategic Housing and Delivery service comprises: a. Housing Strategy and Enabling b. Housing Delivery of council new build affordable housing c. Housing Needs d. Private Sector Housing

Page 95 The Strategy

3. The Strategy sets out the Strategic Housing and Delivery objectives for the next five years and sets the scene for affordable housing by placing the Strategy in the context of current policy and practice as well as providing an overview of current funding.

4. Consultation has been carried out via Waverley Homes and People, Making Waves and Survey Monkey. Additionally, Officers have met with the Council’s Housing Association and Parish Council partners to collect data about the main issues affecting affordable housing delivery in the Borough.

5. As a result of this consultation, the overarching goal for every Waverley resident to have a decent, sustainable and affordable HOME is proposed, to be achieved under the following objectives:

a. To increase the delivery of well designed, well built, affordable HOUSING b. To OPTIMISE social and economic well being c. To MAKE best use of existing homes d. To ENGAGE with partners to achieve our joint aims.

6. A draft SMART action plan sets out how these goals can be achieved. A SMART action plan is Specific, Measurable, Agreed, Realistic and Time Bound. Officers will meet to update the action plan on a quarterly basis.

7. The strategy will be reviewed by the Housing Overview & Scrutiny Committee on an annual basis.

Housing Overview & Scrutiny Committee

The Housing Overview & Scrutiny Committee received a briefing on the Housing Need and Local Affordability Analysis at its meeting in January 2018, and Committee Members were invited to provide feedback to Officers on the Draft Housing Strategy.

The Committee reviewed the Draft Housing Strategy at its meeting on 20 March 2018, and endorsed it to the Executive for adoption by the Council.

Recommendation

The Executive RECOMMENDS to the COUNCIL that the Housing Strategy 2018-23 – Housing Strategy and Delivery is adopted.

Background Papers

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

CONTACT OFFICERS:

Name: Alice Lean, Housing Strategy and Enabling Manager Telephone: 01483 523252 Email: [email protected]

Page 96 Name: Andrew Smith, Head of Strategic Housing and Development Telephone: 01483 523096 Email: [email protected]

Page 97 This page is intentionally left blank

Waverley Housing Strategy 2018-2023

Strategic Housing and Delivery

Page 99

Page 100

CONTENTS

EXECUTIVE SUMMARY ...... 2 PORTFOLIO HOLDER’S INTRODUCTION ...... 3 OPPORTUNITIES AND CHALLENGES ...... 5 HIGH DEMAND ...... 5 HEALTH AND WELLBEING ...... 5 GOVERNMENT POLICY ...... 6 FUNDING ...... 7 Council Funding ...... 7 Housing Association Funding ...... 8 LOCAL CHALLENGES TO THE DELIVERY OF AFFORDABLE HOUSING ...... 8 OUR GOALS: ...... 10 H: Increase delivery of well designed, well built affordable HOUSING 11 O: OPTIMISE Social and Economic Wellbeing ...... 16 M: MAKE best use of existing homes ...... 24 E: ENGAGE with partners to achieve our joint aims ...... 30 WE WILL SEE THIS STRATEGY EFFECTIVELY DELIVERED, MONITORED AND REVIEWED ...... 33 WE WILL WORK TOWARDS ACHIEVING OUR GOAL OF EVERYONE HAVING A HOME THROUGH THE FOLLOWING ACTION PLAN ...... 34 EQUALITIES IMPACT ASSESSMENT ...... 50 KEY CONTACTS ...... 52

HOUSING NEEDS AND AFFORDABILITY ANALYSIS ANNEXE 1

GLOSSARY FOR HOUSING NEEDS AND AFFORDABILITY ANALYSIS ANNEXE 2

1 Housing Strategy Page 101

EXECUTIVE SUMMARY

 We are building new affordable homes along with our Housing Association partners. We are using our own land, properties, commuted sums and sites coming through the planning system.

 Each new home will make an immeasurable difference to a local household in need. We are all doing well but we want to do more.

 National Policy has renewed its focus on affordable housing. We live in changing times so this document will be refreshed and updated on an annual basis to reflect changes.

 This strategy provides an overview of our work around new affordable homes and pulls together the wide range of work we do with our partners to pursue our joint aims.

 Our Strategic Housing and Delivery services comprise o Housing Strategy and Enabling o Housing Delivery of council new build affordable housing o Housing Needs o Private Sector Housing

 We consulted with our partners and local stakeholders to agree our goal for everyone to have a HOME: o Increase delivery of well designed, well built affordable HOUSING o OPTIMISE social and economic wellbeing o MAKE best use of existing homes o ENGAGE with partners to achieve our joint aims

 This strategy sets out an action plan for the Council’s Strategic Housing and Delivery Services for the next 5 years.

 Updates to the action plan will be provided on an annual basis.

2 Housing Strategy Page 102

PORTFOLIO HOLDER’S INTRODUCTION

Housing is critical in all of our lives. This Strategy represents a long-term commitment to address the serious housing issues facing those living in Waverley. When you consider that a family wanting to buy an average home in the Borough now needs an income of over £113,000 to afford the mortgage this makes it impossible for so many to own their own home. Our aim is for all our residents to have affordable, appropriate and decent homes which is why we have called this Strategy, ‘Home’.

We are not starting from scratch. We are in a good place having built 37 new Council homes since 2015, with another 60 currently under construction and more planned for the future. Our Housing Association partners have delivered 312 homes since 2012, with 163 currently being constructed and planning permission granted for a further 1,400.

We are one of only 14 Councils to have achieved a Silver Award from the National Practitioner Support Service for preventing homelessness. We continually have exceptionally low numbers of households in temporary accommodation – the lowest in the County. Our Homelessness Strategy 2018-2023 covers this in full and sets out how we intend to make homelessness in Waverley a thing of the past.

Our Private Sector Housing Team works tirelessly to ensure tenants who rent privately get the best service from their landlords. We work to ensure that the money in our Better Care Fund is used to ensure that many of our more vulnerable residents can have their homes properly adapted to meet their needs.

Our achievements might be impressive, but we need to do much more to address the wide range of housing needs across the Borough. There are considerable challenges facing us if we are to ensure everyone has a decent home. Finding land that is both suitable and available, and finding the money to build new homes is key to all future development.

This Strategy is a living document. We will check where we have got to at least each year throughout the life of the Strategy. Government policies and initiatives on housing come thick and fast and we are determined to adapt quickly to any changes introduced - our aim is to provide the housing our residents need.

My vision is that Waverley should be a place that people feel proud to call home.

3 Housing Strategy Page 103

4 Housing Strategy Page 104

OPPORTUNITIES AND CHALLENGES

HIGH DEMAND

1. Affordable housing is central to community wellbeing, a corporate priority in the Waverley Corporate Plan 2016-20191. The provision of affordable housing plays an important role in delivering the Council’s vision to make Waverley a better place to live and work.

2. Proximity to London and an attractive natural landscape make Waverley a popular place to live. House prices in the borough are nearly 13 times average incomes, well beyond the reach of the average family. As at 1 October 2017, there were over 1500 households waiting on Waverley’s Housing Register for affordable or social rented housing. The West Surrey SHMA (2015) demonstrates a need for an additional 314 affordable homes per annum across Waverley.

3. In recognition of the significant affordable housing need, the emerging Waverley Local Plan includes two policies to facilitate delivery of new affordable housing:  Policy AHN1: Affordable Housing on Development Sites will require 30% affordable housing on qualifying new developments.  Policy AHN2: Rural Exception Sites allows small developments to provide affordable housing to meet the needs of residents of rural villages, where this need cannot be met in another way.

4. High property prices in Waverley are pricing out essential workers such as teachers and care workers. Making affordable housing available to low paid workers benefits the local economy by ensuring the continued provision of key services, as highlighted in the Waverley Economic Strategy2.

HEALTH AND WELLBEING

5. Secure, comfortable and adequately heated housing improves quality of life. Waverley’s Wellbeing Strategy3 highlights that access to an adequate supply of affordable housing is critical to our residents’ health and wellbeing.

6. The borough’s older population is set to increase considerably in the coming decades, particularly the number of older people living with dementia and those over 85. Waverley must plan to meet the needs of this growing age group, including their housing needs.

1 www.waverley.gov.uk, Waverley Corporate Plan (2016-2019) 2 www.waverley.gov.uk, Waverley Economic Strategy (2018) 3 www.waverley.gov.uk Wellbeing Strategy (2016-2021)

5 Housing Strategy Page 105

7. Waverley’s Ageing Well Strategy4 sets out an ambition to enable older people to remain independent for as long as possible and to lead fuller lives for longer. Older residents may benefit from adaptations or assistive technology in their current home to enable them to live independently for longer. It will also be necessary to develop more specialist sheltered, extra care and accessible housing for older people who need to move to more suitable accommodation as they become frailer, as set out in this strategy’s Action Plan.

8. The threat of homelessness has a detrimental impact on a person’s wellbeing. Our Housing Options Service works hard to prevent homelessness in Waverley. The key priorities of homelessness prevention, accommodation, improvement, support and partnership working enshrined in our Homelessness Strategy are shared by this strategy and reflected in the Action Plan.

GOVERNMENT POLICY

9. The tragedy of the Grenfell fire has thrown affordable housing into the spotlight. Fire safety has since necessarily dominated discussions within the sector and there is a renewed focus on meaningful resident involvement. At the same time, recent housing policy changes, including a 1% social and affordable rent reduction, welfare reform, rising demand and reducing social care budgets, mean that housing providers face tough financial challenges.

10. The Housing White Paper 20175 describes the housing market as ‘broken’ and ‘one of the greatest barriers to progress in Britain today.’ It acknowledges the need for a complex range of solutions to a long-term problem: more homes are needed in the right places, building needs to be faster, with more diversity in the market and more help for people in housing need now. The White Paper includes a positive drive to back Local Authorities to build6.

11. The Autumn 2017 Budget announced £15.3bn of new financial support for housebuilding over the next five years. This takes the total to at least £44bn of capital funding, loans and guarantees to help build 300,000 homes annually by the mid-2020s. This is a level of housebuilding not witnessed since 1970 and is welcomed in this area of high housing need. In Waverley, the key will be building the homes in the right places and ensuring that local people can afford them. For many local households, social rents remain the only truly affordable option. Therefore, new funding will need to support affordable homes in a range of affordable tenures in order to be effective.

4 www.waverley.gov.uk Ageing Well Strategy (2015-2018) 5 Ministry of Housing, Communities and Local Government, Housing White Paper (2017) 6 Paragraph 3.27

6 Housing Strategy Page 106

12. The Welfare Reform Act 20127 introduced Universal Credit, the Spare Room Subsidy, Benefit Cap, Local Council Tax Support Scheme and replaced Disability Living Allowance with Personal Independence Payments. Waverley must work both to implement welfare benefit changes and to mitigate their effect, supporting our tenants to sustain their tenancies and avoid rent arrears.

13. The Housing and Planning Act 20168 introduced a number of new housing policies including: Starter Homes, ‘pay to stay9’, extending Right to Buy to Housing Associations, the sale of higher value local authority homes, and a new deregulated regime for social landlords. The extension of the Right to Buy to Housing Association tenants would be funded by requiring councils to sell their higher value council homes, or pay an equivalent levy to government. If implemented, this duty would likely impact on the availability of council homes within the borough, placing additional pressure on Housing Register and homelessness services.

FUNDING

Council Funding 14. The Government introduced Housing Revenue Account (HRA) self financing10 in 2012. The old National Housing Subsidy system required us to return more than half our rental income (around £12.8m pa) to the Treasury. Under HRA self financing, councils can buy themselves out of this system by taking out a mortgage on their housing stock. The Autumn 2017 Budget announced that in high demand areas, the amount councils may borrow will be increased, allowing £1bn extra borrowing for council housebuilding up to 2021/22.

15. Waverley secured a loan of £189m in 2012, enabling us to invest in new homes for the first time in many years. The costs of managing our stock, carrying out day-to-day repairs and servicing our debt are funded by our rental income. The balance of that income is now available for building new homes, buying existing properties and acquiring land to build on or to reserve for future use

16. Our HRA Business Plan 2012-4211 identified £261 million to invest in new affordable homes over the next 30 years. A 2016 review of the business plan considers asset disposals and other ways of generating income to fund affordable housing development. In addition, we will make use of retained capital receipts, commuted sums, grant funding from Homes England (formerly the Homes and Communities Agency) and income from the sale of properties from the Housing Revenue Account to deliver 20 new council affordable homes per year during the life of this plan.

7 www.legislation.gov.uk Welfare Reform Act (2012) 8 www.legislation.gov.uk Housing and Planning Act (2016) 9 Subsequently not implemented by Government 10 www.gov.uk (2012) The Housing Revenue Account Self Financing Determinations 11 www.waverley.gov.uk Housing Revenue Account Business Plan (2012-2042)

7 Housing Strategy Page 107

17. Rental income is crucial to the viability of our Business Plan. However, under the Welfare Reform and Work Act 201612, Housing Associations and Councils must reduce social housing rents by 1% pa for four years from 2016-2020. This has reduced social landlords’ rental income and their capacity to fund new homes.

18. As a development partner with Homes England, Waverley can charge Affordable Rents on new council homes. Affordable Rents were introduced by the government in 2011 to enable providers to charge up to 80% of market rent. Traditional social rents are lower, at around 60% of the market rent. Charging higher Affordable Rents increases borrowing capacity to fund new homes in a climate of limited government grant. Affordable Rents in Waverley will not exceed the Local Housing Allowance, so that applicants on lower incomes have equal opportunity to access these homes.

Housing Association Funding 19. Housing Associations draw on their own resources to fund new affordable homes. They also borrow commercially and can access Homes England grant. The Homes England (2016-21) Shared Ownership and Affordable Homes Programme is expected to deliver 165,000 homes across England. A further £7 billion of funding was released for affordable housing development in January 2017. 20. Like councils, Housing Associations have faced the challenges of the 1% rent reduction, benefit cap resulting in rent arrears and also the extension of the Right to Buy to their tenants. Each association has had to review its own business plan and development programme. Some have subsequently taken the decision to merge with others to form larger, more robust and competitive organisations, creating efficiencies which will enable them to develop more affordable homes.

LOCAL CHALLENGES TO THE DELIVERY OF AFFORDABLE HOUSING

21. Much of the countryside in Waverley is designated as Green Belt, an Area of Outstanding Natural Beauty (AONB) or Area of Great Landscape Value (AGLV). The lack of suitable, available land in Waverley on which to build new homes means that developable land comes at a premium.

22. The planning system fails to deliver affordable housing in the numbers needed to meet local need. The National Planning Policy Framework (2012) included a series of tests on viability, a requirement for a five year land supply and a presumption in favour of sustainable development. These changes have considerably curtailed the ability of councils to secure affordable housing through Section 106 agreements with developers.

12 www.legislation.gov.uk Welfare Reform and Work Act (2016)

8 Housing Strategy Page 108

23. The central imposition of Right to Buy rules on new affordable homes built by councils is counterproductive. Local authorities do not receive all monies from Right To Buy sales. This policy removes one of the core incentives for new housebuilding: the new housing and its income streams cannot be secured over the long term nor can homes be replaced like-for-like when sold. The Local Government Association forecast13‘66,000 council homes will be sold to tenants under the existing Right to Buy scheme by the end of the decade. Current complex rules and restrictions can make it difficult for councils to rapidly replace the majority of these homes sold.’

24. In recent years Housing Associations have been unable to deliver much-needed social rented homes due to a lack of grant funding. The majority of new build affordable homes are for Shared Ownership and Affordable Rent, however, for some households, a social rented home is the only affordable option. Some associations plan to develop both affordable and private housing on s.106 sites, to generate income from private sales to fund the affordable housing on the development. This cross-subsidy model may bring forward more social rented homes in future. However, in a continued climate of limited grant funding, the expectation will be that free land is provided to Housing Associations, either by a private developer or public body. Homes England is encouraging landlords to make the case for social rented homes to the Government and for the sector to assess the economic and social value of social rent.

13 Local Government Association (LGA), 2016, 80,000 council homes could be lost by 2020, press release. http://www.local.gov.uk/media-releases/-/journal_content/56/10180/7668062/NEWS#sthash.8O3ep93I.dpuf

9 Housing Strategy Page 109

OUR GOALS: YOUR Page 110 Page H O M E

Increase delivery of well OPTIMISE MAKE ENGAGE designed, well built affordable social and economic well being best use of existing homes with partners HOUSING to achieve our joint aims

10 Housing Strategy Annexe 1

Our goals:

H: Increase delivery of well designed, well built affordable HOUSING

Place- shaping to Enable New Affordable Homes

25. Place-shaping is a way in which we can promote and shape the wellbeing of the borough. It influences how we can provide homes that are affordable for all sections of our community.

26. Our planning functions and role as a landowner make us uniquely positioned to assist with place -shaping on a borough wide and specific area basis. For example, the Brightwells regeneration scheme used master planning and place- making to engage local stakeholders through the planning process on council- owned land. The process highlighted the affordable and private housing, leisure, recreation and community service benefits of the scheme. We also led on the production of a development brief for what became the Milford Green development, on land formerly owned by Homes England around Milford Hospital. This was a unique but complex site. The development brief helped to take the scheme through the planning process by making objectives and expectations clear from the outset.

Therefore, over the next 5 years, we will

H.a.1 Use our place-shaping skills to work with our partners from other agencies on Dunsfold Aerodrome through the delivery of a Local Lettings Plan H.a.2 Produce a template s.106 agreement in order to maximise opportunities for affordable housing and promote transparency. H.a.3 Support the delivery of Local Plan, Part 1 and Neighbourhood plans including setting out our expectations about the tenure of affordable housing.

11 Housing Strategy Annexe 1 Page 111

Building new affordable homes which are sustainable and energy efficient

27. Our vision is to make Waverley a better place to live and work for all. We have a long-term interest in the quality of new affordable homes and the neighbourhoods we create, both through our partnerships and directly on council new build schemes. We have set ourselves ambitious targets for our council housebuilding programme, both for the number of new homes to be developed and our quality and design standards. Through this, we want to redefine expectations about affordable housing by developing attractive, well designed, well built homes which provide excellent places for people to live. Our aim is for these new homes to enhance their surroundings and protect the local character of towns and villages.

28. Our current programme involves regenerating neighbourhoods and mixed use schemes with great design whilst delivering difficult sites, addressing council priorities and target markets. These include families, single people, meeting local needs and downsizing. We want to bring forward new and creative delivery solutions on council-owned land, redeveloping disused properties or those no longer fit for purpose in order to make best use of our land and resources. We also want to engage our local communities to bring stakeholders on the journey with us.

29. We are committed to promoting effective management of energy use and carbon emissions and to demonstrating leadership in these areas. Reducing energy is central to Waverley’s corporate priority to deliver value for money, as reflected in our Energy Efficiency Plan14. We have a great opportunity to promote energy efficiency and energy conservation through our new build programme. We will strive to deliver cost effective affordable housing that protects our residents from rising energy bills.

30. We are keen to promote well designed, well built affordable housing, providing attractive new homes and excellent places for people to live. We want to enhance neighbourhoods for new tenants and their neighbours. Consequently, we have published Quality and Design Standards to set out the principles and aspirations that we seek for our new homes. The Church View development in Godalming won two Civic Design Awards from the Godalming Trust: the New Building category and the coveted Highly Commended Award, making it the overall winner. We will build on this success when designing future developments.

14 www.waverley.gov.uk Energy Efficiency Plan (2015-2020) 12 Housing Strategy Annexe 1 Page 112

Therefore, over the next 5 years, we will:

H.b.1 Develop new council homes which meet criteria specified in Waverley New Build standards15. H.b.2. Carry out ‘Do You Like Where You Live?’ surveys on a sample of new private, Housing Association and council new build homes on an annual basis H.b.3 Develop a new Affordable Housing Delivery Plan every 5 years

15 www.waverley.gov.uk (2013) Design Standards and Specifications for New Council Homes 13 Housing Strategy Annexe 1 Page 113

Working in Partnership with Housing Associations and other housing providers

31. We don’t just build houses by ourselves. We work to enable, support and encourage new affordable homes to be built by a range of our partners in order to make a real difference to people’s lives. We have an excellent track record of working in partnership with our Housing Association and community partners. Together, we have brought forward the 50 affordable homes currently on site and the 1,400 affordable homes with planning permission that could come forward over the next 10 years.

32. Our partnerships make perfect sense. We are all working to meet housing need and create good quality environments, with beautiful homes and neighbourhoods where people and families thrive. We share a vision to create the best affordable housing outcome for local households.

