Agenda item

The Cabinet Member for House Building, Place-Making, and Development considered the report which sought approval, in light of engagement with local residents, to deliver forty-six new Council homes for Council rent on Council land consisting of twelve one-bedroom, sixteen two-bedroom, fourteen three-bedroom and four four-bedroom with five of these homes being fully accessible for wheelchair-users.

In order to facilitate this, Cabinet is being asked to approve use of the Council’s powers to appropriate the land for planning purposes and to override any easements.

Cabinet is asked in light of a formal procurement exercise to approve the appointment of Formation Design & Build Ltd (exempt - further details in exempt report), to deliver these new Council homes on vacant land.

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 approve the appointment of Formation Design & Build Ltd to undertake building works to provide a total of forty-six Council rented homes at Remington Road for a total contract sum as set out in the exempt appendix; 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 Remington Road highlighted in the red line boundary plan 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 6.7 of the 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 Remington Road development, under planning permission Ref: HGY/2021/2882.

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 House Building, Place-Making, and Development, 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.    To approve the appropriation of the land at Remington 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 decision

On July 2019 Cabinet included the land at Remington 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 Westworks Development and Construction Dynamic Purchasing System, using JCT Design & Build 2016 with amendments. 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.

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.