Agenda item

[Report of the Director for Housing and Growth. To be introduced by the Deputy Leader and Cabinet Member for Housing and Estate Renewal.]

Newlon Housing Trust (NHT) owns 12 leasehold properties on Tangmere House  on  Broadwater Farm.  NHT has agreed to sell back all 12 these properties to Haringey Council. Approval is sought to progress this purchase as the total value of the portfolio is above £500k. These properties will be purchased  as they become vacant.

 The Cabinet Member for Housing and Estate Renewal introduced the report which sought approval to the Council purchasing 12 properties on the Tangmere block on the Broadwater Farm Estate from Newlon Housing Trust. This was in light of the need to rehouse Tangmere residents for health and safety reasons, and the fact that, from October, Tangmere will not have heating or hot water facilities, it was practical for the Council to have ownership of as many units on Tangmere as possible.

Following consideration of exempt information at item 19,

RESOLVED

1.          To agree to the purchase of 12 leasehold properties (and shown edged red on the plan attached included as part of the original lease – Appendix 1) listed below from Newlon

·                Flat 13,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 14,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 15,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 16,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 17,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 18,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 19,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 20,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 21,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 22,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 23,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

·                Flat 24,Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB

Reasons for decision

In February 2018, the Council identified that Tangmere was not suitable to have piped gas supplies as it failed a specific test for blocks built using a large panel system. This meant that in the event of a gas leak and gas explosion the block was at risk of progressive collapse. As a result, a number of temporary mitigation measures are currently being implemented until a decision on the long-term future of this block can be made.

Tangmere has failed a further test, which means that the block is at risk of progressive collapse in the event of an explosion linked to a bottled gas (LPG) or oxygen cylinder, or from the impact created by a vehicle strike. In order to meet building regulations, it will now need significant strengthening works.

A report being considered by Cabinet at its meeting on 26 June 2018 recommends that residents in Tangmere be rehoused for the reasons set out above. A final decision about the future option for Tangmere is expected later in 2018. If strengthening works are to be carried out then it is highly likely that Tangmere will have to be decanted on a temporary basis to allow the works to be carried out. If these properties were already in Council ownership, they could be kept void to speed up any decant process, which would be advantageous to the Council.

Should it prove not possible or viable for the Council to carry out the strengthening works on Tangmere, and a decision is made to demolish Tangmere ahead of new homes being built, the Council will need to purchase leasehold properties in the block.

The recommendation to purchase 13-24 Tangmere, Willan Road, Broadwater, Farm Estate N17 6LB is based on valuation advice from GL Hearn that considers the sum negotiated on purchase price to represent good value for money for the Council.

To secure the properties for the agreed price a decision is required from Cabinet.

Alternative options considered

The only alternative option considered was not to proceed with the purchase of the subject properties. This option was rejected. The purchase price agreed has been achieved through an exhaustive process of negotiation with Newlon to achieve best value for the Council.