Decision details

Site & housing

The purpose of this decision is to give approval for South Cambs DC to proceed to contract with Wheatley Homes to purchase 3 no. affordable homes on a small development site located adjacent to 6 Highfields Road , Caldecote.

The scheme awaits approval of planning conditions. Start on site will be immediate after with completion anticipated prior to March 2019.

The three dwellings represent the 40% affordable housing contribution required to meet policy. The scheme was granted reserve matters planning on 6^th June 2017 (ref. S/2821/15/RM) and the financial offer made by SCDC was accepted by the developer on 6^th September 2017.

Our offer is based on three units for rent which are as follows:

1no One bed house

2no two bed house

Context

SCDC has funds available to spend prior to December 2017 which ensures that the ‘right to buy’ receipt associated with that spend ( 30% of the total) is spent before any deadline for return to the Treasury.

Wheatley received offers from registered providers also and advised that the SCDC offer was the most competitive. The offer made included ‘right to buy’ receipts for rented homes.

Proceeding with this site will enable SCDC to be ahead of our RTB spend and will release pressure on deadlines associated with the return of monies to the Treasury. In addition it will give better value per property than the purchase of street properties.

Enabling/Strategic Support

Strategic housing support this 100% rented mix as it will provide the smaller rented homes that have been identified as being in high demand in this Ward.

Finance and budget

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

The construction costs are circa £449,000 and funds have been set aside within the new build budget to cover this cost. The scheme and spend associated also features in the current and proposed HRA Budget.

This scheme will expend circa £135,000 of existing RTB receipts and will help to ensure that we meet the aforementioned Treasury expenditure deadlines.

To approve the project spend and to finalise contract terms and legal requirements with the developer. Actual spend to commence in November 2017 and continue thereafter until completion.

This scheme will provide three rented units for the District at a time when demand is high, in particular for these smaller 1 & 2 bed dwellings. These homes will also add to the Council’s existing stock.

Alternative Option: The council decides not to make an offer for the three dwellings

Reason rejected: This opportunity represents value for money and will provide good quality homes of the size in demand from local SCDC residents.