Decision details

To consider the outcome of an options appraisal for the Airey properties not subject to a redevelopment scheme. 

(a)               That, subject to the outcome of local consultations, a pilot refurbishment programme be agreed for the following Airey homes:

(b)               That if the Capital Finance Regulations are not amended to allow for retention of 100% of the capital receipts from shared ownership sales then the properties should be offered for sale on the open market to provide a (lower) element of cross subsidy to keep costs incurred within budget.

(c)               If the shared ownership model proves successful then this should be rolled out as a programme across the remaining 17 Airey units at Bassingbourn, Fulbourn, Coton, Gamlingay and Impington, subject to local support.

(d)               If the shared ownership option is not successful and / or is not supported locally then the preferred option will be revisited depending on the outcome of a local consultation exercise in the other villages on the alternative options as outlined in this report.  A further report will then be brought forward for consideration at a future date.

Offers a potentially cost effective solution that meets both the Council’s objectives and those of the affected local communities. 

Option 1: Refurbishment and retention of the units as social rented housing.

Reason for Rejection: The total cost of refurbishment of the 29 units is in the region of £1.6m which provides no business case for pursuing an option of refurbishment and retention as 100% rented accommodation based on an average cost of £55.1k per unit.  This conclusion is also supported by the decision of Circle Anglia not to take up the option of acquisition of the Airey homes adjoining sold properties on the redevelopment sites for refurbishment and re-letting as affordable housing.

Option 2: Disposal of the units to a Registered Social Landlord (RSL).

Reasons for Rejection: It is likely that some of the properties would need to be designated for shared ownership and / or redeveloped to make this a financially viable option for an RSL.

Option 3: Disposal of the units on the open market.

Reasons for Rejection: Disposing of the Airey properties, other than to an RSL, results in the loss of affordable housing in the affected parishes.

Option 4: Disposal of the Airey properties to the existing tenants for a discount equal to the maximum available under the Right to Buy legislation regardless of their length of tenancy.  The Council will meet its Decent Homes target without incurring significant expenditure and attract a capital receipt. This would also enable existing residents to remain in their existing homes if they wish to do so.

Reasons for Rejection: Existing tenants may not be able to raise the necessary funds to purchase their homes because they will not be mortgageable and / or they will not be able to fund the improvement works required.  Disposing of the Airey properties, other than to an RSL, results in the loss of affordable housing in the affected parishes.

Option 5: Redevelopment

Reasons for Rejection: Not viable due to the relatively small number of properties grouped together in some villages and their disparate geographic location.  The proposed redevelopment scheme for Teversham has been unable to be progressed because of local concerns that the site is unsuitable for redevelopment given the narrow access road and surrounding development.