Issue - meetings

1.       That the allocation and expenditure of the New Build Unallocated Capital Budget be approved as set out in the confidential appendix to report CAB3485 to purchase land and 146 new affordable properties at Kings Barton, Winchester.

2.       That the Corporate Head of Asset Management be authorised in consultation with the Section 151 Officer to:

a)    negotiate and agree the terms and conditions of the transaction and enter into a land agreement and a build agreement to acquire land and the 146 homes to then be built on that land from Cala Management Ltd for the purchase price as set out in the confidential appendix.

b)    enter into any planning and/or legal agreements required to purchase the land and 146 homes.

Councillor Westwood introduced the report which sought approval for the purchase of 146 new affordable properties at Kings Barton, Winchester.  The report had been considered by Scrutiny Committee on 12 November and the draft minutes had been circulated to Cabinet and other members present prior to the Cabinet meeting.

      Ian Tait spoke during public participation as summarised briefly below.

      He welcomed the proposed provision of 146 affordable homes but highlighted this would not result in a net increase in affordable housing because if they were not purchased by the council, they would still be required to be transferred to a registered provider in accordance with the Kings Barton S106 agreement.  He reiterated his statements made at previous meetings that the council should seek to purchase a substantial parcel of land on which to build new council homes.

At the invitation of the Leader, Councillors Lee and Horrill addressed Cabinet as summarised briefly below.

Councillor Lee

He welcomed the proposal to increase affordable housing in the district.   He requested that the acquisition agreement include a post occupancy energy agreement to fix any  energy gaps that might arise.

Councillor Horrill

She acknowledged the importance of the availability of affordable homes and asked that the homes to be purchased from CALA be of the same standard as those available for sale.  It was important that the specification was to the highest possible standard and that the properties were “pepper-potted” across the site to ensure integration.

Councillor Westwood, the Strategic Director and the Service Lead – New Homes responded to the comments made including emphasising that the properties had been secured in a competition process with registered providers.

Cabinet moved into exempt session to consider the contents of the exempt appendix before returning to open session to consider the report’s recommendations as set out below.

Cabinet noted that, following discussions in the exempt session, it had been clarified by the Service Lead – New Homes that any reference to rent levels of “70%” in the report and appendix were incorrect and should be amended to “LHA rent levels”.  Clarification was also sought as to whether the service  charges would be payable by the tenants of the properties in addition to the rent and it was confirmed that these were already budgeted for within the rental figures.   

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RESOLVED:

1.                That the allocation and expenditure of the New Build Unallocated Capital Budget be approved as set out in the confidential appendix to the report to purchase land and 146 new affordable properties at Kings Barton, Winchester.

2.                That the Corporate Head of Asset Management be authorised in consultation with the Section 151 Officer to:

a)    negotiate and agree the terms and conditions of the transaction and enter into a land agreement and a build agreement to acquire land and the 146 homes to then be built on that land from Cala Management Ltd for the purchase price as set out  ...  view the full minutes text for item 11

RECOMMENDATION:

It is recommended that the committee scrutinise and comment on the proposals within the attached draft cabinet report, ref CAB3485 which is to be considered by cabinet at its meeting on the 20 November 2024.

NOTE

This report contains an exempt appendix, if members wish to discuss any part of the exempt paper, then the procedure under agenda item 9a applies.

Councillor Chris Westwood Councillor, Cabinet Member for Housing introduced the report, ref CAB3485 which set out proposals for the Acquisition of Affordable Homes at Kings Barton, Winchester, (available here).   The introduction included the following points.

1.             The paper sought approval for the allocation and expenditure of the new build unallocated capital budget, to purchase land and 146 new affordable properties at Kings Barton, Winchester. The council had secured these homes in a competitive process against other interested registered providers.

2.             Outline planning consent for the scheme was granted on appeal by the Council as the Local Planning Authority in 2011.

3.             The Section 106 agreement for the outline planning consent required a proportion of new homes to be provided as affordable, and integrated throughout the scheme and phases.

4.             Acquiring Section 106 allocations in this manner was currently a more cost-effective method for the council to deliver new homes compared to direct build.

5.             This approach to housing delivery was a more efficient use of in-house resources and allowed for delivery at scale compared to the direct development of small council-owned sites.

6.             External expert advice was taken on the agreed price and the structure of the deal.

7.             The development included a range of affordable property types and sizes for a mixture of affordable rent and shared ownership.

8.             New homes would be built to building regulation energy-efficient standards with the addition of air source heat pumps, supporting the Greener Faster Council plan priority.

9.             The proposed purchase met the council's approved viability tests, based on 51 shared ownership properties and 95 affordable rent units set at 70% market rent.

10.          There was a strong demand for new affordable housing in this location.

11.          Housing register numbers had grown in recent years across all property types, highlighting a continued need for accommodation delivery.

12.          The delivery of these units at Kings Barton, intended for rented accommodation and allocated via Hampshire Home Choice, would assist the council in satisfying demand on the Housing Register.

13.          Current anticipated timescales showed practical completion dates over three phases, delivering in financial years 2025/26 through to 2027/28.

14.          TACT had been consulted on the allocation of funds from the New Homes Capital Programme and supported the council in providing new affordable homes throughout the Winchester district, including this specific proposal.

Councillor Danny Lee addressed the committee and highlighted the following points. Councillor Lee raised concerns about the energy gap and poor build quality in new acquisitions, emphasising the need to avoid high running costs and carbon emissions. He questioned how the council could ensure compliance with optimal building regulations and planning regimes.

Councillor Caroline Horrill addressed the committee and highlighted the following points. Councillor Horrill supported the addition of new homes and stressed the need for consistent build quality and integration of affordable homes across the development. She raised concerns about financial protection through stage payments and inquired about legal considerations in the procurement process.

The committee was recommended to scrutinise and  ...  view the full minutes text for item 9