Purpose

This report provides an update to Cabinet on the disposal of two freehold HRA assets. Cabinet had previously approved the disposal of the two assets in question and two additional HRA assets at a meeting held on 16 February 2026.

Decision

Cabinet agreed the following:

1. The Council owned freehold assets at The Leys, Manston, CT12 5AS and 70-76 Canterbury Road, Birchington, CT7 9BB are to be disposed of through a direct offer to existing leaseholders in the first instance and  if unsuccessful disposed of at public auction.

Reasons for the decision

Following several site visits by officers and quotes from council-approved contractors for essential maintenance, it has been determined that the most effective course of action is to propose the disposal of the two HRA freehold assets at 70-76 Canterbury Road and The Leys. All of the flats at both 70-76 Canterbury Road and The Leys are owned by leaseholders.

The recommendation to dispose was approved at Cabinet on 16 February 2026 and this report seeks to clarify for Cabinet the disposal procedure and options for the freeholds.

Alternative options considered

Option 1 - dispose: This is the recommendation. To dispose of the council owned freeholds, either directly or at auction and reinvest the proceeds into the HRA Capital programme.

Option 2 - Retain freehold interest at 70-76 Canterbury Road and/or The Leys. This would require the council to perform all obligations that are incumbent upon freeholders over the long term which would most likely require further council expenditure and council resources through commitment of staff time. The income generated through ground rent at both sites has been considered to not be sufficient to cover the expected expenditure in the future.