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DECLARATIONS OF INTEREST MADE FOR THIS ITEM:
 
None
 

RESOLVED:
 
That Cabinet:
 
1.   
Approved the disposal of nine open?market sale units on the terms
and in accordance with the Sales Strategy set out in paragraph 7 of
this report.

2.   
Granted delegated authority to the Delivery Director and the
Section 151 Officer, the Corporate Director of Finance and
Resources, to dispose of each of the nine sale properties as part
of the development at 100 Woodside Avenue, as shown in the Exempt
Part of this report, for the total capital receipt set out in the
Exempt Part, and to approve the final terms of the disposal, and to
enter into the contract and any associated documentation in
connection with the disposal.

3.   
Granted delegated authority to the Delivery Director of Housing
Delivery and the Section 151 Officer, the Corporate Director of
Finance and Resources, to make minor amendments to the Sale
Strategy at paragraph 7 of this report.

4.   
Approved the increased budget as set out in the Exempt Part of this
report.

Reasons for decision:
 
Haringey had an
ambitious and successful council?house building programme which,
since its launch in 2018, had already delivered 840 new completed
council homes, with the vast majority welcoming new tenants and
their families in the previous 18 months. Separately, more than
1,500 homes were under construction. This important programme made
a valuable and central contribution to addressing the pressing need
for genuinely affordable accommodation in Haringey and reducing the
overall costs of temporary accommodation.
 
The scheme at 100
Woodside Avenue, where construction had been under way for more
than a year, would deliver 32 new council homes in the west of the
borough (Muswell Hill), as well as nine homes for market sale. The
sale of these homes would cross?subsidise the 32 council homes,
bringing financial viability to the whole scheme.
 
The Council had
already received consent to dispose of the nine homes for market
sale at its Cabinet meeting on 8 November 2022 (Minute 83). The
Cabinet report of November 2022 approved the disposal of the
leasehold interests in the nine market?sale units: seven flats on
125?year leases and two houses on 999?year leases. This report now
sought authority to dispose of the leasehold interest in the seven
flats on 999?year leases and the freehold interest in the two
houses due to better marketability.
 
The proposed disposal
of nine units—two houses (freehold disposals) and seven flats
(999?year leases)—was permitted under paragraph A.3.1 of the
General Housing Consent 2013. These consents related to disposals
of HRA properties under section 32 of the Housing Act 1985 and
permitted a local authority, subject to certain limitations not
applicable to this transaction, to dispose of land for a price
equal to its market value.
 
As the homes were
within 12 months of completion, the Council needed to finalise an
agreed sales strategy and sale mechanism that would allow sales
within the housing development programme to follow a similar
approach.
The scheme was complex
and had been challenging, resulting in extensive costs to replace
sensitive underground infrastructure that had involved lengthy
negotiations with third?party interests. This significantly
lengthened the construction programme by approximately 22 months in
total. Furthermore, a higher number of complex legal matters and
challenges resulted in legal costs higher than originally
anticipated.
 

Alternative options considered:
 
An option not to sell
the homes on the private market and instead retain the nine homes
for affordable housing purposes had been considered. However, this
option was rejected because it would have impacted the viability of
the scheme. Any proceeds raised from the sale of the nine homes
would be used to cross?subsidise this scheme and other council?home
schemes within the housing?delivery programme.
 
The additional funding
for the scheme had been essential work needed to deliver the
overall scheme. Not replacing the complex and critical sewer
infrastructure servicing the new homes would have risked the entire
development going ahead, affecting the overall delivery and
construction of the scheme. A build?over agreement was a planning
condition that needed to be met; without it, the scheme could not
have continued.