33. New and existing partnerships are an essential part of bringing forward new affordable homes. Changes in housing have altered the way we work together. We are always finding new ways to achieve our shared aims and accomplish more together than just the sum of our parts.

34. Our Housing Association partners have an excellent track record and bring their valuable experience in developing affordable housing in our borough. In some areas, a Housing Association may own more affordable housing stock and have a greater management presence than us. We want our customers to have great places to live, regardless of who is their landlord. We will work together to ensure that new homes are built by the organisation best placed to develop in a particular area, and to provide the most cost effective, high quality housing management services. We particularly benefit from the expertise of our specialist housing association partners, who lead on development to meet the specific needs of rural villages and the housing requirements of our residents who have care and support needs.

35. We will continue working with Housing Associations in traditional partnerships where this is the best solution. For example, working together on council land outside the settlement boundary to produce Rural Exception sites will provide affordable homes for local people which will be protected in perpetuity. This differs to new council built affordable homes which would be subject to the Right to Buy.

36. Mount Green Housing Association was very pleased to receive two awards for Hopfield Close, by winning the ‘New Buildings’ category and commended in the

14 Housing Strategy Annexe 1 Page 114

‘Sustainable Design and Construction’ category and was featured in Inside Housing’s Top Affordable Housing Developments of 2013.

37. We are also developing new partnerships with Housing Associations and private developers in bringing forward affordable housing.

Therefore, over the next 5 years we will

H.c.1 Establish 3 new models of development to bring forward additional, affordable homes to meet local need H.c.2 Enable the development of s.106 sites by assisting throughout the planning and development process H.c.3 Work with our Housing Association partners to facilitate the development of their own sites H.c.4 Work with our partners to bring forward 540 affordable homes at Dunsfold Aerodrome. H.c.5 Support our Housing Associations partners in achieving the best possible outcome for residents and the environment on new affordable housing schemes in the borough.

15 Housing Strategy Annexe 1 Page 115

Our Goals:

O: OPTIMISE Social and Economic Wellbeing

Enabling Affordable Housing to Support a Vibrant Economy

38. This strategy will align with our approach in our emerging Economic Strategy, where the lack of affordable housing is identified as a threat to Waverley’s economic development.

39. In a high value area like Waverley, it is difficult to recruit staff to shops, schools, coffee shops, care homes and other local services, because employees on low incomes cannot afford to buy or rent housing on the open market. Equally, workers are unlikely to commute long distances to undertake low paid work. Affordable housing provided in suitable locations, can support the local economy and sustain essential local services: “Without new homes businesses will be forced to move out of this area - and possibly out of the UK - and into areas with a larger available labour pool. A lack of affordable housing also means people increasingly commute into the area, causing further congestion on our roads.” Geoff French CBE, Chairman, Enterprise M3 LEP16

40. A survey of employers in Waverley17 showed 88% of respondents viewed a lack of affordable housing in the local area as having ‘some or a great deal of impact’ on their ability to recruit or retain staff. 83% of respondents reported some or great difficulties in recruiting new staff. 68% of respondents reported that employees commute into work because they cannot afford to live in the area.

41. In addition to housing for low paid workers, the West Surrey Strategic Housing Market Assessment (2015) has noted the importance of housing availability for first time buyers and young families, students, new graduates and potential start- up business, and for the retirement market. Waverley has the highest number of home workers in Surrey; however, infrastructure to support this in rural areas is not consistent across the borough. Surrey County Council is working to provide superfast broadband in rural areas which will assist home working. Our partner housing associations play an important role in supporting their residents into work, and in turn, supporting the local economy.

16 South East Councils (2017) Unblock the Housing Blockers 17 www.waverley.gov.uk (2014) Impact of Housing Costs and Affordability on Local Businesses 16 Housing Strategy Annexe 1 Page 116

Therefore, over the next 5 years we will: O.a.1 Work to maximise delivery of affordable housing in a range of types and sizes to meet the needs of people working in Waverley. O.a.2 Continue to prioritise households working in Waverley and those seeking employment in Waverley for shared ownership properties.

17 Housing Strategy Annexe 1 Page 117

Meeting Housing Needs in our Rural Communities

42. Affordability pressures are particularly keenly felt in Waverley’s rural villages, where house prices are 20% higher than those in urban areas18 and there is less affordable housing. In 2017, Waverley is ranked as the most expensive rural area in the country, with an average house price of £487,82419. There is also a lack of affordable public transport to serve people living in Waverley’s rural areas.

43. Many households want to stay in the rural communities where they were brought up or lived and worked for a long time, but they are often left with no choice but to move away. Just over 45% of those living in rural areas are aged below 45 years, compared with almost 60% in urban areas20. As young people and families move out, the character of a rural village can change dramatically and local services such as shops and schools may be forced to close. This lack of affordable housing also has a knock-on effect on the ability of local employers to recruit and retain staff, impacting on businesses, services and the local economy.

44. Small developments of affordable housing on the edges of villages (rural exception sites) can enable young people and families to stay in an area, which in turn helps to sustain local facilities and support the rural economy. New affordable homes also help to ensure that the village continues to support a balanced community, with a range of age groups and incomes.

45. English Rural Housing Association estimates that for every £1 the organisation invests in local needs housing in rural communities, the social return to the community exceeds £6. Social return could include trade in Post Offices and shops; viability of schools; employment; security of tenure; family and social support networks; and overall wellbeing.

46. In recognition of the particular difficulties rural communities face, rural local authorities in Surrey have formed a partnership to fund a Rural Housing Enabler. The role is to work with communities and parish councils and to understand local housing need and to bring forward rural exception sites. The partnership also providers a Community Led Housing Project to work with local communities.

Therefore, over the next 5 years we will: O.b.1 Work with the Rural Housing Enabler to commission at least 2 x housing needs surveys per annum to measure need and support for rural exception schemes. O.b.2 Jointly manage the Surrey Community Housing Project in a partnership with 7 other local authorities for a period of 2 years to work with local communities who wish to develop their own housing projects.

18 www.lloydsbankinggroup.com Halifax Rural Housing Review 2017 19 www.lloydsbankinggroup.com Halifax Rural Housing Review 2017 20 www.gov.uk Statistical Digest of Rural England 2018 18 Housing Strategy Annexe 1 Page 118

Preventing Homelessness

The Homelessness Strategy 2018-2321 and action plan set out our approach to tackling homelessness. This Housing Strategy aligns with our Homelessness Strategy without duplicating the issues and priorities set out in the Homelessness Strategy.

47. The Homelessness Strategy sets out the following ambitions:  Homelessness prevention: Providing advice and assistance before crisis point is reached, to prevent a household becoming homeless. The Homelessness Reduction Act (due to come into force in 2018) will also require us to relieve homelessness  Accommodation: Maximising existing affordable housing and making better use of the private rented sector to meet the needs of households threatened with homelessness  Support to households to maintain their tenancy or keep their existing home  Partnership Working across organisational boundaries to offer holistic support to households at risk of homelessness

48. An important part of our role as a strategic housing authority and central to the early prevention of homelessness is our administration of the Housing Register and operation of our choice-based lettings scheme ‘Homechoice’. Affordable homes are a scarce resource, particularly in Waverley, an area with limited land available for development. Our allocations service ensures that affordable homes are allocated fairly and in line with our statutory duties and that tenancies are sustainable. Therefore, over the next 5 years we will: O.c.1 Deliver the Homelessness Strategy Action Plan. O.c.2 Continue to ensure fair and sustainable allocation of affordable homes in Waverley through our Allocation Scheme22. O.c.3 Work with our partners to enable the development of new housing across a range of tenures to meet the needs of households threatened with homelessness.

21 www.waverley.gov.uk Homelessness Strategy (2018-2023) 22 www.waverley.gov.uk Allocation Scheme (updated September 2017) 19 Housing Strategy Annexe 1 Page 119

Meeting Housing Needs of Older People

49. Our older population is set to grow considerably in the coming decades, particularly the number of older people living with dementia and those over 85. Meeting the needs of our rapidly growing older population is one of the biggest challenges we face. We believe that we are best equipped to rise to this challenge by working together across organisational boundaries to achieve the best possible outcomes for our older residents. We will use our planning policies to help meet these needs, through Policy AHN3 in our emerging Local Plan.

50. Waverley’s Ageing Well Strategy23 sets out an ambition to enable older people to remain independent for as long as possible and to lead fuller lives for longer. Good quality housing improves quality of life. Conversely, unsuitable housing can have a detrimental effect on the very elderly and most vulnerable in our society.

51. Our ambition is to see all of our older residents housed in accommodation that is safe, secure and affordable. We try to achieve this in a number of ways, working closely with health and social care partners. Our Careline service, run locally by Waverley officers, in partnership with Chichester Careline, provides assistive technology to enable older residents to stay in their own home for longer. We also operate a Care and Repair service in partnership with Guildford Borough Council. We help older residents who need affordable housing to move to suitable sheltered or Extra Care accommodation. However, there is significant financial pressure on services for older people across Surrey. Local authority housing related support funding for older people will end in April 2018. We will work to maintain existing sheltered housing services as far possible and we will seek to maximise support for our older residents in the context of ongoing budget reductions.

Therefore, over the next 5 years we will: O.d.1 Enable older people to stay in their own home for longer, through the use of assistive technology, aids and adaptations. O.d.2 Support older people to find suitable alternative accommodation, when required; whether downsizing in the private sector, or accessing specialist housing to meet their care needs. O.d.3 Plan strategically for the development of a range of housing options for older people including Extra Care housing and dementia specialist care, in partnership with Surrey County Council Adult Social Care Commissioning team. O.d.4 Commit to find a site for at least 1 new build Extra Care Scheme

23 www.waverley.gov.uk Ageing Well Strategy (2015-2018) 20 Housing Strategy Annexe 1 Page 120

Meeting Housing Needs of Younger People

52. Young people are marginalised by the housing system and are susceptible to the impact that insecure or inappropriate housing can have on their lives. A combination of welfare reform, low wages, insecure employment and housing policy developments has led to limited availability of affordable and suitable housing for young people in Waverley, especially those who are single or childless couples. In the era of “generation rent”, huge numbers of young people are locked out of home ownership and face limited access to declining numbers of affordable homes for rent. As a consequence, young people are living with relatives and friends for longer than either party would wish, and many are forced out of the area they grew up in order to find housing they can afford.

53. Young people with specific needs who require additional housing related support include: young parents, care leavers, young people with mental health issues, young people in recovery from substance misuse and young people with a history of offending.

54. However, national and local policy changes have disproportionately affected this age group. Housing related support funding was withdrawn from the 21-25 age group across Surrey in 2017. This presents a significant challenge to supported housing providers and to us in ensuring that the needs of this group do not go unmet. Under new housing benefit rules, single adults aged under 35 receiving housing benefit are expected to live in shared dwellings. Demand is therefore likely to increase in the private sector for this type of accommodation.

55. There is a pressing need across Waverley for smaller affordable homes suitable for young single people and couples. The West Surrey Strategic Housing Market Assessment (2015) recommends that 40% of new affordable homes developed in Waverley should be 1 bedroom accommodation. We continue to work to enable the development of affordable housing in the right sizes and types to meet local need. This will include using our planning policies such as AHN1 and AHN2 in our emerging Local Plan.

Therefore, over the next 5 years we will: O.e.1 Work with partners to increase provision of suitable specialist and supported housing for young people where needed. O.e.2 Bring forward a range of types and sizes of affordable homes for general needs through the planning process, to include smaller units suitable for young single people and couples. O.e.3 Work to retain existing resources and facilities for young people in housing need in the borough. O.e.4 Work in partnership and improve communication with Surrey County Council Children’s Services and Families teams to ensure that young people receive the housing related support they need.

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Meeting Housing Needs of People with Disabilities

56. Affordable housing for people with support needs in Waverley is provided by a number of specialist housing providers to meet the needs of specific client groups. These include people with learning disabilities, people with mental health needs and people with a physical or sensory disability.

57. Specialist housing providers bring their valuable experience and expertise to local projects which make a real difference to the lives of individuals and to the community around them. Transform Housing & Support has used social value tools to measure the impact of the support provided and place a financial value on the outcomes achieved. It is estimated that for every £1 Transform invests in supported housing, the social value generated is £5.97. Social value might include, for example, less depression and anxiety; fewer hospital admissions; lower local authority housing costs; reduced pressure on alcohol/drug care and treatment services.

58. We have worked in partnership with the Surrey County Council Adult Social Care Commissioning team and with local and national specialist providers in recent years to successfully deliver a number of new and redeveloped supported housing schemes in Waverley. We also look to include accessible units on our own new build schemes when possible, for example at Church View, Godalming. However, reductions to housing related support budgets brings significant challenges to the future funding of supported housing in Waverley and to the specialist providers supporting our residents.

Therefore, over the next 5 years we will: O.f.1 Continue to work closely with Adult Social Care Commissioners to ensure that new development meets the identified and emerging needs of the groups above and to explore alternative models of support where necessary. O.f.2 Explore opportunities for accessible housing provision on new council owned sites.

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Meeting Housing Needs of Travellers

59. We have an ambition to make suitable housing available to meet the needs of specific groups in our borough, recognising the diversity of these needs. Our approach to meeting the needs of Gypsies and Travellers in Waverley is set out in the Local Plan. The Gypsy and Traveller Accommodation Assessment (2017) concluded that we need a further 27 pitches for Gypsies and Travellers and two Travelling Showpeople plots from 2017 to 2032.

60. Our aim is to promote inclusive, sustainable communities. We seek to ensure that accommodation needed for Gypsies and Travellers is provided in the most suitable locations with the least impact on the environment.

Therefore, over the next 5 years we will: O.g.1 Increase supply of pitches and plots for Travellers in suitable locations to meet need, as per Local Plan AHN4 in our emerging Local Plan.

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Our Goals:

M: MAKE best use of existing homes

The Private Rented Sector

61. High local house prices and a challenging mortgage market mean that home ownership is still a distant prospect for many people. Meanwhile, the Private Rented Sector is now the most flexible, accessible and affordable housing solution for 11% of local households. Even so, the median private sector rent for a two bedroom property of £1,050pcm in Waverley is well above that of England (£650pcm) and the South East (£845pcm24).

62. England’s Private Rented Sector has been growing at a size and speed unprecedented throughout the last century25. Furthermore, this figure is likely to increase over the next few years, as a result of both policy and socio-economic trends. The Private Rented Sector is therefore an important aspect of the housing market, and concerns a significant and growing section of an increasingly mobile population.

63. In most cases, the sector provides high quality housing opportunities for those without access to home ownership or social housing. The Private Rented Sector can make an important contribution to preventing homelessness by tackling fuel poverty, carbon reduction, increasing housing supply and widening choice. It can also make a positive difference to older people’s social care, health protection and improvement. Therefore it is essential we have a thriving, high quality, accessible, affordable Private Rented Sector which can provide an attractive housing offer to people who wish to come to Waverley to live and work. The sector can also play a part in ensuring that Waverley retains graduates and professional people who might otherwise have looked to find accommodation outside the borough. The Private Rented Sector is also a hugely important source of accommodation for students studying at University of Creative Arts in Farnham.

64. A major driver in our approach to the Private Rented Sector is the power introduced by the Localism Act 2011 for housing authorities to discharge a homelessness duty via the offer of a private rented tenancy. In order to make full use of this power, and to ensure applicant satisfaction with accommodation, it will be necessary to further develop relationships with landlords to deliver a supply of quality homes for this purpose.

24 NHF, 2016 25 LGiU (2013) House Proud; How Councils Can Raise Standards in the Private Rented Sector 24 Housing Strategy Annexe 1 Page 124

65. The Welfare Reform Act (2012) introduced a wide range of reforms designed to make the benefits and tax credits system fairer and simpler, improving financial incentives to encourage work. These reforms are having a significant impact on the Private Rented Sector in the borough. Increased evictions and end of tenancies by landlords reluctant to take benefit claimants are examples of this. Securing affordable private rented accommodation at the Local Housing Allowance level and the increased call on discretionary housing payments to ‘top- up’ rents in the Private Rented Sector are both a challenge. An increase of £125m over two years in Targeted Affordability Funding for Local Housing Allowance claimants in the private sector struggling to pay their rent was announced in the 2017 budget. The chancellor also announced a consultation which will be launched to collect views on barriers to longer tenancies in the Private Rented Sector.

66. The traditionally held view of the Private Rented Sector as a tenure of last resort and as such a poor quality option is disappearing. However, only very small parts of the private rented sector are badly run and of poor quality. As well as affecting households in need, this is also an issue for the sector, which can suffer reputational damage from the poor performance of a minority of landlords. It is also a challenge for local authorities, who hold responsibility for dealing with sub- standard conditions in private rented housing and have a duty to safeguard the wellbeing of all their citizens and pick up the costs of many of the problems created by poor housing.

67. Although the primary responsibility to maintain a private property lies with the owner, we recognise that some people will have difficulty meeting these responsibilities. We therefore provide a range of services to support occupiers in need of support. Our approach to improving the Private Rented Sector includes pro-active engagement with the sector and, where necessary, enforcement. Tackling the issue of “rogue” landlords is one of our commitments. It is recognised that it will be largely by using enforcement powers contained within the Housing Act 2004 that the worst landlords will be dealt with. However, we believe that by encouragement, incentive and engagement we can improve the overall standard offered by the sector to levels already being achieved by good landlords in the borough.

Therefore, over the next 5 years we will

M.a.1 Ensure there are sufficient good quality private rented homes available to enable to council to discharge the homelessness duty into the private rented sector26 including encouraging provision of purpose built private rented accommodation M.a.2 Explore the role we can play in enabling the University of Creative Arts to

26 Housing Service Plan 2017-18, at least 1 family secured tenancy in private rented sector 25 Housing Strategy Annexe 1 Page 125

address the lack of student accommodation in Farnham including the use of private landlord accommodation27 28 M.a.3 Review condition of the Housing stock M.a.4 Support landlords through our Landlord Resource Centre29

27 Waverley Economic Strategy 2017-22 28 http://www.waverley.gov.uk/downloads/file/5776/cultural_strategy_phase_2_action_plan_2016-19 29 www.waverley.gov.uk Landlord Resource Centre 26 Housing Strategy Annexe 1 Page 126

Houses in Multiple Occupation

68. Safe, well managed Houses in Multiple Occupation (or shared houses) provide affordable housing for a range of residents, increase housing choice and reduce homelessness, with approximately 500 Houses in Multiple Occupation in Waverley as at April 2017, of which 50 are licensable.

69. The Government supports local authority action to improve the quality of private rented housing. The Housing Act 2004 introduced a number of provisions relating to Houses in Multiple Occupation, both mandatory and discretionary. Under the legislation there is a requirement for certain higher risk Houses in Multiple Occupation to be licensed by the local authority. These are properties of three or more storeys with five or more occupiers. This allows us to set certain standards and conditions for the person responsible for the Houses in Multiple Occupation and anyone else associated with it to be expected to meet - in particular, works to improve fire safety and the provision of amenities. Licensing requirements will be extended to all Houses in Multiple Occupation to all homes with 5 or more occupants, regardless of the number of storeys from April 2018. The minimum room size will also be specified.

70. Legislation which took effect in January 2012 extended the shared room rate to single welfare recipients under 35 and as a result there may be an increase in demand for Houses in Multiple Occupation from vulnerable groups. The legislation and the regulations associated with the Houses in Multiple Occupation sector are complex, making it difficult for landlords and tenants to fully understand their rights and obligations. The main challenge is to make sure that Houses in Multiple Occupation are safe and maintained to the right quality.

Therefore, over the next 5 years we will

M.b.1 Develop our knowledge of the number and location of private Houses in Multiple Occupation in Waverley M.b.2 Educate and inform landlords, managing agents, letting agents as well as statutory and voluntary agencies about the standards required in Houses in Multiple Occupation M.b.3 Educate and inform tenants about their rights and responsibilities M.b.4 Support the retention of a well-managed, good quality Houses in Multiple Occupation market M.b.5 Enhance the quality of Houses in Multiple Occupation stock and private sector in general by tackling poor property and management standards where there are vulnerable tenants

27 Housing Strategy Annexe 1 Page 127

Home Improvement

71. In addition to providing mandatory Disabled Facilities Grants, we have put together a package of measures to enable energy efficiency and home safety measures to take place in the homes of those Waverley residents who need it most.

72. We received £640,000 in Better Care Fund from the Department of Health in 2017/18 for adaptations and home improvements as part of its Capital Programme. A budget of £590,000 has been allocated for Disabled Facilities Grants and £50,000 to provide discretionary Safe and Warm Grants, as set out in the Home Improvement Policy. In addition, we receive approximately £10,000 each year from grant repayments; these receipts are fed back into the capital grant budget.

Therefore, over the next 5 years we will

M.c.1 Contribute to the Decent Home Standard in the private sector M.c.2 Increase grant funding on energy efficiency and home security works to £50,000 per year M.c.3 Implement a new Home Improvement Policy to maximise use of the increased government funding in order to help meet the objectives of the Care Act 2014. M.c.4 Help to reduce hospital/care home admissions, care packages and delays in hospital discharge M.c.5 Remove housing hazards and improve the condition of the local private sector housing stock M.c.6 Increase speed of private disabled adaptations from date of initial enquiry to date of completion of works

28 Housing Strategy Annexe 1 Page 128

Empty Homes

73. Empty and derelict properties are a wasted resource that could be better used to relieve homelessness and address housing needs. Empty homes can also have a negative impact on their surrounding communities.

74. Consequences of long term empty properties can include attracting crime, thereby reducing the value of neighbouring properties, being an eyesore, costing time and money to local authorities and being costly for the owner to maintain. There are clear economic and social benefits in overcoming these problems by returning empty homes to occupation.

75. In the Chancellor’s budget in November 2017, the Government announced its intention to allow councils to increase the council tax premium applied to long term empty properties in their areas from 50% to 100%. Waverley currently applies the 50% premium as the Council considered it to be an important measure to encourage owners of empty homes to bring them back into use.

76. There are currently 110 long term empty homes in the Borough. It is proposed to increase Waverley’s premium to 100% at the earliest opportunity once the Government has published the necessary regulations and given authority.

Therefore in the next 5 years we will

M.d.1 Work with local groups via the Community Housing Project Manager to identify local priorities for improvements including an assessment of empty homes work M.d.2 Develop and maintain a comprehensive database of empty homes so that information becomes more accessible and provides for better monitoring M.d.3 Engage with owners to provide advice to encourage properties to be re- occupied or prevent them from becoming vacant, for example through our Tenant Finder scheme. M.d.4 Work with other councils and housing providers to access government funding opportunities M.d.5. Increase Waverley’s premium to 100% on long term empty properties at the earliest opportunity once the Government has published the necessary regulations and given authority.

29 Housing Strategy Annexe 1 Page 129

Our Goals:

E: ENGAGE with partners to achieve our joint aims

77. We work in partnership with a wide range of organisations and stakeholders to deliver high-quality, innovative services for people in housing need. Our partnership initiatives with statutory, voluntary and private organisations and community groups come in a range of shapes and sizes, depending on the issue and what is required. We will continue to work to find new models of joint working and strengthen our highly-valued, established partnerships to make them even more successful.

Partnerships with Housing Associations

78. Waverley Borough Council has a long and successful track record of working in close partnership with local Housing Associations. It makes perfect sense for us to co-ordinate our activities and form close joint working arrangements. We are all supporting people in housing need in the borough and share many common aims, as illustrated in Figure 1. Service users and providers benefit from good quality joint working through better, more efficient services.

Accessible housing To improve people’s lives and support for through high quality homes Building homes. independent living Making a difference and services Developing futures

To provide and manage housing services which help …everyone has a to sustain the economic and A great home for Housing Solutions quality home that they social life of rural everyone for Local can afford communities Communities

For everyone to have the To help people to live chance to build their lives independent and fulfilling from the base of a good lives A business with social objectives home

30 Housing Strategy Annexe 1 Page 130

More homes. To provide Quality Care and Bright futures Support to people Making Waverley a better place to live and work Figure 1: Values of Housing Associations and Waverley Borough Council developing affordable housing

Partnerships with Local Authorities

79. We work closely with our counterparts from other local authorities. We are working in partnership with 7 other Surrey districts and boroughs and Surrey Community Action to support and develop community-led housing. This has involved establishing a Community-Led Housing Project; to work with local groups to secure opportunities for the development of community led housing schemes. This is a true partnership project, built on engaging and developing relationships with communities, housing organisations, parish councils, local authorities, landowners, developers, agents, planners and other partners to bring forward sites and solutions to meet local need. This approach presents another new model of the delivery of affordable housing.

80. We work in partnership to study our sub regional housing market with Guildford and Woking Borough Councils. We also have a joint Home Improvement Agency with Guildford; ‘Guildford & Waverley Care and Repair’. This has been in operation for several years. We are also looking to have a joint Handyperson service now that the Age UK handyman scheme has finished.

81. Our strong rural partnerships have created an excellent track record of affordable homes for local people. By collaborating with parish councils, local communities, specialist rural Housing Associations and the Rural Housing Enabler, we have helped to create new homes in our rural villages and hamlets where they are so desperately needed. We work alongside the other rural districts and boroughs as part of the Surrey Rural Housing Enabling Project to progress rural affordable housing. We work closely with the York Road Project, Woking where we have purchased 2 bed spaces for single homeless Waverley clients. The Project also provides outreach support to those who are rough sleeping or at risk of rough sleeping in Waverley. To help with ‘move on’ for Waverley clients currently living in the Woking Project, the York Road Project also leases a unit of council accommodation in Chapel Court, Milford from the council. We also work closely with Woking and Guildford Borough Councils, the York Road Project and Riverside in securing funding for a mental health support service to rough sleepers.

31 Housing Strategy Annexe 1 Page 131

Public-Private Partnerships

82. The right affordable housing partnerships on new developments can assist us in creating the right tenure mix; for example making links with the private sector who can deliver intermediate or private sector housing alongside new affordable council homes for rent. We work closely with local landlords and agents to secure private rented accommodation. We will continue to look at new ways of working, including exploring the merits of setting up a Local Housing Company. This would create a new property asset base generating a revenue stream and an increase in capital over time and provide more flexibility in the types of home than we would otherwise be able to develop.

Co-ordinating Partnerships

83. We advocate for Waverley customers at Multi Agency Risk Assessment Conferences and Multi Agency Public Protection Arrangements. We also work closely with Social Services, Children’s Centres and Domestic Abuse Outreach. Single Housing Panel meets to discuss needs of single and complex needs clients in order to provide and encourage well co-ordinated, efficient services.

Therefore, over the next 5 years we will: e.1 Work in partnership with local community to regenerate council owned site at Ockford Ridge e.2 Support the development of rural affordable homes, in partnership with the Surrey Rural Housing Enabler, parish councils, landowners and our local communities and through the Community Led Housing Project. e.3 Work in partnership to provide the Guildford and Waverley Care and repair agency and joint handyperson service to eligible residents e.4 Work closely with Woking and Guildford Borough Councils, the York Road Project and Riverside to secure funding for a mental health support service to rough sleepers.

32 Housing Strategy Annexe 1 Page 132

WE WILL SEE THIS STRATEGY EFFECTIVELY DELIVERED, MONITORED AND REVIEWED

 Both our Affordable Housing Working Group and the Housing Overview and Scrutiny Committee will review progress against the Strategy Action Plan and intervene when those objectives are not being delivered  We report on progress, issues and trends in the sector, opportunities and threats, and seek input and decisions to inform the direction of the strategy to: • Waverley Borough Council Housing Overview and Scrutiny Committee • Waverley Borough Council Management Board • Waverley Borough Council Housing Delivery Board • Surrey Chief Housing Officers Association • Surrey Enabling Officers Group • Surrey Rural Housing Enablers Group • Waverley Borough Council Housing Association Forum • Surrey Housing Needs Managers Group • Homes England  We share information on a regular basis, particular in relation to matters that may affect the delivery of the strategy or housing needs. This is important in the current climate where the impact of policy proposals from the government and the effect of the economy are unknown.  Smaller groups of relevant partners will come together to deliver the strategy, sharing information and resources. There are a number of objectives in the strategy where we want to hear residents’, customers’ and stakeholders’ views.

33 Housing Strategy Annexe 1 Page 133

WE WILL WORK TOWARDS ACHIEVING OUR GOAL OF EVERYONE HAVING A HOME THROUGH THE FOLLOWING ACTION PLAN H Increase delivery of well designed, well built affordable HOUSING a. Place-shaping to Enable New Affordable Homes

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets H.a.1. Use our place shaping skills to work with December Housing Strategy Officer time Registered Provider our Housing Association and Development 2018 and Enabling working in partners on the Dunsfold Aerodrome Manager partnership with Page 134 Page scheme through the delivery of a Local developer Lettings Plan Lettings plan in place H.a.2. Produce a template s.106 agreement in October Planning Lawyer Officer time Template s.106 order to maximise opportunities for 2018 agreement affordable housing and promote available on transparency. website H.a.3 Support the delivery of Local Plan, Part 1 March Housing Strategy Officer time Local Plan Part 2 including setting out our expectations about 2019 and Enabling Adopted March the tenure of affordable housing. Manager 2019

34 Housing Strategy Annexe 1

H Increase delivery of well designed, well built affordable HOUSING b. Building New Affordable council Homes which are Sustainable and Energy Efficient

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets H.b.1 Develop 20 new council homes pa As per Housing As set our in Increased supply of which meet criteria specified in timescales Development Housing Delivery Council homes for Waverley New Build standards. in Housing Manager Plan rent and shared Delivery ownership Plan H.b.2 Carry out ‘Do You Like Where You Live’ April 2018 Housing Strategy Officer time Survey complete

Page 135 Page surveys on a sample of 5 x new private, and and Enabling Additional office Report of findings Registered Provider and 1 x council new annually Officer support required circulated and on build homes on an annual basis website Housing Development Support Officer H.b.3 Develop a new Affordable Housing Reviewed Housing Officer time New plan adopted Delivery Plan every 5 years annually Development and available on Manager website

35 Housing Strategy Annexe 1

H Increase delivery of well designed, well built affordable HOUSING c. Working in Partnership with Housing Associations and other housing providers

Ref. Action(s) By when Lead Officer Resource Outcomes/ Success Needed/ Criteria/ Performance Implications Measures/ Targets H.c.1 Establish 3 models of development to March 2020 Head of Officer time Joint working on s.106 with bring forward additional affordable Strategic Funding Housing Associations and homes to meet local need Housing and Sites other development partners Delivery to provide a range of tenures, including new public/ private partnerships

Page 136 Page Acquire homes for development under s.106 agreements

Explore setting up a Local Housing Company H.c.2 Enable the development of s.106 sites As per Housing Officer time Increased supply of housing including Furze Lane, Bourne Mill and development Strategy and association homes for rent Amlets Lane at planning stage and schedule Enabling and intermediate tenures beyond, throughout the development Manager process H.c.3 Work with our Housing Association As per Housing Officer time Making public subsidy go partners to facilitate the development of development Strategy and further, ongoing viable their own sites schedule Enabling development programme Manager H.c.4 Work with our partners to bring forward As per Housing Officer time New affordable homes at 540 affordable homes at Dunsfold Park. development Strategy and Dunsfold Park schedule Enabling 36 Housing Strategy Annexe 1

Manager H.c.5 Support our Registered Provider As per Housing Officer time Good quality affordable partners in achieving the best possible development Strategy and housing outcome for residents and the schedule Enabling environment on new Housing Officer Association schemes in the borough.

Page 137 Page

37 Housing Strategy Annexe 1

O OPTIMISE Social and Economic Wellbeing a. Enabling affordable housing to Support a Vibrant Economy

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets O.a.1 Work to maximise delivery of As per Housing Strategy Officer time Tenure mix of affordable housing in a range of types development and Enabling housing meets and sizes to meet the needs of schedule Manager identified needs people working in Waverley O.a.2 Continue to prioritise households As per Housing Strategy Officer time Tenure mix of working in Waverley and those development and Enabling housing meets Page 138 Page seeking employment in Waverley for schedule Officer identified needs shared ownership properties.

38 Housing Strategy Annexe 1

O OPTIMISE Social and Economic Wellbeing b. Meeting Housing Needs in our Rural Communities

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets O.b.1 Work with the Rural Housing Enabler 2 surveys per Housing Strategy £4,500pa to support Increased amount to commission at least 2 x housing year and Enabling Rural Housing of affordable needs surveys per annum to measure Officer Enabling Service housing in rural need and support for rural exception areas, helping to schemes maintain the vitality of villages in

Page 139 Page Waverley O.b.2 Jointly manage the Surrey Community March 2019 Housing Strategy Ministry for Community Led Housing Project in a partnership with 7 and Enabling Housing, housing schemes in other local authorities for a period of 2 Manager Communities and the borough years to work with local communities Local Government who wish to develop their own housing Allocation projects

39 Housing Strategy Annexe 1

O OPTIMISE Social and Economic Wellbeing c. Preventing Homelessness

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets O.c.1 Deliver the Homelessness Strategy Due to be Housing Needs Officer time Fewer households Action Plan adopted May Manager Funding become homeless. 2018 Cost of emergency accommodation is Page 140 Page reduced O.c.2 Continue to ensure fair and Allocation Housing Needs Officer time Housing Register sustainable allocation of affordable Scheme Manager applicants secure homes in Waverley through our constantly affordable, suitable Allocation Scheme. under review and sustainable homes O.c.3 Work with our partners to enable the As per Housing Needs Strong partnership Mix of housing development of new housing across a Homelessness Manager working with meets identified range of tenures to meet the needs of Strategy Action housing providers needs households threatened with Plan Officer time homelessness

40 Housing Strategy Annexe 1

O OPTIMISE Social and Economic Wellbeing d. Meeting Housing Needs of Older People

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets O.d.1 Enable older people to stay in their Ongoing Sheltered and Funding TBC own home for longer, through the use Careline Services Officer time of assistive technology, aids and Manager adaptations O.d.2 Support older people to find suitable Ongoing Sheltered and Funding Mix of housing alternative accommodation, when Careline Services Sites meets identified

Page 141 Page required; whether downsizing in the Manager Officer time needs private sector, or accessing specialist housing to meet their care needs O.d.3 Plan strategically for the development Ongoing Sheltered and Funding Mix of housing of a range of housing options for Careline Services Sites meets identified older people including Extra Care Manager Officer time needs housing and dementia specialist care, in partnership with Adult Social Care Commissioning team O.d.4 Commit to find a site for at least 1 March 2023 Head of Strategic Funding Mix of housing new build Extra Care Scheme Housing and Sites meets identified Delivery Officer time needs

41 Housing Strategy Annexe 1

O OPTIMISE Social and Economic Wellbeing e. Meeting Housing Needs of Younger People

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets O.e.1 Work with partners to increase As per Housing Needs Strong partnership Mix of housing provision of suitable specialist and Homelessness Manager working with meets identified supported housing for young people Strategy Action housing providers needs where needed. Plan Officer time O.e.2 Bring forward a range of types and As per Housing Strategy Integrated Mix of housing sizes of affordable homes for development and Enabling approach. Strategic meets identified Page 142 Page general needs through the planning schedule Manager joint working with needs process, to include smaller units planning service Annual housing suitable for young single people and needs reports couples published O.e.3 Work to retain existing resources As per Housing Needs Strong partnership Young people and facilities for young people in Homelessness Manager working with accessing the housing need in the borough Strategy Action housing providers homes they need Plan Officer time O.e.4 Work in partnership and improve As per Housing Needs Strong partnership Young people communication with Surrey County Homelessness Manager working with accessing the Council Children’s Services and Strategy Action housing providers homes they need Families teams to ensure that young Plan Officer time people receive the housing related support they need

42 Housing Strategy Annexe 1

O OPTIMISE Social and Economic Wellbeing f. Meeting Housing Needs of People with Disabilities

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets O.f.1 Continue to work closely with Adult As per Housing Strategy Strong partnership Mix of housing Social Care Commissioners to development and Enabling working with meets identified ensure that new development meets schedule Officer housing providers needs the identified and emerging needs of Officer time the groups above and to explore alternative models of support where

Page 143 Page necessary. O.f.2 Explore opportunities for accessible As per Housing As set out in Mix of housing housing provision on new council timescales in Development Housing Delivery meets identified owned sites Housing Manager Plan needs Delivery Plan

43 Housing Strategy Annexe 1

O OPTIMISE Social and Economic Wellbeing g. Meeting Housing Needs of Travellers

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets O.g.1 Increase supply of pitches and plots As per Principal Planning As per Local Plan Travellers’ housing for Travellers in suitable locations to timescales in Officer Part 2, Policy AHN4 need is met meet need Local Plan Part 2

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44 Housing Strategy Annexe 1

M MAKE best use of existing homes a. The Private Rented Sector

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets M.a.1 Ensure there are sufficient good Ongoing Housing Needs Possible additional Extended quality private rented homes available Manager officer resource opportunities in to enable to council to discharge the Private Rented homelessness duty into the private Sector to those in rented sector including encouraging need provision of purpose built private

Page 145 Page rented accommodation M.a.2 Explore the role we can play in March 2019 Housing Strategy Officer time Provision of enabling the University of Creative and Enabling adequate student Arts to address the lack of student Officer accommodation for accommodation in Farnham including University of the use of private landlord Creative Arts accommodation M.a.3 Review condition of the Housing Ongoing Private Sector BRE Desktop study Making proper stock Housing Manager £10,000 decisions about the actions we need to take to deal with unsatisfactory housing M.a.4 Support landlords through our Ongoing Housing Needs Officer time Landlords willing to Landlord Resource Centre Manager Sufficient number of house households willing landlords nominated by the Council

45 Housing Strategy Annexe 1

M MAKE best use of existing homes b. Houses in Multiple Occupation

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets M.b.1 Develop our knowledge of the June 2018 Private Sector IT support Database number and location of Houses in Housing Manager Possible additional established Multiple Occupation in Waverley officer resource M.b.2 Educate and inform landlords, From April Private Sector Possible additional Continued good managing agents, letting agents as 2018 Housing Manager officer resource relationships with well as statutory and voluntary landlords, Page 146 Page agencies about the standards maintaining access required in Houses in Multiple to the private rented Occupation sector for low income households M.b.3 Support the retention of a well Ongoing Private Sector Possible additional Landlords continue managed, good quality private Housing Manager officer resource to provide good Houses in Multiple Occupation quality rented market housing M.b.4 Enhance the quality of Houses in Ongoing Private Sector Possible additional Better quality Multiple Occupation stock and private Housing Manager officer resource housing in the sector in general by tackling poor private sector property and management standards where there are vulnerable tenants M.b.5 Educate and inform tenants about Ongoing Housing Needs Qualified Housing Landlords are their rights and responsibilities housing advice Manager Options Team aware of their rights and responsibilities

46 Housing Strategy Annexe 1

M MAKE best use of existing homes c. Home Improvement

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets M.c.1 Contribute to the Decent Home Ongoing Private Sector Officer time Good quality homes Standard in the private sector Housing Manager for tenants M.c.2 Increase grant funding on energy Ongoing Private Sector £50,000 pa Fuel costs reduced efficiency and home security works to Housing Manager for residents. £50,000 per year Reduction in carbon emissions

Page 147 Page M.c.3 Implement a new Home Improvement April 2018 Private Sector Effective joint Residents safe and Policy to maximise use of the Housing Manager working with secure in their increased government funding in Guildford Borough homes order to help meet the objectives of Council the Care Act 2014 M.c.4 Help to reduce hospital/care home Ongoing Private Sector Officer time Residents safe and admissions, care packages and Housing Manager secure in their delays in hospital discharge homes Reduced delays in hospital discharge M.c.5 Remove housing hazards and Ongoing Private Sector Officer time Better quality improve the condition of the local Housing Manager housing in the private sector housing stock private sector M.c.6 Increase speed to private disabled Ongoing Private Sector Officer time Adaptations adaptations from date of initial Housing Manager completed more enquiry to date of completion of quickly works

47 Housing Strategy Annexe 1

M MAKE best use of existing homes d. Empty Homes

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Success Implications Criteria/ Performance Measures/ Targets M.d.1 Work with local groups via the March 2019 Housing Ministry of Housing, Local priorities Community Housing Project Manager Strategy and Communities and identified and to identify local priorities for Enabling Local Government pursued improvements including an Officer Allocation assessment of empty homes work Officer time M.d.2 Develop and maintain a September 2018 Private Officer time Empty properties Page 148 Page comprehensive database of empty Sector IT support identified and homes so that information becomes Housing brought back into use more accessible and provides for Manager better monitoring M.d.3 Engage with owners to provide advice Ongoing Housing Officer time Fewer long terms to encourage properties to be re- Needs empty properties occupied or prevent them from Manager Increased supply of becoming vacant, for example through homes in the Private our Tenant Finder scheme Rented Sector M.d.4 Work with other councils and housing Ongoing Private External funding Reduction in number providers to access government Sector Officer time of empty properties funding opportunities Housing Strong partnership Manager working M.d.5 Increase Waverley’s Council Tax When Gov has Head of Officer time Reduction in number premium for long term empty published the Finance Gov regulations/ of empty properties properties to 100% necessary authority regulations/ given authority 48 Housing Strategy Annexe 1

E ENGAGE with partners to achieve our joint aims

Ref. Action(s) By when Lead Officer Resource Needed/ Outcomes/ Implications Success Criteria/ Performance Measures/ Targets e.1 Work in partnership with local As per Housing As per Housing All homes on community to regenerate council timescales in Development Delivery Plan Ockford Ridge up to owned site at Ockford Ridge Housing Manager Officer time Decent Homes Delivery Plan Adequate time for Standard redevelopment and refurbishment e.2 Support the development of rural As per Housing Strategy Ministry of Housing, Waverley

Page 149 Page affordable homes, in partnership with Community and Enabling Communities and community led the Surrey Rural Housing Enabler, Led Housing Officer Local Government housing schemes parish councils, landowners and our Project Plan Allocation developed in local communities and through the Officer time borough Community Led Housing Project. e.3 Work in partnership to provide the June 2018 Private Sector Funding Excellent service to Guildford and Waverley Care and Housing Manager Effective joint customers in terms repair agency and joint handyperson working with of ensuring homes service to eligible residents Guildford Borough are safe and secure Council e.4 Work closely with Woking and September Housing Needs Officer time Clients with support Guildford Borough Councils, the York 2018 Manager Effective needs accessing Road Project and Riverside to secure partnership working appropriate housing funding for a mental health support service to rough sleepers.

