Decision Maker: Lead Cabinet member for Housing
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
The purpose of this Decision Notice is to give approval for South Cambridgeshire District Council (SCDC) to enter into a contract subject to planning permission, to purchase land from Sue Stephenson at nil cost apart from relevant legal fees etc, in order to develop and construct a 2 bedroom house for her two granddaughters to reside in.
The site is situated adjacent to Mrs Sue Stephenson’s property as landowner she will enter into an agreement with the council to transfer the ownership of the land to South Cambridgeshire District Council.
The site is of a sufficient size to construct a 2-bedroom house only. The property will be in the ownership of South Cambridgeshire District Council and will be included in its housing stock.
The grand daughters will be granted a tenancy to reside in the property, based on their current income they may be entitled to universal credit and possibly housing benefit.
Enabling/Strategic support
Strategic Housing fully support this development as the property will be meeting the needs of a disabled household.
Indicative Scheme Details (subject to planning permission) – 2 Bedroom Detached House 80sqm
Contract Type: Land Purchase Agreement
Financial
Use of Right to Buy Receipt
The development of this 2-bedroom house will allow for the use of Right to Buy receipts totalling
£67,053
No commuted sums will be used for this development as this is not a shared ownership property.
A full viability appraisal has been carried out and approved by Martin Lee, Principal Housing Accountant confirming that the scheme is viable. The viability is based on a build cost of £180,000 which has a payback of year 31 which is within the term of the councils 35-year business plan.
The scheme is value for money for the council. The offer and price per sq. m are commensurate with sums paid for recent council new build development schemes.
We will also investigate the possibility of obtaining external funding for this development, through any specialist accommodation funds that are available through Homes England.
To approve South Cambridgeshire District Council to enter into a land purchase contract ( subject to planning permission being granted), with Mrs Stephenson ( landowner) to purchase the land at nil cost, except for legal fees or other associated costs, and to construct a 2 Bedroom Detached House to meet the housing needs of Mrs Stephenson’s granddaughters.
Option 1: The council does not enter into an agreement with the landowner to purchase the land subject to planning permission for the development and construction of a 2 bedroom council house suitable to meet the needs of Mrs Stephenson’s 2 grand- daughters.
Reason for rejection:
Publication date: 06/07/2021
Date of decision: 06/07/2021
Effective from: 14/07/2021
Accompanying Documents: