Agenda item

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

This report asks Cabinet firstly to appoint the contractor identified by a formal procurement exercise to deliver three new Council homes on vacant HRA land at Leland Road in Seven Sisters ward, and secondly to facilitate this development by agreeing to use the Council’s powers under the Local Government Act 1972 to appropriate the land for planning purposes and under the Housing and Planning Act 2016 to override any easements.

The Cabinet Member for Housing and Estate Renewal introduced the report which sought approval to deliver three new Council homes for Council rent on Council land, consisting of two three-bedroom flats and one two-bedroom flat which was fully accessible for wheelchair users.

Robbie Erbmann, Assistant Director for Housing, responded to questions from Councillor Cawley-Harrison:

-           The Council had taken forward zero-carbon homes at Edith Road.

-           Designing properties to good carbon standard also provided a good standard of design and comfort.

Further to considering exempt information at item 27, 

RESOLVED to

1.        Approve the appointment of contractor A to undertake building works to provide a total of three Council rented homes at Lealand Road for a total contract sum of EXEMPT; and approves the client contingency sum set out in the exempt part of the report.

2.      Approve the appropriation of the land at Lealand Road highlighted in the red line boundary plan attached at Appendix 1 of the report from housing purposes to planning purposes under Section 122 of the Local Government Act 1972 as it is no longer required for the purpose which it is currently held, and for the purpose of carrying out development as set out in paragraphs 6.1 to 6.21 of this report.

3.      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 Lealand Road development, under planning permission Ref: HGY/2020/2353.

4.      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 payable as a result of recommendation 3, within the existing scheme of delegation.

5.      Approves the appropriation of the land at Lealand Road (edged red in the boundary plan 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.

Reasons for decisions

On 3 December 2019 Cabinet included the land at Lealand Road into the Council’s housing delivery programme. This scheme has subsequently been granted planning consent and is ready to progress to construction. This report therefore marks the third, and final, Member led decision to develop on this site.

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

Alternative options considered

It would be possible not to appoint a contractor to develop this site for the Council. 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 competitive tender through the Dynamic Purchasing System (DPS), using JCT Design & Build 2016 with amendments, the recommended route for a contract of this value. An alternative option would have been to do a direct appointment, but this option was rejected due to the estimated contract value of the scheme and to give opportunities for local small to medium size contractors to submit a tender.

The Council could continue with the scheme without appropriating the Site for planning purposes, but this would risk the proposed development 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 this site 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.