Decision details

Site and Housing

The purpose of this decision is to give approval for South Cambs DC to proceed to contract with Enterprise Property Group to purchase 9 affordable homes on a larger site at Gibson Close Waterbeach.

Full planning permission was granted on August 8^th 2017 (planning reference S/2177/16/FL) .The expected start on site will be Feb 2018 with a build out of around 15 months.

The 9 affordable homes represent a 45% affordable housing contribution (exceeding our policy requirement of 40%) from the larger site of 22 new homes.

The scheme mix is a policy compliant 70% rent and 30% shared ownership homes comprising:

4 x1 bed rented flats

2 x 2 bed rented houses

3 x 2 bed shared ownership houses

Enabling/Strategic support

Strategic Housing fully support this mix, as it will provide much needed smaller rented homes in Waterbeach where SCDC has existing stock, but has not added to it for some time. The site is within the development envelope of Waterbeach therefore the homes do not have local connection criteria.

Finance and budget

A viability appraisal has been carried out and approved by Julia Hovells – Principal Accountant Housing (in Appendix attached) confirming that the scheme is viable and pays back within the terms of the Councils Business Plan of 30 years.

The scheme costs are circa £1.45 million and funds have been set aside within the new build budget to cover the costs. This scheme is one of the pipeline schemes in the HRA Business Plan and MTFS.

The scheme will spend around £270,000 of Right to Buy Receipt ensuring that we spend it before Treasury deadlines to return to central Government. It also enables spend of £100,000 commuted sum funds (money received in lieu of affordable housing on other planning applications) which has been approved by Head of Strategy Julie Fletcher (see Appendix)

To approve the project spend, including the use of £1000 of commuted sum money, and to finalise the contract terms and legal requirements to achieve a start on site late 2017.

This scheme will provide 9 affordable homes in Waterbeach. Affordability is a huge issue for the District. The provision of affordable homes will significantly reduce due to recent government policy changes for housing providers and the lack of HCA funding. Changes to housing benefit and welfare reform will mean that the demand for affordable homes will only increase in this area. These homes will also add additional affordable homes for the Councils housing stock. The Affordable rents will be set a Local Housing Allowance cap. The shared ownership homes allow some home ownership options on the scheme contributing to a more sustainable community of residents.

None.