Issue - meetings

(Housing and Strategic Health Partnerships Portfolio) To agree EFDC buy 28 homes on completion at Roundhills, Waltham Abbey at a cost, that recognises the current economic circumstances in relation to land value and construction costs (C-005-2024-25).

That the Cabinet agreed for EFDC to buy 28 homes on completion at Roundhills, Waltham Abbey at a cost that recognised the current economic circumstances in relation to land value and construction costs. This being in recognition of the units being of strategic importance to EFDC and met our corporate objectives, Stronger Place and Stronger Communities.

The Housing & HGGT Portfolio Holder introduced the report. The Roundhills site was purchased by Qualis in October 2021 and planning permission obtained for 28 affordable units. A construction cost through tender exercise was held in late 2023 of £8.89 million and was time limited. The development of 28 units would provide much needed homes as there were currently around 1,700 on the Council’s Housing Register and wait times on average exceeded 2–3 years for family sized accommodation and over 1 year for one-bedroom sized accommodation. This was also set against a backdrop of increasing pressures on homelessness services, approaches, and demand for accommodation being experienced both locally and nationally. Since 2021 there had been a general increase in construction costs and materials and much of this had impacted the current financial position of the Roundhills development. The Council recognised an additional 28 units were of key strategic importance and supported the corporate objectives, Stronger Place and Stronger Communities.

Councillor Jon Whitehouse queried the cost, reflecting on the current commercial value. Was the Council paying over the odds for it because Qualis needed the money; or was Qualis making a semi-distressed purchase, so the Council was paying less for it; or was this an independent valuation to reflect construction costs, as he did not understand what was meant? J Gould replied that when the Council looked at council housebuilding developments a valuation tool was used to give an indicative value on council housebuilding, which came in less than the cost to construct the 28 homes, so that was the difference.

The report set out the options considered, if any, and the reasons for the recommendation and the decision.

            Decision:

That the Cabinet agreed for EFDC to buy 28 homes on completion at Roundhills, Waltham Abbey at a cost that recognised the current economic circumstances in relation to land value and construction costs. This being in recognition of the units being of strategic importance to EFDC and met our corporate objectives, Stronger Place and Stronger Communities.