Agenda item

To receive an overview of the Company from the Chief Executive and Chairman.

Mr John Donnellon, Chief Executive, Blackpool Coastal Housing Company (BCH) provided an overview of the work of the Company to the Advisory Board. It was noted that BCH was an arm’s length management company wholly owned by the Council and that there were three years remaining of a 14 year contract to manage Council housing stock. He advised that key roles of the company included capital expenditure on improvements to housing, managing stock to meet both general and specialised needs and to provide sheltered schemes for the elderly and vulnerable.

Mr Donnellon reported that the Company aimed to support the Council in achieving its priority to create Resilient Communities. To achieve the priority, BCH had taken on new work commissioned by the Council such as the Care and Repair Service, Disabled Facilities Grants and had assisted in the development of the Queens Park Community Association. The Company had also identified an issue with Care Leavers’ ability to maintain tenancies and had been commissioned by Children’s Services to provide more support to that vulnerable group.

The Advisory Board discussed the challenges and opportunities related to the Company and noted the concerns relating to the roll out of Universal Credit and ability of tenants to pay rent as a result. The lack of social housing and potential slow economic growth were noted as additional challenges. With regards to opportunities, Mr Donnellon advised that the Company was seeking to become more business focussed in order to increase effectiveness and become more competitive. The potential to work jointly with My Blackpool Home and the development potential of Grange Park and Troutbeck were also considered opportunities.

In response to questioning, Mr Donnellon advised that Troutbeck had been identified as less attractive to tenants and work was ongoing to consider options to improve the housing offered. It was noted that the Shareholder’s view would be sought on the proposed options later in 2018.

Members considered the financial position of the Company and noted that retained Council housing was funded through a ring fenced account called HRA. The primary income for the Company was rent, which was set by the Council based on Government recommendation. It was reported that the management fee paid by the Council to BCH had been frozen at £9,565 million for the previous four years. Mr Donnellon advised that the Company must determine how to allocate the funding, managing inflation and that it was the Company Board’s role to monitor outcomes and performance.

Mr Donnellon went on to advise that BCH was managed as a going concern with its own external auditor and accounts. He added that the HRA was required to produce a 30 year balanced business plan and that recent Government changes requiring a 1% rent deduction each year for four years had significantly impacted upon the 30 year plan.

The Advisory Board noted the high level of HRA reserves and queried whether such high levels were necessary. In response, Mr Donnellon advised that the reserves were currently at a higher level than needed, however, the Company in conjunction with the Council was currently determining how best to invest the funds. Mr Antony Lockley, Director of Strategy and Assistant Chief Executive added that there was scope to utilise the excess reserves to add new housing stock to the Council’s portfolio and options were currently being investigated.

The Advisory Board went on to consider the performance of BCH and the key performance indicators used to measure performance by the Company Board. It was noted that regular surveys demonstrated that BCH was an excellent provider of housing measured by high levels of customer satisfaction. There had been recent dips in performance related to the kitchen and bathroom improvement programme which had been investigated and were being remedied.

Mr Donnellon added that void costs relating to empty properties were high and that emphasis had been placed on ensuring properties were not empty for long and that tenants remained in the same property unless the tenant’s housing need had changed.

The Advisory Board discussed the basket of performance indicators and considered if how the Company was contributing to the wider Blackpool agenda could be demonstrated through the indicators. Mr Donnellon highlighted the work relating to homelessness carried out by the Company and also referenced the new ‘Neighbourhub’ Software, which allowed BCH to rank neighbourhoods in terms of desirability in order to target improvements.

The Advisory Board agreed to consider the full set of performance indicators following the meeting and identify the most appropriate targets for detailed consideration at future meetings.