Agenda item

To consider a report concerning the development of Unit 1, Pitwood Park.

Councillors Mrs N.J. Bramhall and Mrs R. Renton Executive Members for Property and Acquisitions and Housing and Infrastructure respectively introduced this report as this development was one that they had worked on together and crossed over into their respective portfolio responsibilities.

The Executive noted that the Council had owned the Freehold of the Pitwood Park site for a number of years and in 2016 obtained the long leasehold interest allowing the purchase of this former industrial site. The Executive had the vision to prepare this site for future residential development having dismissed the option to refurbish it for industrial use.

Councillor Mrs Bramhall explained to the Executive that the proposed development would introduce 25 new homes for local people of which one third would be sold at open market value and the remaining 18 homes as ‘Starter Homes’, a Government initiative which applied a large discount from full market value to the initial sale price. 

The Government initiative required the property to be designated for residential use. By way of clarification the Executive Member explainedthat the Part 2 report on this initiative had been reissued in an Addendum to allow the Executive to be updated on the consistent application of the clawback provisions for all the residential premises sold at market value. The indicative clawback (overage) receipts had been updated to reflect that the Council would only seek a share in the uplift in value of the houses sold as starter homes that benefited from the substantial discount to market value.

Councillor Mrs Renton emphasised that the site had been identified as a priority to address the local housing affordability challenges, in addition to contributing to the revitalisation of the local area.

The homes proposed for this site would be a combination of flats and houses with eligibility to purchase these homes based on standard government criteria and a local connection qualification.

All the homes would be sold on a 75/25 shared-equity basis, with the Council retaining a 25% share in each property. Thus local people only needed to obtain a mortgage on 75% of the value of the property ensuring greater affordability options.

RECOMMENDED that the Head of Finance be authorised, in consultation with the Head of Property and Executive Members for Property and Acquisitions and Planning Policy, subject to key stage sign off as set out in the report presented to the Executive to include the costs of the project within the Capital Programme as detailed in the Exempt information Part 2 of the Executive’s agenda.

RESOLVED that:

(i)            the Head of Property be authorised, in consultation with the

a)    Head of Finance

b)    Executive Member for Property and Acquisitions; and

c)    Executive Member for Finance

to make the necessary consultancy appointments to progress and submit a Planning Application for the development of Unit 1, Pitwood Park, in accordance with the budget set out in the Exempt information contained in Part 2 of the Executive’s agenda;

(ii)          the Head of Property be authorised in consultation with the Executive Member for Property and Acquisitions to appoint the necessary Consultants for the redevelopment of Unit 1, Pitwood Park to prepare the necessary documentation and to obtain competitive construction tenders, subject to key stage sign off set out in the Executive’s report;

(iii)         the Head of Property be authorised in consultation with the Executive Members for Property and Acquisitions and Finance to finalise, agree and sign construction contracts subject to key stage sign off set out in the Executive’s report; and

(iv)         the Head of Property be authorised, in consultation with the Executive Member for Property and Acquisitions, to agree the plot sales and subsequently enter into and complete individual sales for each of the residential dwellings, on the basis outlined within the Executive’s report.

Reasons for decision: The Council’s purpose of redeveloping this site was in part to help the Council to meet its 5 Year Plan aspirations to be financially self-sufficient but the primary objective being to provide homes that help address the local housing affordability challenge. The recommended option would deliver shared equity homes to local residents via starter homes and a further shared equity purchase option would provide a return on capital deployed.

Alternative options: Torefurbish the existing property or dispose of it in its current condition.