49 Housing Strategy Annexe 1

EQUALITIES IMPACT ASSESSMENT

To follow

50 Housing Strategy Annexe 1 Page 150

51 Housing Strategy Annexe 1 Page 151

KEY CONTACTS ROLE OFFICER EMAIL PHONE ACTIONS NAME Housing Development Support TBC H.b.2 Officer Housing Development Manager Louisa Blundell [email protected] 01483 H.b.1/ H.b.3 523205 O.d.2/ e.1 Private Sector Housing Manager Simon Brisk [email protected] 01483 M.a.3 523363 M.b.1/ M.b.2/ M.b.3/ M.b.4/ M.c.1/ M.c.2/ M.c.3/ M.c.4/ M.c.5/ M.c.6 M.d.2/ M.d.4/ e.3 Sheltered and Careline Services David Brown [email protected] 01483 O.b.1/ O.b.2/O.b.3 Manager 523358

Page 152 Page Planning Lawyer Barry Devlin [email protected] 01483 H.a.2 523561 Principal Planning Officer Matthew Ellis [email protected] 01483 O.e.1 523297 Housing Strategy and Enabling Alice Lean [email protected] 01483 H.a.1/ H.a.3 Manager 523523 H.c.2/ H.c.3/ H.c.4 O.c.2/ O.f.2 O.g.1/ O.g.2 Housing Strategy and Enabling Esther Lyons [email protected] 01483 H.b.2/ H.c.5 Officer 523430 O.d.1/ O.f.1/ M.a.2 M.d.1/ e.2 Housing Needs Manager Mike Rivers [email protected] 01483 O.a.1/ O.a.2/ O.a.3 523013 O.c.1/O.c.3/ O.c.4 M.a.1/ M.a.4/ M.b.5 M.d.3/ e.4 Head of Strategic Housing and Andrew Smith [email protected] 01483 H.c.1/ O.b.4 Delivery 523096

52 Housing Strategy Annexe 1

Housing Need and Local Affordability Analysis

March 2018

1

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Headline Information ...... 2 1. Overview of the borough ...... 3 2. Demographics ...... 3 3. Local housing stock ...... 4 4. The national housing affordability crisis ...... 5 5. What is affordable housing? ...... 6 6. Affordability in Waverley ...... 7 7. Housing Need in Waverley ...... 10

Headline Information

A family seeking to buy an average home in Waverley would now require an income of over £113,000 to afford the mortgage, making home ownership unavailable for many.

Work is no guarantee that local people will be able to pay all their housing costs. 28% of Waverley’s housing benefit claimants are in work.

The cost of renting privately is becoming less affordable with average monthly rents now standing at £1,050 in Waverley. This means local people spend 42% of their income on rent.

2

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those in employment commute outside the 1. Overview of the borough area to work, many to access higher Waverley is an affluent borough in the paying jobs in London. A significant South West corner of Surrey, with high number of workers from outside the demand for housing, high house prices borough also commute into Waverley. and above average incomes. Ranked as one of the least deprived areas 2 The borough covers 133 square miles and in Britain , Waverley’s residents enjoy an is predominantly rural, with most residents above average life expectancy and there living in four main urban settlements, are low levels of crime. However, both surrounded by villages set amongst the urban and rural areas of the borough are countryside and attractive natural deprived in terms of barriers to housing landscape. Nearly three quarters of due to lack of affordability. There are Waverley’s population lives within one of pockets of relative deprivation which 3 the four largest settlements: Farnham remain a challenge in Waverley . Some of 39,000, Godalming 22,000, Haslemere the borough’s rural villages lack services 17,000 and Cranleigh 11,000. including public transport, supermarkets, schools and healthcare.

2. Demographics The population in Waverley is over 123,300. Current estimates suggest this will increase by around 5% during the lifetime of this strategy4.

There is less ethnic diversity in Waverley than across Surrey as a whole. 95% of Waverley residents described themselves as white in the 2011 Census. This 61% of the land in Waverley is designated compares to the Surrey average of 90% as Green Belt. In addition to this 92% of and England average of 85%5. the land in Waverley borough is rural. Much of the borough’s countryside is A key driver of change in the housing designated as an Area of Outstanding market over the next 20-25 years is Natural Beauty (AONB), nature reserve expected to be the growth in the and/or Area of Great Landscape Value population of older people. 19.5% of (AGLV). Waverley’s population is over 65 and this is set to increase6, having implications for Waverley is a prosperous area with low residents’ independence, housing, care unemployment at 2.9%1 when compared to the national average of 5.1%. The 2 Index of Multiple Deprivation 2015 3 population is highly qualified and 43% of Index of Multiple Deprivation 2015 4 ONS Population estimates 2015 5 2011 Census data 1 ONS, NOMIS model based estimates 6 2011 Census data: table PP01UK 3

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Page 155 services and community safety. In The housing stock is largely made up of particular, the demand for extra care and detached and semi-detached housing with specialist dementia care accommodation fewer smaller terraced homes or flats. is expected to significantly increase in the coming decades7. The proportion of very Waverley has the highest proportion of elderly (85yrs+) residents in Waverley is detached housing in the housing market 13 the highest in Surrey8. Planning for the area at over 41%. Nearly 31% of homes right type of housing and care for this age in Waverley have 4 or more bedrooms group is a significant challenge for the (see Figure 2.) The majority of homes in housing and planning authorities, social Waverley are currently under-occupied care and health partners working together (76.7%), having more than one extra to address this need. bedroom than required. Many older households will remain in their current 21.3% of households in Waverley contain homes but some may wish to downsize or someone with a long term health problem will require specialist housing or support, or disability9, a higher proportion than for for example because of dementia or the other Surrey authorities. We know that mobility problems. 2.5% of Waverley there are over 900 people with learning households are overcrowded. Older disabilities or autism living in residential households downsizing releases homes homes in Surrey, however, the Adult for families with children. Social Care Commissioning team has identified the need for more independent or individualised accommodation for some of these households. It will be necessary to plan to meet some of this need in Waverley. In addition, many young adults with learning disabilities who live with their parents will require suitable alternative accommodation when their ageing parents are no longer able to care for them.10

3. Local housing stock There are currently 52,734 homes in Waverley11. The majority of residents own their homes and a significant number live in rented homes12.The breakdown of different housing types is shown in Figure 1.

7 See also section 7c. 8 2011 Census data 9 2011 Census data 10 Surrey JSNA 2017 13 11 Information supplied by WBC council tax department The HMA covers Waverley, Guildford and Woking local 12 Tenure information form 2011 census data authority areas. 4

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Page 156 1 Figure 3: Tenure in Waverley (Census, 2011)

4. The national housing affordability crisis A significant number of households in England cannot afford market housing without support.

The average annual full-time earnings of people working in the lowest-paid 14 Figure 1: Profile of stock, by type occupations range from £17,665 to £18,462 in care, leisure and other service occupations. This is about £10,000 less than the national full-time median of £28,213.

People in lower-paid occupations are particularly affected by the affordability crisis, having seen housing costs moving further out of reach of their earnings than for any other occupational group. As access to home ownership in the South East of England becomes increasingly 15 Figure 2: Profile of stock by number of bedrooms dependent on access to family or inherited wealth, so the gap between those able Unoccupied empty or second homes are and those unable to draw on such an issue in Waverley with 4.5% of homes resources widen (see Figure 4.)

in the borough having no permanent

residents. Home ownership is the The pressure is particularly keenly felt in dominant tenure in Waverley (73.7%), with areas of high housing costs like Waverley, 11.3% of residents renting privately and presenting a barrier both to private renting 12.4% living in social rented housing. The and to home ownership for low income remaining 2.7% residents live rent free or households. in shared ownership accommodation (see Figure 3).

14 Census data 2011 15 2011 census data and referred to in SHMA para 3.11 5

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Page 157 The three occupational groups with the lowest median earnings (caring and leisure; sales and service; elementary occupations) are required to spend high proportions of their earnings on rent payments across all nine English regions. The typical (median) rent of a worker in all three occupational groups takes up 40% or more of their earnings in the majority of local authorities in London and the South East (see Figure 5.)

Figure 5: Local Authorities where the median rent takes up 40% or more of the earnings of workers in the care, leisure and other service occupations 17

Privately renting is often the only option Earnings to house available to those with median or below price ratio in South East median incomes, however, certain parts of England the private rented sector are badly Managers, 6.6 managed and poor quality. Few private directors and landlords offer long term security for senior officials 18 Professional 7.4 families . Occupations Associate 8.7 In recognition of the severity of the professional and national affordability crisis, the technical government announced a £125 million occupations increase in the targeted affordability Skilled trades 10.4 occupations funding available to assist in high rent Process, plant and 11.3 pressure areas in the November 2017 machine Budget. operatives Administrative and 12.8 secretarial occupations 5. What is affordable Elementary 14.8 housing? occupations Sales and 15.6 The government defines affordable customer services housing as “social rented, affordable Caring, leisure and 16.1 rented and intermediate housing provided other service to specified eligible households whose occupations

17 Figure 10, NHF, 2017 Figure16 4: Earnings to house price ratios in South East 18 England National16 Housing Federation research Resolution foundation home truths 6

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Page 158 needs are not met by the market”.19 When educational, care and security services, the housing is built, it is safeguarded as yet high property prices in Waverley are affordable housing in perpetuity by a legal pricing out essential workers such as agreement to ensure that upon re-let or re- teachers and care workers. As a result, sale, it is again made available to eligible some employers are finding it difficult to households in housing need.20 recruit and retain staff22. In particular, attracting enough care workers to care for In Waverley, the main affordable tenures Waverley’s ageing population is becoming are social rent (around 55-60% of market a pressing issue. rent), affordable rent (around 80% of market rent) and shared ownership, also Making affordable housing options known as part-rent, part-buy. available to low and middle income workers benefits the local economy by There are currently 6424 affordable ensuring the continued provision of key 21 homes in Waverley . These include social services and reducing staff turnover in rented, affordable rented and shared these services. Workers are then able to ownership homes owned by the council put down roots in the area, becoming an and housing associations. integrated part of the community they serve and at the same time reducing The different affordable tenures meet a pressure on local transport infrastructure. range of housing needs across the broad spectrum of households who cannot a. Incomes in Waverley access market housing. However, as The average median annual earnings of Waverley Waverley those living in Waverley in 2016 was Workplace Resident £29,77023, compared to £22,797 for those Median £22,797 £29,770 income working in Waverley but commuting in Lower quartile £11,991 £17,368 from outside the borough24 (see Figure 6). income discussed below, for many households in Those living in the borough and working Waverley, social rented housing remains elsewhere are often London commuters the only genuinely affordable tenure. with higher salaries (see Figure 7).

Figure 7: Median salaries by area (2016) 6. Affordability in Waverley Figure 6: Comparison of incomes in Waverley (2016) The borough has high levels of economic activity and is one of the least deprived areas in England. The attractiveness of the borough is reflected in its house prices which are among the highest in Surrey.

It is vital to Waverley’s prosperity that it continues to deliver high quality health,

19 22 National Planning Policy Framework Impact of housing costs and affordability on local businesses 20 Exceptions such as the Right to Buy and shared ownership 23 Median earnings taken from ONS data 2016 table 8.1a staircasing apply. 24 Median earnings for those working in Waverley taken from 21 2017 RP stock data and 2017 WBC stock data. ONS data 2016 table 7.1a 7

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Page 159 Household formation rates for 25-34 year Homes in Waverley’s rural villages are olds have reduced significantly since particularly expensive. Typically, rural 200125. Younger families in Waverley are house prices are 26% higher than urban often unable to move out of their parents’ areas, whilst annual earnings in rural homes or shared accommodation. areas are on average £7,200 lower28.

b. Affordability of home Newly forming households require ownership in Waverley substantial deposits and salaries to purchase on the open market in Waverley. Waverley is one of the most expensive Using the above figures, an income of places in Surrey to buy a home. In 2016, £113,203 is required for a 90% mortgage house prices in Waverley were 78% above on an average property (see Figure 10) the average for England and well above the average for the South East (see Figure Total cost £503,125 8). Deposit required £50,312

Mortgage per £2148 month

Income required £113,203

Based on a 90% mortgage, 3% interest rate and lending at 4 x income.

Figure 10: Average housing costs in Waverley

Lower quartile prices give an indication of what it would cost a family in Waverley to buy their first home (see Figure 11.)

Lower Total Deposit Mortgag Figure 8: Average house prices in Waverley Quartile e per house month30 An average home in Waverley costs 26 Purchase £503,125 (see Figure 9.) 29

Lower £191,0 £19,100 £815 Quartile 00 Flat Lower £288,0 £28,800 £1,230 Quartile 00 terrace Lower £360,0 £36,600 £1,534 Quartile 00

27 Office for National Statistics (ONS), price paid data 28 Figure 9: Average (mean) house prices 2016 27 Office for National Statistics, Annual Survey of Hours and Earnings 2014 29 ONS dataset 25RTPI 2014 Planning for Housing in England 30 Using mortgage calculator available on the Money Advice 26 Office for National Statistics (ONS), small area statistics Service (www.moneyadviceservice.org.uk ). 8

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Page 160 semi - earner household, or three times the detached household income for dual income 31 Lower £518,5 £51,850 £2,213 households . quartile 00 detached Figure 13 and 14 are based on shared Figure 11: cost of purchasing a home in Waverley ownership properties currently for sale in Surrey:

Typical shared ownership property example: 1 bedroom flat 25% share32 Total £205,000 Mortgage £48,688 Deposit £2,563 Monthly mortgage £231 cost (at 3% interest) Rent & service £429 Figure 12: Income required to purchase a lower charge quartile home in Waverley (based on 90% mortgage) Total monthly cost £660 Minimum income £26,000 Even those households with above- Figure 13: 1 bed shared ownership affordability average incomes in Waverley find their Typical shared ownership property access to homeownership severely example: restricted, with a household income of 2 bedroom flat 25% share33. over £80,000 and deposit of over £36,000 Total £285,000 required to purchase a lower quartile Mortgage £67,688 semi- detached home (see Figure 12) Deposit £3,563 Monthly mortgage £338 c. Affordability of shared cost (at 3% interest) ownership in Waverley Rent & service £580 charge Shared ownership provides an opportunity Total monthly cost £918 for people who cannot afford open market Minimum income £35,000 housing to access the housing ladder. Figure 14: 2 bed shared ownership affordability Shared ownership purchasers buy a share of the equity in the property, increasing Based on these examples and the median their share over time if they can afford to salary in Waverley of £29,770, shared do so (known as ‘stair-casing’). Rent is ownership offers a viable option for some payable on the equity retained by the residents, subject to them being able to council or housing association. secure a mortgage and having the necessary deposit. However, larger The equity share for sale varies from 25%- shared ownership houses suitable for 75%. However, even a 25% share plus families command significantly higher rent can be too expensive for people on values and may be beyond the reach of medium and low incomes. local families in housing need.

A household is considered able to afford 31 to buy a home if it costs 3.5 times the Cambridge Centre for Housing and Planning Research 2009 32 gross household income for a single Based on a 1 bedroom shared ownership flat in Surrey. 33 Based on a 2 bedroom shared ownership flat in Surrey. 9

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Page 161 d. Affordability of private renting month (on average) from their personal in Waverley income after any assistance from housing benefit has been paid. Work is no guarantee that people can afford the cost of renting. 21% of e. Affordable rent and social rent Waverley’s housing benefit claimants are Historically the guide to what is affordable in employment34 (see Figure 15). A rent has been 35% of a household’s net comparison of income and rents shows income39. The government introduced the that 42% of gross income goes on rent in ‘affordable rent’ tenure (80% of market Waverley35. rent) in 2011, meaning that new development requires less grant. Whilst HOUSEHOLDS IN RECEIPT OF the new tenure falls within the government HOUSING BENEFIT 6000 definition of affordable housing, it means 4000 some households could spend over 2000 £14,000pa on an affordable rented property in Waverley. The average social 0 rent is around £8,000 per annum. For households on very low incomes in Waverley, the only genuinely affordable Figure 15: Households in receipt of housing benefit tenure is social rent. The median monthly private sector rent in Affordable rented homes and social rented Waverley 2015/16 was £1,05036 (see homes are allocated to eligible households Figure 16). on Waverley Borough Council’s Housing Private LHA 37 SHORTFALL Register. Households with a gross annual rent 38pcm pcm income of over £60,000 or savings/ assets £pcm in excess of £30,000 are not eligible to join 1 £790 £739.57 £50.43 the Housing Register. However, a larger BED family with an income of £60,000 may 2 £1,050 966.16 £83.84 struggle to buy or to privately rent a BED property to meet their needs in Waverley. 3 £1350 £1,161.46 £188.54 BED These families may look to shared 4 £2250 £1,495.41 £754.59 ownership, for which households with an BED income of up to £80,000 are eligible. Figure 16: Private sector renting compared to maximum housing benefit (LHA)

The shortfall is the amount of money a 7. Housing Need in family would have to find per calendar Waverley

34 1038 households contain 1 or more adults in employment a. The Housing Register and Help out of 4830 households in receipt of housing benefit, 2017 35 to Buy Register £29,614,522 HB expenditure 2016-17 36 Valuation Office Agency: Private rental market summary statistics – October 2015-September 2016 37 Valuation Office Agency: Private rental market summary statistics – October 2015-September 2016 39 38 There are 3 different LHA rates in Waverley. I have used the http://blog.shelter.org.uk/2015/08/what-is-affordable- one that covers the majority of Waverley Borough in this table. housing/ 10

Housing Need and Affordability Analysis

Annexe 1 to Housing Strategy

Page 162 There were 1500 households on Hidden households Waverley’s housing waiting list (the Housing Register) as at 1 April 2017. In The SHMA estimates that there are 374 total, 274 households secured affordable ‘concealed households’ in Waverley. rented accommodation in 2016/17 through These are households within a household the Housing Register. and are often young families living with parents and unable to form a household of The households who secured affordable their own due to high housing costs. 73% rented accommodation in 2016/17 waited of these concealed households cited over 4 years on average before being unaffordability of housing as the reason for offered affordable accommodation. Those their housing situation. requiring a 3 bedroom property waited the longest, over 5 years on average40. Projected growth and future housing need 255 households living or working in Waverley are currently waiting for a Waverley’s Local Plan which was adopted shared ownership home in the Help to Buy on 20.02.18 requires the number of new Register. homes that should be built each year in Waverley should be 590. b. Homelessness prevention Housing for older people in Waverley Waverley’s Housing Options team received contact from over 879 Within Waverley it is expected that a households regarding homelessness last growing older population will result in an year. On average, 574 households are increase in the number of people with prevented from becoming homeless by dementia by around 1,800 from 2013-31, Waverley’s Housing Options team each and growth in the number of persons with 43 year41 and 530 new applications to the mobility problems of over 3,500. Housing Register are processed. Some older households will require c. The Strategic Housing Market specialist housing. The SHMA identifies a Assessment (SHMA) 2015 need for over 3,950 additional specialist units of housing for older people across The SHMA42 is an assessment of current the housing market area from 2013-2033, and future housing need in the borough including sheltered and extra care homes, based on current statistics and with 1,700 of those required in Waverley projections. The latest SHMA was (see Figure 17). produced in 2015, covering the West Surrey housing market area shared by 2013-33 Market Affordable Total Guildford 1,136 198 1,334 Waverley, Woking and Guildford councils. Waverley 1,442 260 1,703 The SHMA informs the calculation of the Woking 962 -44 918 number of new houses needed for the HMA 3,540 414 3995 lifetime of the Waverley Local Plan. Figure 17: Need for specialist housing for older people, 2013-33

40 Waiting Days by Band and Beds 2013 to 2017.pdf 41 Housing Options data 42 Strategic Housing Market Assessment 2015 43 West Surrey SHMA 2015 11

Housing Need and Affordability Analysis

Annexe 1 to Housing Strategy

Page 163 In addition, the SHMA indicates a need for 1,031 bed spaces in care homes (396 in Waverley). This does not form part of the household population; it is therefore additional to the need identified for housing above.

