(Housing Portfolio Holder) To consider the attached report (C-030-2014/15).
Decision:
(1) That the pre-emption rights right under the Housing Act (Right of First Refusal) (England) Regulations 2005 be exercised by the Council to re-purchase the three bedroom former Council Property at 79 London Road, Stanford Rivers, Ongar for an agreed sum plus stamp duty, legal expenses and costs;
(2) That, once re-purchased, the garden be subdivided to form a development site and the land be added to the list of potential development sites for either future Council housebuilding (subject to planning approval), or disposed of as determined by the Council Housebuilding Cabinet Committee;
(3) That the property at 79 London Road, Stanford Rivers be re-let at a social rent level through the Council’s Choice-based lettings procedure to an applicant on the Council’s Housing Register;
(4) That the re-purchase be funded from the existing Capital Programme Budget for Council Housebuilding, funded by an appropriate mixture of 1-4-1 Right to Buy (RTB) Receipts, Section 106 contributions identified for use on affordable housing and Revenue Contributions for Capital Outlay (RCCO) as determined by the Council Housebuilding Cabinet Committee; and
(5) That the Chairman of Council be requested to waive the call-in for this decision on the grounds that there was insufficient time to wait for the call-in period to expire before the very tight and prescriptive timescales set out in The Housing Act (Right of First Refusal) (England) Regulations 2005 expired on 9 October 2014.
Minutes:
The Housing Portfolio Holder introduced a report concerning the re-purchase of the former Council property at 79 London Road, Stanford Rivers.
The Portfolio Holder informed the Cabinet that the Council made a Section 156a Restriction on the Title of all Council properties sold under the Right to Buy scheme, in line with The Housing Act (Right of First Refusal) (England) Regulations 2005. This required owners of former Council properties sold under the Right to Buy scheme to offer them to the Council for re-purchase before placing them on the open market. In the past, the Council had never exercised its pre-emption right when properties were then sold on within 10 years. However, from time to time, the Council might wish to exercise its pre-exemption rights, especially as this could be part funded, up to 30%, from 1-4-1 Right to Buy receipts or Section 106 financial contributions.
The Portfolio Holder stated that the owners of 79 London Road in Stamford Rivers had indicated their intention to sell and had offered the property back to the Council. The property had development potential which, subject to planning consent, could see the garden sub-divided and an additional new three-bed home constructed as part of the Council’s Housebuilding Programme. It was intended to fund the purchase from the existing capital programme for Council Housebuilding and, once purchased, the property would be re-let to an applicant on the Council’s Housing Register at a social rent level. It was also intended to request the Chairman of Council to waive the call-in for this item as there was insufficient time under the legislative timetable to wait for this period to expire.
The Assistant Director of Communities (Property) reassured the Cabinet that Officers examined all Council-owned sites for development potential. The Director of Governance highlighted that the first recommendation should read “…pre-emption rights…”, not “…pre-exemption rights…” as described in the actual report.
Decision:
(1) That the pre-emption rights right under the Housing Act (Right of First Refusal) (England) Regulations 2005 be exercised by the Council to re-purchase the three bedroom former Council Property at 79 London Road, Stanford Rivers, Ongar for an agreed sum plus stamp duty, legal expenses and costs;
(2) That, once re-purchased, the garden be subdivided to form a development site and the land be added to the list of potential development sites for either future Council housebuilding (subject to planning approval), or disposed of as determined by the Council Housebuilding Cabinet Committee;
(3) That the property at 79 London Road, Stanford Rivers be re-let at a social rent level through the Council’s Choice-based lettings procedure to an applicant on the Council’s Housing Register;
(4) That the re-purchase be funded from the existing Capital Programme Budget for Council Housebuilding, funded by an appropriate mixture of 1-4-1 Right to Buy (RTB) Receipts, Section 106 contributions identified for use on affordable housing and Revenue Contributions for Capital Outlay (RCCO) as determined by the Council Housebuilding Cabinet Committee; and
(5) That the Chairman of Council be requested to waive the call-in for this decision on the grounds that there was insufficient time to wait for the call-in period to expire before the very tight and prescriptive timescales set out in The Housing Act (Right of First Refusal) (England) Regulations 2005 expired on 9 October 2014.
Reasons for Decision:
The Housing Portfolio Holder had indicated that he intended to study each offer to re-purchase under The Housing Act (Right of First Refusal) (England) Regulations 2005 on an individual basis, and where a decision to buy-back was agreed then that property was rented out at “Social Rents”.
There was no specific budget provision for such acquisitions, and Financial Regulations required a Cabinet decision for the appropriate funding to be made available.
Other Options Considered and Rejected:
That in this instance, the Council does not exercise its pre-exemption rights under The Housing Act (Right of First Refusal) (England) Regulations 2005.
That the property at 79 London Road be re-let at “Affordable Rents” as opposed to “Social Rent”, capped at £180 per week in line with the Council’s Affordable Rents Policy.