Agenda item

Broadwater Farm rehousing

[Report of the Director for Housing, Regeneration and Planning. To be introduced by the Cabinet Member for Finance and Strategic Regeneration.]

 

This report seeks delegations from Cabinet to the Director of Housing, Planning and Regeneration in respect of the acquisition of leasehold interests on the estate and approval of equity loans for leaseholders wishing to access the proposed loan facility offered by the council to eligible leaseholders.

Minutes:

The Cabinet Member for Finance and Strategic Regeneration introduced the report, which set out a number of important recommendations to support the Council’s vital work on the rehousing of leaseholders on the Broadwater Farm Estate.

 

The Cabinet Member emphasised that the Council was committed to working with leaseholders to identify rehousing solutions that met their needs and the report set out additional options to support leaseholders.

 

In response to questions from Cllr Cawley - Harrison. The following information was provided:

 

·         In relation to the financial compensation of leaseholders, as set out in the deputation response, this would be discussed with the leaseholders and there would need to be consideration of the Council’s fiduciary duty when considering the appropriate remedy.

 

·         With regards to the alternative housing offered to leaseholders, the personal view of the Cabinet Member was that there needed to be careful consideration of the housing options offered to ensure that this was fair and did not disadvantage other residents in priority need, awaiting housing. The Council were prepared to examine and take forward discussion with leaseholders, taking account of the compensation received, if applicable, and considering the situation of the housing waiting list.

 

·         The Cabinet Member for Housing and Estate Renewal highlighted that the Council were already considering the issue of vulnerability and if the leaseholder fell into the priority need category they would be entitled to a social tenancy were they homeless and in a situation that they could not afford to buy a home. This would also be taken into consideration by the discretion panel.

 

Further to considering the exempt information at item 24,

 

RESOLVED

 

 

  1. To agree to the acquisition of all leaseholders’ interests in both Northolt and

Tangmere for a maximum total sum of [EXEMPT] and gives delegated authority to the Director of Housing, Regeneration and Planning, after consultation with the Director of Finance and Cabinet Member for Housing & Estate Renewal, to agree the price and terms of each acquisition;

 

  1. To give delegated authority to the Director of Housing, Regeneration and

Planning to approve any individual equity loans to eligible resident

leaseholders, as provided for in the Broadwater Farm Rehousing and Payments policy;

 

  1. To authorise the Director of Housing, Regeneration and Planning,

            notwithstanding the terms of the Broadwater Farm Rehousing and Payments        Policy, to offer Equity Loans to support the purchase of properties outside the            borough in exceptional circumstances taking account of the recommendation of         the Discretionary Panel Discretionary Panel.

 

4.    To approve the policy set out at Appendix one of the report, setting out the offer that the Council will make for the leasehold interest in a property on Broadwater Farm where the owner wishes to be granted a social tenancy of the same or another property in replacement of his/her interest.

 

  1. To authorise the Director of Housing, Regeneration and Planning to approve the offer of a social tenancy to leaseholders, acting on the recommendation

of the discretionary panel (as set out in the Broadwater Farm Rehousing and

             Payments Policy) in line with policy set out in Appendix one of the report.

 

 

Reasons for decision

 

Despite ongoing negotiations, there remain eight (8) leaseholders in Northolt and six (6) leaseholders in Tangmere who have not yet agreed to the sale of their homes.

 

Acquiring the remaining leasehold properties in Tangmere and Northolt is a high priority. Structural surveys have identified that the buildings have failed the required safety tests. While risks are currently being mitigated, it is important to acquire the remaining flats as quickly as possible so demolition can be carried out.

 

The Council is unable to force private owners (leaseholders) to sell their properties unless it applies for compulsory purchase powers. The Council is preparing for this eventuality, but before doing so is seeking to acquire the leasehold properties by private treaty. Following lengthy discussions with leaseholders and the Independent

Tenant and Leaseholder Advisor, officers believe that if the recommendations in this report are approved, the need to use compulsory purchase powers may be diminished.

 

The recommendations in this report are primarily aimed at accelerating the

acquisition of leasehold properties and ensuring delegations exist to execute

existing policy without having to return to Cabinet for further approvals on individual cases.

 

In making these recommendations it is recognised that the issues on Broadwater

Farm are pressing and unique and it is in the Council’s and residents’ interests to expedite the acquisition process. Market values for homes on Broadwater Farm are among the lowest in London, making it difficult for leaseholders to move to similar properties within the area. The homes are structurally unsound and while the known risks are being mitigated, it is not satisfactory to mitigate them in the long term.

 

These partially empty blocks are also an ongoing security and squatting risk and the cost to the Council of mitigating the risks on the estate are high as they include 24-hour security.

 

When acquiring properties in advance of a possible Compulsory Purchase Order,

the Guidance on Compulsory Purchase 2019 sets out that Councils should consider value for money in terms of the Exchequer as a whole, as set out in paras 6.9 to

6.11 of the report. Recommendation 3.1.1 therefore aims to ensure that the Council adheres to this Guidance when undertaking leasehold acquisitions. More information on this approach is set out in Part B of this report.

 

Alternative options considered

 

Not to extend the leaseholder offer.

 

This option was discounted as it would not help accelerate the acquisition of leasehold interests nor would it allow the Council to complete acquisitions where the leaseholder requests an equity loan. It would also arguably fail to apply flexibility in order to deliver on the aims of the BFRPP and ERRPP, as required by those policies.

 

To begin Compulsory Purchase Order proceedings.

 

This option was discounted as the Council wishes to seek to acquire the properties

by mutual agreement before exploring this option.

 

To pay full market value to a resident leaseholder who also seeks the grant of a social tenancy.

 

This option was discounted, as it would be inequitable to the leaseholders who have accepted the Council’s financial offer for the Council to offer to other leaseholders the same financial offer and in addition a secure Council tenancy. It would also have a much more significant impact on the Council’s finances and its ability to meet housing need, than the other offers.

Supporting documents: