Agenda item

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 in the confidential appendix.

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