Agenda item

Report of Deputy Chief Executive and Director of Regeneration and Planning

Lead Cabinet member: Councillor Zoe Nicholson

(Key decision):

(1) To note the progress of the housing delivery programme, as set out at Appendix 1 to the report, and evolving New Homes Principles.

(2) To note the pressures on budgets in maintaining the existing social housing stock in the current market economy.

(3) To approve an increase to the total budget allocation within the capacity of the existing HRA Capital Programme of up to £4.7m for the purchase and development of land and assets at Peacehaven Golf and Fitness in accordance with Appendix 2 (Exempt), subject to planning, contract, valuation, and full due diligence.

(4) To approve a new budget allocation within the capacity of the existing HRA Capital Programme of up to £1.6m for the development of land and assets at Broyle Close, Ringmer, to be taken through the Modular Housing Framework, in accordance with Appendix 3 (Exempt), subject to contract, valuation, and full due diligence.

(5) To approve £150k within the capacity of the existing HRA Capital Programme (2023/24) in order to capitalise costs associated with securing planning permission for the Phase 1 Garage Infills Programme.

(6) To authorise the Assistant Director – Property and Development, in consultation with the Director of Finance and Performance (S151 Officer) and Lead Member for Finance, Assets and Community Wealth Building, to progress recommendations (3), (4) and (5) in the report and to conclude them including the approval and implementation of all processes and procedures, negotiation and agreement of terms, award of contract(s), and authorising the execution of all related documentation.

The Cabinet considered the report of the Deputy Chief Executive and Director of Regeneration and Planning, providing an update on the housing delivery programme and context to the current challenges in maintaining the existing social housing stock.

Cabinet commended and thanked the Tenants of Lewes District Council (TOLD) for their work in partnership and significant contributions to proposals set out.

Section 7.4 of the report stated that four disproportionately high-cost void Housing Revenue Account (HRA) assets had been identified. These were reported at the meeting as:

-       1A and 1B Penlee, Ringmer (Block of 2 flats)

-       3 Talbot Terrace, Lewes (2-bedroom house)

-       60 Valence Road, Lewes (3-bedroom house)

Through conversations and partnership work with TOLD, it was determined that the most cost-effective option would be to dispose of these assets, as granted by previous Cabinet delegation. As part of the collaborative working with TOLD, it was agreed that in order to dispose of the assets, the Council would seek to buy four replacement homes, with an equivalent number of bedrooms at target social rents within the wider District. It was expected that this would leave a surplus in capital receipts after the homes were purchased, which could be used to purchase or build additional new homes.

Policy and Performance Advisory Committee (PPAC), held on 7 March 2024 considered the report and were supportive of the officer recommendations in full. The Leader of the Opposition, Councillor MacCleary, spoke in support of the proposals, especially the inclusion of the garage sites and disabled adapted homes in the report.

Resolved (Key decision):

(1) To note the progress of the housing delivery programme, as set out at Appendix 1 to the report, and evolving New Homes Principles.

(2) To note the pressures on budgets in maintaining the existing social housing stock in the current market economy.

(3) To approve an increase to the total budget allocation within the capacity of the existing HRA Capital Programme of up to £4.7m for the purchase and development of land and assets at Peacehaven Golf and Fitness in accordance with Appendix 2 (Exempt), subject to planning, contract, valuation, and full due diligence.

(4) To approve a new budget allocation within the capacity of the existing HRA Capital Programme of up to £1.6m for the development of land and assets at Broyle Close, Ringmer, to be taken through the Modular Housing Framework, in accordance with Appendix 3 (Exempt), subject to contract, valuation, and full due diligence.

(5) To approve £150k within the capacity of the existing HRA Capital Programme (2023/24) in order to capitalise costs associated with securing planning permission for the Phase 1 Garage Infills Programme.

(6) To authorise the Assistant Director – Property and Development, in consultation with the Director of Finance and Performance (S151 Officer) and Lead Member for Finance, Assets and Community Wealth Building, to progress recommendations (3), (4) and (5) in the report and to conclude them including the approval and implementation of all processes and procedures, negotiation and agreement of terms, award of contract(s), and authorising the execution of all related documentation.

Reason for decisions:

(1) To provide Cabinet with an update on the growing housing delivery programme, in the context of the Corporate Plan.

(2) To support HRA finances in the context of current pressures and further the Council’s objectives to build and maintain quality, affordable, and sustainable homes.

(3) To update on the challenges and financial pressures in maintaining the existing social housing stock, in the context of national cost increases and limitations in generating new income streams within the HRA.

Notes: (1) Appendices 2 and 3 remained exempt. (2) Exempt information reason 3 - Information relating to the financial or business affairs of any particular person (including the authority holding that information).