Issue - meetings

Members discussed proposals for the purchase of seven homes at Northwood Road in Broadstairs to add to the Affordable Rent portfolio. Council had recently approved an accelerated affordable rented housing development programme of at least 400 new homes, constructed or acquired, by 2027. Officers were contacted by the owner of the site at Northwood Road Broadstairs, who are required to deliver seven new affordable homes, as part of their development at Northwood Road, Broadstairs. There were long discussions with this developer who wanted to look at alternative options for the delivery of the Affordable Housing.

However, as this requirement was set out in the section 106 obligations for the development, they decided to accept the Council offer. These homes were anticipated to be EPC B and construction would start early next year. The capital cost for the seven homes was £955,000 and £30k for associated costs. Paragraph 2.5 of the report showed the cash flow deficit from year 1 of £8,940 k with a breakeven point in year 13.

As the homes had been designated as affordable homes in the planning consent and section 106 agreement, they had been designed specifically for that purpose and accordingly were considered appropriate for the HRA, in line with the needs of households on the Council’s register or those living in temporary accommodation. There was a significant level of need for one bedroom homes, as well as for larger family homes. The unit sizes and the mix of dwellings were as follows:

·  4 x 1 bed flats

·  3 x 3 bed houses

It was proposed that the new homes are let in accordance with the council’s adopted allocations policy.

Councillor Whitehead proposed, Councillor Yates seconded and Cabinet agreed:

1.  The purchase of 7 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.

Bob Porter introduced the report and said that the project had been negotiated with the developer. Some of the properties would be acquired on completion. For this property the Council would agree a development agreement with the developer and work with them to completion. The project would move into a surplus in year 13.

Councillor Whitehead made the following comments:

• This item ties in well with the earlier discussion of the HRA budget; 
• The Council had a duty to not only look after those residents who were already within the protection afforded by a Council tenancy, but also expand this care to those who were currently trapped within insecure and unaffordable private tenancies;
• The new acquisitions strategy, which as of tonight would have delivered a significant number of homes in five months more than the average annual delivery of 18 homes per year that were delivered over the last ten years. This was a perfect example of how using the HRA and thinking creatively could produce outstanding outcomes for residents;
• With this purchase the Council was not only providing a balanced mix of much needed homes, including three bed houses, but also providing them in St. Peter’s Ward, which as with some of the previous acquisitions was a difficult area to access in terms of affordable tenancies;
• Using the new strategy and working consciously to support all of our residents, across housing sectors, had produced an approach that was producing genuinely affordable homes across Thanet; 
• The portfolio holder thanked officers wholeheartedly for the level of work that had gone into and continued to go into this project.

Members noted the report.