Agenda item

To consider proposals in relation to the development of housing at the Lee Street site in Horley.

Councillor G.J. Knight, Deputy Leader and Executive Member for Housing and Benefits, introduced the report concerning a proposal for the development of housing on the Lee Street Development Site in Horley.

Councillor Knight informed the Executive that this was a revised scheme. It was explained that capital funding had previously been agreed for the site and that the original aim was to build two semi-detached bungalows for use as temporary family accommodation as part of the council’s strategy to reduce spending on bed and breakfast. It was noted that a budget had been obtained for this construction and that planning permission had been granted for the project. However, the lowest priced tender was 35% above the allocated budget.

Councillor Knight informed the Executive that Housing Services had worked hard to reduce expenditure on temporary homeless families through investment in property and homelessness prevention activities. However, moving forward, it was highlighted that resources also needed to be directed towards single people and that this issue had become more apparent as a result of new challenges brought about by the Homelessness Reduction Act.

In view of rising costs, on-going reductions in B&B spend and a need to assist single people, it was recognised that a new proposal was needed. The Executive was informed that the revised scheme, outlined in the report, provided an opportunity to deliver new housing, using modern construction methods, to assist single person households into affordable accommodation, helping the Council meet requirements of the Homelessness Reduction Act 2017.

During the discussion, it was explained that: 

-       The new scheme provided an opportunity to invest in a modern construction method on a small and constrained site whilst providing an affordable housing option for local people.

-       The scheme would provide four contemporary micro homes which would be built off site in a factory and delivered by road.

-       In terms of construction, the scheme would be subject to tender.

-       Since the introduction of the Homelessness Reduction Act it had become clear that the council would need to assist more single people as a result of increased homelessness responsibilities.  

-       Fixed term tenancies would be for two years, extendable to three years.

-       The Council would retain freehold of the land and would be the Registered Social Landlord.

-       Tenants would pay affordable rent and would be offered a savings scheme so they had their own rent deposit on leaving.   

RESOLVED that:

(i)            The Head of People and Communities be authorised, in consultation with the Executive Member for Housing and Benefits, to progress and submit a Planning Application for the development of housing at the Lee Street site, in accordance with the budget set out in Part 2 of the report;

(ii)          The Head of People and Communities be authorised, in consultation with the Executive Member for Housing and Benefits, to include the costs of the project within the Capital Programme as detailed in Part 2 of the report;

(iii)         The Head of People and Communities be authorised, in consultation with the Executive Member for Housing and Benefits, to prepare the necessary documentation and to obtain competitive construction tenders; and

(iv)         The Head of People and Communities be authorised, in consultation with the Executive Member for Housing and Benefits, to finalise, agree and sign construction contracts for the development of the Lee Street site.

Reason for decision: To deliver a revised housing scheme, using modern construction methods, to assist single person households into affordable accommodation, helping the Council meet requirements of the Homelessness Reduction Act 2017.

Alternative options: To progress the original scheme, to deliver two bungalows for homeless family households, or to dispose of the site.