Agenda item

(The Director of Communities) To consider the attached report (CHB-003-2014/15).

The Assistant Director (Housing Property and Development) presented a progress report to the Cabinet Committee on Phases 1 and 2 of the Council Housebuilding Programme. He advised that in July 2013, February 2014 and April 2014, the Cabinet Committee considered feasibility studies, investment reports and progress reports for Marden Close and Faversham Hall conversions as well as Phases 1 and 2 of the Council’s Housebuilding Programme. This report provided Members with an update on both the progress to date and the budget position.

Marden Close and Faversham Hall Conversion

In July 2014 the Housing Portfolio Holder agreed the appointment of PA Finley Limited to undertake the Design and Build Contract for the conversion of 20 bedsits at Marden Close and the ground floor of Faversham Hall into 12 self-contained 1 bedroom flats, in the sum of £819,861 (excluding the Development Agent’s fees of around £70,000). The contract was currently being drawn up and the Date of Possession was estimated to be around the beginning of September 2014, after the detailed design had been completed by the Contractor. Completion was estimated to be 12 months later, around September 2015.

Phase 1

Earlier on the agenda the Cabinet Committee considered the tender for Phase 1 of the Council’s housebuilding programme. However, this was referred to the Cabinet on 8 September 2014, once further financial checks on each of the tenderers had been carried out.

Phase 2

Since the Cabinet Committee agreed to progress with a 56-home scheme at the Burton Road site in Loughton as Phase 2 of the Council Housebuilding Programme, Pellings LLP, the Architects appointed by the Council’s Development Agent, East Thames, had undertaken consultation with the Council’s Planning Officers and developed the designs in line with their observations around overlooking issues. This had resulted in a slight reduction from 56 new homes to 52. The mix, subject to planning permission will therefore be as follows:

• 2 x 2-bed houses
• 15 x 3-bed houses
• 13 x 1-bed flats
• 22 x 2-bed flats
• 27 off street parking spaces

The estimated cost for Phase 2 remained at around £8.9m with a £1.512m subsidy to achieve a 30-year pay-back and a positive NPV. This excluded the sum of £18,400 agreed by the Cabinet Committee as a financial contribution to the NHS to fund healthcare by way of a Unilateral Undertaking, subject to the money being specifically spent on services in the Loughton area.

Recommended:

(1)          That the current progress with regard to Marden Close and Faversham Hall, as well as Phases 1 and 2 of the Council housebuilding programme be noted, and in particular a reduced number of new affordable homes proposed at Burton Road, Loughton as Phase 2 from 56 homes to 52;

(2)          That the current budget position be noted, based on:

(a)          Marden Close and Faversham Hall tender sum already agreed by the Housing Portfolio Holder in the sum of £890,000 (Works and Fees) for 12 new self-contained flats;

(b)          Phase 1 tender to be considered by the Cabinet taking account of further financial checks on each of the tenderers for 23 homes at Roundhills and Harveyfields, Waltham Abbey; and

(c)          Phase 2 feasibility estimate of £8.9m (Works and fees) for 52 new homes at Burton Road, Loughton.

(3)          That the Programme timetable at Appendix 1 of the report to the Cabinet Committee be noted.

Reasons for Decision:

It was a requirement that the Housebuilding Cabinet Committee received regular updates on progress and monitors expenditure against the Housebuilding budget as delegated by the Cabinet.

Other Options Considered and Rejected:

None, this report was for noting only.