Decision details

This report seeks permission to acquire the “off the shelf ”residential dwelling, 12 Whitley Road, Cambourne, on the open market, which will be funded by a mix of retained right to buy receipts and other HRA resources, to allow the appropriate re-investment of right to buy receipts within the required timescales.

If investment in the acquisition of this and other dwellings between now and the end of September 2018 does not take place, and assuming that activity in respect of new build schemes currently on site progresses as planned, the authority is at risk of having to pay retained right to buy receipts of up to £450,000 to Central Government with interest of £57,375 (assuming 3 years at a rate of 4.25%).

The property is a 2 bedroom mid-terraced house in an area of high demand and considered to be in a sustainable location where there are close by amenities, schools and public transport. The property is in good decorative order throughout with modern facilities and a has an easy to maintain garden., It is situated in a pleasant location where people want to live  and there is high demand for this size and type of property in this location according to the Housing Needs and Advice team.. The price offered and accepted reflects well with the local market that is experiencing an overall increase in house prices. The price negotiated was £255,000 with the original asking price being offers within the region of the valuation.

The acquired property will be let at affordable rents, capped at the Local Housing Allowance, in line with rents now charged for all new build or acquired HRA dwellings.

The acquisition has been assessed as being financially viable by the Principal Accountant.

Agreed to purchase the property on the open market in line with the attached confidential market appraisal.

This is in line with our policy and procedures.

To appropriately reinvest retained right to buy receipts, the first option is always to deliver new build affordable homes. If this is not possible within the time constraints imposed, the authority is able to utilise the resource to acquire existing homes on the open market, for conversion to affordable rented homes. As a third option, the authority may alternatively pass the resource to a registered provider of social housing for the provision of new homes. Although the latter option will still meet identified housing need in the district, it does mean that ownership of the new homes would not be within the Council’s HRA.