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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 04/04/2006
Proposal to Dispose of Two Dwelling Houses



APPENDIX N
Waverley Borough Council

EXECUTIVE – 4th APRIL 2006
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Title:
PROPOSAL TO DISPOSE OF TWO DWELLING HOUSES
[Wards Affected: N/A]
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Note pursuant to Section 100B(5) of the Local Government Act 1972

The 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:-

Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Summary and purpose:

This report proposes the open market sale of two Housing Revenue Account dwelling houses and seeks authority for the Director of Housing to dispose of the properties.
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Environmental implications:

There are none directly arising from the recommendations in 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 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.
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Introduction

1. Most of the Council’s housing stock was purpose built by predecessor authorities and Waverley itself. The Council does, however, own a small number of individual properties across the Borough. Two such properties have recently become vacant – one in Shalford (just outside the Borough) and one in Farnham. The (Exempt) Annexe to this report provides detail about both of these properties.

2. It is considered that it is in the best interests of the Council to dispose of these two houses on the open market because of the combination of factors, namely:

their relatively isolated location;
the potential capital receipt that would arise from open market sale is significantly higher than would be realised from a trickle transfer; and
the ability to invest the capital receipt in the Decent Homes Standard in Waverley’s retained housing stock.

3. It is therefore suggested that the properties be disposed of on the open market by a method to be determined by the Property and Development Manager.

Financial and Legal Implications

4. A disposal of ‘one-off’ properties in such circumstances is covered by the General Consents relating to property disposals issued by the Office of the Deputy Prime Minister. There are some restrictions under the General Consent:

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; 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 disposals will be made.

5. The Council would receive a capital receipt for the sale of the properties, which it could reinvest in its retained housing to contribute towards meeting the Decent Homes Standard. The Council would also avoid the cost of bringing these homes up to the Decent Homes Standard and into a lettable condition.

Recommendation

It is recommended that

1. approval be given to the disposal of the two properties, detailed in the (Exempt) Annexe to this report, on the open market, on terms to be negotiated by the Council’s Property and Development Manager; and

2. the capital receipt arising from the sales be contributed towards 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 Government Act 1972) relating to this report.
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CONTACT OFFICER:

Name: John Swanton Telephone: 01483 - 523375
E-mail: jswanton@waverley.gov.uk
Comms/exec/2005-06/326