Issue details

This report seeks permission to acquire the “off the shelf” residential dwelling, 4 Cottage Green, Papworth, 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 3 bedroom mid-terraced house in a 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 offering modern facilities and an easily maintained garden This type of property is in high demand according to the Housing Needs and Advice Team. The price offered and accepted reflects good value for money in an area that is experiencing price increases particularly in modern properties of this type. Following negotiation the asking price  of £270,000 was agreed upon.

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.