Issue details

The decision to re-develop this site was given on 9^th Feb 2016 and was originally for 3x3 bed houses and 2x2 bed flats all affordable rent (attached).  Progress on this scheme stopped as the position of the flats was located on a small section of land that sat within the Green Belt. As time had passed it was agreed at this point with Housing Management colleagues to relook at the Housing Need information. This led the site to be re-designed with a different housing mix of 6 affordable rented properties 4x1 bedroom flats and 2x2 bedroom houses and a re-decision on the scheme was signed by the Lead Cabinet Member for Housing on 13^th June 2018.

After a change within planning and further consultation with planning we have agreed re-provide as a final mix 5 new affordable rented homes meeting current housing needs of small accommodation.

The current decision notice is no longer reflects the decision notice dated 13^th June 2018 as the site has been redesigned in layout and property size and Strategic Housing is seeking a follow up decision notice to give approval for South Cambridgeshire District Council to continue with the demolition of 2 non traditional built Council properties and enter into a JCT Design & Build Contract for the re-provision of 5 new council homes at Pembroke Way Teversham. 

The development appraisal currently confirms that the scheme is for all affordable rented and the build costs are based on market intelligence from Henry Riley our cost consultants. Once we have tendered the project should the costs be higher the tenure will need to be switched to include an element of Shared Ownership otherwise the project will be over budget and the loan payback period will be outside the Councils acceptable payback period. We therefore seek permission to switch no more that 2 properties to shared ownership if needed on financial grounds, and to sell them at best value once complete. Any such variance will remain within the financial parameters set out in the financial appendix at year 34.  

The site is currently in for  planning and going to Planning Committee on 14^th December 2018 (ref : S/2454/18/FL)   

Enabling/Strategic support

Strategic Housing fully support this miix, as it will provide much needed affordable homes in Teversham where SCDC has existing stock , but has not added to it for many years.

The mix has previously been agreed by Housing Strategy as meeting the housing needs in Teversham.

The 5 no affordable rented homes comprise:

Finance and budget

A full viability appraisal has been carried out has been and approved by Julia Hovells – Principal Accountant (Housing) confirming that the scheme is viable. The scheme has a payback year of 34 because it does not have any shared ownership units to cross subsidise against the cost of the rented units taking into account the LHA cap affordable rent (at approx. 60-65% market rate). A 34 year payback is expected in these circumstances and is considered acceptable.

The scheme will spend £126,283 of Right to Buy Receipt and assist the Council in hitting the spending deadlines for the right to buy receipt and avoid returning monies to Treasury with interest at 4% above base)

The scheme already features on the HRA Business Plan as part of the Medium Term Financial Strategy of South Cambridgeshire District Council. Once the decision notice has been signed it will enable us to start the tender process for a House Builder from the Councils Framework.

Procurement

The current estimated build costs is £689,774. This is under the OJEU threshold and therefore the council is able to enter into a JCT Design & Build fixed price works contract to facilitate the building of the 5 affordable homes under the council’s exemption process. This accord with the procurement officer’s advice.