Issue - meetings

This report seeks approval to formally commence due diligence [financially and regulatory] and approval of the necessary capital budget to enable the transfer of the Medway portfolio of the Registered Provider stock to Medway Council’s Housing Revenue Account (HRA).

Background:

The report set out that a Registered Provider (RP) of Social Housing was seeking to transfer their Medway housing stock [excluding two specific assets] to a new registered social provider, this being Medway Council, this was in line with the RP’s long term asset disposal strategy. Medway Council’s Landlord Services [Housing Revenue Account - HRA] had been advised of a potential RP transfer opportunity of social housing properties as part of this organisation’s larger asset disposal and rationalisation strategy. It was noted that HRA funding was ringfenced from the Council’s general finances.

The report sought approval to formally commence due diligence and recommend to full Council approval of the necessary capital budget to enable the transfer of the Medway portfolio of the Registered Provider stock to Medway Council’s HRA. Enabling an alternative registered provider to take ownership of the existing RP’s Medway properties and maintaining much needed social housing, it was important to note that the properties would be tenanted at the time of transfer to the Council.

Two Exempt Appendices to the report set out financial information, which was of a commercially sensitive nature and a breakdown of locations of the acquisition portfolio which was covered under a Non-Disclosure Agreement.

A diversity impact assessment had been undertaken in relation to the proposals and was attached as Exempt Appendix 3 to the report.

The report had previously been considered by the Cabinet on 7 April 2026, the decisions of which were set out at section 6 of the report.

The decisions made by the Cabinet had been called in by six Members of the Council, therefore, approval of the requested addition to the Capital Programme by the Council would be subject to the outcome of the call-in process.

The Portfolio Holder for Housing and Homelessness, Councillor Louwella Prenter, supported by the Portfolio Holder for Climate Change and Strategic Regeneration, Councillor Curry, proposed the recommendations as set out in the report, with the alteration that these were subject to the outcome of the call-in process.

Revised recommendations:

1.1.        The Council is requested to note the decisions of the Cabinet, as set out at section 6 of the report.

1.2.        The Council is asked to approve the necessary addition to the Capital Programme of £45.95million, including associated fees, subject to the outcome of the current call-in process in relation to the Cabinet decisions made on 7 April 2026, as follows:

·        The Cabinet approved the transfer/acquisition of the Registered Providers Medway Portfolio of 791 properties [portfolio breakdown in section 4 of the report] to Medway Council’s HRA, subject to financial and regulatory due diligence (decision no. 60/2026);

·        The Cabinet approved the procurement of an appropriate consultant to support the transfer of stock, including the necessary due diligence (decision no. 62/2026) and;

·        The Cabinet agreed to delegate authority to the Director of Place and Chief Operating Officer, in consultation with the Leader of the Council and Portfolio Holder for Housing and Homelessness to authorise the transaction, subject to final due diligence (decision  ...  view the full minutes text for item 878

Background:

The report set out that a Registered Provider (RP) of Social Housing was seeking to transfer their Medway housing stock [excluding two specific assets] to a new registered social provider, this being Medway Council, this was in line with the RP’s long term asset disposal strategy. Medway Council’s Landlord Services [Housing Revenue Account - HRA] had been advised of a potential RP transfer opportunity of social housing properties as part of this organisation’s larger asset disposal and rationalisation strategy. It was noted that HRA funding was ringfenced from the Council’s general finances.

The report sought approval to formally commence due diligence and recommend to full Council approval of the necessary capital budget to enable the transfer of the Medway portfolio of the Registered Provider stock to Medway Council’s HRA. Enabling an alternative registered provider to take ownership of the existing RP’s Medway properties and maintaining much needed social housing, it was important to note that the properties would be tenanted at the time of transfer to the Council.

Two Exempt Appendices to the report set out financial information, which was of a commercially sensitive nature and a breakdown of locations of the acquisition portfolio which was covered under a Non-Disclosure Agreement.

A diversity impact assessment had been undertaken in relation to the proposals and was attached as Exempt Appendix 3 to the report.

Reasons:

To secure an additional 569 units of social and affordable housing for Medway residents. These properties will form part of the HRA’s portfolio and give the Council control over how they are allocated, maintained and managed, ensuring that the tenants living in them have a safe, habitable home and good landlord who places them at the heart of the business.

To prevent the loss of social housing stock to other entities.

The HRA is one of the largest social housing providers in the area and is well placed to acquire and manage the RP’s Medway portfolio alongside its existing homes.

The acquisition aligns with the Council’s core purpose of providing social housing and strengthens the HRA by increasing the number of social and affordable home ownership units.

Analysing the asset data provided, these homes benefit from traditional construction, long?life components and low maintenance requirements, making them cost?effective to manage and supporting the long?term sustainability of the HRA.  ...  view the full minutes text for item 7