Issue details

This report seeks permission to acquire the “off the shelf” residential dwelling, 25 Grafton Way, Caldecote, 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 a of high demand and considered to be in a sustainable location which is developing and within reach of  amenities, schools and public transport. The property is in good decorative order throughout offering modern facilities, an easy to maintain garden and adequate parking facilities. It is quite a large 2 bedroomed property for which there is high demand according to they Housing Need and Options team. Offers over £250,000 were being sought however the seller did wish considerably more however given the size and the location the agreed price of £255,000 does offer good value in todays market.

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.