Decision details

This Second Decision Notice supersedes the self build First Decision Notice dated 24h October 2018 on the site for a Self and Custom Housebuilding project which achieved outline planning permission: S/4095/17/OL for 2 self builds. Instead the decision was taken in November 2019 to be a New Build project for 4 affordable homes submitting a new Pre App followed by a Full Planning Application.

Consultants Saunders Boston Architects have been instructed to provide a development proposal for 4 affordable homes and are in the process of submitting the pre-app to SCDC’s Planning Dept on 7^th December 2020 – issued to the new Greater Cambridge Shared Planning portal

A revised New Build viability appraisal has been carried out and approved by the Finance Team, confirming that the scheme is viable and pays back within 35 years which is acceptable in terms of the Council Business Plan.

At the appropriate time, the council will award the contract to the lowest tenderer.

The site has planning permission and the mix will be:

Mix:

Contract type:

Once the planning application has been successful the mini competition for contractor will go ahead and the contract will be a JCT 2016 contract (Joint Contracts Tribunal).

Financial

Use of Right to Buy Receipt:

This scheme consists of 4 rented homes which allows the use of Right to Buy receipts totalling

£187,835.

Use of Commuted Sum:

No commuted sums are being used for this scheme.

A full viability appraisal has been carried out and approved by Martin Lee, Principle Housing Acct confirming that the scheme is viable. The scheme has a payback year of 35 because it does not have any shared ownership to cross subsidise against the cost of the rented units taking into account the LHA cap affordable rent. A 35 year payback is expected in these circumstances and considered acceptable.

The scheme is considered to be value for money for the council. The offer and price per sq. m is commensurate with sums paid for recent council new build development schemes.

To approve South Cambridgeshire District Council to enter into Heads of Terms followed thereafter by a JCT contract for the build of the 4 affordable homes .

• This scheme will provide 4 affordable homes - and affordability is a huge issue for the District in terms of housing.

• These homes will also add additional affordable homes to the Councils housing stock.

• There is a high demand for 1-bedroom accommodation in South Cambs. This is in part  due to the changes to housing benefit and welfare reform

Option 1: The Council could decide to revert to self-build

Reason for Rejection: The Council has given an undertaking to provide as many new types of council homes as possible set at affordable rent levels to help meet its affordable housing demands. Given recent budgetary announcements it is unlikely that the Council would find another affordable housing provider willing to look at such a small development of 4 homes. All will be set at affordable rent levels.

Option 2: The Council could decide to sell the land to a private builder or another affordable housing provider.

Reason for Rejection: The Council has given an undertaking to provide as many new types of council homes as possible set at affordable rent levels to help meet its affordable housing demands. Given recent budgetary announcements it is unlikely that the Council would find another affordable housing provider willing to look at such a small development of 4 homes. All will be set at affordable rent levels.