Waverley Borough Council Committee System - Committee Document
Meeting of the Community Overview and Scrutiny Committee held on 22/05/2006
Waverley Borough Council
COMMUNITY OVERVIEW AND SCRUTINY COMMITTEE
– 22ND MAY 2006
[Ward Affected : Witley and Hambledon]
Summary and purpose:
This report advises of an opportunity to redevelop the site of the former sheltered housing scheme at Dorlcote in Witley. The proposal could result in 22 affordable homes provided by Thames Valley Housing Association, and also a capital receipt for the Council, which would be invested in the Housing Revenue Account’s Decent Homes Standard programme.
The report proposes the disposal of the Dorlcote site, Witley, to Thames Valley Housing Association, in order to enable 22 affordable homes and also generate a capital receipt for the Council.
As with any housing development there are important environmental issues arising to do with the physical resources used to build properties. This site was previously occupied by a sheltered housing scheme, which was demolished last year. It is the intention that the proposed development will achieve the ‘excellent’ eco-homes rating.
Social / community implications:
There is a considerable need for affordable housing in Waverley, with over 2,250 households registered on the Council’s Housing Needs Register. It is well recognised that a decent home supports educational attainment, promotes good health, and encourages longevity. The development proposals also give rise to a requirement for the developer – Thames Valley Housing Association – to provide a commuted sum to support play facilities in the vicinity.
There are none arising from this report.
Resource and legal implications:
The resource and legal implications relate to the disposal of the site for affordable housing that will give rise to a capital receipt for the Council, which will be invested in the Council’s Housing Revenue Account housing stock to enable the HRA to work towards the Decent Homes Standard. The proposal will attract a significant capital investment in the Borough via Thames Valley Housing Association through both a capita grant from the Housing Corporation and the use of private finance.
1. The Council owned a sheltered housing scheme at Dorlcote in Witley, which was decommissioned and demolished in 2005. The site now offers potential for redevelopment.
2. Thames Valley Housing Association was successful in securing funding from the Housing Corporation for a development of 20 homes in the Waverley area and is seeking a site for development. The Dorlcote site has capacity for a similar number of dwellings and it is therefore suggested that this site should be used to take advantage of this opportunity.
3. However, it is important to consider alternative options, which are:
disposal of the site on the open market – which could give rise to a greater capital receipt. This option would mean that there would be fewer affordable homes provided – the Council’s planning policy requires that a development of over 14 homes would give rise to the need for provision of 25-30% affordable housing on site. Assuming the site were developed privately with 22 homes, 7 would be required to be affordable through the planning process (at 30% of the dwellings). Thames Valley Housing Association would still retain its funding and would need to look elsewhere for a site for its development.
decide to use the site for affordable housing, but seek bids from a range of RSLs to ascertain whether it would be possible to achieve a better deal than can be offered by Thames Valley Housing Association. It is unlikely that other housing associations will be in a position to move forward on this site quickly, as all the Housing Corporation’s allocations are earmarked for alternative sites.
retain the site as an open green space and appropriate to the General Fund to maintain and manage.
4. The capital allocation made by the Housing Corporation to Thames Valley Housing Association is time limited and in order to retain and commit the allocation in Waverley, it is important that they can demonstrate commitment to a scheme. In these circumstances, it is suggested that option to work with Thames Valley Housing Association to provide 22 affordable homes should be pursued, as this will provide the greatest number of additional affordable homes, as well as a capital receipt for the Council, to invest in meeting the Decent Homes Standard – thereby meeting two key corporate housing priorities of the Council.
5. The proposal made is that the site should be developed to provide the following mix of homes:
16 homes for rent viz: 12 x 2-bed houses; 2 x 2-bed bungalows; 2 x 3-bed houses; and
6 homes for sale on shared ownership terms viz: 2 x 1-bed flats and 4 x 2-bed flats.
6. This mix reflects local housing need and also the fact that there are already a number of 1-bedroom flats adjacent to the site.
7. Outline plans for the site are attached as
8. The Council would receive nomination rights to these homes.
Resource and Legal Implications
9. Thames Valley Housing Association has secured funding from the Housing Corporation, which can fund the proposed development. In these circumstances the Council can dispose of the site and generate a value from the site – whereas on other occasions the Council assists housing association partners by providing a subsidy either through a payment of capital grant or by transferring land at nil value.
10. The financial implications are that the Council would receive a capital receipt, which it could reinvest in its retained housing to contribute towards meeting the Decent Homes Standard. As members will recall, in order for the Council to retain all of the capital receipt, the Council has to formally resolve to reinvest the receipt in meeting the Decent Homes Standard or in a specific regeneration initiative.
It is recommended that the Committee recommends to the Executive:
1. that the site at Dorlcote, Witley, be disposed of to Thames Valley Housing Association for an affordable housing development of 22 dwellings on terms to be negotiated by the Council’s Property and Development Manager; and
2. that the capital receipt from the sale of the Dorlcote site, Witley is applied to contribute toward achieving the Decent Homes Standard in the remaining Council housing stock.
Correspondence from Thames Valley Housing Association
01483 - 523375