Issue - meetings

This report sets out the call-in received by 9 Councillors of the decision to surrender the existing occupational lease at 23 Grosvenor Place, subject to payment of a revenue premium by the Council to the tenant. The role of the Panel is to consider the issues raised by both call-in notices and to determine its response.

Councillor Colin Blackburn, Lead Call-in Member addressed the Panel, a summary of his submission is set out below.

I would like to share with you my concerns as I haven't been privy to the comprehensive report that Richard Samuel MUST have received to push ahead with his decision.

23 Grosvenor Place was built for people to sleep in.  As a hotel, opened in 1790 I'm sure it saw many persons through its doors.

Whenever it came into the Authorities ownership, and I haven't been able to ascertain when that was or why, a decision was taken to turn it into Social Housing and provide 20 homes.  180 years after it opened as a hotel, Bath City Council refurbished and made it a home for 20 separate people.  23 years later (1993) a lease was agreed with The Guinness Housing Association Ltd (now known as The Guinness Partnership).  A social housing provider, please note this was 6 years before the mass transfer of housing stock to what has become Curo.

The lease agreed was 65 years long with an annual rent of circa £20k (that’s worth approximately £40k in today’s money allowing for inflation).

25 years after the lease, they ASKED US if they could surrender it.  This can’t have been for the lack of tenants.  Our own Home Search website states that ‘most people wait months or years for Social Housing in Bath & North East Somerset.  At today’s Social Housing rent values, they should be receiving circa £100k per annum against their £20k annual rent.  That’s not a bad return and that value will only grow in the coming years as rents go up and our lease stays static.  Surely that’s plenty of projected margin to invest in the upkeep and modernisation of the building.

Who are The Guinness Partnership and why do they want out of our lease?

They are one of the UKs largest and longest standing housing associations, with 66,000 homes and circa 140,000 tenants, they operate with income above 30% margin (clearly 23 Grosvenor Place was well above even that figure). 

So by giving up the lease, which appears just to no longer fit their plans, where are they building 20 replacement dwellings in our authority area……oh, they aren’t, they are busy elsewhere.  So we will be taking back a building, seemingly not fit for purpose, but losing 20 dwellings for our most vulnerable residents.  That is a business decision by them, and it’s at their request, This is not a housing provider led decision by our tenant considering their tenants.

So what's the state of the building …...we shouldn’t worry about that, it’s a full repairing lease.  Oh, but there appears to have been no formal dilapidations report, why not and why haven't The Guinness Partnership agreed to either do the work or pay for them. His answer may be in the comprehensive report that Cllr Samuel should have received, but I doubt it.

So, what's normal in a situation when a tenant asks to  ...  view the full minutes text for item 31