Decision details

The report considered options for the future ownership of 11 grade II listed, Housing Revenue Account (HRA) properties at Coastguard Cottages, Victoria Parade, Ramsgate. It detailed the estimated costs of essential structural repairs to the buildings and the potential capital receipts that could be achieved for the disposal of the properties and land.

The report recommended that Cabinet approve the piecemeal disposal of these properties as they become vacant. It recommended a HRA revenue budget of £30,000 for work to facilitate the disposals, to be offset against the receipts obtained. It further recommended a HRA capital budget of £324,000 for essential works at 5 of the properties, with funding vired from the HRA Major Repairs Reserve.

Cabinet agreed the following recommendations:

i.  The proposed disposal strategy set out in section 3.3 of this report, including the immediate marketing of the 5 vacant properties, and subsequent marketing of further properties as they become vacant and the Council’s freehold interests flat blocks, communal grounds, boundary walls and paths;

ii.  To authorise the Director of Community Services to negotiate and agree terms and complete transfers for all disposals in relation to this site;

iii.  To utilise up to £30,000 of the value of the receipts obtained to fund the costs of marketing and disposal;

iv.  An HRA capital budget of £324,000 to fund essential works, to be vired from the HRA Major Repairs Reserve;

v.  To authorise the Director of Community Services to negotiate a reasonable and proportionate contribution to the costs of the work form the leaseholder owner, taking into account all of the circumstances and take necessary steps to recover these amounts;

vi.  That the receipts from the sales should be used to support the Council’s HRA activities.

The reasons for the decision are as follows:

1.  Retention of the properties would incur costs in excess of the potential rental income over the 30 year plan period;

2.  Completion of works prior to disposal would result in costs in excess of the estimated potential uplift in value;

3.  Disposal of the whole site as a single entity, at an estimated value of £1.6m is not possible unless all of the properties were vacant. Essential works would be required to all properties to protect the fabric of the buildings until such time as vacant possession could be obtained in the future.

The report also considered the following options:

1.  Retention of the properties.

2.  Disposal of the site as a single entity.

3.  Completion of all outstanding works prior to disposal

These options were rejected for the reasons set out above.