Agenda item

The Cabinet Member for House Building, Placemaking and Development considered the report which sought Cabinet’s approval, in light of engagement with residents, to deliver three new Council homes for Council rent on Council land in Noel Park at Bury Road, Farrant Avenue and Morley Avenue. The recommended development has received planning permission: for Bury Road on 12^th April 2021, Farrant Avenue on 12^th March 2021 and Morley Avenue on 9^th April 2021.

RESOLVED that the Cabinet Member:

1.         Approves the direct appointment of NFC Homes Limited as allowed by Contract Standing Order 10.01.2. to undertake the new build works to provide a total of three Council rented homes at Bury Road, Farrant Avenue and Morley Avenue garages for a total contract and client contingency sum set out in the exempt part of the report.

2.         Approves the appropriation of each of the land at Bury Road, the Farrant Avenue garages and the Morley Avenue garages (each 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 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 6.22 of this report.

3.         Approves 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 each of the Bury Road, Farrant Avenue, and Morley Avenue developments, under planning permissions HGY/2021/0059 (Bury Road) HGY/2021/0095 (Farrant Avenue) and HGY/2021/0054 (Morley Avenue).

4.         Delegates to the Director of Housing, Regeneration and Planning, after consultation with the Director of Finance and the Cabinet Member for House Building, Placemaking and Development, authority to make payments of compensation as a result of any infringement arising from each of the development and the recommendation within the existing scheme of delegation.

5.         Approves the appropriation of each of the land at Bury Road, Farrant Avenue and Morley Avenue (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 each of the development.

Reasons for decisions

The land at Bury Road, Farrant Avenue and Morley Avenue was approved by Cabinet in July 2019 to be included in the Council’s housing delivery programme. The schemes were subsequently granted planning consent and are ready to progress to construction. This report therefore marks the third, and final, Members’ decision to develop on these sites.

The direct appointment of NFC Homes Limited is in the Council's overall interest in terms of achieving best value for money and quality.

The appropriation of the 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 development. Section 203 converts the right to seek an injunction into a right to compensation. The 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 new Council homes at Council rent.

As well as delivering three homes for families in housing need, the proposals will improve security for new and existing residents and alleviate fly tipping, anti-social behaviour, and pest infestation attracted to the sites by the derelict garages at Bury Road, Farrant Avenue and Morley Avenue garages.

Alternative options considered

It would be possible not to develop this site 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.

The Council could have run a competitive tender from the London Construction Programme (LCP). This option was rejected due to limited interest from the LCP framework contractors and time constraints to deliver the new build programme. Instead, this opportunity was procured via a direct appointment from the Major Works 2019 LCP Framework Agreement, the recommended route for a contract of this value.

The three sites could have been procured through separate contracts. This option was rejected because it would have been more costly and more time-consuming.

The Council could continue with the scheme without appropriating the sites 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 residents about the development of this 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.

The Council could decide not to appropriate the land 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.