Suggested future housing mix for Waverley

The SHMA recommends the best mix of housing to meet future need across the West Surrey Housing Market Area (see Figure 18 and 19).

1 2 3 4+ bedro bedro bedro bedro om om om oms Market 10% 30% 40% 20% Afford 40% 30% 25% 5% able Figure 18: Need for different sizes of homes across the West Surrey housing market area

Intermediate Social / Affordable Rent Guildford 29% 71% Waverley 32% 68% Woking 26% 74% West 29% 71% Surrey HMA Figure 19: Mix of affordable housing tenures needed

The SHMA data is used alongside local evidence, including the Housing Register, Help to Buy Register and rural housing needs surveys, when planning the mix of affordable housing required on new developments at planning application stage.

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Housing Need and Affordability Analysis

Annexe 1 to Housing Strategy

Page 164 GLOSSARY FOR HOUSING STRATEGY AND AFFORDABILITY ANALYSIS

TERM MEANING

Housing for eligible people who are unable to afford housing to rent or buy on the open Affordable Housing market, meeting definition in National Planning Policy Framework Investment Programme to support development Affordable Homes Programme of new affordable homes by Government appointed Homes England Tenure introduced by the Government to Affordable Rent charge rents up to 80% of market rents Area of Outstanding Natural Areas of high visual quality designated as being Beauty of national importance. Area of Great Landscape Areas of high visual quality designated as being Value of county-wide importance. A limit on the total amount of certain benefits Benefit Cap that can be received Programme between National Health Service and local government which seeks to join up health care and care services so that people Better Care Fund can manage their own health and wellbeing and live independently in their communities for as long as possible Legislation establishing national eligibility Care Act (2014) criteria to set out a minimum threshold for adult care and support and carer support A residential setting where a number of older Care Homes people live, usually in single rooms, and have access to on-site care services Capital sums from private developers in lieu of Commuted Sums providing affordable housing on site Programme aimed at improving council and Decent Homes Standard housing association homes to bring them all up to a minimum standard Ministry of Housing, UK Government department whose Communities and Local responsibilities include local government and Government (Formerly DCLG) housing A syndrome (a group of related symptoms) associated with an ongoing decline of brain Dementia functioning. This may include problems with: memory loss or thinking speed. Downsizing Moving to a smaller property Disabled Facilities Grant Grants administered by the council to help meet

1 GLOSSARY TO HOUSING STRATEGY AND AFFORDABILITY ANALYSIS ANNEXE 2 TO HOUSING STRATEGY Page 165 the costs of adapting a property Housing designed with the needs of frailer older Extra Care people in mind and with varying levels of care and support available on site A policy and land use designation, used to retain areas of largely undeveloped, wild, or Greenbelt agricultural land surrounding or neighbouring more urban areas The Government appointed organisation with Homes England (formerly the the responsibility of funding new affordable Homes and Communities housing and regulating providers of affordable Agency (HCA) housing. Housing Legislation which includes a requirement for home information packs, changes right to buy scheme, establishes Housing Act (2004) tenancy deposit schemes and requires Local Authorities to assess accommodation needs for Gypsies and travellers Independent, not-for-profit organisation that can Housing Association use any profit they make to maintain existing homes and help finance new ones Housing Legislation which allows the government to implement the sale of higher Housing and Planning Act value local authority homes, starter homes and (2016) other measures mainly intended to promote homeownership and boost levels of housebuilding in England Group set up to oversee the delivery of new Waverley Housing Delivery council homes, as set out in Affordable Homes Board Delivery Plan Regular payment made by the state to help Housing Benefit those on low incomes pay for rented accommodation Policy documents produced by Government Housing White Paper that sets out proposals for future legislation A ring fenced account held by local authorities Housing Revenue Account funded by rents to provide landlord services A system for financing council housing Housing Revenue Account introduced in April 2012 that replaced the Self Financing Housing Revenue Account subsidy System Homes for sale and rent provided at a cost above social rent, but below market levels Intermediate Housing subject to the criteria in the Affordable Housing definition in the National Planning Policy Framework An organisation responsible for public services Local Authority and facilities in a particular area Local Council Tax Support Means tested award that helps people on low

2 GLOSSARY TO HOUSING STRATEGY AND AFFORDABILITY ANALYSIS ANNEXE 2 TO HOUSING STRATEGY Page 166 Scheme income pay their Council Tax bill Housing Benefit for tenants of privately rented accommodation. It is a flat rate allowance towards rent costs, calculated on the basis of Local Housing Allowance the tenant’s circumstances (such as family size) and the broad area the tenant lives in, with the same amount of benefit paid to tenants with similar circumstances living in the same area. Act of Parliament that changed the powers of local government in England. The aim of the Localism Act (2011) Act is to facilitate the devolution of decision- making powers from central government control to individuals and communities. Number below which lies the 25 percent of the Lower Quartile bottom data Median Midpoint National Planning Policy Sets out government planning policies for Framework England A plan prepared by a parish council or a neighbourhood forum for a particular Neighbourhood Plans neighbourhood area (made under the Planning and Compulsory Act 2004) An initiative which was intended to charge higher earning social housing tenants more in Pay to Stay rent but was never implemented by government. Creative use of powers and influence to Place Shaping promote the general wellbeing of a community and its residents A scheme in which qualifying tenants are Right to Buy entitled to purchase their homes at a heavily discounted price Small sites used for affordable housing in perpetuity that would not usually be used for Rural Exception Sites housing, in line with National Planning Policy Framework. Post holder working with local communities in Rural Housing Enabler order to facilitate rural affordable housing Section 106 is part of the Town & Country Planning Act 1990. Agreements under it cover requirements of developers as part of planning permissions. These are agreed in the planning Section 106 Agreements application process, to provide contributions (usually financial) to develop facilities/amenities for the local community (e.g. education, open space). Mixed tenure sites, as enabled by Section 106 Section 106 Sites (S.106 sites) of the Town and Country Planning Act 1990.

3 GLOSSARY TO HOUSING STRATEGY AND AFFORDABILITY ANALYSIS ANNEXE 2 TO HOUSING STRATEGY Page 167 Accommodation for elderly people consisting of Sheltered housing private independent units with some shared facilities Shared Ownership Part rent/ part buy housing Housing let at about 60% of market rents, Social Rented usually by Councils or Housing Associations Reduction in housing benefit if you live in a Spare Room Subsidy housing association or council property that is deemed to have one of more spare bedrooms Surrey Community Housing Initiative intended to enable local community Project groups to delivery affordable housing units Surrey County Council Adult Service with responsibility to buy support Social Care Commissioning services for adults in need Team Buying more of the equity in your shared Stair casing ownership property Properties delivered under Starter Homes Starter Homes Initiative Scheme to help meet housing needs of young Starter Homes Initiative first time buyers Service to put people in need of rented Tenant Finder Scheme accommodation in touch with private sector landlords Waverley Borough Council The council

Benefit which replaces 6 means tested benefits Universal Credit and tax credits Waverley Corporate Plan Council document setting out our priorities Waverley Energy Efficiency Council plan proposing targets to reduce Plan greenhouse gas emissions Council document setting out a review of Waverley Homelessness homelessness in the borough and an action Strategy plan detailing how we will address these issues The service at Waverley which gives advice, Waverley Housing Options help and support to anyone that is, or is about Team to become, homeless Council document setting out income and Waverley Housing Revenue expenditure projections for the council’s Account Business Plan housing stock Council document demonstrating the ways we Waverley Wellbeing Strategy can support the health and wellbeing of residents Council document detailing continuation and Waverley Ageing Well development of services and activities that Strategy support older people living in the borough Waverley Borough Council Council document setting out spatial policy Local Plan; Part 1; Strategic framework for delivering the development and Policies and Sites change needed to realise our vision for 4 GLOSSARY TO HOUSING STRATEGY AND AFFORDABILITY ANALYSIS ANNEXE 2 TO HOUSING STRATEGY Page 168 development in Waverley up to 2032 Waverley Borough Council Council document setting out site allocations Local Plan; Part 2 Site and other land designations and development Allocations and Development management policies. Management Policies Council document setting out strategic Waverley Economic Strategy economic objectives to help achieve sustained prosperity for residents and businesses Guidance note including specifications for new Waverley New Build council homes including minimum space Standards standards and design principles Introduces Universal Credit as a single Welfare Reform Act (2012) payment Requires registered providers of social housing Welfare Reform and Work Act in England to reduce social housing rents by (2016) 1% a year for 4 years. West Surrey Strategic Study of the housing needs within the West Housing Market Assessment Surrey housing market area, including (SHMA) 2015 homelessness. Available online

5 GLOSSARY TO HOUSING STRATEGY AND AFFORDABILITY ANALYSIS ANNEXE 2 TO HOUSING STRATEGY Page 169 This page is intentionally left blank Agenda Item 13.

WAVERLEY BOROUGH COUNCIL

EXECUTIVE - 10 APRIL 2018

COUNCIL – 24 APRIL 2018

Title:

HOMELESSNESS STRATEGY 2018 - 2023

[Portfolio Holder: Cllr Carole King] [Wards Affected: All]

Summary and recommendation:

The Council is legally required to produce a Homelessness Strategy at least every five years. Waverley’s current strategy runs from July 2013 - July 2018. This report presents Waverley’s Strategy for 2018 – 2023.

The Executive considered the revised Homelessness Strategy at its meeting on 10 April 2018, noted the Council’s continued success in preventing homelessness, and RECOMMENDS to the COUNCIL that the Homelessness Strategy 2018-23 be adopted.

How this report relates to the Council’s Corporate Priorities:

Equality and Diversity Implications

Homelessness can have a devastating impact on health and welling and life chances for those affected by it. By trying to provide services to prevent and relieve homelessness and to give support those affected by it, the Homelessness Strategy supports Waverley’s commitment to ensuring that those that live and work in Waverley have equal life chances.

Financial Implications:

The Strategy highlights that when similar changes to homelessness legislation contained in the Homelessness Reduction Act 2017 were introduced in Wales, Councils experienced additional costs from an increased number of customers and an increase in administrative burdens in managing each case. Whilst Waverley will receive some new burdens funding to manage the increased duties, this is very unlikely to be sufficient for the Council to fulfil its new obligations under the new Act.

Legal Implications:

Waverley has a statutory duty to assess homeless applications and to provide housing advice to its residents under Part VII of the Housing Act 1996 (as amended) and the Homelessness Reduction Act 2017 introduces significant changes to the statutory framework.

Page 171 Background

1. Nationally, and within Surrey, homelessness is on the rise. Key indicators of this trend are the number of homeless households being placed in temporary accommodation under Councils’ statutory homelessness duties and the number of people sleeping rough.

2. There has been a 58% national increase in the number of homeless households being placed in temporary accommodation since 2010 and a 169% increase in those sleeping rough in the same period.

3. The rise in the number of homeless households in temporary accommodation in Surrey is shown in the following table:

2010 2011 2012 2013 2014 2015 2016 2017

187 231 357 461 608 707 788 830

4. Annual reports to the Overview & Scrutiny Committee have highlighted that despite this national and Surrey trend, Waverley has continued to maintain its excellent record in preventing homelessness. As a result the numbers of rough sleepers and households having to be placed into temporary accommodation has remained exceptionally low, as shown in the following tables:

Annual rough sleeping estimate for Waverley

2012 2013 2014 2015 2016 2017

0 3 0 2 4 1

Homeless households in temporary accommodation as at 31 March.

2010 2011 2012 2013 2014 2015 2016 2017

7 2 2 1 4 5 1 1

5. Waverley’s success in preventing homelessness has been recognised by being granted the Silver Award by the National Practitioner Support Service in 2017.

6. In November 2017 Officers advised Housing O&S Committee members of very significant changes in the homelessness legislation being introduced from April 2018 by the Homelessness Reduction Act 2017.

7. Officers have therefore taken the opportunity of the introduction of the new legislation to consult with customers and its statutory and voluntary partners regarding its Homelessness Strategy for 2018 -2023. This included a multi-agency strategy event held on 17 October 2017.

Page 172 8. Following the consultation and a review of homelessness services currently provided by the Council and its partners for homeless households, Officers have produced a revised Homelessness Strategy and Action Plan for 2018 – 2023 (Annexe 1). The Homelessness Review, which informs the Strategy, is available on-line (Annexe 2)

Housing Overview & Scrutiny Committee Comments

The Housing Overview & Scrutiny Committee has received briefings on the requirements of the Homelessness Reduction Act 2017 and the increased challenges this presents to local authorities in responding to homelessness. The Committee congratulated Waverley’s Housing Options Team for its outstanding record in homelessness prevention, and endorsed the new Homelessness Strategy 2018 -23 to the Executive for adoption by the Council.

Recommendation

The Executive RECOMMENDS to the COUNCIL that the Homelessness Strategy 2018-23 be adopted.

Background Papers

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

CONTACT OFFICER:

Name: Michael Rivers Telephone: 01483 523013 Housing Needs Manager E-mail: [email protected]

Page 173 This page is intentionally left blank Waverley Borough Council

Homelessness Strategy

2018 – 2023

Contents

Page

Foreword by Housing Portfolio Holder 2

Introduction 3

1. Waverley’s Homelessness Strategy 4

a) Progress since the last Strategy 4 b) Principles 5 c) Challenges, Risks and Opportunities 6 d) Priorities for Waverley’s Strategy 8 e) Conclusion 9

2. Action Plan 10

Appendix – Waverley’s Homelessness Review

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Page 175 Foreword

The publication of Waverley’s fourth Homelessness Strategy comes at a very exciting and challenging time for housing in Waverley.

The Homelessness Reduction Act 2017 (HRA 2017) comes into force on 3 April 2018 and it represents one of the most significant changes in homelessness legislation for 40 years. The need for the Council to produce its fourth Homelessness Strategy therefore comes at a very opportune time as the Council and its statutory and voluntary partners seek to work together to meet the requirements of the new Act and provide better outcomes for customers facing homelessness in Waverley.

Despite the economic challenges over recent years, Waverley’s innovative and dedicated approach in preventing homelessness has led to the Council continuing to maintain some of the lowest number of homeless households in temporary accommodation in the South East.

The Council’s excellence in its Housing Options Service and its partnership working to prevent homelessness was recently recognised by the Silver Standard Award from the National Practitioner Support Service (one of only 14 Councils nationally).

Despite the above successes, the next few years are likely to bring considerable challenges to the Council. Homelessness in Surrey and the UK is steadily rising and the continued role out of welfare reform measures will inevitably impact on many households who are already seeking housing advice and support from the Council.

Whilst Waverley residents enjoy the benefits of its beautiful location and facilities, Waverley’s attractiveness means property prices to rent or buy are beyond the reach of many. This creates demand for more affordable housing for which the demand far outstrips the supply. The lack of supply means households either have to find accommodation in less expensive areas outside of Waverley or have to live in far from ideal circumstances in the homes of friends or relatives. Such situations inevitably trigger tensions in homes that in some cases can lead to homelessness. This can particularly be exacerbated for households with additional needs due to their vulnerability and/or complex and difficult life experiences.

This Strategy outlines both the successes in tackling homelessness over the last few years as well as the challenges ahead and proposed actions to meet these challenges.

The Council is indebted to the many people and organisations that have assisted in producing this strategy and would like to thank them for contributing to its content and their commitment to achieving its aims.

I am very pleased to commend this Strategy and hope it will help the Council and its partners build on the good work that has already taken place.

Carole King Portfolio Holder for Housing

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Introduction

The Homelessness Act 2002 requires that Local Authorities publish a Homelessness Strategy at least every 5 years. Waverley’s last Strategy was published in July 2013. The Strategy should be the result of consultation and partnership working with Waverley’s statutory and voluntary partners. It should include a review of the current levels of homelessness in Waverley and the services and accommodation available to meet the needs of those who are homeless or threatened with homelessness.

It should also take into account Government priorities in terms of tackling homelessness as well as link in with the Council’s own strategies and the strategies of its partner agencies. The Strategy must set out the local authority’s plans to prevent homelessness and for securing sufficient accommodation and support are or will be available for people who become homeless or who are at risk of becoming so.

This Strategy is divided into 2 main sections with an appendix (the Homelessness Review) giving background context and statistical information:

Section 1 – Waverley’s Homelessness Strategy

The Strategy highlights the progress and achievements made in tackling homelessness since the last strategy. It then outlines the principles behind the strategy, the risks, challenges and opportunities ahead and the priority areas for the Action Plan (Section 2).

Section 2 – Action Plan

The Action Plan outlines the steps the Council and its partners will take over the next 5 years to meet the challenge of preventing homelessness. As the Strategy will be reviewed annually the Action Plan mainly focuses on actions for the first year.

Appendix – Waverley’s Homelessness Review

The Homelessness Review sets out in greater detail the background context, including statistical information, case studies and details of the services in and around Waverley for homeless people.

Whilst the Council has taken the lead in co-ordinating and producing the strategy, thanks are also due to service users and representatives from statutory and voluntary agencies for their invaluable contribution to the Strategy through the consultation process and through day to day partnership working to address homelessness.

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Section One

Waverley’s Homelessness Strategy a) Progress / achievements since the last Strategy i) Prevention

The Council has continued to tackle homelessness by embedding a proactive, preventative approach within its Housing Options Service and its wider work with its statutory and voluntary partners.

This means that resources are targeted at preventative housing advice and support to help people remain in suitable accommodation.

Where prevention is not appropriate or achievable, the Council has worked very hard at helping people access alternative housing options such as accommodation in the private sector or supported accommodation.

This approach has meant that the number of households formally applying as statutorily homeless to the Council and being accepted as homeless has continued to remain very low. This in turn has meant that numbers of households having to be placed into temporary accommodation has also remained low and Waverley continues to have among lowest number of homeless households in temporary accommodation in the South East.

The low number of households having to be placed in temporary accommodation compared with other Surrey Boroughs is shown in the table below:

Surrey Surrey Average Waverley

Homeless households living in temporary 830 75 1 accommodation as at 31 March 2017

ii) Successful completion of previous Homelessness Strategy targets

Of the 33 actions in the 2013 -2018 Strategy Action Plan, 31 actions were achieved and the remaining 2 were partially achieved.

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Page 178 iii) Silver Award for Waverley’s Housing Options Service

One of the Action Plan targets from the previous Strategy was to participate in the National Practitioner Service Gold Standard Award challenge. Following a rigorous peer review by representatives from Woking and Guildford Councils and the National Practitioner Service, Waverley achieved a 72% rating. The Council was then able to apply to be assessed in regard to different aspects of its homelessness service such as its work to prevent homelessness, its homelessness strategy, its minimal use of bed and breakfast accommodation etc. Following assessments in 2017, Waverley is one of only 14 Councils nationally to be awarded Silver Standard for its housing options and partnership work in preventing homelessness. iv) Increased help for rough sleepers and single people

During the course of the last Strategy Waverley has significantly improved the help it offers to rough sleepers, those at threat of rough sleeping and single people. With other West Surrey Councils a successful bid was made for a DCLG grant to fund an outreach service for rough sleepers run by the York Road Project in Woking (YRP). Following the success of the service Waverley has maintained the funding. More recently Guildford Waverley and Woking Councils, YRP and Riverside Housing were successful in bidding for further Government funding to provide a service to increase mental health and well being support for rough sleepers. Waverley has also provided move-on accommodation in Farnham and Milford so vulnerable Waverley clients can move-on from higher support schemes in Woking and Guildford. The Council has also purchased bed spaces at YRP for single homeless clients and has been piloting a shared house scheme with Woking Borough Council and Ethical Lettings. v) Transfer of the management of the Housing Register for non social housing tenants to the Housing Options Team

During 2016 - 2017 the Council conducted a service review of the work of the Housing Options and Homechoice Teams. The purpose of the review was to ensure that teams were best placed to meet customer needs as well as prepared to rise to the challenges of the likely introduction of the Homelessness Reduction Act 2017. Following the review and staff consultation, it was decided to transfer the management of the majority of the Housing Register from the Homechoice Team to the Housing Options Team and this change was implemented in August 2017. This has benefited customers in that the same team that is providing housing options advice and collecting important household information to prevent homelessness, can also provide advice about longer term social housing options. This means customers do not have to be passed to a separate team and has already resulted in faster housing application turnaround times. The change has also meant that additional staffing sources have been transferred to the Housing Options Team. This provides additional capacity and resilience to the Options Team and allows flexibility for the Housing Options Manager to target staffing resources where they are most needed. This will be particularly useful with the introduction of the additional statutory duties under the HRA 2017, although, as the Homelessness Review and Action Plan highlight, it is still anticipated the further staff resources will be required in due course.

