Decision details

Following approval at Council of the accelerated affordable housing development programme, this report seeks the  approval to purchase 31 Section 106 units.

Cabinet agreed to:

1. The purchase of 31 new affordable homes, using the additional capital budget, approved by council at its meeting on 12 October 2023;

2. The letting of these homes in accordance with the council’s Allocations Policy, at an affordable rent as set out in the council’s Tenancy Strategy.

Officers were contacted by Bellway, owner of the development known as  Nash Road Margate, who are required to deliver 18% affordable housing on site following negotiations. As per policy 70% of this is required to be affordable rent this being 31.5 units. The remaining units will be delivered as shared ownership. We have offered on 31 new affordable rent homes.  They have been unable to secure an affordable housing provider to deliver these homes. 

As the homes have been designated as affordable homes in the planning consent and section 106 agreement, they have been designed specifically for that purpose and accordingly are considered appropriate for the HRA, in line with the needs of households on the council register or those living in temporary accommodation.  There is a significant level of need for 1 bedroom homes, as well as for larger family homes.

A provisional offer of  £4.275m has been made  and £225,000 is also required  for associated costs  made to the developer and subject to contract, legal due diligence, formal valuation and full approval this offer has been accepted.

Do not purchase the Section 106 units, which would mean that the developer would negotiate a commuted sum, losing the affordable housing units.