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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 02/10/2007
Disposal of a Property in Bramley



APPENDIX P
WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 2ND OCTOBER 2007

Title:
DISPOSAL OF A PROPERTY IN BRAMLEY
[Wards Affected: Bramley]
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Note pursuant to Section 100B (5) of the Local Government Act 1972

The (Exempt) Annexe to this report contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part 1 of Schedule 12A to the Local Government Act 1972, namely;-
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Summary and purpose:

This report proposes the open market sale of a Housing Revenue Account dwelling house in Bramley and seeks authority for the Director of Housing to dispose of the property. The proceeds arising from the sale would be applied towards meeting the Decent Homes Standard in the rest of the Council’s housing stock.
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Environmental implications:

There are none directly arising from this report.

Social/community implications:

The proceeds of the sale will be reinvested in the Council’s remaining HRA housing stock to contribute towards bringing these homes up to the Decent Homes Standard. It is well documented that decent homes promote health, educational attainment, community safety and social well-being.

E-Government implications:

There are none directly arising from this report

Resource and legal implications:

The Council will avoid the costs of bringing the property up to the Decent Homes Standard and the capital receipt arising from the sale on the open market can be used at 100% if the Council resolves to spend the receipt on meeting the Decent Homes Standard in its other stock. An indicative valuation is detailed in EXEMPT ANNEXE 1.
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Introduction

1. Most of the Council’s housing stock comprise purpose built estates by predecessor authorities and Waverley itself. The Council does, however, own a small number of individual (‘miscellaneous’) properties across the Borough. 2. The property is a detached house situated at Station Road, Bramley. A location plan is attached at Annexe 2 to this report. The Council recently secured vacant possession.

3. Over the years this property has been used as temporary accommodation for homeless households. It has been sub-divided and comprises:

Three units – each with two rooms and a bathroom;
one large shared kitchen;
utility room; and
large garden.

4. The Council owns specially designated temporary accommodation for homeless households in Farnham, Godalming, Haslemere, Hindhead, Milford, and Wonersh, which have the potential to accommodate 46 households. At present the Council also leases another 9 homes from the private sector.

5. Over recent years, the Council has adopted a more proactive approach to homelessness prevention and diversion. This has resulted in a significant drop in numbers of households needing temporary accommodation (see Table below). The Council has already reached the Government target of reducing numbers in temporary accommodation by 50% by 2010. The number in December 2004 from which the target is measured was 84 and currently there are 26. Obviously the Council will need to maintain this success to ensure the target remains met in 2010.

98/99
99/00
00/01
01/0202/03
03/04
04/05
05/06
06/07
Homeless Applications
NA
NA
219
182185
158
123
72
35
Homeless Decisions
138
114
160
113
121
121
103
56
38
Homeless Acceptances
91
73
65
92
86
81
75
32
22
Numbers in temporary accommodation at
31st March
129
106
133
115
116
107
80
53
28
Numbers in bed and breakfast at
31st March
1
1
0
0
4
7
4
1
0

7. The Bramley property has never been a particularly suitable location for temporary accommodation and, in any event, there is another hostel in the neighbouring village of Wonersh, which had a major programme of renovations in recent years. It is considered that it would be timely to dispose of the Bramley property.

6. Officers consider there is merit in proposing an open market disposal of this property:-

there is no need for the retention of temporary accommodation in this location;
there is no pressing need for such a large dwelling for one family in this location;
it could be a very desirable home, following works, and therefore a relatively good capital receipt could be secured;
the ability to invest the capital receipt in the Decent Homes Standard in Waverley’s retained housing stock; and
the avoidance of having to make a considerable investment in this property to bring it up to the Decent Homes Standard itself.

Financial and Legal Implications

7. A disposal of ‘one-off’ properties in such circumstances is covered by the General Consents relating to property disposals issued by the Department of Communities and Local Government. There are some restrictions under the General Consent viz:

the property has got to be for the purchaser to live in or to put in good repair to sell to someone else for them to live in; and/or
simply sold at market value to a purchaser, provided he has not already bought a property from the Council on the same basis during the same financial year. It is under this category that the disposal will be made.

8. The financial implications are that the Council would avoid the cost of bringing this home up to the Decent Homes Standard and into a lettable condition for future occupiers.

9. The Council would receive a capital receipt. A guideline price is detailed in the (Exempt) Annexe 1 attached. However, if the Council wishes to retain the whole of the capital receipt, it is required by the Department for Communities and Local Government to resolve to reinvest the capital sum arising from the disposal in its retained housing to contribute towards meeting the Decent Homes Standard or for a specified regeneration project. Should the Council decide to use the capital receipt for other activities the Council would only be able to retain 50% of the resulting receipt and the balance would have to be paid to the Government. Given that the Council needs to invest in its own housing stock, it is recommended that the capital receipt be applied to the Decent Homes Standard, thereby allowing the Council to retain 100% of the receipt for these purposes.

Recommendation

It is recommended that the Executive approves:

1. the disposal of the dwelling house owned by the Council at Station Road, Bramley on the open market on terms to be negotiated by the Council’s Property and Development Manager;

2. that the capital receipt from the sale of this property be applied to contribute toward achieving the Decent Homes Standard in the remaining Council housing stock.

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Background Papers (DoH)

There are no background papers (as defined by Section 100D (5) of the Local Development Act 1972) relating to this report.

CONTACT OFFICER:

Name: John Swanton Telephone: 01483 – 523375
E-mail: jswanton@waverley.gov.uk

Comms/exec/2007-08/106