Agenda item

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

Cabinet is asked to approve the following in respect of Mount View Court & Romney Close, to contribute to the delivery of housing in the borough:  1) approve the award of Contract; 2) the appropriation of the land for planning purposes under Section 122 of the Local Government Act (LGA) 1972; 3) to execute our rights under Section 203 of the Housing and Planning Act (HPA) to remove the risk of an injunction being served which could stop the development proceeding.

The Cabinet Member for Housing and Estate Renewal introduced the report which sought approval to appoint the recommended contractor, NFC Homes Limited, to complete a new build development of seven Council rented homes: three at Romney Close N17 and four at Mount View Court N8, and to appropriate the land for planning purposes to facilitate the development process.

The Cabinet Member highlighted that this decision was responding to the need for housing with more than 2 bedrooms. There would be three two-bedroom homes, including one that is accessible for wheelchair-users, in Northumberland Park, and four four-bedroom homes in Harringay.

Further to considering exempt information,

RESOLVED

1. To approve the appointment of NFC Homes Limited to undertake the new build works to provide a total of seven Council rented homes at Romney Close and Mount view Court for a total contract sum of £2,144,016 and to approve the client contingency sum set out in the exempt part of the report.

2. To approve the appropriation of the land at the sites of Romney Close and Mount View Court (edged red in the plans attached at Appendix 1) from housing purposes to planning purposes under Section 122 of the Local Government Act 1972 as they are no longer required for the purpose which they are currently held, and for the purpose of carrying out development as set out in paragraphs 6.1 to 6.25 of this report.

3. To approve the use of the Council’s powers under Section 203 of the Housing and Planning Act 2016 to override easements and other rights of neighbouring properties infringed upon by the Romney Close development, under planning permission Ref: HGY/2020/0183 and by the Mount View development, under planning permission Ref: HGY/2020/0181.

4. To delegate to the Director of Housing, Regeneration and Planning, after consultation with the Director of Finance and the Cabinet Member for Housing and Estate Renewal, authority to make payments of compensation as a result of any infringement arising from the development and the recommendation 3.1.3, within the existing scheme of delegation.

5. To approve the appropriation of the land at the sites of Romney Close and Mount View Court (edged red in the plans attached at Appendix 1) from planning purposes back to housing purposes under Section 19 of the Housing Act 1985, after practical completion of the development on 31 December 2021.

Reasons for decisions

The two sites, Romney Close and Mountview Court, were approved by Cabinet on 9 July 2019 to be included in the Council housing delivery programme. These schemes have subsequently been granted planning consent and are ready to progress to construction. This report therefore marks the third, and final, Member led decision to develop these two sites.

Following a formal tender process, a contractor has been identified to undertake these works.

The appropriation of the two sites for planning purposes is required as it will allow the Council to use the powers contained in section 203 to override easements and other rights of neighbouring properties and will prevent injunctions that could delay or prevent the Council’s proposed developments. Section 203 converts the right to seek an injunction into a right to compensation. Both sites will need to be appropriated back from planning purposes to housing purposes on completion of the development to enable the Council to use the land for housing and let seven new Council homes at Council rent.

The new development at Romney Close will also allow the Council to secure the boundary of the site and improve security for new and existing residents, alleviating the anti-social behaviour currently attracted to the site.

This decision is also necessary at this time to support the Council’s COVID-19 response, in as much as it will be part of a portfolio of oven-ready schemes that are ready to go onsite as soon as the lockdown rules allow – supporting the recovery of the local and wider economy.

Alternative options considered

It would be possible not to develop these sites for housing purposes. However, this option was rejected as it does not support the Council’s commitment to deliver a new generation of Council homes.

This opportunity was procured via a direct appointment from the London Construction Programme (LCP) Major Works 2019 Framework Agreement, the recommended route for a contract of this value. An alternative option would have been to run a competitive tender from the LCP, but this option was rejected due to limited interest from the framework contractors.

The Council could continue with the schemes without appropriating the site for planning purposes, but this would risk the proposed developments being delayed or stopped by potential third party claims. By utilising the powers under Section 203 of the Housing and Planning Act 2016 (HPA 2016), those who benefit from third party rights will not be able to seek an injunction since those rights or easements that are overridden are converted into a claim for compensation only. The Council recognises the potential rights of third parties and will pay compensation where a legal basis for such payments is established. The housing delivery team actively engaged with local residents about the development of these sites as they proceeded through the feasibility and design stages and any comments or objections raised were taken into consideration by Planning Committee in reaching its decision. For these reasons, this option was rejected.

The Council could decide not to appropriate the land at both sites for housing purposes upon practical completion of the building works. This option was rejected because it could prevent the Council from being able to offer up these homes for occupation as social housing thereby not supporting the delivery of much needed affordable homes.