Decision details

The Decision Notice is to approve South Cambridgeshire District Council entering into Heads of Terms followed thereafter by a contract to purchase 8 no. affordable homes representing the S106 40% affordable housing contribution on a site at Pampisford Road, Great Abington.

The scheme already features on the HRA Business Plan as part of the Medium Term Financial Strategy of South Cambridgeshire District Council.

The site is one of 3 sites the Parish Council are bringing forward following their own call out for sites. The Parish have partnered with Hill to bring the sites forward. Hill is a highly regarded national award winning housebuilder who have a large pipeline of schemes in the City of Cambridge and its environs. The Parish wholly supported this planning application which was worked up in conjunction with local residents, the Parish and Hill.

The planning application was approved at Committee on October 6^th 2016. Hill has an option on the site and will shortly be finalising the land purchase contract with the owner.

The site will provide 20 new homes in total.

The 8 no affordable comprise:

6 rented homes

2 x 1 bed flats

2 x 2 bed houses

1 x 3 bed house

1 x 2 bedroom bungalow

2 Intermediate homes as shared equity

2 x 2 bedroomed bungalows

Total scheme cost £1,383,000 including all fees and a contingency.

Strategic Housing fully supports the inclusion of 2 x shared equity bungalows on this site to address demand for downsizer homes for local people. The viability for the scheme assumes that the shared equity bungalows will be sold at 75% equity share with no rent payable on the 25% fall-back position is that the 2 bungalows would be sold as shared ownership with a 40% equity buy in and rent at 2.75% of the value of the retained equity.

The S106 recognises the above in its provisions by explicitly stating intermediate housing can be shared equity or shared ownership. The mix is fully policy compliant.

The scheme will be funded from existing HRA budget, and has been accounted for.

Finance has approved the viabilities. Both options give paybacks well under the 30 year payback period required by the HRA business Plan.

The scheme will result in the use of around £311,000 of right to buy receipt to re provide affordable housing in our district.

To approve South Cambridgeshire District Council entering into Heads of Terms followed thereafter by a contract to purchase 8 no. affordable homes on a site at Pampisford Road, Great Abington.

·         This scheme will provide 8 affordable homes and affordability is a huge issue for the District in terms of housing.

·         The scheme already features on the HRA Business Plan as part of the Medium Term Financial Strategy of South Cambridgeshire District Council.

·         These homes will also add additional affordable homes to the Council’s housing stock.

·         The Affordable rents will be set at Local Housing Allowance cap.

·         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: the Council decides not to enter into contract with Hill for the purchase of 8 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 these new council owned and managed homes. This would be by no means certain, would be resource intensive and might result in the return of unspent right to buy receipt back to the Treasury with interest if no suitable scheme could be sourced.