Decision details

(Cabinet Member with Special Responsibility Councillor Leytham)

 

Cabinet received a report from the Chief Officer (Health & Housing) which provided an update on the progress being made to establish a council house building and acquisition programme, and sought Cabinet approval to move to a detailed appraisal of potential development sites.

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

Approval of Council owned sites for Stage 2 appraisal

 

	Option 1: All the Council owned sites identified in the report go to Stage 2 detailed appraisal	Option 2: Cabinet prioritises which the Council owned HRA sites identified in the report go to Stage 2 detailed appraisal	Option 3: None of the sites identified in the report go to Stage 2 detailed appraisal
Advantages	An initial programme of council house building can be established. Initial council housing building programme more financially sustainable due to minimal land purchase costs. Full appraisal undertaken to establish viability of all proposed sites allowing programming options to be considered with full information.	Option to prioritise and target council housing building programme within the district to existing council HRA land. An initial programme of council house building can be established. Initial council housing building programme more financially sustainable due to no land purchase costs.	The HRA Business Support Reserve will have greater funds to support other HRA service improvements.
Disadvantages		Not all potential sites are fully appraised.	Land will need to be acquired to deliver a council housing building programme, and this will impinge on the viability of any development through increased costs resulting in a smaller new build programme being delivered.
Risks	Potential for abortive appraisal costs.	Potential for abortive appraisal costs.	The council housing building programme is either smaller or not delivered at all.

 

Acquisition of land for council housing

 

	Option 1: The Council adopts a land acquisition strategy to enable the  development of the new council housing	Option 2: The Council does not adopt a land acquisition strategy to enable the  development of the new council housing
Advantages	Sufficient land is made available to support new council housing development.
Disadvantages	Outcome more costly than developing existing council owned sites.	Insufficient land is made available to support new council housing development.
Risks	Acquiring land for council housing would be a competitive process against commercial developers, and purchase cost may make development unviable. Potential for abortive appraisal costs.	The Council’s ambitions to build new council housing are not delivered.

 

Establishing a “delivery team” – SmartBuild™

 

	Option 1: Explore the feasibility of introducing a  SmartBuild™ delivery model	Option 2: Do not explore the feasibility of introducing a  SmartBuild™ delivery model
Advantages	Uses local delivery teams where possible to ensure investment is retained within the local community. Opportunity to build and enhance the capacity and capability of in-house RMS team. Local training, apprentice and employment opportunities. Potential tighter control of development costs.	None
Disadvantages	Potentially extended lead in time to building up organisation and skills.	Opportunity to enhance the capacity and capability of the in-house RMS team is not realised.
Risks	Diversion from existing priorities.	In-house skills not developed.

 

Acquisition of ex-council housing

 

	Option 1: The Council adopts a policy to acquire ex-council housing to address identified housing needs following satisfactory appraisal.	Option 2: The Council does not adopts a policy to acquire ex-council housing to address identified housing needs
Advantages	An opportunity to increase the housing stock in a cost effective way to meet demand.	Greater budget available for new build
Disadvantages	Purchasing such properties would reduce the number available to first time purchasers entering the housing market.   Less money available for new build	An opportunity to increase the council housing stock is not realised to meet demand for affordable rented housing
Risks	Risk of future Right to Buy but partially mitigated by “cost floor” provisions.

 

The officer preferred options are:

 

Approval of Council owned sites for Stage 2 appraisal - Option 1:All the Council owned sites identified in the report go to Stage 2 detailed appraisal as this will ensure full appraisal undertaken to establish viability of all proposed sites, allowing programming options to be considered with full information.

 

Acquisition of land for council housing - Option 1: The Council adopts a land acquisition strategy, informed by an asset management approach, to enable the development of the new council housing as this will ensure that sufficient land is made available to support new council housing development.

 

Establishing a “delivery team” – SmartBuild™ - Option 1: Explore the feasibility of introducing a SmartBuild™ delivery model to maximise the opportunities of local employment and to maximise the opportunity to build and enhance the capacity and capability of in-house RMS team.

 

Acquisition of ex-council housing - Option 1: The Council adopts a policy to  acquire ex-council housing to address identified housing needs following satisfactory appraisal as this will provide an additional opportunity to increase the housing stock in a cost effective way.

 

The proposals set out in the report form a coherent strategy for the Council to deliver much needed new affordable council homes in the district and also provide added value in meeting the wider social, environmental and economic objectives of the Council.

 

 

Councillor Leytham proposed, seconded by Councillor Hanson:-

“(1)    That all the Council owned sites identified in the report with the exception of Furness/Charnley Street, Lancaster go forward to a detailed Stage 2 appraisal by the Lancashire Regeneration Property Partnership. (Option 1 in 8.1 of the report).

(2)          That the outcome of Stage 2 appraisals be reported back to Cabinet on the viability or not of using Council owned sites and should this not prove viable, then options for utilising other land be put forward for consideration, including estimated Stage 2 appraisal costs.

