Issue details

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 Development Agreement to purchase 9 affordable homes representing the S106 40% affordable housing contribution on a site now known as Orchard Gardens ( formerly known as The Moor).

The site has been brought forward by Stonebond properties Ltd who have been established c. 40 years and who are funded by the Cherry family who founded Countryside Properties.

In its entirety the site totals 23 new homes - with the policy compliant 40% affordable housing of 6 new rented homes and 3 new shared ownership homes. These are made up of a mixture of 1 bed apartments and 1, 2 and 3 bed houses.

It is the intention that the shared ownership properties are to be sold with a maximum ownership of 50% initially with the option to staircase up to 100% as per the section 106.

Stonebond have commenced works on site.

All reserved planning matters have been resolved.

It should be noted that the payback is in year 30

Enabling/Strategic support

Strategic Housing fully support this mix, as it will provide much needed homes in Melbourn where SCDC has existing stock .

The overall affordable housing mix has previously been agreed by Housing Strategy as meeting the housing needs in Melbourn and its environs.

Scheme Details:

Planning Reference number :

The site has planning (ref: S/1032/17/FL) with all conditions now discharged.

The S106 is signed and completed.

Mix:

Contract type:

The developer has requested that the contract be a Development Agreement type

Legal Advice : Freeths  ( Previously provided at Grace Crescent , Hardwick)

“We believe that either ownership or an option constitute such “exclusive rights”. It needs to be said, however, that cases do turn on their facts. We would also have to state that the Council should be able to demonstrate that in the case where it was letting a contract including development, that there is no reasonable alternative or substitute – ie there are not other similar convenient sites which could reasonably be regarded as being available for development, eg in terms of being for sale, zoning, access to services etc.

There are no other suitably sized permissioned sites in Melbourn that are available for consideration at this time.

Financial

Use of Right to Buy Receipt:

This scheme consists of 6 rented homes which allows the use of Right to Buy receipts totalling £359,015

Use of Commuted Sum:

This scheme consists of 3 shared ownership homes which allows the use of commuted sum totalling £150,000

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 year within the business plan parameters.