Decision details

The Cabinet will be asked to consider proposals for delivery of a phased programme of estate renewal across the Borough in line with the Council’s housing strategy

Received a report from the Corporate Directors of Customer Services and Finance and Commercial Services on the outline proposals for the implementation of a programme of initial estate renewal across the Gascoigne (East), Goresbrook Village and Leys estates.

The report outlined proposals for the funding of a phased programme of estate renewal which would involve the decanting, buyback of leasehold properties, demolition, master planning and appointment of delivery partners.  Also an Estate Renewal Account would be created within the Housing Revenue Account to support the programme, funded from a range of sources. 

The Corporate Director of Customer Services confirmed that a detailed report will be presented later this summer on the business case and option appraisal for each of the estates to identify the first phases for activity.  This report will also contain the detailed proposals for the funding of the programme, including delivery options for new homes and possible disposal options.

Discussed a number of issues relating to the proposals including:-

• The need for the estate renewal programme to be properly planned in order to minimise disruption to tenants and loss of rental income from decanted / void properties.  Officers confirmed that the strategy for the decanting of tenants will incorporate the lessons learned from earlier housing regeneration projects;
• The factors behind the poor condition of particular blocks.  It was noted that while neglect by some tenants will always be an issue many of the estate blocks in the Borough have reached the end of their projected lifespan and are suffering from natural wear and tear.  The Cabinet Member for Housing advised that a key principle of the estate renewal programme is to reduce the high costs associated with undertaking responsive repairs to ageing properties;
• The buying back of leasehold properties and the rehousing of private sector tenants.  Officers confirmed that all valuations are obtained via the District Valuer and clarified the position regarding the Council’s responsibilities;
• The need to progress arrangements to secure the Council’s interests in relation to properties included in the estate renewal programme.

The Cabinet Member referred to the plans for consultation with local residents and Ward councillors and the proposed creation of a Member Working Group to develop the detailed estate renewal proposals with officers. 

Agreed, to assist the Council in achieving the Community Priorities “Safe”, “Clean”, “Fair and Respectful” and “Healthy” and improvement priorities for housing set out in the Council’s Local Area Agreement, to:

  (i)  The development of a programme of estate renewal, initially across the three estates Gascoigne Estate (East), Goresbrook Village and the Leys, with detailed business cases and option appraisals being developed to identify first phases for activity and presented to Cabinet later this year;

  (ii)  The establishment of an Estate Renewal Account within the Housing Revenue Account (HRA) to help fund the redevelopment of identified estates, with funding options to include:

a.  The re-allocation of the £7.1m corporate borrowing support as referred to in Minute 20 above

b.  HRA land disposal capital receipts

c.  Right-to-Buy receipts

d.  External regeneration monies

e.  Units in-kind from any arrangements with individual developers which enable the Council to utilise part of the rents to support further borrowing

  (iii)  The Estate Renewal Account to be administered and held within the HRA and used as directed by the Corporate Directors of Customer Services and Finance and Commercial Services;

  (iv)  Note that a fundamental review of housing revenue and capital procurement is being undertaken to ensure the most cost effective delivery of the Housing Asset Management Strategy;

  (v)  The establishment of a Member Working Group, led by the Cabinet Member for Housing, to explore and formulate with officers the detailed business case and option appraisals for the estate renewal programme; and

Authorise the Chief Executive, in consultation with the Leader and Cabinet Member for Housing, to progress arrangements for the serving of Initial Demolition Notices on all secure tenants within the initially identified phases.