Agenda item

The Cabinet Member for Housing presented a report on plans for a pilot, low cost home ownership scheme on the Gurdwara Way / Whiting Avenue site within the Barking Town Centre Housing Zone that would provide at least 44 one-bed flats, to be available only to first time buyers under 40 years of age at no less than 20% under market value. 

The preferred development partner for the project was Pocket Living London, an established and specialist low cost home provider, and the Cabinet Member confirmed that the intention was for initial sales to be targeted at current Borough residents, with priority awarded to those who qualified under the national key workers criteria.  Other key components of the project included the requirement for the 20%+ discount and restrictions on sub-letting to remain in perpetuity to ensure that the homes continued to be available to those on lower incomes who wished to set up home in the Borough, unlike the Government’s wider plans for starter homes which were expected to place only five-year restrictions.

With regard to funding issues, it was noted that Greater London Authority (GLA) grant funding of £854,718 had been secured to off-set the cost of some of the significant civil engineering and remediation works needed to facilitate the development.  In response to Members’ enquiries, the Divisional Director of Regeneration confirmed that:

(a)  While Pocket Living’s initial development appraisal suggested that the land had a nil residual value due to the significant pre-development costs and relative low sale value of the new properties, an independent valuation would be commissioned to inform the negotiations with Pocket Living and ensure best value for the Council; and

(b)  Any contaminated materials removed from the site would be taken to a fully licensed contaminated waste disposal facility, none of which existed in the Borough.

Cabinet resolved to:

(i)  Authorise the Strategic Director of Growth and Homes, in consultation with the Strategic Director of Finance and Investment, to approve grant funded expenditure for site remediation and facilitation works up to £854,718, which represents the maximum grant funding available for the works under the Grant Funding Agreement with the Greater London Authority;

(ii)  Authorise the Strategic Director of Growth and Homes, in consultation with the Cabinet Member for Regeneration, the Strategic Director of Finance and Investment and the Director of Law and Governance, to enter negotiations with Pocket Living for the potential freehold transfer of the site for the delivery of low cost home ownership, with the precise value to be ascertained following the specification of remediation costs, the amount of defrayed eligible expenditure on remediation works under the Funding Agreement with the GLA and the results of an independent valuation; and

(iii)  Note that a further report shall be presented to Cabinet detailing any representations received following the publication of a public notice, under Section 122 (2A) of the Local Government Act 1972, on the proposed appropriation of land for planning purposes and future disposal, pursuant to Section 233 of the Town and Country Planning Act 1990, of the site shown hatched on the plan at Appendix 1 to the report, the outcome of negotiations with Pocket Living and the proposed residency criteria and key worker categories.