Issue - meetings

The Chair invited Simon Martin, Director of Regeneration and Housing, and Tim Richens, Managing Director Aequus Group to introduce the report.

Panel members asked the following questions and raised the following points:

Councillor Duguid asked if payments to the Council are actually a payback of loans made by the Council in the past. The officer (Aequus) stated that the £1m paid to the Council is made up of commercial interest returns topped up with dividends. The profile changes year on year.

Councillor Duguid asked if overheads are being increased to cover activity in South Gloucestershire. The officer (Aequus) stated that costs are covered by South Gloucestershire.

Councillor Duguid noted that South Gloucestershire is gaining ground as part of the portfolio and asked about North Somerset. The officer (Aequus) stated that North Somerset are doing some internal evaluation.

In response to a query regarding costs and overages, the officer (Aequus) explained that South Gloucestershire sell a site to Aequus on agreed land value, Aequus deliver the site. The profit is agreed with the shareholder and if there is overage, it is shared between Aequus and South Gloucestershire. 

Councillor Hodge asked if a fixed return is appropriate. The officer (Aequus) explained that the return can be agreed with the shareholder in larger sites. He further explained that delivery models are being considered that maximize returns to the Council. The officer (BANES) stated that a pipeline tracker is used which sets out sites. The £1m payment per year to the Council is reassessed regarding the availability of sites. The £1m is not static and will be reviewed.

Councillor Hodge asked about discounts. The officer (Aequus) explained that there is a pre agreed price at the outset and properties can be revalued if the housing market grows.

Councillor Hughes referred to the core aims of Aequus as set out in the business plan last year. He stated that there is nothing in the aims about South Gloucestershire and that it seemed that we were solving somebody else’s housing problems. He asked if there is capacity to meet these core aims and also asked if Aequus is purely commercial. The officer (Aequus) explained that a regular pipeline is needed and working with South Gloucestershire helps to smooth this. He stated that it is a delivery blend and Aequus does look to deliver aspirations and core aims. The Cabinet Member for Council Housing, Councillor Davis assured the Panel that South Gloucestershire is not at the cost of this authority. He further explained that Aequus is assisting the Council to deliver the Council Housing Building Programme and work with South Gloucestershire is not at a local cost, Aequus can do both.

Councillor Hughes asked what the advantage of Aequus is against an in-house service. The Cabinet Member explained that at the time Aequus was set up in 2015, we did not have the skill sets in-house. We would not have developed the  ...  view the full minutes text for item 64