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That a planning application be authorised to
be submitted to the Local Planning Authority in respect of the
Castlecombe Youth Centre site following completion of the
appropriate design work and surveys.
 
That the additional spend of £4.85m to
the Capital programme be authorised, noting that £3.8m is
Council Financing, with a further £1.05m expected from the
Greater London Authority Affordable Housing Programme.
 
That proceeding to procurement for the design
and build works contract for the Castlecombe Housing Development
Scheme at an estimated value of circa £3.85m be approved in
principle, with authority delegated to the Director of Housing,
Planning, Property and Regeneration to approve the detailed
procurement strategy, subject to consultation with the Portfolio
Holder for Renewal, Recreation and Housing, the Assistant Director:
Governance and Contracts, the Director of Corporate Services and
Governance and the Director of Finance.
 
That, subject to tendered costs aligning with
the budget outlined in ReportHPR2025/043, authority be delegated to
the Director of Housing, Planning, Property and Regeneration to
approve award of contract for main works design and build works
contract for the Castlecombe Housing Development scheme, subject to
consultation with the Portfolio Holder for Renewal, Recreation and
Housing, the Assistant Director: Governance and Contracts, the
Director of Corporate Services and Governance and the Director of
Finance.
 
That it be noted that this scheme will be
progressed subject to a Secretary of State Direction to either (a)
hold the properties outside of the Housing Revenue Account (HRA) or
(b) by Secretary of State’s Direction to allow the transfer
of an appropriate sum from the General Fund to the HRA as set out
in Paragraph 5 of Report HPR2025/043.
 
That it be noted that the Council will be
foregoing an estimated capital receipt of £850k by proceeding
to deliver a Housing development on site.  This amount can be recouped by annual savings
after 12 years of occupation.
 
That it be authorised to refund the Housing
Feasibility budget for costs incurred to date delivering the
feasibility presented in Report HPR2025/043 as outlined in
Paragraph 4.5, through the capitalisation of the monies spent on
the development to date.

Reasons for the decision

Since 2020, the Local Authority has been
building housing to reduce housing budget pressures and ensure that
the borough has good quality affordable housing stock.  In January 2025, a number
of sites were identified as surplus to operational
requirements and were agreed for either disposal or for the build
of affordable housing as part of the Extended Property
Review.  One of these sites was the
Castlecombe Youth Centre site as the youth service is relocating to
the adjacent Children and Family Centre.  Officers consider the site an ideal location for
the development of permanent family homes due to its strong
transport links, proximity to numerous local schools and
residential setting.  There is also
precedent within the local typology that would support the
development of a row of terraced affordable family homes.