Agenda item

Report of the Corporate Director of Finance and Resources. To be presented by the Cabinet Member for Housing and Planning, and Deputy Leader of the Council.

The Cabinet Member for Housing and Planning, and Deputy Leader of the Council introduced the report.

It was explained that Haringey was a borough with diverse needs when it came to housing and that the Council was committed to making the borough a place where everyone could thrive, no matter how complex their needs. It was explained that around a third of residents in the greatest need on the housing waiting list had a disability, or a family member with a disability, living in homes that were overcrowded or did not meet their medical requirements. The bespoke housing programme was an important part of the Council’s needs-led approach to solving the housing crisis.

The Cabinet Member explained that the proposal for Grasmere Court delivered three new large council rent homes that were designed to meet the needs of the families who would live in them. This was a particularly special scheme, as the Council was able to design a home to suit a family with very specific challenges for which there was no suitable property in the Housing portfolio, and the impact on the family was immeasurable. This scheme enabled a family to move out of overcrowded accommodation and live together in a home that suited their needs and enabled a new level of independence that would have otherwise been impossible.

It was stressed that the Council had committed to building 3,000 new council homes by 2031 to help tackle the acute need for affordable housing in the borough—a demand directly caused by the national housing crisis. Haringey had already made great strides towards this target, with work either completed or under way on over 2,000 homes across the borough. All homes had high levels of insulation, efficient heating systems and solar panels that kept running costs low and avoided overheating. They were constructed with responsibly sourced and environmentally friendly materials.

RESOLVED:

That Cabinet:

1. Pursuant to the Council’s Contract Standing Order (CSO) 9.07.1(d), approved the appointment of Contractor A to undertake the new build works to provide a total of three homes at Council rent for the total contract sum set out in the exempt part of the report; and approved the client contingency sum set out in the exempt part of the report.
   
   
2. Approved the appropriation of the Grasmere Court development site edged red on the plan titled ‘Development Plan’ from housing purposes to planning purposes under Section 122 of the Local Government Act 1972, as it was no longer required for the purpose for which it was currently held, and for the purpose of carrying out the development as set out in part 6 of the report.
   
   
3. Approved 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 Grasmere Court estate development, under planning permission Ref: HGY/2024/2098.
   
   
4. Delegated authority to the Assistant Director for Capital Projects and Property, after consultation with the Cabinet Member for Housing and Planning, to make payments of compensation resulting from genuine claims of third-party rights affected by the Grasmere Court development and payable, within the existing scheme of delegation.
   
   
5. Approved the appropriation of the Grasmere Court development site, edged red in the plan titled ‘Development Plan’ from planning purposes back to housing purposes under Section 19 of the Housing Act 1985, after practical completion of the development.
   
   
6. Approved the total scheme cost set out in the exempt part of the report.
   
   
7. Approved 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. Noted the engagement and consultation carried out on the proposed scheme.

Reasons for Decision

The site known as Grasmere Court was approved by Cabinet in July 2019 to be included in the Council’s Housing Delivery Programme. Resolution to grant was received first on 16th December 2021 and again on 2nd October 2024 in relation to the updated design. This report therefore marked the third and final Cabinet decision to develop the site.

Contractor A was identified by a formal tender process to undertake the works.

There were no reasons for the Council to believe that any third-party rights would be infringed upon by the development: resolution to grant was received on 16th December 2021 and again on 2nd October 2024 in relation to the updated design, and no applicable concerns about the loss of rights were raised during extensive local engagement and consultation, including a Section 105 consultation from February to March 2021 with residents. However, appropriation of the Grasmere Court development site for planning purposes was recommended as a precaution. It allowed 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 prevented injunctions that could delay or prevent the Council’s proposed development. Section 203 converted the right to seek an injunction into a right to compensation. The site needed to be appropriated back from planning purposes to housing purposes upon completion of the development to enable the Council to use the land for housing and let three new Council homes.

The site proposal provided three much-needed family-sized homes.

These three homes also contributed to the Council’s commitment to start 500 homes on site as part of the GLA 21–26 Affordable Homes Programme.

Alternative Options Considered

The Council could have chosen not to appoint a contractor to complete the development of the site; however, this option was rejected because it would not have supported the Council’s commitment to deliver a new generation of Council homes, in particular family-sized homes.

This opportunity was procured via a competitive tender using the London Construction Programme (LCP) and the Construction Dynamic Purchasing System, using the JCT Design & Build Contract 2016 with amendments—the route recommended by the Strategic Procurement team. The alternative would have been to procure a contractor via a restricted, competitive tender to the open market, or the Westworks Procurement Ltd Development.

The Council could have continued with the scheme without appropriating the site for planning purposes, but this would have risked 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 benefited from third-party rights would not have been able to seek an injunction, since those rights or easements that were overridden were converted into a claim for compensation only. The Council recognised the potential rights of third parties and paid compensation where a legal basis for such payments was established. The housing delivery team actively engaged with local residents about the development of the 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 have decided not to appropriate the land for housing purposes upon practical completion of the building works. This option was rejected because it could have prevented the Council from being able to offer these homes for occupation, thereby not supporting the delivery of much-needed affordable homes.