Decision details

The purpose of this Decision Notice is to give approval for South Cambridgeshire District Council (SCDC) to enter into Heads of Terms followed thereafter into a JCT Design & Build Contract (JCT 16 – industry standard) to purchase 4 affordable homes representing the S106 40% affordable housing contribution on a site at Burton End West Wickham. The tenure of the new homes will be 3 affordable rent and 1 shared ownership.

The site has been brought forward by afp Homes acting as land agent working for the Cornish family who wholly own this site.

Enabling/Strategic support

Strategic Housing fully support this mix, as it will provide much needed homes in West Wickham where SCDC has existing stock , but has not added to it for many years.

The overall affordable housing mix has previously been agreed by Housing Strategy as meeting the housing needs in West Wickham.

Scheme Details:

Planning Reference number :

The site has planning (ref: S/0507/18/OL) The S106 is signed and completed.

Mix:

Contract type:

The land owner has agreed to use a JCT 16 contract. (Joint Contracts Tribunal) Design & Build Contract.

Procurement Officer advice:

This contract value is under the OJEU threshold. The council is able to enter into a JCT Design & Build fixed price works contract to facilitate the building of the 4 affordable homes under the council’s exemption process.

Financial:

Use of Right to Buy Receipt:

This scheme is 4 affordable homes will use of Right to Buy receipt of £146.230 for the rented homes and £50,000 from the commuted sum for the shared ownership home.

The scheme is considered to be value for money for the council. The offer and price per sq. m is commensurate with sums paid for recent council new build development schemes. In addition a robust financial appraisal has been carried out and a commercially sensitive financial appendix is attached. The scheme has a Payback of 28 year which is well within South Cambs business plan parameters.

To approve South Cambridgeshire District Council entering into Heads of Terms followed thereafter by a contract to purchase 4 no affordable homes on a site at Burton End West Wickham.

•           This scheme will provide 4 affordable homes - and affordability is a huge issue for the District in terms of housing.

•           This scheme appears in the Councils current MTFS approved development pipeline.

•           These homes will also add additional affordable homes to the Councils housing stock and will be managed by SCDC housing.

•           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: Option 1: The Council decides not to enter into contract with the Cornish family for the purchase of the 4 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 affordable homes. This would be by no means certain and is unlikely to be achieved in the timescales. It would be resource intensive and is unlikely to be possible, with the return of unspent right to buy receipt back to the Treasury with interest if no suitable scheme could be sourced.

• There are no other suitably sized permissioned sites in West Wickham that are available for consideration at this time.