Decision details

The Decision Notice is to approve South Cambridgeshire District Council entering into Heads of Terms followed thereafter by a contract (likely to be a JCT 16 industry standard) to purchase 18 no affordable homes representing the S106 40% affordable housing contribution on a site at Linton Road Great Abington.

The scheme already features on the HRA Business Plan as part of the Medium Term Financial Strategy of South Cambridgeshire District Council.

The site is one of 3 sites the Parish Council are bringing forward following their own call out for sites. The Parish Council has partnered with Hill to bring the sites forward. Hill is a highly regarded national award winning housebuilder who has a large pipeline of schemes in and around the City of Cambridge. The Parish wholly supported this planning application which was worked up in conjunction with local residents, and Hill.

The planning application has to be approved at Planning Committee on the 4^th Oct 2017 subject to the s.106 agreement being agreed.

The site will provide 45 new homes in total.

The 18 no affordable comprise:

13 rented homes

6 x 1 bed flats

2 x 2 bed houses

5 x 3 bedroom houses

5 Intermediate homes as shared ownership

3 x 3 bedroom houses

2 x 2 bedroom houses

The offer to Hill for the 18 affordable homes is £3,907,000 including all fees and a contingency.

Strategic Housing fully supports this housing development.

• The scheme will be funded from existing HRA budget, and has been accounted for.

• Finance has approved the viabilities. Both options give paybacks well under the 30 year payback period required by the HRA business Plan.

• The scheme will result in the use of around £838,083 of right to buy receipt to re provide affordable housing in our district and £250,000 of commuted sum monies.

For Information Only

To note: this scheme is one of 3 sites that we have negotiated agreed offers with Hill in an informal package deal. The 3 sites will deliver 59 homes in total – of which 50 will be affordable rent. As a whole the 3 site package deal payback is within 35 years which is within acceptable tolerances and expected where 85% of all new homes are rented. One site is at reserved matters stage and one site has yet to achieve planning. Once Planning is resolved we are assured of build out delivery with Hill; thereby securing our programme of right to buy receipt spend into 2020.

To approve South Cambridgeshire District Council entering into Heads of Terms followed thereafter by a contract to purchase 18 no affordable homes on a site at Linton Road Great Abington.

• This scheme will provide 18 affordable homes and affordability is a huge issue for the District in terms of housing.
• The scheme already features on the HRA Business Plan as part of the Medium Term Financial Strategy of South Cambridgeshire District Council.
• These homes will also add additional affordable homes to the Councils housing stock.
• The Affordable rents will be set at Local Housing Allowance cap.
• The provision of affordable homes is likely to reduce significantly due to recent policy changes for housing providers and the lack of HCA funding available.
• Changes to housing benefit and welfare reform will also mean that the demand for affordable homes will only increase in this area.

Option 1: The Council decides not to enter into contract with Hill for the purchase of the affordable homes on this site.

Reason for Rejection: To reject the scheme would require a substitute scheme of similar size and cost to be found in the district to provide new council owned and managed homes. This would be by no means certain; it would be resource intensive and might result in the return of unspent right to buy receipt back to the Treasury with interest if no suitable scheme could be sourced.