Agenda item

[Report of the Director  of Housing, Regeneration and Planning. To be introduced by the Leader of the Council.]

Acquisition of two additional homes on the Plevna scheme for use as social rented housing and conversion of 4 shared ownership homes to social rented.

The Leader introduced the report which sought approval to the purchase of 2 additional homes on the Plevna scheme and to the change of four s106 shared ownership homes to social rented homes so that the whole block of 16 homes will be social rented.

The Leader outlined that this acquisition was another small but important step towards an ambitious target to deliver 1,000 new Council homes and illustrated the variety of opportunities the Council can and must take to meet that target. Although this scheme achieved planning permission some months ago, officers had now ensured that these new homes better met the needs of residents. By negotiating to ensure that all sixteen of these homes would now be Council rented homes, this would mean that the Council had more homes available to permanently house households with the most serious need. This decision and the other acquisitions that would follow ensured that new housing developments in the borough offer housing to those who need it most.

In response to questions, comments, the following information was noted:

• That GLA grant funding would be accessed for buying these homes.
• Agreed that the document is updated to clarify the name of the scheme.
• There was no segregation in respect of tenure, all the properties would be Council rented homes.
• In relation to the potential inclusion of pre-paid meters in the new Council homes, this was felt unlikely to have been included in the specifications for this scheme given the Council’s commitment to fighting fuel poverty. However, the Director for Housing, Regeneration and Planning agreed to provide a written response to Cllr Ogiehor.

Further to considering the exempt information at item 25,

RESOLVED

1. To agree to the acquisition, for housing purposes and to be held in the Housing Revenue Account, of two additional homes as part of the ‘Gate of Eden’ development to the rear of Plevna Crescent, N15. The acquisition will be for the sum set out in the exempt part of this report and will be part of the acquisitions previously approved by Cabinet on 11 December 2018 and based on the draft Heads of Terms attached at Appendix 2 [exempt] of this report.

2. To the change of four s106 shared ownership homes to social rented homes so that the whole block of 16 homes will be social rented.

Reasons for decision

The emerging Borough Plan pledges that the Council will deliver 1,000 new Council homes at Council rents by 2022. One of the methods of delivering new Council homes at Council rents is by acquisitions of s106 affordable units from developers.

The Council has the first opportunity to acquire the s106 affordable homes adjacent to the Plevna Crescent Council housing estate. Officers have negotiated a new mix of sixteen homes for Council rent, rather than the Planning Permission mix of ten Intermediate and four Affordable Rent homes.

Alternative options considered

The alternative option would be not to acquire the two additional properties. This option is not recommended as the Council would be left with shared management and service charges for this block with the developer or their managing agent. The homes identified for social rent include family sized homes and duplex accommodation, with the majority of the homes having a large Gross Internal Area. The acquisition of these homes will deliver sixteen Council homes towards the 1,000 target in the Borough Plan.