Agenda item

Report of the Director of Placemaking and Housing. To be introduced by the Cabinet Member for  Council House-Building, Placemaking, and Development.

Cabinet will be asked to approve the appointment of Formation Design & Build Limited to construct 18 new Council homes on land at Watts Close N15, and to facilitate this delivery by appropriating the land for planning purposes and then on completion for housing purposes.

The Cabinet Member for Council Housebuilding, Placemaking, and Development introduced the report which sought approval for the appointment of Formation Design & Build Limited to construct 18 new Council homes on Council rent on land at Watts Close N15, and to facilitate this delivery by appropriating the land for planning purposes and then on completion for housing purposes.

The housing provision included four one-bedroom flats, eight two-bedroom flats, four three-bedroom houses and two four-bedroom houses with two of the flats being fully accessible for wheelchair-users. The priority was for a high-quality build, improving public realm and making places which residents can enjoy.

In response to questions from Cllr Connor, the following was noted:

With regards to prioritising green space in new housing schemes, in particular to mitigate the effects of expected rising temperatures, all new housing schemes have included a lot of soft landscaping and encourage biodiversity. In relation to Watts Close, there was: play space included, urban greening which was above the requirements of the London Plan and this was also a zero-carbon scheme.

Following consideration of the exempt information, it was

RESOLVED

1.    To approve the appointment of Formation Design & Build Limited to undertake building works to provide a total of eighteen Council rented homes at Watts Close for a total contract sum and to approve the client contingency sum, both of which are set out in the exempt part of the report.

2.    To approve the appropriation of the land at Watts Close 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 6.4 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 third-party rights which may be affected by the Watts Close development, under planning permission Ref: HGY/2022/0035.

4.    To delegate to the Director of Placemaking and Housing, after consultation with the Director of Finance and the Cabinet Member for Council Housing-Building, Placemaking, and Development, authority to make payments of compensation as a result of any genuine claims of third-party rights affected by the Watts Close development and payable as a result of recommendation 3.1.3, within the existing scheme of delegation.

5.    To approve the appropriation of the land at Watts Close (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 schedule in December 2023.

6.    To delegate powers to the Director of Placemaking and Housing and the S151 Officer (Director of Finance) to approve overspend beyond the contingency of up to 5% of the construction contract value and approve necessary associated contract variations. To note the project on costs and total scheme cost set out in the exempt report (Appendix 2).

Reasons for decision

On 29 September 2019 Cabinet included the land at Watts Close 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 Contract 2016 with amendments. An alternative option would have been to do a direct appointment; however this option was not suitable 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.