Issue - meetings

As per item 14.

The Cabinet considered the exempt information.

Report of the Director of Placemaking and Housing. To be introduced by the Cabinet Member for Council Housebuilding, Placemaking, and Development.

This report seeks approval to appoint the recommended winning contractor to complete a new build development comprising thirty two council rented homes and nine private for sale flats and houses at Cranwood, 100 Woodside Avenue, N10 and to appropriate the land for planning purposes to facilitate the development process.

The Cabinet Member for Council Housebuilding, Placemaking, and Development introduced the report which sought approval to appoint the recommended winning contractor to complete a new build development comprising thirty two council rented homes and nine private homes for sale at Cranwood, 100 Woodside Avenue, N10 and to appropriate the land for planning purposes to facilitate the development process.

The Cabinet Member noted that eight of the proposed homes would be 3-bed homes and five of the homes would be adapted for the bespoke housing programme for those with disabilities. It was added that the scheme would also deliver an open, green space of 830sqm and a new subway to Parkland Walk. Subject to Cabinet approval and the appropriation of land for planning purposes, it was anticipated that construction would commence in December 2022 and would complete before the end of 2024.

In response to questions from Cllr White, Cllr Mark Blake, Cllr Ibrahim,and Cllr Connor the following information was provided:

-       It was noted that construction had been significantly impacted by cost increases and interest rates and that this was causing significant pressure in the Housing Revenue Account (HRA).

-       It was explained that there would be future discussions about housebuilding and possible mitigations, including in the Medium Term Financial Strategy (MTFS) and that these may focus rent levels on a number of homes that already have Cabinet approval

-       It was confirmed that this report, however, sought authority for expenditure to bring the scheme forward at formula rent and further financial information was set out in the exempt report for Cabinet consideration. If any mitigations were to be brought forward, these would be proposed in the upcoming December MTFS paper.

-       It was explained that it was very important that the Housing Development Programme was affordable overall and it was ensured, as much as possible, that individual schemes were also affordable.

-       It was explained that there were two funding regimes for affordable housing delivery: the Building Council Homes for Londoners programme, which allowed both Formula Rent and London Affordable Rent to be provided as social housing products, and the 2021-26 Affordable Homes Programme, which specified that only formula rent would qualify as a social housing product and had a higher grant tariff. The different funding arrangements and scheme rules meant that there may be different approaches in different schemes.

-       It was confirmed that on projects starting on site from April 2023, London Affordable Rent would no longer be a rent level that local authorities could charge .

-       The Cabinet Member noted that the Council was proud of its Housing Delivery Programme. So far, the programme had been delivered with a small number of private for sale units. It was acknowledged that the current conditions were challenging but that it was important to protect the HRA and the manifesto promise to build homes.

-       In relation to queries about the quality of the build and increasing costs, it was confirmed that this was a fixed  ...  view the full minutes text for item 83