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Page 179 b) Principles behind Waverley’s Homelessness Strategy

Proactive – One of the reasons the Council has been successful in tackling homelessness over the last few years it has taken a proactive and innovative approach. It has done this by anticipating trends and changes and embracing alternative options. Examples of innovation include commissioning homeless prevention units, sourcing move on accommodation to free up supported housing, launching the online housing options wizard, radio advertising to attract private landlords, working with a social lettings agent (Ethical Lettings) and the employment of a Welfare Benefits Officer to help Council tenants deal with challenges from welfare reform.

Partnership Approach – Waverley’s Strategy aims to build upon the partnership working that has already contributed to the effectiveness of the current service. The Council works with a range of statutory and voluntary agencies in its work to prevent homelessness such as Citizens Advice Waverley, Social Services, Housing Associations, Ethical Lettings, supported housing providers, private sector lettings agents and landlords, Surrey County Council, Three Counties Money Advice, Police, other Councils and Health.

Personal responsibility - not incentivising homelessness –– Before embracing a housing options, preventative approach to homelessness, the way Councils dealt with homelessness was frequently perceived to incentivise homelessness. Some applicants saw being accepted as homeless as the first step to becoming a Council tenant. To address this issue Waverley’s Allocation Scheme was amended in 2007 to give equal Housing Register priority to those with a local connection to Waverley whether they are homeless, living with friends or relatives, or in private rented accommodation. This in turn means that those who are under threat of homelessness are incentivised to help themselves find alternative accommodation, often in the private sector, and not see homelessness as a means to a Council tenancy. Waverley’s strategy aims to maintain this approach which has been instrumental in ensuring the number of households having to be placed in temporary accommodation is kept to a minimum.

Continuous improvement – despite Waverley’s success to date there are a number of challenges ahead including a national rise in homelessness numbers, a potentially challenging economic outlook following Brexit, the reduction in first and second tier local authority funding, the continued role out of welfare reform and the new duties under the HRA 2017. Waverley’s Strategy aims to build on its past and recent successes by striving for continuous improvement to deliver the best possible housing options services to its customers.

Increased staffing – a ‘wait and see’ approach – It is very likely Waverley will need to invest in increased staffing to manage the increased number of presentations and administrative burdens from the HRA 2017. A number of Surrey Borough and District Councils have already created additional posts ahead of the legislation – one Council has created 7 new roles in its Housing Options Team. Waverley has taken the view that it is better to see the impact of the legislation first so that any need for increased staffing can be targeted in the correct areas. Budget has been set aside for this eventuality from the new burdens and flexible

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Page 180 homelessness Government funding so that the Council can move very swiftly if/when recruitment is needed.

Increase accommodation options – What is clear from the legislation is the need to provide additional accommodation to prevent and relieve homelessness, particularly for single people. As a result, Officers have been negotiating with statutory and voluntary partners to commission additional accommodation options. This helps minimise emergency accommodation costs and the increased staffing costs that occur from prolonged customer engagement when a suitable housing solution is not available. c) Challenges, Risks and Opportunities

Following the consultation and review of services, certain challenges, risks and opportunities were identified – these include: i) The fact that homelessness numbers for all household groups nationally and in Surrey are on an upward trend and the challenge this represents. ii) The challenge of helping customers and supporting and training staff through the significant changes being introduced by the HRA 2017 and the continued role out of welfare reform measures. iii) The challenge of recruiting and retaining staff following implementation of the HRA 2017 in order to manage the likely increased work load and expectations from customers. iv) The risk of increased numbers of homeless households being placed in private rented accommodation in Waverley by neighbouring boroughs and by London Boroughs. We are already we are aware of households being placed in Waverley by a London Borough and given the extra pressures on London Boroughs will face under the new legislation, the competition to secure affordable private rented properties will increase. It is a sobering thought that a Surrey Borough on the outskirts of London had very similar low numbers in temporary accommodation to Waverley in 2011. Now this Council has numbers above 100. This will partly be the result of London Boroughs widening their search to secure private rented properties in neighbouring Surrey Boroughs. This makes it much more difficult for the Surrey Boroughs and Districts to secure accommodation and drives up prices and costs of trying to incentivise private landlords to continue to let to welfare benefit dependent tenants. v) The risk that if Waverley is not able to successfully adapt its service to fulfil the new duties under the Homelessness Reduction Act 2017, particularly towards single households, temporary accommodation numbers and associated costs will rise. One Surrey Borough spent in excess of £1 million pounds on emergency temporary accommodation costs alone in 2015-16. vi) The reduction in Housing Related Support funding across Surrey for floating support and supported accommodation service for vulnerable single clients. Such services will have reduced capacity placing increased pressures on

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Page 181 Borough and Districts to source and fund alternative accommodation and support. vii) The Government is proposing a very radical change in how short-term supported housing schemes are funded from 2020. There are risks that if these proposals do not properly reflect concerns raised by local authorities and supported housing providers, existing schemes may not continue and there will be little appetite for the development of new provision. viii) The opportunity for Surrey Borough and Districts to directly purchase bed spaces in the supported housing schemes negatively affected by the cuts in Housing Related Support funding by Surrey. ix) The opportunities the Council has in developing new affordable housing and building on its success in this area to date. x) The opportunities to work collaboratively and innovatively with other Councils and statutory and voluntary partners as we all seek sustainable solutions to meet the increased demand on homelessness services. xi) Whilst temporary funding streams have been introduced to help Council’s transition to meet the new HRA 2017 duties, these are only guaranteed for 2-3 years. Councils with high temporary accommodation numbers and expenditure may be able to re-invest any savings from any increased homelessness prevention resulting from the legislation. However, given Waverley already has very low numbers and expenditure in regard to emergency accommodation, the Council’s ability to fund on going staffing and accommodation costs will be much more challenging if time limited Central Government funding streams are not renewed. xii) The opportunity to review how Discretionary Housing Payments are targeted so that the budget is maximised to reduce the need for significant homelessness budget increases on the General Fund. d) Priorities for Waverley’s Homelessness Strategy

Following feedback from Waverley’s Homelessness Strategy Consultation event held in October 2017, liaison with statutory and voluntary partners, Waverley’s Homelessness Review and analysis of the challenges, risks and opportunities outlined above, five priorities have been identified to inform the Action Plan for Waverley’s Homelessness Strategy:

 Homelessness Reduction Act 2017  Prevention / Early Help  Accommodation  Support  Partnership Working

Although the Strategy covers a five year period, the intention is to review it annually so the majority of the actions relate to the first year. 8

Page 182

e) Conclusion

Waverley and its statutory and voluntary partners have demonstrated an excellent track record in preventing homelessness in the Borough over the last five years. The Action Plan in Section 2 of the Strategy aims to build and improve on this success by continuing the homeless prevention / housing options / partnership approach and focusing resources on a variety of measures to ensure the good work is continued.

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Page 183

Section Two

Action Plan

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Page 184

Homelessness Strategy Action Plan 2018 - 2023

Strategic Priority One: Homelessness Reduction Act 2017 (HRA 2017)

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

1.1 Year 1- Train Staff have a good working Housing Waverley Borough NPSS training (March 2018) Housing Options knowledge of the new Options Council and internal training from staff in regard to legislation and able to Manager Senior Officers. new HRA 2017 correctly discharge the duties. Council’s statutory duties Additional external or internal training as required 2018 -19 Years 2-5 – Update training as required Page 185 Page including case law updates

1.2 Year 1- Procure An IT system that can Housing Waverley Borough DCLG New burdens IT and implement new capture the necessary Needs Council funding - £9,000. IT database and household, circumstance Manager train staff and legal details and be able IT Providers Cost of IT database - £7,500 to populate the new HCLIC Housing a year Years 2-5 – review Government returns Options IT database to Manager Internal training of staff ensure is fit for purpose and is able IT to reflect changes in Development legislation and best Manager practice

11

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

1.3 Year 1 – Review Customers seen in reception Housing Waverley Borough DCLG New burdens IT reception desk receive a professional and Needs Council funding – single payments arrangements efficient service Manager £9,000

Procure portable IT Housing options staff have Housing DCLG New burdens funding - tablets/ lap tops for the an IT product to capture Options £60,595 over 3 years 2017- use in reception and household and Manager 2020 on home visits circumstances information and provide customers with a IT printed Personalised Housing Development Years 2-5 – Review Plan Manager IT hardware and reception facilities to IT system that can that can ensure continued record statistical information Page 186 Page suitability. for DCLG

1.4 Year 1 - Amend Customers receive a Housing Waverley Borough Staff time homelessness consistent and legally sound Options Council procedures and service and staff have the Manager processes (including necessary tools to manage reviews their workload arrangements) to reflect new work flow required under HRA 2017.

Years 2-5 - Keep under review.

12

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

1.5 Year 1 - Prepare Customers receive written Housing Waverley Borough Staff time templates for letters advice in regard to legal Options Council and Personal duties owed to them and their Manager Housing Plans responsibilities to work with Officers to help resolve their Years 2-5 - Keep homelessness. under review

1.6 Year 1 - Train Agencies are able to Housing Waverley Borough Staff time, share with agencies in regard correctly identify and refer Needs Council neighbouring Boroughs – e.g. to the HRA 2017 clients to the Council and in Manager Guildford Borough Council, and housing options doing so are able to set Community Mental Woking Borough Council etc. work and agree customer expectations at a Housing Health Recovery Service . Page 187 Page local arrangements realistic and consistent level Options for statutory and Manager Surrey CC – Adults and non statutory Children referrals and Specialist Pathway plans for Housing Citizens Advice vulnerable groups Options Waverley Officer Year 2-5 Update York Road Project training as required Health

Probation

Domestic abuse outreach

Surrey Districts & Boroughs

13

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

1.7 Year 1 – develop Public bodies are able to Housing Waverley Borough Staff time and introduce a correctly identify and refer Needs Council portal through homeless clients to the Manager Homelessness budget which public Council IT provider Housing bodies specified in Options the regulations can Manager refer people who are homeless or a IT risk of Development homelessness Manager

Train staff and

Page 188 Page partners

Years 2-5 – monitor and review arrangements

1.8 Year 1 - Amend Out Council able to effectively Housing Waverley Borough Staff time of Hours fulfil its statutory duties out of Needs Council arrangements to hours Manager reflect HRA 2017 Pinnacle duties Housing Options Mole Valley Telecare Years 2-5 – Review Manager as needed

14

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

1.9 Year 1 - Amend Allocation Scheme legally Housing Waverley Borough Staff time and any necessary Allocation Scheme sound and continues to Needs Council training as needed to reflect complement Waverley’s Manager changes that are homeless prevention required following approach Housing HRA 2017 Options implementation Manager

Years 2-5 – Update Homechoice Allocation Scheme Manager as required

1.10 Year 1 - Review Housing Options team has Housing Waverley Borough DCLG New burdens funding - Officers Page 189 Page Options Team sufficient staffing to ensure Needs Council £60,595 over 3 years 2017- anticipate need staffing in the light of Waverley’s statutory duties Manager 2020 for additional operating HRA2017. fulfilled and low numbers of Support Officer If additional staffing households in temporary Housing Flexible Homelessness Grant Post & team required, identify accommodation maintained. Options 2017-2018 £131,000 may require funding, prepare & Manager senior Housing evaluate Job Flexible Homelessness Grant Options Officer descriptions & Strategic HR 2018-2019 £151,000 role(s) and / or advertise & recruit additional DCLG historic funding Officer roles Years 2-5 – Keep £11,000 under review

15

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

1.11 Year 1 - Update Website is able to guide Housing Waverley Borough Staff time Housing Options customers threatened with Options Council Website pages to homeless as to what duties Manager reflect new HRA may be owed to them and 2017 help set realistic expectations Website Manager Years 2-5 - Monitor, review and update as needed to reflect legislative changes and case law

Page 190 Page

16

Strategic Priority Two: Prevention / Early Help

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

2.1 Year 1 – Maintain Customers homelessness Housing Waverley Borough Council Staff time good quality prevented and temporary Options housing options accommodation numbers kept Manager Private landlords Training advice, casework to a minimum

and other Letting agents Partnership working interventions Staff receive required training Housing through the and supervision Needs Supported housing Council’s Housing Manager providers Options Team

Years 2-5 – Monitor and Page 191 Page review

: 2.2 Year 1 -Continue Prevention of homelessness Housing Waverley Borough Council Homelessness Budget - to fund the HELP among young people Needs £1,000 grant school education Manager Step by Step project run by Step by Step Education Project Step by Step is delivered by young people who have experienced Year 2-5 homeliness. By receiving training to present their Monitor and experiences to other young Review people, they develop their skills to help with future employment opportunities.

17

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

2.3 Year 1 - Continue Prevention of homelessness Housing Waverley Borough Council Homelessness budget to use the and minimising the upheaval for Options homelessness customers Manager Private landlords Staff time budget flexibly to help prevent Value for Money by targeting Letting agents homelessness resources at the most cost Housing e.g. spend to effective solution to prevent Needs save payments, homelessness. Manager paying rent in advance, payments for landlord fees etc.

Years 2-5 – Page 192 Page Monitor and review

2.4 Year 1 - Continue Victims of domestic abuse made Specialist Waverley Borough Council Staff time to fund Sanctuary safe & able to avoid the Housing Scheme to help upheaval of moving away from Options Waverley’s Building Homelessness Budget victims of support networks Officer Contractor – Mears domestic violence safely remain in Reduced costs in providing Housing Police their homes. emergency temporary Options accommodation Manger Fire Service Year 2-5 - Housing Monitor and Needs review Manager

18

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

2.5 Year 1 - Monitor Clear picture of impact of the Housing Waverley Borough Council Staff time impact of welfare changes Options Welfare Reform Manager Citizens Advice Waverley changes e.g. Ability to target resources such Benefit cap, role as Discretionary Housing Housing out of Universal Payments DHPs), welfare Needs Credit, Freeze in benefit advice, downsizing Manager Local Housing advice and tenancy support to Allowance(LHA) those most in need. Benefits rates Manager

Years 2-5 Rent Accounts Monitor and Manager

Page 193 Page review Welfare Benefit Officer

2.6 Years 1 - 5 – New Government required data Housing Waverley Borough Council New IT database - £7,500 a Monitor data recording from April 2018 and Options year from new IT the new IT database will Manager Statutory and Voluntary database provide much more detailed Partners Staff time regarding household/demographic Specialist reasons for information. Housing homelessness so Options prevention Database will highlight primary Officer measures can be causes of homelessness in targeted Waverley & what prevention Housing effectively actions are most effective so Needs resources can be targeted Manager effectively

19

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

2.7 Year 1 – Households under pension age, Maximise use of under-occupying social housing Housing Waverley Borough Council Staff time Discretionary assisted to move to smaller Needs Housing accommodation rather than Manager Housing Association Discretionary Housing Payments (DHP) remaining in unaffordable partners Payment budget so they targeted accommodation with the help of Housing at those in most DHPs Options Downsizing budget need and reflects Manager a joined up Increased availability of family approach sized accommodation to those Benefits between Housing on the Housing register Manager and Benefits Services Greater use of DHP budget for Homechoice rent deposits and rent in Manager Page 194 Page Years 2-5 - advance to reduce costs on Monitor and homelessness budget (General Welfare review fund) and reduced debts for Benefit customers. Officer

Households in unaffordable private rented accommodation assisted to move to affordable accommodation

20

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

2.8 Years 1-5 Ensure Customers able to self serve Housing Waverley Borough Council Staff time that online where possible so that Options information telephone and in person Manager regarding the interactions with the Housing Housing Options Options team are maximised Website

Service is up to Manager date and is helping clients self serve where possible Page 195 Page

2.9 Years 1-5 – Ensures that households who Housing Waverley Borough Council Staff time Ensure that as the Council has helped into Options many housing private rented accommodation, Manager options clients as to prevent their homelessness, are eligible are have maximised their chances registered on the of future social housing. Council’s Housing Register This means that in the event of future threatened homelessness households may be able to resolve their difficulties by bidding successful for social housing.

Reduced costs to the council in preventing homelessness

21

Strategic Priority Three: Accommodation

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

3.1 Year 1 – Family sized properties released Homechoice Waverley Borough Council Staff time for those who need them. Manager Encouraged Promotion of incentives households under Smaller households and those Rents through tenant and applicant

occupying social who are elderly or have Accounts publications/Newsletters and housing to disabilities helped into Manager website downsize e.g. accommodation that is more Transfer incentive suitable for their needs Housing Transfer incentive payment scheme, mutual Benefit budget exchanges, high Social housing stock maximised Manager

Page 196 Page banding priority, Discretionary Housing closer liaison Reduced use of Discretionary Housing Payments between Housing Payment budget for Needs Homechoice under occupiers will mean Manager team and budget can be targeted at those Housing Benefit in greatest need. regarding decisions to award Discretionary Housing Payment awards to under occupiers.

Years 2-5 –

Monitor and Review outcomes

22

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments : 3.2 Year 1 -Develop New Council-owned homes for Head of Waverley Borough Council Housing revenue account new Waverley Housing Register applicants Strategic development budget owned affordable Housing & Building Contractors housing (48 new units expected 18-19) Development Staff time

Years 2-5 Housing Development Development of Manager new Waverley owned affordable Head of housing Planning

3.3 Year 1 - Support Increase in supported and Head of Waverley Borough Council Staff time and enable affordable housing for Housing Strategic Page 197 Page development of register applicants and Housing & Housing Associations more affordable customers facing homelessness Development and supported housing (24 Affordable rent / Social rent Housing developed by units expected 18-19) Strategy & housing Enabling associations / Manager Voluntary groups Head of Years 2-5 – Planning Monitor & review

3.4 Year 1- Fund Accommodation with day centre Housing Waverley Borough Council Homelessness Budget three bed spaces support for single homeless Options at York Road clients Manager Project, Woking Housing Years 2-5 – Strategy & Monitor and Enabling review Manager 23

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

3.5 Year 1 - Increase Housing Options team have a Housing Waverley Borough Council Staff time supply of private range of accommodation Options rented options that can be offered to Manger Ethical Lettings Homelessness Budget accommodation those to whom a homelessness for all household prevention or relief duty is owed. Housing Woking Borough Council groups, but Needs particularly single Reduced use of & cost of Manager Letting Agents homeless emergency B&B households. e.g. : accommodation Private landlords

-Monitor and Waverley’s deposit scheme review shared remains attractive to landlords house scheme and is competitive compared with Ethical with others. Page 198 Page Lettings and Woking Borough Council

-Radio advertising to attract new landlords

- - Explore and trial landlord incentives

-Liaison with agents/Landlords

Year 2-5 -

Monitor and review

24

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

3.6 Year 1 - Explore Increase in number and variety Housing Supported Housing Homelessness Budget opportunities to of units for single vulnerable Options Providers e.g. York Road purchase clients Manager Project Woking, DCLG New burdens funding - additional bed Transform Housing etc. £60,595 over 3 years 2017- spaces in Reduced use of & cost of Housing 2020 supported emergency B&B Needs housing schemes accommodation Managers Flexible Homelessness Grant 2017-2018 £131,000 Years 2-5 Flexible Homelessness Grant Monitor and 2018-2019 £151,000 review DCLG historic funding £11,000

Page 199 Page

3.7 Year 1 - Monitor Adequate supply / balance of Housing Waverley Borough council Staff time impact of temporary accommodation. Options Homelessness Manager Housing Association Reduction Act Emergency B&B costs and void partners 2017 on costs in empty temporary Housing temporary accommodation kept to a Needs accommodation minimum Manager units required. Currently 4 Flexibility to use permanent Council owned Council stock as temporary shared units accommodation when all other available alternatives are exhausted

Years 2-5 Flexibility to explore having additional homeless prevention Monitor and units in new or existing housing review. association stock.

