Agenda item

1.             That the Corporate Head of Asset Management be authorised to:

a.    award and enter into a JCT Design & Build Contract to construct 5 homes at Woodman Close, Sparsholt.

b.    negotiate and agree terms for easements, wayleaves and related agreements with utility suppliers, telecom/media providers and neighbours and relevant legal agreements to facilitate the development.

2.             That an increase of £101,000 in the project budget be approved to meet the total scheme cost of £2,057,000, and expenditure of £2,057,000 against that budget be authorised, applying Homes England funding (subject to successful award) and the council’s S106 affordable housing developer contribution funding to the total scheme budget to enable viability.

3.             That it be noted that the proposed scheme is only viable if substantial S106 affordable housing developer contribution funding is used, and that the deployment of S106 affordable housing developer contribution funding to develop the proposed scheme be agreed.

4.             That if Homes England funding is not available or lower than anticipated or contingency spending is different to expected, the Strategic Director, in consultation with the Cabinet Member for Good Homes, be authorised to deploy S106 affordable housing developer contribution funding of up to £1,687,500 (£337,500 per unit) and/or increase rents from Social Rent to Affordable Rent to ensure the scheme remains affordable to the Housing Revenue Account in terms of net present value of scheme, as set out in 2.15 of report CAB3451 and the exempt appendix.

Councillor Reach introduced the report and outlined the background to the current proposals and emphasised the importance of the provision of housing in a sustainable rural location whilst acknowledging the high cost per unit.

Ian Tait spoke during public participation and his comments are summarised briefly below.

Ian Tait spoke in opposition to the proposed housing scheme due to the very high level of cost and highlighted the significant subsidy required (noting that this would not be available for other Registered Providers).   He strongly recommended that the Cabinet “cut their losses” on the site and instead use the monies to deliver affordable housing more efficiently elsewhere in the district.

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

Councillor Lee

Councillor Lee supported the proposal as an important opportunity to deliver more environmental efficient homes, while reducing future costs for both tenants and the council.  He questioned whether modern methods of construction (MMC) had been considered as he believed this could offset higher costs.   He also queried if the older JCT 2016 design build model had been used (rather than the newer JCT 2024 version) and whether geothermal options could be integrated.  Finally he asked for clarification on the proposed rent levels.

Councillor Horrill

Councillor Horrill welcomed the scheme as an important commitment to council housing in a rural part of the district, emphasising the strong support from both residents and the parish council.  However, she expressed concern over the rising costs and the high level of specification, specifically querying the use of piled foundations and the detailed accessibility specifications.   She asked if this higher specification (which she believed had not been discussed with local representatives), might unintentionally exclude local residents with housing needs from accessing the properties. She requested that the construction plan, contractor’s compound, and traffic management plan be discussed and agreed with the parish council and ward councillors in advance.

Councillor Reach together with the Service Lead – New Homes responded to the comments made.  Councillor Reach committed to discussing in advance with ward councillors any proposal to change from social rent levels.  In addition, he confirmed that he would discuss the construction plan and other matters requested by Councillor Horrill, with parish and ward councillors.

Cabinet resolved to go into exempt session to discuss the contents of the exempt appendix and allow questions from invited councillors thereon.

On returning to open session, Councillor Tod explained that there had been some discussion regarding the level of contingency budget allocated for this project.  In addition, it was noted that earlier in the meeting, Councillor Reach had given his assurances to consult ward and parish councillors on specific matters.  Subsequently, it was proposed that recommendation 4 of the report be amended as detailed below (additional wording shown in italics).  This was agreed.

That if Homes England funding is not available or lower than anticipated or contingency spending is different than expected, the Strategic Director, in consultation with the Cabinet Member for Good Homes, be authorised to deploy S106 affordable housing developer contribution funding of up to £1,687,500 (£337,500 per unit) and/or increase rents from Social Rent to Affordable Rent to ensure the scheme remains affordable to the Housing Revenue Account in terms of net present value of scheme, as set out in 2.15 of report CAB3451 and the exempt appendix.

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

RESOLVED:

1.              That the Corporate Head of Asset Management be authorised to:

a.          award and enter into a JCT Design & Build Contract to construct 5 homes at Woodman Close, Sparsholt.

b.          negotiate and agree terms for easements, wayleaves and related agreements with utility suppliers, telecom/media providers and neighbours and relevant legal agreements to facilitate the development.

2.              That an increase of £101,000 in the project budget be approved to meet the total scheme cost of £2,057,000, and expenditure of £2,057,000 against that budget be authorised, applying Homes England funding (subject to successful award) and the council’s S106 affordable housing developer contribution funding to the total scheme budget to enable viability.

3.              That it be noted that the proposed scheme is only viable if substantial S106 affordable housing developer contribution funding is used, and that the deployment of S106 affordable housing developer contribution funding to develop the proposed scheme be agreed.

4.              That if Homes England funding is not available or lower than anticipated or contingency spending is different than expected, the Strategic Director, in consultation with the Cabinet Member for Good Homes, be authorised to deploy S106 affordable housing developer contribution funding of up to £1,687,500 (£337,500 per unit) and/or increase rents from Social Rent to Affordable Rent to ensure the scheme remains affordable to the Housing Revenue Account in terms of net present value of scheme, as set out in 2.15 of report CAB3451 and the exempt appendix.