Decision details

To enter into a Nominations Agreement with the charity DHI (Developing Health and Independence), so that the council can nominate households who are homeless or at risk of homelessness into properties that are managed by DHI in the private rented sector.
These properties will be inspected by the council’s Private Sector Housing team, to ensure they are free from category 1 health and safety hazards. Tenancies will be available for prospective tenants on a long term basis, with rents being set at no higher than Local Housing Allowance levels.

DHI have entered into an arrangement with Resonance to lease a number of properties across Gloucestershire for up to 5 years, with the possibility of a further 5 year extension thereafter.
Resonance is a social impact investor, which is aiming to purchase around 90 to 100 properties from the open market across Gloucestershire via a National Homelessness Property Fund. This investment in Gloucestershire has come about as a result of the Gloucestershire Pension Fund having invested around £30m into this National Homelessness Property Fund.

It is anticipated that up to around 25 homes will be purchased in Cheltenham as part of this investment. These homes will be a mix of bedroom sizes, with the majority in Cheltenham anticipated to be larger family homes (i.e. 3 and 4 bedroom properties). It is further anticipated that these homes will be purchased during 2025/26 and 2026/27.
In return for the council being able to provide nominees to these properties, the council will be required to pay a placement fee of £3,500 per property, inclusive of VAT. This fee will also help to ensure that rents can be maintained at relatively affordable levels in that they will not exceed the Local Housing Allowance. This placement fee will be a one-off payment per property and will last for the duration of the 5 year period. This means that if any of these properties become available for reletting during this time, then no further placement fees will be required. If at the end of the first 5 years the lease agreement between DHI and Resonance is extended for a further 5 years, then a second placement fee will become payment for any properties that become available for reletting during years 6 to 10 (i.e. between 2030/31 and 2035/36).
In addition to the placement fee, the council may also make a payment to DHI equivalent to one month’s rent by way of a deposit. The tenant will receive this deposit at the end of their tenancy, subject to their property being undamaged, etc. This will enable the tenants to find suitable alternative accommodation more easily in the future. It may also help incentivise the take-up of these properties as an alternative to waiting for an offer of social housing. This in turn will enable the council to end any potential homelessness duties.
Funding for this initiative will come from MHCLG’s Homelessness Prevention Grant, and sufficient provision has been set aside to enable this initiative to be fully financed via our Homelessness Prevention Grant allocation for 2025/26 and 2026/27, as all the homes are anticipated to be made available during these two financial years.
If at the end of the initial 5 year period DHI wish to extend the initiative for a further 5 years,
these costs could be financed from future (in-year) Homelessness Prevention Grant funding, subject to available funding. In the event that the council does not wish to continue with this nominations agreement at the end of the initial 5 year period, then it will have the option to terminate the arrangement.

Not to enter into a Nominations Agreement with DHI. This has been rejected on the basis that demand for emergency and other forms of temporary accommodation is continuing to increase Cheltenham, with pressure increasing on households requiring larger accommodation. This initiative with DHI will help to alleviate some of these pressures.

This initiative is supported by Flo Clucas, Cabinet Member for Housing and Customer Services.