25

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

3.8 Explore Increase in supply of emergency Head of Waverley Borough Council Capital funding opportunities of and short to medium term Strategic capital investment accommodation for homeless Housing & Housing Providers in out of borough households Development housing schemes Other Borough / District in return for Reduced costs of emergency Housing Councils nomination rights B&B accommodation Strategy and to bed spaces Enabling Reduced rough sleeping Manager

Housing Options Manager

Page 200 Page 3.9 Year 1 – Monitor / Reducing void loss and Housing Waverley Borough Council Staff Time review lease maximising rental income to the Options arrangements for HRA on harder to let properties Manager York Road Project Hard to let / under used unused / harder Council accommodation to let Council Move on accommodation for Head of Riverside Housing properties to supported housing schemes Housing assess provides much needed turnover Strategy & Ethical Lettings effectiveness in in higher support schemes to Development preventing help prevent homelessness homelessness Housing and providing Use of harder to let stock to Needs move on prevent or relieve homelessness Manager accommodation from supported Legal housing Services Years 1-5 – Manager assess whether other Council owed units can used similarly

26

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

3.10 Year 1 – Housing Waverley Borough Council DCLG New burdens funding - Commission pilot Additional supported housing for Needs £60,595 over 3 years 2017- scheme for up to vulnerable clients - particularly Manager Transform Housing & 2020 3 supported suited to younger age group Support housing bed- Housing Flexible Homelessness Grant

spaces at The Partnership working to help Options 2017-2018 £131,000 ensure viability of the scheme to Crescent, Woking Manager meet the needs of other clients Flexible Homelessness Grant Years 1-3 Review e.g. homeless young people 2018-2019 £151,000 and monitor owed a duty by Surrey Children’s Services. DCLG historic funding £11,000

Page 201 Page 3.11 Year 1 – Agree a Funding for support costs Housing Waverley Borough Council Capital contribution of suitable identified and agreed Needs £100,000 provided by resolution to Manager Step by Step Waverley to Step by Step in Waverley’s lack Waverley able to nominate 2010. of access to eligible young people to Step by Housing Surrey County Council nomination rights Step project in line with Options Staff time at Step by Step nomination agreement Manager Project in Aldershot due to change in how support costs are funded.

Years 2-5 – Monitor and review

27

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

3.12 Year 1 - Make Reduced use of less suitable Housing Waverley Borough Council Staff time use of opportunity B&B or other unsupported Options to refer young emergency accommodation for Manager Surrey County Council Homelessness budget homeless clients young people. needing Housing emergency Needs accommodation Manager into Surrey CC family HOST service and explore possibility of expanding to service for older clients Page 202 Page

Help Surrey County Council in advertising to recruit additional host families

Years 2-5 – monitor and review

28

Strategic Priority Four: Support

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

4.1 Year 1 -Maintain Assessment of the needs and Specialist Waverley Borough Council Staff time There is very and develop the homeless ness duties owed to Housing likely to be a housing options vulnerable housing options Options need for support service clients. Officer additional role(s) provided by the in this area in Housing Options Tenancy and welfare support to Housing order for the Support Officer vulnerable clients in living in all Options Council to fulfil its and Specialist tenures to help ensure Support HRA 2017 duties Housing Options accommodation sustained and Officer Officer homelessness prevented.

Years 2-5- Co-ordination with other Page 203 Page Monitor and statutory and voluntary agencies review e.g. Social Services, Domestic Violence Outreach Service, Police, Health

4.2 Year 1 - Continue Specialist advice and support to Housing Waverley Borough Council £15,000 from homelessness to joint fund with rough sleepers and those at risk Options budget Woking Borough of rough sleeping in Waverley Manager Woking Borough Council Council the Outreach Support Clients’ Housing and welfare Head of York Road Project, post managed by needs assessed and assisted to Housing Woking York Road engage with heath and welfare Strategy & Project, Woking services Development

Years 2-5 – Reduced costs of providing Monitor and emergency temporary review accommodation

29

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

4.3 Year 1 - Explore Additional resource to help the Housing Waverley Borough Council Staff time possibility of Council fulfil its HRA 2017 Needs securing 2 year duties and Social Services Manager Adult Social Care Surrey Surrey County Council Surrey County Better Care duties. Housing Related Support Council funding Specialist Funding to recruit to an Tenancy and Welfare support to Housing additional prevent homelessness and Options Housing Options promoted health and well being Officer Support Officer of clients role within the Housing Options team

Page 204 Page Year 2 – If role and 2 year funding agreed, review effectiveness and whether there is a need to continue the role with alternative funding beyond March 2019

30

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

4.4 Year 1 - Review Review whether the Service Housing Waverley Borough Council Staff time Don’t Lose your should continue (in the light of Needs Home or reduced demand) and, if so, Manager Business Service how it can best support the Council’s financial inclusion Head of Years 2-5 – agenda/strategy Strategic Review and Housing & monitor Development

Head of Housing

4.5 Year 1 - Monitor Rather than directly support Rent Waverley Borough Council Staff time Page 205 Page change in remit of customers, the Welfare Benefit Accounts Welfare Benefit Officer will provide expertise and Manager Officer role within support to Rent Officers and Rents Team other housing staff to help them Welfare support Council tenants Benefit adjusting to welfare benefits Officer role changes.

Maximising benefits and income to sustain tenancies and prevent homelessness

31

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

4.6 Year 1 -Monitor Deposit scheme customers set up Housing Waverley Borough Council Staff time deposit and rent in and maintain realistic and Options advance repayment sustainable repayment Manager arrangements from arrangements customers Housing Income recovery maximised, legal Options Co- Years 2-5 – collection costs through third Ordinator and Monitor & review parties minimised, customers Recovery opportunity of bidding successfully Officer for social housing in the future is maximised

Page 206 Page

32

Strategic Priority Five: Partnership Work

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

5.1 Years 1-5 - Partnership working to achieve Housing Waverley Borough Council Staff time Maintain Housing best possible outcomes for Needs Service clients, avoid duplication and Manager Surrey Boroughs / Districts representation maximise/share resources and participation Housing Surrey County at multi agency Options Council meetings e.g. Manager Surrey Housing Surrey Police Needs Managers Specialist Meeting, MARAC, Options Health MAPPA, Social Officer Page 207 Page Services case Housing Associations conferences, Housing Probation Association Forum, Community Mental Health CHarMM. Recovery Service (CMHRS)

33

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

5.2 Year 1 - Continue Housing and support needs of Housing Waverley Borough Council Staff time to manage and vulnerable clients assessed and Options coordinate suitable housing and support Manager Supported housing Waverley’s Single options identified. providers Housing Panel Partnership working to achieve Floating Support Services Years 2 – 5 best possible outcomes for Monitor and clients, avoid duplication and Health review maximise/share resources CMHRS

Social Services

Page 208 Page Probation

5.3 Year 1- Maintain Early Help and support to Waverley Waverley Borough Council Family Support Budget Waverley’s vulnerable families to stabilise Family Family Support and promote Health and Support Social Services Staff time Service Wellbeing, Education, Manager Employment and Housing. Police Years 2-5 - Head of Monitor and Fulfil the Council’s commitments Housing Schools review to the Government’s Syrian Operations Vulnerable Person Resettlement Health Programme

34

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

5.4 Year 1 - Work Waverley rough sleepers offered Housing Waverley Borough Council Staff time with partners to emergency accommodation Options provide Severe during cold weather periods (3 Manager Guildford, Woking and Homelessness budget Weather consecutive nights forecast Surrey Heath Councils Emergency temperature 0 or below) to Housing Provision (SWEP) mitigate health risks. Needs York Road Project, for single Manager Woking homeless clients Number Five Project, Years 2-5 – Guildford Monitor and review B&B providers

Page 209 Page

5.5 Year 1 – Co- An accurate estimate of those Housing Waverley Borough Council Staff time ordinate sleeping rough in the Waverley Needs Waverley’s rough area to gauge the effectiveness Manager Police Statutory and Voluntary sleeping estimate or otherwise of Waverley’s agency time in the autumn of homelessness prevention Housing York Road Project 2018 approach Options Manager Probation Years 2-5 – Statistical information for the Continue - Government CMHRS subject to Government and Faith forum/groups local requirements Citizens Advice Waverley

35

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

5.6 Year 1 Continue Waverley residents receive Community Waverley Borough Council Grant £210,000 to support the independent, free advice in Services work of Citizens regard to debt, welfare benefits, Manager Citizens Advice Waverley Staff time Advice Waverley employment and housing rights and monitor and responsibilities etc. Housing performance Benefit through Service Maximisation of income & Manager Level Agreement welfare benefits, social inclusion and prevention of Housing Years 2-5 – homelessness. Options Monitor and Manager review Tenancy and Estates Page 210 Page Manager

Rent Manager

5.7 Year 1 – Housing Multi agency partnership work Specialist Waverley Borough Council Staff time Options Support to co-ordinate support for Housing staff to attend and vulnerable households. options Children’s Services contribute to Officer Early Help Local Prevention of homelessness Schools Family and promotion of health and Health partnership well-being of children and meetings in parents/guardians CMHRS Waverley Co-ordinated support, Police maximising/sharing resources Years 2-5 – Domestic Abuse Outreach Monitor and Identify gaps in provision of Service Review services/support & training/ awareness raising Voluntary groups 36

No. Action Aims / Outcomes Lead Partner Agencies Resources Status / Officers Comments

5.8 Years 1 – 5 – To review the Council and its Housing Waverley Borough Council Staff time Arrange and co- partners’ progress in preventing Options ordinate an homelessness and delivering Manager Adult Social Care annual homelessness strategy Homelessness priorities. Housing Children’s Services Strategy Needs conference Identify and celebrate Manager Citizens Advice Waverley successes CMHRS Identify emerging challenges and agree partnership actions to Supported Housing meet the challenges. Providers

Health

Page 211 Page Probation

Letting Agents / Private landlords

Ethical Lettings

Neighbouring Boroughs/Districts

37

38

Page 212 Agenda Item 14. Executive 1 10.04.18

WAVERLEY BOROUGH COUNCIL

MINUTES OF THE EXECUTIVE - 10 APRIL 2018

SUBMITTED TO THE COUNCIL MEETING – 24 APRIL 2018

(To be read in conjunction with the Agenda for the Meeting)

Present

Cllr Julia Potts (Chairman) Cllr Jenny Else Cllr Ged Hall (Vice Chairman) Cllr Carole King Cllr Andrew Bolton Cllr Tom Martin Cllr Kevin Deanus Cllr Chris Storey Cllr Jim Edwards

Also Present Councillor Mike Band, Councillor Jerry Hyman and Councillor Robert Knowles

110. MINUTES (Agenda item 1)

The Minutes of the Meeting held on 6 February 2018 and the Special Meeting held on 20 February 2018 were confirmed and signed as a correct record.

111. APOLOGIES FOR ABSENCE (Agenda item 2)

There were no absences.

112. DECLARATIONS OF INTERESTS (Agenda item 3)

The following declarations were made in respect of items on the agenda:

Cllr Tom Martin declared a Non-Pecuniary interest in relation to Item 14, Property Issue – Godalming Cricket Club, as he is a Director of Holloway Hill Recreation Ground, where Godalming Cricket Club is based.

113. QUESTIONS FROM MEMBERS OF THE PUBLIC (Agenda item 4)

There were none.

114. LOCAL PLAN PART 2: PREFERRED OPTIONS CONSULTATION (Agenda item 5)

The Executive received a report that set out the context for the Preferred Options Consultation Document. The report described the background and progress to date of the Local Plan Part 2 and the main issues pertinent to this stage of the Plan’s development. It also set out the views of the Environment Overview and Scrutiny Committee which had discussed and supported the content of the consultation document at its meeting on 19 March 2018.

Page 213 Executive 2 10.04.18

Before considering the report on the Preferred Options Consultation, the Leader invited Cllr Mike Band to make a statement of clarification with regard to the Surrey Hills AONB Board’s position in relation to the legal challenges to Waverley’s adopted Local Plan Part 1.

Cllr Band reiterated the statement made by the Board, that the Surrey Hills AONB Board has no role whatsoever in publically challenging the policies of its constituent councils. Cllr Band confirmed that he had robustly defended queries by the Board in relation to Waverley’s Local Plan Part 1, and these discussions had been minuted.

The Leader thanked Cllr Band for clarifying again the position and stance of the Surrey Hills AONB Board.

Cllr Knowles had given notice to speak in accordance with Procedure Rule 23, and outlined his major safety concerns in relation to the Key Site Haslemere (DS07), which showed the potential loss of two car parks with no increase in off-street parking elsewhere, and also the loss of the fire station; and, 38 Petworth Road (DS14) where a planning appeal had been dismissed recently on traffic safety grounds.

Cllr Hyman had also given notice to speak in accordance with Procedure Rule 23, and referred to the legal challenges to the Local Plan Part 1: he asked if the Council intended to defend the challenges, and what impact the pending challenges would have on determination of planning applications.

The Leader advised that she would be making a statement with regard to the defence of the legal challenges, but invited the Portfolio Holder for Planning to respond to the other points raised.

Cllr Storey reassured Cllr Hyman that the legal challenges to Local Plan Part 1 would have no impact on the Council’s ability to make planning decisions based on the strategic policies set out in the adopted Local Plan, or the progress of Local Plan Part 2.

Cllr Storey added that in relation to the Haslemere Key Site, this had been in the public domain since August 2016 and proposed by a Haslemere Town Councillor in the 2014 Call for Sites. Whilst the site did include the fire station, it did not necessarily mean that it would be included in any redevelopment. With regard to land at 38 Petworth Road, the Planning Inspector’s comments had been taken account of in the Preferred Options Consultation Document. As part of the consultation, he welcomed comments in relation to either of these sites, and any others.

Cllr Storey advised that the intention had been to commence the consultation on 23 April, but would now be delayed until after the by-election for Farnham Castle Ward on 24 May, to avoid the ‘purdah’ period.

On the recommendation of Cllr Storey, Portfolio Holder for Planning, the Executive APPROVED the Local Plan Part 2 Preferred Options document for consultation.

Page 214 Executive 3 10.04.18

[Reason: To enable the public consultation on the Local Plan Part 2 Preferred Options document to commence in accordance with the agreed timeline.]

The Leader then made a statement in relation to the legal challenges to Waverley’s adopted Local Plan Part 1:

“I am asking the Executive to agree £200k (£100k with a further £100k to be approved by Full Council) as we now have to defend our decision to adopt a sound Local Plan to protect our residents and our communities;

An excellent plan that protects Waverley from in appropriate ad hoc development An excellent plan that has been approved by an independent inspector An excellent plan that has been through three years of public consultation and scrutiny A plan that is Government requirement.

"I am tired of this council and our residents being bullied, and having to defend the lawful, democratic decisions of this council in the High Court.

"In the last two years Waverley has had to face a number of very costly challenges on lawful decisions that have benefited the community. We have had to defend our decisions on:

Undershaw – which we won! That is now an independent school for children with special needs – referred to by OFSTED “as a school that aims to ‘change lives for the better and strive to ensure that every child can realise their potential and make their unique contribution to society. Brightwells – which we won! A regeneration scheme that will bring homes, jobs and a new retail and leisure offer to a run down, under utilised area of Farnham. The Farnham Neighbourhood Plan – which we won! A plan that was led by the community following years of hard work – was voted for by the community at a referendum. Our decision to hold the referendum was challenged. Our decision to adopt the plan was challenged. And the challenges failed. Dunsfold – Eventually quashed by Secretary of State but after Waverley and the developer had to spend thousands of pounds defending the planning decision and being threatened with a JR; which was then withdrawn before it reached the courts.

"This administration is really proud of our new Local Plan. It has been found to be sound, we have adopted it and it has already fended off significant unwanted and inappropriate development in this borough. Just last week the Secretary of State published his long-awaited decisions on four key planning applications, backing Waverley's adopted Local Plan.

"I am appalled that we have to spend money on legal expenses again, when we could be spending it on services - £200k at a time when as a council we face enormous financial challenges and are doing our utmost to deliver and protect key frontline services for our residents and many of our most vulnerable members of the community.

Page 215 Executive 4 10.04.18

"The adopted Local Plan is Waverley’s lawfully adopted framework for development and planning decisions. The plan will continue to be our guide for all future development in the borough despite these challenges and will be our guide for the life of the plan – as I am confident that we will successfully defend the plan against all three challenges.

“This council will instruct the court that we will pursue full reimbursement of all legal costs we incur and will not accept anything less. These campaigning pressure groups must understand that this irresponsible abuse of public money will not be tolerated by Waverley Borough Council and its’ residents.”

On the recommendation of the Leader, and seconded by Cllr Hall, the Executive APPROVED a Supplementary Estimate of £100,000 and RECOMMENDS to the COUNCIL that a further Supplementary Estimate of £100,000 be approved, for external legal costs to defend the Council’s position on the Judicial Review challenges to Waverley’s adoption of Local Plan Part 1, to be met from the Revenue Reserve Fund.

[Reason: to enable the Council to defend the legal challenges to Waverley’s adopted Local Plan Part 1.]

Recommendation submitted to Council on 24 April 2018.

115. COMMUNITY INFRASTRUCTURE LEVY: APPROVAL TO SUBMIT DRAFT CHARGING SCHEDULE FOR EXAMINATION (Agenda item 6)

The Executive received a report providing feedback on the public consultation on the Community Infrastructure Levy (CIL) Draft Charging Schedule, and seeking approval to submit the Draft Charging Schedule for Examination.

Cllr Hyman had given notice to speak in accordance with Procedure Rule 23, and raised his continuing concerns about the charging treatment for SANG in Farnham and also in relation to developments in the Wealden Heaths.

Cllr Storey advised that SANG was included within the definition of infrastructure and therefore had to be covered by CIL. The Council’s proposals had been through two rounds of consultation, and were now ready to be submitted for Examination. There would an opportunity at Examination to explore further any concerns.

On the recommendation of the Portfolio Holder for Planning, the Executive AGREED to RECOMMEND to the COUNCIL that:

1. the Draft Charging Schedule and the Schedule of Minor Modifications be approved for submission to the Planning Inspectorate for Examination; and

2. authority be delegated to the Head of Planning Services, in consultation with the Portfolio Holder for Planning, to

Page 216 Executive 5 10.04.18

o approve any subsequent minor changes to the Draft Charging Schedule and schedule of minor modifications, and

o approve supporting documents to be submitted, including the Draft Regulation 123 list, policies on instalments, phasing and payment in kind, the Statement of Representations and the Viability Addendum Report.

[Reason: to enable Draft Charging Schedule to be submitted for Examination.]

Recommendation submitted to Council on 24 April 2018.

116. DEVELOPMENT MANAGEMENT IMPROVEMENT PLAN - PROGRESS UPDATE (Agenda item 7)

The Executive received an update report on completion of the actions set out in the Development Management Improvement Plan since it was agreed by the Executive in November 2018. Progress had been made on all actions with many completed. Timescales had been provided for the likely completion of outstanding actions and explanatory comment provided.

Cllr Hyman had given notice to speak in accordance with Procedure Rule 23, and asked if there would be training provided to officers and Members on Environmental Impact Assessments and the Habitat Regulations. The Leader responded that some training had already been provided and Cllr Hyman’s comments would be considered when further training was planned.

Cllr Storey advised the Executive that he was very pleased with the number of actions that had been completed or were on track. There had been some reservations about the development of a bespoke IT system, but this had been forced on the Council due to the lack of suitable systems generally available. The system would be ready to demonstrate shortly, and the Audit Committee would be invited to attend this in order to provide assurance about the system.

Cllr Martin endorsed the approach for procuring a suitable IT system and advised that the main risk was delay, rather than costs.

On the recommendation of the Planning Portfolio Holder, the Executive NOTED the good progress being made on the Development Management Improvement Plan.

[Reason: to review performance against actions set out in the Improvement Plan.]

117. PROPERTY INVESTMENT STRATEGY (Agenda item 8)

The Executive received the revised Property Investment Strategy, which provided a strengthened framework within which the Council would be able to carry out property investment activity.

Cllr Band had given notice to speak in accordance with Procedure Rule 23. He advised that he had chaired the Value for Money Overview and Scrutiny Committee

Page 217 Executive 6 10.04.18

that had developed the Strategy. The original brief had been to develop the governance arrangements for a proposed property investment company but Members had realised that before that, a revised Property Investment Strategy was needed. The proposed Property Investment Strategy was more restrictive than previously, but included delegated powers to the Executive to enable responsive investment decisions in line with the Strategy and on the recommendation of the Investment Advisory Board. Cllr Band thanked Anne Cains for her support of the Member Working Group.

