Agenda

Delegated planning decisions for the week beginning 24 April 2023 are attached.  Contact for enquiries: Jean McPherson, Group Manager (Development Management) on jean.mcpherson@crawley.gov.uk.

An acquisitions budget was approved by Cabinet on 1st February 2023 (FIN/606A), which agreed to increase the capital budget for Acquisitions of Land and Dwellings by £10m, with £4m to be funded from 1-4-1 receipts and £6m from borrowing.

The purpose of this acquisitions budget was to enable officers to respond to opportunity acquisitions that may become available in the market and to strengthen the Council’s negotiation position to compete with greater certainty.  This is also in reaction to the limited supply of affordable housing completions being forecast over the next two-year period, primarily as a result of the delays caused by water neutrality.  Such acquisitions can play a significant role in addressing the increasing pressures on the Council’s Housing Register.

A quick-win opportunity has arisen for the 20-unit scheme being built at 42-44 Brighton Road in Southgate, which was being built for the private market, and was scheduled to provide only two shared-ownership units due to scheme viability being under pressure primarily as a result of the land assembling costs.

The scheme comprises five one-bed and fifteen two-bed apartments, which directly addresses Crawley’s housing needs, particularly at a time when new-build affordable housing is in short supply as a result of water neutrality impacting on the affordable housing programme.  This scheme is at the final stages of construction, with completion anticipated by mid-to end-June 2023, providing an exceptionally quick-win for the Council.

Officers have negotiated a discounted price from the open market value based on the bulk acquisition as well as cost savings brought about by converting this scheme into affordable housing, representing good value for money with almost immediate benefit to the Council. Accordingly, a contract for the freehold acquisition of this completed scheme has been drafted and is being prepared for exchange in the week commencing 8th May 2023.

Therefore, on 1 May 2023, in accordance with the Constitution (Section J of the Financial & Budget Procedure Rules) the Head of Crawley Homes in agreement with the Head of Corporate Finance, and in consultation with the Cabinet Member for Housing and the Leader of the Council, agreed to purchase the scheme at 42-44 Brighton Road, Southgate, Crawley.

Consideration report DAT/005 is attached for Councillors only.

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