Agenda item

Report of the Portfolio Holder for Planning, Housing and Heritage

The Board considered the report of the Portfolio Holder for Planning, Housing and Heritage proposing the appointment of Nottingham City Homes to developed two City Council owned sites for 142 new Council homes at the former Eastglade School site and Southchurch Court Garage site. The two developments are being proposed together in order to achieve better value for money. During discussion the following points were highlighted:

(a)  This proposal helps Nottingham City Council to work towards achieving its ambitious target to build 1000 new social homes for rent by 2023;

(b)  Funding will include contributions from Section 106 and right to buy replacement funds;

(c)  The site on Southchurch will hold 36 1 bedroom apartments and the Eastglade site will hold a mix of 1 bedroom apartments, and 2 and 3 bedroomed houses;

(d)  The Bestwood area currently has a number of regenerations projects and this new housing will contribute to that.

Resolved to:

(1)  Approve the budget for the construction of c142 new Council homes and associated costs within the funding envelope set out in the exempt appendix, with corresponding amendment to the Housing Revenue Account capital programme;

(2)  Authorise Nottingham City Homes to appoint contractors for the redevelopments of both sites, subject to tenders being returned within the funding envelope set out in the exempt appendix, and to the demonstration of value for money, and to the completion of the legal formalities required for the appropriation of the site to Housing Revenue Account; and

(3)  Approve the expenditure of  £800,000 of Section 106 affordable Housing contributions, made in line with the planning conditions for developments at Haywood School (planning ref. 14/0436PFUL) and Woodhouse Park (planning ref.13/01703POUT), towards the cost of development on Eastglade.

Reasons for Decision

The development of these sites will contribute to the Council’s commitment to build 1000 new Council homes for rent by 2023.

The developments will provide much needed, new, high quality social homes for affordable rent. It will enhance the neighbourhoods, and make constructive use of the two sites.

The Right to Buy element of the funding will be used to meet up to 30% of the cost of the developments. If this funding is not spent within a certain period it has to be repaid with interest to the Government.

The funding envelope, as set out in the in exempt appendix, includes allowances for contingencies and risks.

There is currently £800,000 of Section 106 Affordable Housing commuted sums available to be put towards improving the viability of the Eastglade site. £252,525 is from planning application 14/00436/PFUL3 Haywood School, Edwards Lane. The balance of £800,000 (£547,475) is from planning application 13/01703/POUT Woodhouse Park. This Section 106 contribution to the funding of the Eastglade development is justified by the additional costs imposed by the challenging topography of the site and lack of existing infrastructure. Under both agreements, the Council is obliged to use the affordable housing commuted sum ‘towards the provision of Affordable Housing within Nottingham City’. This project meets this definition. 

Other Options Considered