Issue details

Site and housing

The purpose of this decision is to give approval for the South Cambs DC to proceed to contract with Bovis Homes to purchase 23 affordable homes on a larger site at Bannold Road/Bannold Drove, Waterbeach (known as Drovers Way)

The scheme is on site and completion is expected within 6- 9 months.

The 23 affordable homes represent the 40% affordable housing contribution for the larger site of 57 new homes. The scheme was granted full planning permission on 8^th July 2016 (planning ref :

S/2588/15/RM) and the financial deal for the 23 affordable homes between SCDC and Bovis was concluded on 30^th June  2017.

The scheme mix is a policy compliant 70% rent and 30% shared ownership and comprises:

6 x 1 bed flats - rent

6 x 2 bed flats - rent

4 x 2 bed houses - rent

7 x 3 bed houses - shared ownership

Context:

Owing to scheme slippage and underspend SCDC has around £2.5m of funds to secure spend on by December 2017 to ensure that the right to buy receipt associated with that spend (representing 30% of the total) is spent before any deadline to return to the Treasury.

The Bannold Road site is the only site known to us that is part completed, and was without a registered provider attached to the 40% affordable housing element.

A number of registered providers made bids on the site, and we were successful in our offer to Bovis Homes in this competitive environment. The offer made included right to buy receipts for rented homes, and commuted sum monies to help support the shared ownership homes to be built.

Proceeding with this site will enable SCDC to get well ahead of our right to buy spend so release pressure on deadlines to return monies to Treasury. In addition it will give better value per property than the purchase of street properties at around £180k per unit rather than purchase existing properties at around £250k each (typical 2 bed in Cambourne).

It is recognised that we need to move swiftly to get into contract for build and land – and during this time we may need to purchase 2 or 3 street properties to ensure spend ahead of initial valuation and payment on this site. This is being investigated currently; but is likely to be a prudent belt and braces approach.

Enabling/Strategic support

Strategic Housing fully support this mix, as it will provide much needed smaller rented homes in Waterbeach where SCDC has existing stock, but has not added to it for some time.

Finance and budget

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

The build costs are circa £4.31 million and funds have been set aside within the new build budget to cover the costs.

The scheme will spend around £827,000 of Right to Buy Receipt ensuring that we spend it before Treasury deadlines to return to central Government. It also enables spend of £350,000 commuted sum funds (money received in lieu of affordable housing on other planning applications), which has been approved by Head of Strategy Julie Fletcher (see Appendix) and is in line with our target commuted sum spending of £500k per annum.