Agenda item

[Report of the Director for Planning, Regeneration and Development. To be introduced by the Cabinet Member for Housing and Regeneration.] Details the feasibility of the disposal of a strip of undeveloped land along Monument Way within Chestnut Estate to deliver affordable housing as part of the Tottenham Regeneration Programme.

The Leader introduced the report which sought approval to dispose of the Monument Way site to Newlon Housing Trust. Approval was sought to grant right to buy receipts to Newlon Housing Trust to enable a scheme with a proportion of affordable rent homes significantly above the current planning policy requirement. The Leader commented that Monument Way was located in Tottenham Hale, which had been designated as a Housing Zone by the Mayor of London and the Council was keen to bring forward new housing developments, including as much affordable housing as possible. In order to facilitate this, the Council needed to bring forward sites that it owned for redevelopment. The Leader advised that the proposal included the use of right to buy receipts, enabling this funding to be utilised to provide as much affordable housing as possible.

In response to a question from Cllr Morris, the Leader agreed that the consideration of open space and light was important in delivering high quality developments but stated that ensuring that one of the plots was maintained as open space would be a matter for Planning Committee to determine. The AD Capital Major Projects advised that the fourth plot was excluded from the land that was being transferred to Newlon Housing Trust and would be kept for public realm works.

In response to further questions from Cllr Morris, the Leader advised that all 44 units would be affordable homes and also advised that the Council were unable to insulate the development from the potential of the units being available under the right to buy scheme in the future. The Leader further advised that right to buy had been extended to housing association tenants and the Council had to operate within the law.

RESOLVED

1.    To declare the Monument Way site (shown edged red on the site plan attached at Appendix A of the report) surplus to requirements.

2.    To authorise the disposal of the Monument Way site to Newlon Housing Trust for the sum set out in Part B of the reportand on the terms set out in the Heads of Terms attached in Part B.

3.    To note the intention to acquire the piece of land at the end of Fairbanks Road ( shaded  green on the plan attached in Appendix A of the report) from Holy Trinity School and part of the land shaded  orange on the plan attached in Appendix A of the report from Transport for London  and to dispose to Newlon Housing Trust as part of recommendation 3.1 (b) of the report  and on the basis that the disposal is likely to contribute to the achievement of the promotion or improvement of the economic or social or the environmental well being of the area.

4.    That delegated authority be given to the Director of Regeneration Planning and Development after consultation with the Section 151 Officer and Cabinet Member for Housing and Regeneration to agree the final details of the Heads of Terms and contract documentations.

5.    To grant a sum of a maximum of £5,000,000 from right to buy receipts to Newlon Housing Trust as a contribution towards the provision of a minimum of 44 affordable rented units as set out in the Heads of Terms in Part B of the report and subject to Newlon Housing Trust entering into a funding agreement and 100% Nominations Rights for the minimum of 44 affordable rented units.

Reasons for decision

The Monument Way site sits withinthe Tottenham Housing Zone. Officers considered the site suitable for affordable rent homes and was able to use right to buy receipts to maximise the affordable rent position. The site could be delivered relatively quickly and independently of other sites in the Housing Zone and is a priority since Council has an urgent demand for affordable rent homes.

It is proposed that the Monument Way site be declared surplus to requirements and can be disposed of to provide much needed affordable rent housing. This is the reason for the recommendation in 3.1 (a) of the report.

The Council are not in a position to undertake the development themselves due to insufficient resources and have been discussing with Newlon Housing Trust, as a preferred partner, the opportunity to take forward the development.

Officers are recommending that the land is disposed to Newlon Housing Trust for the sum set out in the Heads of Terms in Part B and on the terms set out in the Heads of Terms in Part B. This is the reason for the recommendation in 3.1 (b) of the report.

The Council holds the freehold of most of the land within the Monument Way site and is in the process of acquiring two parcels of land from adjoining owners. These land transfers will be dealt with in separate reports, the Council is recommending that members note the land assembly activities, this is the reason for the recommendation in 3.1 (c) of the report.

Draft Heads of Terms can be found in Part B of the report; however terms cannot be fully agreed due to land assembly complications and abnormal costs which are at present not fully understood. These will be resolved in the final documentation; therefore the report is recommending that delegated authority be given to the Director of Regeneration Planning and Development after consultation with the Section 151 Officer and Cabinet Member for Housing and Regeneration to agree the final detail of the Heads of Terms. This is the reason for the recommendation in 3.1(d) of the report.

The Council will give a grant to Newlon Housing Trust from right to buy receipts in order to maximise the number of affordable rent units. The Council has previously agreed in principle that Right to Buy receipts can be allocated to development partners to increase the level of affordable housing within the Borough. However, in line with other Council expenditure any allocation above £500,000 needs to be agreed by Cabinet. This is the reason for the recommendation in 3.1 (e) of the report.

Alternative options considered

The alternative option is to not sell the site to Newlon Housing. This would result in not achieving a minimum of 44 new affordable rented residential accommodation in Tottenham Hale.

The Council could sell the site in the open market. However the land receipt is unlikely to be higher than that for a social rented development and would at best be policy compliant and therefore not achieve the same level of social housing the Newlon proposal provided.

The Council could undertake the development themselves. However the Council's new build programme, due to insufficient resource, is not in a position to undertake the development and Newlon as a preferred partner could take the development forward.