Agenda item

(Housing Portfolio Holder) To consider the attached report (C-038-2014/15).

(1)        That, in accordance with the Cabinet’s previous decision in principle and subject to the receipt of planning permission, sufficient land at the difficult-to-let Council-owned garage site at Garages 110-145 Vere Road – located between 34-46 Barrington Green and 29-33 Barrington Road, Loughton - (as shown on the location plan attached as an Appendix to the report) be leased to Moat Housing (one of the Council’s Preferred Housing Association Partners) for 999 years for the sum of £425,000 to develop an affordable rented housing scheme comprising 15 one and two bedroom flats and associated parking;

(2)        That nomination rights be received by the Council to at least the level set out in the District-wide Nominations Agreement with Moat Housing;

(3)        That, subject to planning permission, the Council be provided by Moat Housing with a licence to construct an additional 14 car parking spaces on the remainder of the site, for the Council to lease at a commercial rate to the management company responsible for providing leasehold services for the new development being constructed on the adjacent site of the former Sir Winston Churchill Public House;

(4)        That the capital receipt be shared as follows:

            (a)  50% to be ring-fenced to help fund the Council’s own Housebuilding     Programme; and

            (b)  50% to be utilised for other Council regeneration schemes; and

(5)        That, if the costs of the proposed development increase or decrease as a result of any changes made during the planning application process, the Housing Portfolio Holder be authorised to agree an appropriate corresponding change to the lease charge in (1) above.

The Housing Portfolio Holder presented a report concerning a proposed affordable housing development at Vere Road in Loughton.

The Portfolio Holder proposed the development by Moat Housing of the Council-owned garage site between 34-46 Barrington Green and 29-33 Barrington Road, Loughton to provide 15 new flats at affordable rents, which would be let to applicants on the Council’s Housing Register. The site currently comprised 36 difficult-to-let garages, which the Cabinet had previously agreed in principle to develop. In addition, under the Development Agreement with the developer of the adjacent site of the former Sir Winston Churchill Public House site, the Council had agreed to provide land for the required car parking for the new development. The proposed development on the Vere Road garage site would therefore also provide 14 car parking spaces that could be leased to residents of the development on the adjacent site, for which the Council would receive an annual rent.

The Portfolio Holder informed the Cabinet that Moat Housing was able to provide the Council with a capital receipt in the sum of £425,000 for the provision of a 999-year lease for the land on which the affordable housing development would be built, due to them offering to provide a subsidy of £885,000 for the development from their own resources. Since the garage site was originally acquired under Housing Act powers by the former Greater London Council (GLC) and was held in the Housing Revenue Account (HRA), the capital receipt had to be used for affordable housing or regeneration purposes in order to avoid having to pass 50% of the capital receipt to the Government. Therefore, it was proposed that 50% of the capital receipt be utilised to help fund the Council’s House Building Programme and 50% be utilised to help fund other Council regeneration schemes.

The Portfolio Holder apologised for the tabling of an addendum report, which listed a further recommendation to authorise the Portfolio Holder to agree any amendments to the lease charge if the costs of the proposed development increased or decreased as a result of the planning application process.

One of the local Members for Loughton Broadway welcomed the development of affordable housing on brownfield sites, and expressed a desire for the Portfolio Holder to consult with local Members if changes to the lease charge were required. The Portfolio Holder thanked the Member for his comments and highlighted that the planning application would be heard by local Members at the appropriate Planning Sub-Committee. Any concerns of local residents would be dealt with by the planning process, to which local residents could provide their views and register to speak at the meeting.

In response to further questions from the Members present, the Portfolio Holder stated that, in accordance with the existing Development Agreement, the proposed £3,500 parking charge per annum for the 14 additional car parking spaces would be reviewed as and when the Developer of the Sir Winston Churchill Public House site reviewed the ground rent to lessees, and the same increase would be applied to both. It was confirmed that the parking on this site would be for residents of the proposed flats on the former garage site and some of the residents of the Sir Winston Churchill Public House site development, and that the planning application for this site would be considered by Area Planning Sub-Committee South. The Director of Communities thought it was unlikely that the Developer would include additional CCTV for the area in the planning proposal; there was currently CCTV installed in the town centre at the Broadway, and there were no plans to extend the current coverage in the area at the moment.

Decision:

(1)        That, in accordance with the Cabinet’s previous decision in principle and subject to the receipt of planning permission, sufficient land at the difficult-to-let Council-owned garage site at Garages 110-145 Vere Road – located between 34-46 Barrington Green and 29-33 Barrington Road, Loughton - (as shown on the location plan attached as an Appendix to the report) be leased to Moat Housing (one of the Council’s Preferred Housing Association Partners) for 999 years for the sum of £425,000 to develop an affordable rented housing scheme comprising 15 one and two bedroom flats and associated parking;

(2)        That nomination rights be received by the Council to at least the level set out in the District-wide Nominations Agreement with Moat Housing;

(3)        That, subject to planning permission, the Council be provided by Moat Housing with a licence to construct an additional 14 car parking spaces on the remainder of the site, for the Council to lease at a commercial rate to the management company responsible for providing leasehold services for the new development being constructed on the adjacent site of the former Sir Winston Churchill Public House;

(4)        That the capital receipt be shared as follows:

            (a)  50% to be ring-fenced to help fund the Council’s own Housebuilding     Programme; and

            (b)  50% to be utilised for other Council regeneration schemes; and

(5)        That, if the costs of the proposed development increase or decrease as a result of any changes made during the planning application process, the Housing Portfolio Holder be authorised to agree an appropriate corresponding change to the lease charge in (1) above.

Reasons for Decision:

To enable the Council’s difficult-to-let garage site to be developed for affordable rented housing and to provide some of the required car parking for the adjacent private development on the site of the former Sir Winston Churchill Public House.

Other Options Considered and Rejected:

To not develop the site for affordable housing. However, the proposed site was a brownfield site where less than 50% of the garages were occupied and there was no waiting list, therefore the land would be better utilised to provide affordable accommodation for residents on the Council’s housing waiting list.

To not utilise the capital receipt for either further housebuilding or other regeneration schemes. However, the Council would then be obliged to return 50% of  the capital receipt to the Government.