Issue details

Provision of 4 homes at Burton End West Wickham

The purpose of this Decision Notice is to give approval for South Cambridgeshire District Council (SCDC) to enter into Heads of Terms followed thereafter into a JCT Design & Build Contract (JCT 16 – industry standard) to purchase 4 affordable homes representing the S106 40% affordable housing contribution on a site at Burton End West Wickham. The tenure of the new homes will be 3 affordable rent and 1 shared ownership.

 

The site has been brought forward by afp Homes acting as land agent working for the Cornish family who wholly own this site.

 

Enabling/Strategic support

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

 

The overall affordable housing mix has previously been agreed by Housing Strategy as meeting the housing needs in West Wickham.

 

Scheme Details:

Planning Reference number :

The site has planning (ref: S/0507/18/OL) The S106 is signed and completed.

Mix:

Description of

No of

Type of

Units to be delivered:

Units:

Tenure:

1 bed bungalow

1

Affordable rent

2 bed bungalow

1

Affordable rent

2 bed house

1

Affordable rent

3 bed house

1

Shared Ownership

 

The shared ownership unit will be sold as part of this scheme for best value once complete and their ongoing sale forms part of this decision notice. Average equity buy-in is generally around 40%.   

 

Contract type:

The land owner has agreed to use a JCT 16 contract. (Joint Contracts Tribunal) Design & Build Contract.

 

Procurement Officer advice:

This contract value is under the OJEU threshold. The council is able to enter into a JCT Design & Build fixed price works contract to facilitate the building of the 4 affordable homes under the council’s exemption process.

 

Financial:

Use of Right to Buy Receipt:

This scheme is 4 affordable homes will use of Right to Buy receipt of £146.230 for the rented homes and £50,000 from the commuted sum for the shared ownership home.

 

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. In addition a robust financial appraisal has been carried out and a commercially sensitive financial appendix is attached. The scheme has a Payback of 28 year which is well within South Cambs business plan parameters.

 

Decision type: Non-key

Decision status: Recommendations Approved

Wards affected: Balsham;

Notice of proposed decision first published: 03/12/2018

Decision due: 3 December 2018 by Lead Cabinet member for Housing

Lead member: Lead Cabinet member for Housing

Lead director: Health and Environmental Services Director

Department: Housing

Contact: Sarah Lyons, Development Project Officer Email: sarah.lyons@scambs.gov.uk Tel: 01954 713356.

Consultees

The Cornish family will have been required via the Planning process to carry out appropriate consultation with the Parish Council, Member(s) and local residents on the new build scheme proposals.

 

Note: The Council has not been involved in this scheme until post Planning. Once the decision notice has been signed the Local Cllr and parish council will be advised that South Cambs plans to purchase the affordable homes on this development.

Decisions

Agenda items

Documents

  • Provision of affordable homes