Agenda item

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 comment on the proposals within the attached draft cabinet report, ref CAB3485 which was to be considered by the cabinet at its meeting on 20 November 2024.

The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1.             Further clarification was sought on the staged payments and the protection measures in place.

2.             A question was raised about the opportunity to use the council's buying power to secure additional benefits beyond the housing units.

3.             Clarification was sought on whether the houses would be built to level 5 energy efficiency standards or the level 4 standards as per the original planning permission.

4.             A question was asked about the financial stability of Cala Homes.

5.             A question was raised about the potential shortage of affordable homes for first-time buyers if the council purchased all the properties for social housing.

6.             Clarification was sought on whether the council homes would be liable to pay management fees similar to private and shared ownership homes in the development.

7.             A question was asked about the speed of delivery of the homes at King's Barton and whether there were mechanisms in place to ensure timely completion.

These points were responded to by Councillor Chris Westwood Councillor, Cabinet Member for Housing, Liz Keys, Director (Finance), Simon Hendey,  Strategic Director and Caroline Egan, Service Lead - New Homes accordingly.

RESOLVED:

1.             The committee scrutinised and commented upon the report.