Purpose

An acquisitions budget was
approved by Cabinet on 1st February 2023 (FIN/606A), which agreed
to increase the capital budget for Acquisitions of Land and
Dwellings by £10m, with £4m to be funded from 1-4-1
receipts and £6m from borrowing.
The purpose of this acquisitions budget was to enable Officers to
respond to opportunity acquisitions that may become available in
the market and to strengthen the Council’s negotiation
position to compete with greater certainty. This is also in
reaction to the limited supply of affordable housing completions
being forecast over the next two-year period, primarily as a result
of the delays caused by water neutrality. Such acquisitions can
play a significant role in addressing the increasing pressures on
the Council’s Housing Register.
A quick-win opportunity has arisen for the 20-unit scheme being
built at 42-44 Brighton Road in Southgate, which was being built
for the private market, and was scheduled to provide only two
shared-ownership units due to scheme viability being under pressure
primarily as a result of the land assembling costs.
The scheme comprises five one-bed and fifteen two-bed apartments,
which directly addresses Crawley’s housing needs,
particularly at a time when new-build affordable housing is in
short supply as a result of water neutrality impacting on the
affordable housing programme. This scheme is at the final stages of
construction, with completion anticipated by mid- to end-June 2023,
providing an exceptionally quick-win for the Council.
Officers have negotiated a discounted price from the open market
value based on the bulk acquisition as well as cost savings brought
about by converting this scheme into affordable housing,
representing good value for money with almost immediate benefit to
the Council. Accordingly, a contract for the freehold acquisition
of this completed scheme has been drafted and is being prepared for
exchange in the week commencing 8th May 2023.

Content

That, in accordance with the
Constitution (Section J of the Financial & Budget Procedure
Rules) the Head of Crawley Homes in agreement with the Head of
Corporate Finance, and in consultation with the Cabinet Member for
Housing and the Leader of the Council, purchase the scheme at 42-44
Brighton Road, Southgate, Crawley.