Cllr Hyman had also given notice to speak in accordance with Procedure Rule 23, and asked for more clarity about the legal basis for a property investment company. He was pleased to see that it was proposed to expand the membership of the Investment Advisory Board to include non-Executive Members, and asked if it was intended to allow Opposition Group Members as members.

Daniel Bainbridge, Borough Solicitor advised that the legal basis for establishing a property investment company was set out within the Strategy. Whilst the Council had not set up a company, it was still an available option.

Cllr Hall, Portfolio Holder for Finance, endorsed the Strategy which set out the parameters for future property acquisitions, and was a real building block for the future. Cllr Edwards echoed the comments and commended the good work of the Overview and Scrutiny Committee.

On the recommendation of the Portfolio for Finance, the Executive AGREED to RECOMMEND to the COUNCIL that:

1. the General Fund Property Investment Strategy be approved, as set out in Annexe 1 with a commitment to review it again after 6 months;

2. subject to a positive recommendation from the Investment Advisory Board and agreement from the Chief Executive and Strategic Director, authority be delegated to the Executive:

a. to bid, negotiate and complete on property acquisitions and investments with a total individual cost of up to £10m, within a total aggregate sum of £30m over the period 2018/2019 to 2020/21, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy;

b. to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

c. to complete the legal matters and signing of contracts to execute the transactions referred to above; and

3. the proposed composition of the Investment Advisory Board be approved and revised Terms of Reference take effect immediately.

Page 218 Executive 7 10.04.18

[Reason: to agree the revised Property Investment Strategy and delegations to the Executive to progress General Fund investment opportunities; to agree a revised composition and Terms of Reference of the Investment Advisory Board.]

Recommendation submitted to Council on 24 April 2018.

118. TREASURY MANAGEMENT FRAMEWORK (Agenda item 9)

The Executive received the Treasury Management Framework for 2018/19, comprising the revised Treasury Management Policy, the 2018/19 Treasury Management Strategy, the 2018/19 Treasury Management Investment Strategy, and the Prudential Indicators for 2018/19 to 2020/21. The Treasury Management Framework for 2018/19 contained only minor changes, but it was a requirement that the Council formally agreed the Framework every year.

Cllr Hyman had given notice to speak in accordance with Procedure Rule 23, and queried whether the wording of TMP4 (in Annexe 2) allowed the use of derivative instruments, contrary to the CIPFA Code.

Cllr Hall, Portfolio Holder for Finance, assured Cllr Hyman that there was no plan to amend the strategy to allow the use of derivatives.

On the recommendation of the Portfolio Holder for Finance, the Executive AGREED to RECOMMEND to the COUNCIL that the proposed Treasury Management Framework for 2018/19 be approved.

[Reason: to agree the the Treasury Management Framework for 2018/19.]

Recommendation submitted to Council on 24 April 2018.

119. SERVICE PLANS 2018/19 (Agenda item 10)

The Executive, after considering the observations of the Overview and Scrutiny Committees, has AGREED that:

1. a. in future years, where Service Plans refer to a specific budget implication, this be cross-referenced to the appropriate line of the budget report; b. proposals be included in the Communities Service Plan to identify issues of loneliness and isolation experienced by Waverley residents; and c. the strategic review of off-street car parking provision looks at the potential to maximise the use of Waverley’s car parks through, for example, building on levels above the car parks to provide homes for rent; and whether chevron parking in some car parks would improve layout;

2. the Service Plan objectives for 2018/19 be approved; and

3. all Heads of Service review their Service Plans for 2018/19 once the new Corporate Strategy is agreed.

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[Reason: to agree the Service Plans for 2018/19.]

120. HOUSING STRATEGY - STRATEGIC HOUSING AND DELIVERY (Agenda item 11)

The Executive received the revised Housing Strategy for Strategic Housing and Delivery, which set out the direction of travel for strategic Housing Services for the next 5 years, in the context of current policy and practice.

Cllr King, the Portfolio Holder for Housing, highlighted the overarching goal for every Waverley resident to have a decent, sustainable and affordable home. She drew attention to the Housing Need and Local Affordability Analysis annexed to the Strategy which provided evidence of the scale of the challenge for residents in securing affordable housing in Waverley.

Cllr King thanked the Housing Overview and Scrutiny Committee for its input to the development of the Strategy. The Strategy would be reviewed annually, and updated to reflect any changes in government housing policy. Cllr King thanked Andrew Smith, Head of Housing Strategy and Delivery, and his team for their hard work in preparing the revised Strategy.

On the recommendation of the Portfolio for Housing, the Executive RECOMMENDS to the COUNCIL that the Housing Strategy 2018-23 – Housing Strategy and Delivery be adopted.

[Reason: to adopt the Housing Strategy 2018-23 – Housing Strategy and Delivery]

Recommendation submitted to Council on 24 April 2018.

121. HOMELESSNESS STRATEGY 2018-2023 (Agenda item 12)

The Executive received Waverley’s proposed Homelessness Strategy and Action Plan for 2018-2023, along with a report that highlighted Waverley’s excellent track record in preventing homelessness, and the challenges presented by the changes in homelessness legislation being introduced from April 2018 by the Homelessness Reduction Act 2017.

Cllr King, Portfolio Holder for Housing, endorsed the revised Homelessness Strategy which built on previous successes and set out the approach for meeting the considerable challenges of the new legislation.

On the recommendation of the Portfolio for Housing, the Executive AGREED to NOTE the Council’s continued success in preventing homelessness and RECOMMENDS to the COUNCIL that the Homelessness Strategy 2018-23 be adopted.

[Reason: to adopt the Homelessness Strategy 2018-23.]

Recommendation submitted to Council on 24 April 2018.

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122. PERFORMANCE MANAGEMENT REPORT Q3 2017/2018 (OCT - DEC 2017) (Agenda item 13)

The Leader introduced the Performance Management Report for Quarter 3 of 2017/18, and reported that performance had been very good overall. She was particularly pleased to report the good performance on satisfaction with housing repairs, homelessness prevention, void re-lets, and processing of Housing Benefit claims.

The number of planning appeals allowed remained an area of concern, but the adoption of the Local Plan Part 1 and the Secretary of State’s recent decisions on three called-in appeals for sites in Farnham, provided some grounds for confidence looking forward.

The Leader thanked the Overview and Scrutiny Committees for their consideration of the Performance Management Report and advised that there were no recommendations for changes to targets.

The Executive, having considered the performance figures for Quarter 3 and the observations of the Overview and Scrutiny Committees thereon, AGREED to NOTE the performance and progress towards targets in Quarter 3 of 2017/18.

[Reason: to review performance against key indicators and make any amendments as necessary]

123. PROPERTY ISSUE - GODALMING CRICKET CLUB (Agenda item 14)

The Executive considered a report proposing to enter into a 30 year lease with Godalming Cricket Club of the two cricket squares, cricket nets and garage at Holloway Hill Recreation Ground on terms set out in the Exempt Annexe to the report.

Cllr Hall stated that the Council was a strong supporter of local sports clubs and the benefits they provided to local communities, and he endorsed the proposals which reflected the Cricket Club’s long-term commitment to Holloway Hill recreation ground. Cllr Martin added his wholehearted support for the Cricket Club who were one of the principal users of the Recreation Ground.

On the advice of officers, the Cllr Hall proposed a revised recommendation, that excluded the garage from the 30-year lease, and this was seconded by the Leader.

Therefore on the recommendation of the Portfolio Holder for Finance, and seconded by the Leader, the Executive AGREED that a lease of two cricket squares and the cricket nets at Holloway Hill Recreation Ground be granted to Godalming Cricket Club, for a period of 30 years, on terms and conditions as set out in the (Exempt) Annexe and with other terms and conditions to be agreed by the Estates and Valuations Manager.

[Reason: to provide the Cricket Club with long-term lease arrangements and enable the club to apply for grant funding for improvements to facilities.]

Page 221 Executive 10 10.04.18

124. OUTSTANDING DEBT WRITE-OFFS FOR DECISION (Agenda item 15)

On the recommendation of the Portfolio Holder for Finance, the Executive AGREED to write-off the debts detailed in (Exempt) Annexe 1 to the agenda report, in accordance with Financial Regulation D203.

[Reason: to agree to write-off irrecoverable bad debts of more than a £7,500 individual value, in accordance with the Council’s Financial Regulations.]

The meeting commenced at 6.45 pm and concluded at 8.52 pm

Chairman

Page 222 Agenda Item 15. Audit Committee 1 27.03.18

WAVERLEY BOROUGH COUNCIL

MINUTES OF THE AUDIT COMMITTEE - 27 MARCH 2018

SUBMITTED TO THE COUNCIL MEETING - 24 APRIL 2018

(To be read in conjunction with the Agenda for the Meeting)

Present

Cllr John Gray (Chairman) Cllr Jerry Hyman Cllr Richard Seaborne (Vice Chairman) Cllr Anna James Cllr Mike Band Cllr Stephen Mulliner Cllr Nicholas Holder

Apologies Cllr Pat Frost

Also Present Sophia Brown and Iain Murray from Grant Thornton Peter Vickers, Head of Finance Walter Stockdale, Financial Services Manager Vicki Basley, Senior Accountant Gail Beaton, Internal Audit Client Manager

42. MINUTES (Agenda item 1.)

RESOLVED that the minutes of the meeting held on 20 November 2017 be confirmed and signed.

43. APOLOGIES FOR ABSENCE (Agenda item 2.)

Apologies were received from Cllr Pat Frost.

44. DISCLOSURE OF INTERESTS (Agenda item 3.)

There were no disclosures of interest in connection with items on the agenda.

45. QUESTIONS BY MEMBERS OF THE PUBLIC (Agenda item 4.)

There were no questions from members of the public.

PART I - RECOMMENDATIONS TO THE COUNCIL

There were no matters falling within this category.

PART II - MATTERS OF REPORT

The background papers relating to the following items are as set out in the reports included in the original agenda papers.

Page 223 Audit Committee 2 27.03.18

46. 2016/17 CERTIFICATION LETTER (Agenda item 5.)

Sophia Brown from Grant Thornton presented the 2016/17 Certification letter to the Committee. Grant Thornton had certified the Housing Benefit subsidy return and issued a qualification letter. The certification work had identified a number of issues, however these were considered relatively insignificant and the claim had not been amended. The Council would carry out some additional testing in three areas as set out in the letter.

Cllr James noted that an additional 940 cases would be tested in relation to rent allowances and queried how many had been tested in the first instance. It was explained that 20 cases had been tested to begin with and one error had been found. The Council had then looked at the population where the error had been found, and as this was 940, had decided to undertake 100% testing. Members were concerned that testing 940 cases could be unduly onerous on the Council however it was explained that the process was relatively straightforward and not time- consuming.

The Committee RESOLVED that the 2016/17 Certification Letter be noted.

47. EXTERNAL AUDIT PROGRESS REPORT (Agenda item 6.)

Sophia Brown presented the External Audit Progress Report and Sector Update to the Committee. She explained that Grant Thornton had completed its planning for the 2017/18 financial statements audit. Interim work had been carried out in February and this had not identified any significant weaknesses. Walkthrough testing had helped to cement the auditors’ understanding of how the systems were used and early substantive testing had not identified any issues.

Cllr Gray asked Sophia to clarify the process in terms of audit visits. She explained that this began with an interim review, followed by testing, then a pre-accounts visit, and concluding with the accounts visit.

Members queried how robust the testing would be when the Council had already stated that a plan was in place. Iain Murray from Grant Thornton explained that the testing would be proportionate to the risk, and would look at the upper end of what could be considered reasonable. Anything unrealistic or overly ambitious would be brought the attention of the Audit Committee.

Cllr Hyman noted that the Sector Update highlighted that the proportion of principal bodies where the auditor was unable to issue an opinion by 30 September had increased, and asked whether Waverley should be concerned. Iain responded that these related to authorities that were facing significant financial difficulties, and was more common at county level due to the costs of adult and children’s services.

The Committee thanked Sophia and Iain for the update and RESOLVED to note the External Audit Progress report.

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48. 2017/18 EXTERNAL AUDIT PLAN (Agenda item 7.)

Iain Murray presented the 2017/18 Audit Plan to the Committee. The Plan set out both the local and national context for the audit, including any relevant sector changes. Cllr Mulliner noted that this included a reference to the Council’s Investment Strategy, which would support economic development in the borough. He queried what the situation would be in relation to purchases outside the borough. Iain responded that while capital could be used to invest outside the borough, the legal position in relation to borrowing for investment outside the borough had not yet been tested. He added that Grant Thornton had an ongoing, open dialogue with senior officers at the Council and would raise any concerns as they arose. Cllr Gray also asked that the Audit Committee be informed of any emerging concerns.

In terms of risks identified, Iain explained that these would be similar to those the Committee would have seen in previous years. The valuation of property, plant and equipment and valuation of pension fund liability had been moved to the significant risks section, only because of a change in Grant Thornton’s working methods, not because the risk in these areas had increased.

Cllr Mulliner noted that the valuation of property was carried out by internal valuers on a rolling basis, and queried whether an external opinion was ever sought. It was explained that an external valuation would only be used if something was particularly unusual.

The Committee RESOLVED to note the External Audit Plan for 2017/18.

49. STATEMENT OF ACCOUNTS - ACCOUNTING POLICIES (Agenda item 8.)

Peter Vickers, Head of Finance, advised the Committee that the Council was required to prepare its accounts in compliance with the terms of the Code of Practice on Local Authority Accounting, developed by CIPFA. There had been two changes to the Code for 2018/19; however these would not have a significant impact on the Council due to the nature of its transactions.

IFRS 9 [Financial Instruments] introduced a new classification and measurement of financial assets with a requirement to make a loss allowance based on a new ‘expected credit loss’ impairment model. Cllr Gray noted that a Commercial Property void/non-payment fund had been established and queried how the level had been calculated. Peter responded that this would be shown in this year’s accounts.

The Committee RESOLVED to note the changes to financial reporting standards.

50. ANNUAL GOVERNANCE STATEMENT 2017/18 (Agenda item 9.)

A briefing on the draft Annual Governance Statement had been held on 21 March. This had given members of the Committee an opportunity to discuss the draft Annual Governance Statement in detail. A number of potential governance issues had been raised during this session, and Cllr Gray requested that Peter Vickers and Robin Taylor feed back these back to the Leader and Chief Executive to ensure that they were aware of the Committee’s concerns.

Page 225 Audit Committee 4 27.03.18

The Committee RESOLVED to note the progress of draft Annual Governance Statement, with the final version to be brought to the July meeting of the Committee.

51. PROGRESS ON THE INTERNAL AUDIT PLAN FOR 2017/18 (Agenda item 10.)

The Committee reviewed the latest position on the reviews contained within the 2017/18 Audit Plan. The Committee was pleased to note that the majority of planned reviews had now been completed; some reports were still at draft stage but were progressing well. Gail Beaton, Internal Audit Client Manager, informed the Committee that the review of email server and virus protection had not been required, as this was already covered by the requirements of PSN compliance; this had therefore been removed from the plan.

Cllr Holder queried whether review of Fire Safety Assessment Checks included the Council Offices building however Gail clarified that this specifically related to Waverley’s housing stock.

Members were concerned to note that no assurance had been given in relation to the management of keys for garages. Gail confirmed that the review had found that very weak controls were in place, and this had resulted in nine audit recommendations. The majority of these recommendations had now been implemented or were due to be implemented in the near future. When no assurance could be given as a result of a review, the target date for implementing the recommendations would be much shorter. The outcome of the review had been reported to the relevant Head of Service and the Directors also had access to the report. Members were keen to know that adequate action had been taken, and Cllr Band agreed to review the report and actions on behalf of the Committee.

The Committee RESOLVED to note the progress and the changes to the Internal Audit Plan for 2017/18.

52. PROPOSED INTERNAL AUDIT PLAN FOR 2018/19 (Agenda item 11.)

Gail Beaton presented the proposed Audit Plan for 2018/19 to the Committee. She explained that she carried out a risk assessment and consulted with Directors and Heads of Service in order to identify items to include in the plan. Gail welcomed the Committee’s views on any further items to be included in the audit plan.

Cllr Holder noted that a new IT system was being introduced in the Planning service, and suggested that this be included as a review. Gail agreed to look into this, and determine whether it would be appropriate to review it now or once it was more bedded in. Members had several concerns about the new online planning record system; they found it difficult to locate documents and felt that there had not been sufficient testing. It was also felt that guidance and training should have provided before the system was implemented, not afterwards. Cllr Gray suggested that, in view of the number of queries from members of the public, this might also be a worthwhile Overview and Scrutiny review.

Page 226 Audit Committee 5 27.03.18

The audit plan for 2018/19 included the review of the Agresso interface that had been deferred from the 2017/18 plan. Cllr Hyman queried whether the interface was now fully implemented as it seemed to have been taking a long time. Officers reported that the interface was now in place and working, the audit would be undertaken in Quarter 1 to ensure that it was working as expected. Cllr Hyman had some further concerns regarding the IT systems used to monitor housing stock and ensure that properties met the decent homes standard; he suggested that further audit work be carried out on the accuracy of data in the Orchard system and the way it worked alongside the Keystone system.

Cllr Band noted that a review of the Community Infrastructure Levy had been included for 2018/19. He highlighted that CIL wasn’t likely to be implemented until around December and therefore queried whether there would be time to do a worthwhile review. Officers responded that this had been discussed with the Head of Service, and the review would either be carried out in Quarter 4, or would be deferred to Quarter 1 the following year.

The Committee RESOLVED that the proposed Internal Audit Plan for 2018/19 be approved.

53. PROGRESS ON THE IMPLEMENTATION OF INTERNAL AUDIT RECOMMENDATIONS (Agenda item 12.)

The Committee received a report setting out the latest position regarding the implementation of internal audit recommendations. At its last meeting, the Committee had asked for an update on the progress made on several recommendations relating to information governance. An update from the Head of Service was set out in the report; this included a comprehensive project plan being put in place and Information Governance Board meetings being led by Graeme Clark, Strategic Director. Additionally, there would be briefings for Councillors on GDPR to be held on 30 April.

Members were concerned that the due date for IA18/02.006 [Legal basis of processing Personal Data] was 20 May 2018, which was only two days before GDPR would come into force. Officers responded that they were confident that this would still be met.

Gail Beaton also drew the Committee’s attention to two recommendations relating to Housing, which were due to be implemented by the end March. She assured the Committee that these recommendations would be implemented on time.

The Committee RESOLVED that the progress being made to comply with the General Data Protection Regulation by 25 May 2018 be noted.

54. FRAUD INVESTIGATION SUMMARY (Agenda item 13.)

The Committee received a report setting out the progress being made on fraud investigations, primarily focusing on housing tenancy fraud. The Committee was pleased to note that the investigations had resulted in eight council properties being handed back. The financial value of the work up to the end of Quarter 3 was £481,420 although the Committee noted that this figure didn’t represent the ‘real’ value of the properties as it would cost around £200,000 to build a new council

Page 227 Audit Committee 6 27.03.18

home. The total figure for the year would be presented to the Committee at its next meeting, however Gail Beaton indicated that this would be around £700,000.

Members remained impressed with the professionalism and hard work of the Fraud Investigation Officer, and noted that he worked very effectively with other officers around the organisation to progress cases.

Cllr Gray commented that there seemed to have been fewer referrals this year when compared with the previous year. Officers responded that while there had been a reduction in referrals, they were generally of better quality, which could indicate that people now had a better understanding of the process.

The Committee also asked how Waverley compared with other councils. Gail responded that Waverley was generally achieving verily highly when compared with other Surrey Councils.

The Committee RESOLVED that the success of the investigation activity and the results achieved be noted.

55. COMMITTEE RECURRENT WORK PROGRAMME (Agenda item 14.)

The Committee RESOLVED to note its Annual Recurrent Work Programme.

56. EXCLUSION OF PRESS AND PUBLIC (Agenda item 15.)

At 8.37pm it was:

RESOLVED that pursuant to Procedure Rule 20 and in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of the following item on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during the item, there would be disclosure to them of exempt information (as defined by Section 1001 of the Act) of the description specified in the paragraph 3 of the revised Part 1 of Schedule 12A to the Local Government Act 1972, namely:

Information relating to the financial or business affairs of any particular person (including the authority holding that information).

57. FUTURE DELIVERY OF INTERNAL AUDIT FROM APRIL 2019 (Agenda item 16.)

The Committee RESOLVED that the recommendations within the report be agreed.

The meeting commenced at 7.00 pm and concluded at 8.51 pm

Chairman

Page 228 By virtue of paragraph(s) 3 of Part 1 of Schedule 12A of the Local Government Act 1972.

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