(3)          That where appropriate, Officers in consultation with the Chief Officer (Health and Housing) and the Chief Officer (Resources) be given delegated authority, to enter into discussions concerning the acquisition of land on a case by case basis, for delivery of the new build development, informed through an asset management approach, and that detailed proposals be brought back to Cabinet for approval prior to entering into any contractual commitment.  This should include Bold Street, Morecambe. (Option 1 in 8.2 of the report).

(4)          That the Chief Officer (Environmental Services) continues discussion with the Lancashire Regeneration Property Partnership to see if a viable Lancaster SmartBuild™ team could be established to deliver the building of council housing and report back to Cabinet on any proposals which evolve. (Option 1 in 8.3 of the report).

 

(5)          That the Chief Officer (Health and Housing) and the Chief Officer (Resources) undertakes a review to establish a rent setting policy that supports the development of an on-going council housing building programme meeting identified housing needs and taking into account the impact on the HRA 30-year Business Plan.

(6)          That the Chief Officer (Health and Housing) be given the delegated authority, in consultation with the Chief Officer (Resources), to negotiate and approve the acquisition of ex-council housing on a case by case basis, taking into account the whole life costing of any proposed acquisition together with the location, need and demand for the particular type of property. (Option 1 in 8.4 of the report).

(7)          That delegated authority be given to the Chief Officer (Resources) to update the Housing Revenue Account (HRA) accordingly.

(8)          That a Site Visit be arranged for Cabinet and Ward Members to all of the sites identified for detailed appraisal.”

 

By way of amendment, Councillor Hamilton-Cox proposed and Councillor Barry seconded:-

 

“That Honister Road, Lancaster is not taken forward to the Stage 2 appraisal stage.”

 

Upon being put to the vote 2 Members (Councillors Barry and Hamilton Cox) voted in favour of the amendment and 5 Members against (Councillors Blamire, Bryning, Hanson, Leytham and Sands) whereupon the Chairman declared the amendment to be lost.

 

By way of a further amendment which was accepted as a friendly amendment by the proposer and seconder of the original proposition, Councillor Barry proposed:

 

“That officers look at other sites including Bailrigg, Canal Corridor and Luneside East.”

 

Councillors then voted on the original proposition, as amended.

 

Resolved:

 

(5 Members (Councillors Blamire, Bryning, Hanson, Leytham and Sands) voted in favour, and 2 Members (Councillors Barry and Hamilton-Cox) abstained).

 

(1)          That all the Council owned sites identified in the report with the exception of Furness/Charnley Street, Lancaster go forward to a detailed Stage 2 appraisal by the Lancashire Regeneration Property Partnership. (Option 1 in 8.1 of the report).

(2)          That the outcome of Stage 2 appraisals be reported back to Cabinet on the viability or not of using Council owned sites and should this not prove viable, then options for utilising other land be put forward for consideration, including estimated Stage 2 appraisal costs.

(3)          That where appropriate, Officers in consultation with the Chief Officer (Health and Housing) and the Chief Officer (Resources) be given delegated authority, to enter into discussions concerning the acquisition of land on a case by case basis, for delivery of the new build development, informed through an asset management approach, and that detailed proposals be brought back to Cabinet for approval prior to entering into any contractual commitment.  This should include Bold Street, Morecambe. (Option 1 in 8.2 of the report).

(4)          That the Chief Officer (Environmental Services) continues discussion with the Lancashire Regeneration Property Partnership to see if a viable Lancaster SmartBuild™ team could be established to deliver the building of council housing and report back to Cabinet on any proposals which evolve. (Option 1 in 8.3 of the report).

 

(5)          That the Chief Officer (Health and Housing) and the Chief Officer (Resources) undertakes a review to establish a rent setting policy that supports the development of an on-going council housing building programme meeting identified housing needs and taking into account the impact on the HRA 30-year Business Plan.

(6)          That the Chief Officer (Health and Housing) be given the delegated authority, in consultation with the Chief Officer (Resources), to negotiate and approve the acquisition of ex-council housing on a case by case basis, taking into account the whole life costing of any proposed acquisition together with the location, need and demand for the particular type of property. (Option 1 in 8.4 of the report).

(7)          That delegated authority be given to the Chief Officer (Resources) to update the Housing Revenue Account (HRA) accordingly.

(8)          That a Site Visit be arranged for Cabinet and Ward Members to all of the sites identified for detailed appraisal.

(9)          That officers look at other sites including Bailrigg, Canal Corridor and Luneside East.

 

Officers responsible for effecting the decision:

 

Chief Officer (Health & Housing)

Chief Officer (Resources)

Chief Officer (Environment)

 

Reasons for making the decision:

 

The decision supports the Council’s priorities of clean, green & safer places, health and wellbeing, and community leadership and is consistent with the Housing Strategy and Action Plan 2012 – 2017 which seeks to maximise opportunities to increase the existing portfolio of affordable housing in Lancaster district.  Site visits to the agreed proposed sites will assist Cabinet members with their decision making when the detailed appraisals are reported back in due course.