Purpose

A
report was presented to cabinet following approval at Council of
the accelerated affordable housing development programme, and the
decision to include an additional £7.485m in the HRA capital
programme, the report sought the 
approval to purchase 42 section 106 units.

Decision

Cabinet agreed:
 
1. The purchase of 42 new affordable
homes, using the additional capital budget, approved by council at
its meeting on 13 July 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.

Reasons for the decision

Officers were contacted by BDW (Barretts)
Homes, who are required to deliver 42 new affordable homes, as part
of their development at Spitfire Green, Westwood.  This requirement is set out in the section 106
obligations for the development.  They
have been unable to secure an affordable housing provider to
deliver the homes. 
 
As the homes have been designated as
affordable homes in the planning consent and section 106 agreement,
they have been designed specifically for that purpose and
accordingly are considered appropriate for the HRA, in line with
the needs of households on the council register or those living in
temporary accommodation.  There is a
significant level of need for 1 bedroom homes, as well as for
larger family homes.
 
A provisional offer of £5m has been made
to the developer and subject to contract, legal due diligence,
formal valuation and full approval this offer has been
accepted.

Alternative options considered

Do not purchase the Section 106 units, which
would mean that the developer would negotiate a commuted sum,
losing the affordable housing units.