Agenda item

Further to Minute 21 (6 July 2010), the Cabinet Member for Housing presented a report on the detailed proposals and costings in respect of the first phase of estate renewal across the Gascoigne (East), Goresbrook Village and The Leys estates, as well as an outline of the issues that will need to be considered to progress the wider programme.

The first phase proposals are for a £7.1m, two-year project taking in the three high-rise blocks at Goresbrook Village, one high-rise and one low-rise block at Gascoigne and an initial phase at Birdbrook Close.  The funding would cover decanting, buying back leasehold properties and master planning.  For the longer term, a £23m programme has been developed and the Cabinet Member confirmed that a detailed options paper would be presented to Cabinet in the New Year.

In response to questions, the Cabinet Member confirmed that:

·  The £7.1m funding is not being met from land sales but from existing borrowing originally intended for the Council house building programme.  He explained that this is no longer needed for this purpose as the new build programme, which is already underway, is to be met directly from the rents on the new properties.

·  The reference in the report to the possibility of the Council transferring assets to a development partner is just one of the options that will be explored in the further report, and that no discussions with potential development partners have taken place to date.  That further report will also explore the feasibility of establishing a model similar to a Local Housing Company.

The Leader highlighted the need for the Council to replenish its housing stock through the use of land and funding that is earmarked for housing purposes and referred to a positive meeting with the Deputy London Mayor for Housing, Simon Milton, to discuss the Council’s housing proposals.

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

 (i)  The £7.1m funding be apportioned as set out in Table 4 in the report to enable decant and buyback works to progress on the three blocks at Goresbrook Village, one high-rise and one low-rise at Gascoigne (East) and a first phase of flatted accommodation at Birdbrook Close on The Leys estate;

(ii)  A comprehensive Options Appraisal based on the Treasury Five Case Model is undertaken for the whole renewal programme covering the Gascoigne (East), Goresbrook Village and The Leys estates that takes into account potential delivery models, developer interest, value for money considerations, tenure mix and type, and design parameters, the results of which will be reported to the Cabinet alongside the results of an Independent Review of the Options Appraisal following consideration by the Member Estate Renewal Steering Group in the New Year;

(iii)  A programme of community consultation and engagement with residents of the affected areas of the Gascoigne, Goresbrook Village and The Leys estates be undertaken;

(iv)  The decant programme and the purchase of leasehold interests be commenced;

(v)  Initial Demolition Notices be served on all secure tenants within the wider £23 million programme (as detailed in Table D of Appendix 1) in order to suspend the requirement for the Council to complete Right-to-Buy applications for as long as the Notices remain in force;

(vi)  The Council use its Compulsory Purchase Order (CPO) making powers pursuant to Section 17 of the Housing Act 1985 for the acquisition of the outstanding leasehold interests in the properties outlined in the report, for the purposes of securing land needed to allow the redevelopment of the Gascoigne (East), Goresbrook Village and The Leys estates; and

(vii)  The Corporate Director of Finance and Resources, in consultation with Legal Partners, be authorised to take all necessary steps to secure the making, confirmation and implementation of a CPO including the publication and service of all Notices and the presentation of the Council’s case at any Public Inquiry following the making of the CPO for the properties outlined in the report.