Agenda item

The Cabinet Member for House Building, Place-Making, and Development considered the report which sought approval, in the light of consultation with local residents, to build four new Council homes on Council-owned land at Topham Square and Risley Avenue, in the White Hart Lane Ward. The homes comprise 1 two-bedroom house, 2 three-bedroom houses and 1 four-bedroom house, all of which will be let at Social Rents.

In order to achieve this, the report asked to agree the appropriation of the land, first for planning purposes, and then, on completion, for housing purposes; and in light of a formal tender process to award a construction contract to a locally based firm, NFC Homes Limited.

The Cabinet Member for House Building, Place-Making, and Development noted that the Cabinet Member portfolio had been updated from the Cabinet Member for Housing and Estate Renewal to the Cabinet Member for House Building, Place-Making, and Development.

The Cabinet Member RESOLVED

1.    To consider the responses to the consultation carried out on this proposed scheme in line with section 105 of the Housing Act 1985, as set out in the report, and the wider community engagement set out in the report.

2.    To approve the direct appointment allowed by Contract Standing Order 10.01.2.d of NFC Homes Limited to undertake the new build works to provide a total of four new homes at Topham Square and 15-25 Risley Avenue car park for the contract and contingency sum set out in the exempt report attached as Appendix 2.

3.    To approve the appropriation of the land at Topham Square and 15-25 Risley Avenue car park (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 section 6 of this report.

4.    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 Topham Square and Risley Avenue development under planning ref: HGY/2022/0018.

5.    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 House Building, Place-Making, and Development, authority to make payments of compensation in the event that any infringement arises from the development and the recommendation 3, within the existing scheme of delegation.

6.    To approve the appropriation of the land at Topham Square and Risley Avenue Road car park (edged red in the 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 decision

The land at Topham Square and Risley Avenue was approved by Cabinet in July 2019 to be included in the Council’s Housing Delivery programme. A planning application was submitted on 4 January 2022 and a decision is expected by 1 March 2022. Subject to planning approval, the scheme is ready to progress to the construction phase. This report therefore marks the third, and final, Members’ decision to develop on these sites.

Direct appointment of the contractor in this case is justified because it is in the Council’s overall interests. Current market conditions are uncertain and difficult, and there is significant risk of a lack of interest in this scheme. The scheme’s viability depends on meeting deadlines attached to grant funding and the risk of an unsuccessful competitive tender process was considered to be high, and therefore to put the scheme’s viability at risk. A locally based contractor known to have provided the Council with quality work on similar schemes was approached and asked to submit a tender return.

The appropriation of the site for planning purposes is required as it will allow the Council to use the powers contained in Section 203 to override third party rights such as 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 land 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 the new Council homes at Council rent.

The proposals will improve security for new and existing residents and alleviate potential anti-social behaviour and fly tipping attracted by an unsecured car park.

Alternative options considered

It would be possible not to develop this site for housing. 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 the time constraints involved in delivering this scheme Instead, this opportunity will be procured via a direct appointment from the Major Works 2019 LCP Framework Agreement, the recommended route for a contract of this value.

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 appropriating it for planning purposes and 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 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.