Decision details

The Executive will be asked to approve a proposal to establish two Local Housing Companies in partnership with English Partnerships and private sector partners in Barking Town Centre and Barking Riverside and agree the terms of the Council’s contribution and equity stake.

Received a report and presentation from the Corporate Director of Regeneration, seeking approval to create a Barking and Dagenham Local Housing Company (LHC) in partnership with a private sector partner.  LHCs add value to the development process and enable the Council to be at the centre of transforming places and act as a master developer for new communities.

The Borough is one of only two local authorities to pilot the first LHC in line with the Government’s Housing Green Paper.

The LHC will be a jointly owned and controlled development and long-term asset owning company and will provide up to 8,000 new housing units in the borough, 50% of which must be affordable. 

The LHC will enable the Council to:

(i)  Directly influence development standards;

(ii)  Speed of development;

(iii)  Support community sustainability;  and,

(iv)  Deliver the Council’s localism agenda.

The LHC must produce a business case and this will be brought back to the Executive for approval.

Agreed, to assist the Council in achieving its Community Priorities, ‘Improving Health, Housing and Social Care’ and ‘Regenerating the Local Economy’, to:

(i)  The establishment of the Barking & Dagenham Local Housing Company on the terms set out in the report;

(ii)  The appointment of First Base Limited as the private sector equity partner for the Barking & Dagenham Local Housing Company, subject to satisfactory due diligence as set out in the report;

(iii)  The transfer of land at the Lintons (Barking) to the Barking & Dagenham Local Housing Company on a leasehold basis on the terms set out in the report and subject to a viable business plan being agreed by the Corporate Director of Regeneration, Section 151 Officer and the Chief Executive;

(iv)  Entering into an exclusivity/option agreement with the LHC in respect of land at Gascoigne Estate, Thames View, London Rd/ North Street (Barking), Marks Gate and Goresbrook Road (Dagenham) area;

(v)  The transfer of the land in (iv) to the Barking and Dagenham LHC under leasehold basis when the terms of the Exclusivity/Option agreement are fulfilled;

(vi)  Note that the Council will continue to seek from the Department of Communities and Local Government funding for pump priming the site;

(vii)  The governance arrangements for the Board as set out in the report, and note that the Assembly will be asked to appoint the three Council board members to the LHC at its Annual meeting;

(viii)  Delegate authority to the Corporate Director of Regeneration in respect of the nomination of the two senior Council officers who will have observer status on the Board; and

(ix)  The LHC providing insurance for nominated board members.