EEC/06/139/HQ North Devon County Committee 27 September 2006
Second Homes Council Tax – Update
Report of the Deputy Chief Executive and Director of Finance and I.T.
Please note that the following recommendations are subject to consideration and determination by the Committee before taking effect.
Recommendations: It is recommended that Members: (a) note progress in use of Second Homes Council Tax in North Devon. (b) consider the proposals from North Devon District Council for use of the uncommitted budget set out in section 4.ii (c and d).
1. Summary
This report updates on the use of receipts from second homes council tax in the years 2004/05 and 2005/06 as agreed by the Executive and North Devon District Council. It seeks views on how the remaining resources should be used.
2. Background
In May 2004 the Executive set out its scheme of management for the use of the receipts from the additional levy on second homes in Devon. Proposals for the use of the North Devon receipts were agreed with North Devon District Council and progress was last reported in March 2006.
3. Summary of Available Resources
2004/05 - £449,000 (£381,000 DCC, £58,000 NDDC) 2005/06 - £307,000 (£249,000 DCC, £58,000 NDDC)
Total over two years - £746,000.
4. Summary of Action to Date and Proposals for Future Investment
Drawn Down Agreed / Proposed Balance Item Scheme not drawn No (Details down below) £746,000 1 Disabled - £100,000 £646,000 Grants 2 Rural Housing - £15,000 £631,000 Enabler RHE) 3 Silver Hill £30,000 £601,000 Lodge 4 Hobbs Yard - £68,000 £533,000 5 Dis Grants 2 £100,000 £433,000 6 RHE2 £10,000 £423,000 7 Challenge £100,000 £323,000 Fund 8 Rural £323,000 £000.000 Schemes.
(i) Schemes Agreed for 2004/5
a) Minor Works Disabled Grants - £100,000 (90k DCC:10k NDDC - committed to reduce backlog and maintain independence of older and disabled people. • Outcome –24 Level access showers and 3 stair lifts have been provided with this money.
b) Rural Housing Enabler - £15,000 (10k DCC; 5k NDDC) to develop schemes in rural parishes.
• Outcome – Surveys have been done at:
North Molton Knowstone East Anstey Brayford Lynton and Lynmouth West Down Woolacombe Brendon and Countisbury Bratton Fleming Combe Martin Horwood, Lower Lovacott and Newton Tracey
All have a project at some stage of development.
Bishop Nympton was initiated at the end of January 2006. Surveys of Umberleigh, Atherington, East & West Buckland are planned for 2006. Other parishes are also being considered.
c) Silver Hill Lodge - £30,000 (all DCC) – to provide units of accommodation for learning disabled adults on DCC land in partnership with North Devon Homes. Planning complexity has held up this scheme but now looks like will shortly be able to proceed. • Action – Ian Hobbs to pursue to completion.
d) Hobbs Yard - (£55,800 DCC:£6,200 NDDC) – to provide 5 units of accommodation. Scheme will provide 5 units of housing for rent in Lynton.
• Outcome – Reduced funding was required from DCC to achieve land purchase of £68,000 (therefore £60,800 from DCC at 90% of scheme cost) and project is now advancing. Media has recognised DCC’s role in early coverage.
(ii) Schemes proposed for uncommitted balance.
The following schemes are in progress as per previous agreement.
a) Minor Works Disabled Grants – A further £100,000 towards this scheme, building on the success of the first year’s use. This will enable the backlog to effectively be eradicated and will be of significant help in achieving the Council’s aim to promote independence for older and disabled people. It is suggested that we now prepare a media release detailing the wide number of people who will have been helped through this part of the scheme.
b) Rural Housing Enabler – A further £10,000 is being used to support the successful project, which has been instrumental in bringing rural housing to the point of bidding for funding (see the item d below – all these schemes have been developed via the rural housing enabler project).
The following schemes need further discussion and decision.
c) Landlord Challenge fund – The use of £100,000 to maximise the effective use of existing stock (bringing empty homes back into use) in return for low rents and nomination rights, has been agreed in principle. NDDC are keen to move this forward and has agreed a pilot project using £30,000 to bring 6 empty flats up to a decent home standard, providing these at Housing Benefit eligible rents to nominations from the Councils Housing Advice Centre. Priorities for this work is in Ilfracombe, working closely with the Neighbourhood Management Pathfinder.
d) Rural Housing Schemes – Funding to be used to secure Housing Corporation funding for a number of rural schemes where the Housing Corporation indicates that, without some joint funding, bids will not be supported. This is a very fluid situation as negotiations proceed with Housing Corporation and developers. The District Council is currently proposing the following schemes as priorities, ranked according to the District Council’s priority assessment:
i) Brendon – 4 affordable homes (3 for rent and 1 for low cost ownership) with second homes support of up to £100,000. Brendon has highest number of second homes, together with Morethoe. The total scheme cost is £425,000 of which the developer is contributing £200,000, NDDC have agreed £100,000 in principle, the request to second homes budget is £100,000. The balance is being sought. ii) Brayford - - 5 units (4 would be for rent. The scheme cost is £445,872. The total grant required is £328,000 of which NDCC has agreed £100,000 in principle. A bid is being lodged with the Housing Corporation, the outcome of which will determine how much second homes contribution is required but this will be in the range of £110,000 to £164,000.
A number of other schemes were reported in March and have progressed as follows.
Scheme/ No of No of Current Position re: site Parish Units units rented (SO) Oakford Villas, 8 Housing Crp funded North Molton Painters Cottage, 3 Housing Crp funded N Molton Ruxfield 3 Housing Crp funded Council Field, 2 Housing Crp funded Lower Lovacott Church Close, 4 Housing Crp funded Bratton Fleming
5. Financial Considerations
These are fully explained above.
6. Sustainability Considerations
These proposals are financially sustainable as they are contained within a fixed sum of money. Wider sustainability issues will be managed through the planning process, including building design and impact upon local communities. The latter has been considered as part of either parish planning work or through the survey undertaken with the support of the Rural Housing Enabler.
7. Conclusion
Housing is a key priority for the north Devon area and the County Council has demonstrated its commitment to this work by releasing a substantial sum of money to support housing need. Its local and national reputation has been enhanced as a result. Partnership working with the District Council has been very strong in relation to this area of work and the schemes outlined in this report are brought forward for member consideration following considerable work in communities to assess need. The proposed projects are defined by the District Council as having a high potential to be achieved.
As each scheme is agreed a joint media release will be agreed so that the public is kept up to date with progress in the use of this sum of money.
Edward Chorlton Deputy Chief Executive John Mills Director of Finance and I.T.
Electoral Divisions: All in North Devon
Local Government Act 1972
List of Background Papers
INCOME FROM THE TAXATION OF SECOND HOMES - SCHEME OF FINANCIAL MANAGEMENT BETWEEN THE COUNTY AND DISTRICT COUNCILS May 2004.
Contact for enquiries: Ian Hobbs
Tel No: 01271 344103
Background Paper Date File Ref.
None
ih150906ndcc sc/second homes 2 hq 180906