Purpose

The council purchased 10-13
Edgar Road in 2023 using the final tranche of approved Housing
Revenue Account funding for the Live Margate programme. This report
seeks permission from Cabinet members to proceed with the
redevelopment of 10-13 Edgar Road. The forecast cost of the
redevelopment is £2,788,274 inclusive of fees and expenses,
with construction costs calculated as £2.49m.

Decision

Cabinet agreed the following:
 
1. 
To the redevelopment of 10-13 Edgar Road to deliver ten two and
three bed flats in the Housing Revenue Account at a total cost of
£2,788,274, subject to planning consent and successful Homes
England and BLRF grant applications;
 
2. 
That the new homes are let in accordance with the council’s
approved allocations policy, subject to an approved local letting
plan.

Reasons for the decision

10-13 Edgar Road was acquired as part of the
Live Margate programme in September 2023. The purchase costs of
£1.38m were funded from the final £1.8m tranche of Live
Margate Funding.
 
It is proposed to deliver 10 flats in the
building; a mix of 2-bed and 3-bed properties. Note that there is a
no 1-bed planning policy in place for Cliftonville.
 
The new scheme proposes:
 
· 
A sensitive, lower-density reconfiguration;
· 
Sensitive restoration;
· 
The incorporation of low-carbon initiatives;
· 
The optimal use of the existing structure, to limit waste and
disruption;
· 
The provision of larger family-sized accommodation to create a
sense of community and to increase the mix of long-term residents
in the area.

Alternative options considered

10-13 Edgar Road could be left empty until
financial circumstances to redevelop it are more favourable, for
example, the reduction of loan interest rates.  This is not thought to be sensible as the asset
will deteriorate further without significant investment. It would
be hard to justify holding an empty property within the HRA in the
context of circa 1,300 households on the housing register awaiting
accommodation.
 
The council could revisit plans to achieve a
greater quantity of dwellings at this address, as originally
intended, but a higher density scheme will bring with it additional
costs, in addition to operational challenges, including that of
waste management, in an area that is already saturated with smaller
properties.
 
A lesser, lower cost scheme could be
delivered, such as providing homes at an EPC ‘D’ rating
initially within a ‘retrofit ready’ building. This
option has been discounted due to the small construction saving of
£101,649 and the need to revisit the property within three
years to strip out and dispose of heating and hot water appliances
in line with Government targets for social housing stock to be EPC
C by 2030.
 
The council could consider disposal of the
building, however it was purchased as part of the Live Margate
programme and disposal would mean that the programme aims would not
be achieved.