Agenda item

Report of the Director of Placemaking and Housing. To be introduced by the Cabinet Member for Council Housebuilding, Placemaking, and Local Economy and the Director of Placemaking and Housing.

This report seeks approval to appoint the recommended winning contractor to complete a new build development comprising 45 council homes on the Brunel Walk N15 site with associated amenity and the reconfiguration and enhancement of existing amenity on the Turner Avenue Estate and to appropriate the land for planning purposes to facilitate the development process.

The Cabinet Member for Council Housebuilding, Placemaking, and Local

Economy introduced the report which sought approval to appoint the recommended winning contractor to complete a new build development comprising 45 Council homes on the Brunel Walk N15 site with associated amenity and the reconfiguration and enhancement of existing amenity on the Turner Avenue Estate and to appropriate the land for planning purposes to facilitate the development process.

In response to questions Cllr Hakata and Cllr Cawley Harrison, the following was noted:

• In the development there would be a high level of insulation in all homes, green roofs, solar panels, and air source heat pumps. The running costs for the tenants moving into these homes would be low. The enhancements to the environment and the extra trees would massively increase biodiversity. This was a net zero carbon scheme.

• Due diligence had been carried out on the contractor. The Council would do everything they could to limit exposure. The contract at hand was a fixed price contract, in terms of limiting exposure it was a reputable contractor with a healthy balance sheet.

Further to considering exempt information at item 22,

RESOLVED

1. To approve the appointment of Contractor A, identified in the exempt part of the report, to undertake the new build works to provide a total of 45 new homes at Brunel Walk and enhancement to the Turner Avenue estate amenity for a total contract sum set out in the exempt part of the report; and approves the client contingency sum set out in the exempt part of the report.

2. To approve the appropriation of the Brunel Walk and Turner Avenue development site edged red on the plan titled ‘Development 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 the development as set out in part 6 of this 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 and interests infringed upon by the Brunel Walk and Turner Avenue estate development, under planning permission Ref: HGY/2022/2723.

4. To delegate to the Director of Placemaking & Housing, after consultation with the Director of Finance and the Cabinet Member for Council House building, Placemaking, and Local Economy, authority to make payments of compensation as a result of genuine claims of third party rights affected by the Brunel Walk and Turner Avenue development and payable as a result of the recommendation 3.1.3, within the existing scheme of delegation.

5. To approve the appropriation of Brunel Walk and Turner Avenue development site edged red in the plan titled ‘Development 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.

6. To approve the total scheme cost set out in the exempt part of the report.

7. To approve the issuance of a letter of intent for up to 10% of the contract value as set out in the exempt part of the report.

8. To consider the engagement and consultation carried out on this proposed scheme set out at clauses 6.6 to 6.15 of this report.

Reasons for decisions

The site known as Brunel Walk was approved by Cabinet in July 2019 to be included in the Council’s Housing Delivery programme. Resolution to grant was received at the 16th January 2023 Planning Committee and the Decision Notice was received on 4^th April 2023. This report therefore marks the third, and final, Members’ decision to develop on this site.

Contractor A has been identified by a formal tender process to undertake these works.

There are no reasons for the Council to believe that any third-party rights would be infringed by the development: Resolution to grant was received at the 16th January 2023 Planning Committee and the Decision Notice was received on 4th April 2023, and no applicable concerns about the loss of rights were raised during extensive local engagement and consultation, including a Section 105 consultation in February-March 2021 with residents. However, appropriation of the Brunel Walk development site for planning purposes is recommended as a precaution. It will allow the Council to use the powers contained in Section 203 of the Housing and Planning Act 2016 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 site 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 45 new Council homes.

The site proposal will provide 45 much needed Council homes on Council land, with 21 of these being large, 3-bed, five-person family homes which are in particularly high demand. Additional works proposed include extensive enhancements to the adjoining Turner Avenue estate, with much needed security measures including CCTV and lighting to prevent crime and anti-social behaviour.

These 45 homes will also contribute to our commitment to start 500 homes on site as part of the GLA 21-26 Affordable Homes Programme and our political aspiration to build 3000 Council homes by 2031.

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 and would leave the estate vulnerable to further issues of anti-social behaviour and crime.

This opportunity was procured via a restricted, competitive tender to the open market (Find a Tender) using the JCT Design & Build Contract 2016 with amendments, the route recommended by Strategic Procurement for a contract of this value. The alternative option would have been a competitive tender via the London Construction Programme (LCP) Major Works 2019 Framework Agreement or the Westworks Procurement Ltd Development and Construction Dynamic Purchasing System. Both options were rejected because an Expression of Interest exercise through the LCP was unsuccessful and the 2022 tender via Westworks failed to secure a viable bid.

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 the scheme 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, thereby not supporting the delivery of much needed affordable homes.