Agenda item

Report of the Corporate Director of Finance and Resources (S151 Officer). To be presented by the Cabinet Member for Housing & Planning (Deputy Leader)

DECLARATIONS OF INTEREST FOR ITEM:

None

RESOLVED:

That Cabinet:

1.    Approved the appointment of the recommended contractor (A) identified in the exempt part of the report to undertake the new build works to provide a total of sixty-six council homes on the land at the corner of Seven Sisters and St Ann’s Road, N15 6NP for a total contract sum of £24,610,387 and approves the on costs and client contingency sum set out in the exempt part of the report. This is in accordance with Contract Standing Order (CSO) 2.01 c).

2.    Approved the issuance of a letter of intent to allow Haringey Council to incur expenditure for either 10% of the contract value or £100,000, whichever is the higher figure.

3.    Approved the appropriation of land at the corner of Seven Sisters and St Ann’s Road shown edged red on the plan titled ‘Development Plan’ attached at Appendix One, from housing purposes to planning purposes pursuant to section 122 of the Local Government Act 1972.

4.    Approved 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 Sir Frederick Messer Estate, N15 6NP development, under planning permission Ref: HGY/2024/3315.

5.    Delegated to the Director of Capital Projects and Property, after consultation with the Corporate Director of Finance and Resources and the Cabinet Member for Housing and Planning (Deputy Leader), authority to make payments of compensation for any valid claims of third-party rights affected by the development as a result of recommendation

6.    Approved the appropriation of land at corner of Seven Sisters and St Ann’s Road, N15 shown edged red in the plan titled ‘Development Plan’ attached at Appendix One, from planning purposes back to housing purposes under Section 122 of the Local Government Act 1972, after practical completion of the development scheduled for November 2027.

7.    Approved the total scheme costs including: on costs, works, interest, contingency and other costs to the value as set out in detail in the exempt part of the report.

8.    Considered the engagement and consultation carried out on this proposed scheme set out in section seven of this report.

Reasons for decisions

The site known as Sir Frederick Messer Estate, was approved by Cabinet on 21^st January 2020 to be included in the Council housing delivery programme. This scheme was granted planning consent on 28 August 2025 and is ready to progress to construction. This report therefore marks the third, and final, Cabinet decision to develop on this site.

Following a formal tender process, a contractor had been identified to undertake these works.

There are no reasons for the Council to believe that any third-party rights would be infringed by the development. The scheme has received planning permission, and no concerns about the loss of rights were raised during extensive local engagement and consultation with residents.   Appropriation of the development site for planning purposes is recommended to clear the path for development. It will allow the Council to use the powers contained in Section 203 Housing & Planning Act 2016 to override easements and other third-party rights that may be infringed by the development 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. Under Recommendation 3.6 the site will 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 sixty-six new Council homes.

The proposed development site shown edged red on the plan comprises the area of grassed area in front of Henrietta and Oatfield. The site proposal will provide sixty-six much needed Council homes in two six-storey buildings. In conjunction with the housing development a number of landscape and amenity improvements are proposed including play facilities, additional trees, planting, seating areas and CCTV.

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

Alternative options considered

It would be possible to not 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. This option would also represent a lost opportunity to gain critical GLA funding to support delivery of news homes.

This opportunity was procured via the LCP Dynamic Purchasing System (DPS) using the JCT Design Build Contract 2016 with amendments, the route recommended by Strategic Procurement for a contract of this value.  An alternative option would have been to run a competitive tender via the Council’s LCP Major Works Housing Framework. This option was rejected due to a poor response following an expression of Interest process, and a soft-market engagement exercise signifying increased interest from contractors outside of the framework.

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 as social housing thereby not supporting the delivery of much needed affordable homes.