Purpose

The Community Led Housing Land Disposal
Policy, adopted by Cabinet on 4 February 2020, authorises the
Council to dispose of selected sites for less than market value for
development of Community-led affordable housing. The policy
identified the site at 26 – 32 Constable Road and gave
delegated authority to the Executive Director for Growth and
Regeneration, in conjunction with Director - Legal and Democratic
Services and Deputy Mayor – Finance, Governance and
Performance for the sale of the site. It was also agreed by Cabinet
that sites such as 14-16 Constable Road, with the capacity to
deliver between 3 -10 homes, identified as suitable for
community-led housing, could be disposed of in accordance with the
CLH LDP with Executive Director approval.
Following a transparent bidding process on ProContract the decision
was taken to approve preferred bidder status to Lockleaze
Neighbourhood Trust (LNT) for the parcels at 14 – 16
Constable Road and 26 - 32 Constable Road and to dispose of the two
parcels as one site, subject to satisfactory planning consent. An
Officer Executive Decision (OED) was published in December 2020.
LNT have planning approval across both parcels of land for 19
affordable homes 21/01219/F 11 units at 26-32 Constable Road and 8
units at 14-16 Constable Road). The site will be disposed of to LNT
in one transaction for the sum of £1,000.
An OED was published in September 2022.
It was been agreed by the Executive Director, EOD dated 23 November
2023, that to facilitate the disposal of the site that comprises 2
parcels of Land at Constable Road to Lockleaze Neighbourhood Trust
(LNT), in line with the Community Led Housing Land Disposal Policy
(CLH LDP), it was been agreed that the site will be appropriated
from the Housing Revenue Account (HRA) to the General Fund. This
was enabled by an appropriation of two sites of equivalent value
from the General Fund to the HRA.
In June 2022, LNT made a bid for Affordable Housing Programme
Funding via a competitive bid round via ProContract that was
targeted at CLH groups. In October 2022, it was confirmed by OED
that LNT would be allocated £1.53m from the Affordable
Housing Budget in accordance with Bristol City Council’s
Affordable Housing Fund Policy 2022 - 2025 (AHFP 2022 –
2025). A grant agreement was signed on 12 March 2024.
On 23 January 2025, a Deed of Variation to the grant agreement was
signed, which enabled LNT to draw down 5% (£76,500) of the
allocated grant early to support pre-commencement costs.
LNT were originally looking to bring the scheme forward
independently, however, viability issues led them to take the
decision to seek a HomesWest Registered Provider to unlock access
to Homes England Grant funding and secure the delivery of this 100%
Affordable Housing scheme. In December 2024, LNT selected the
HomesWest Registered Provider Abri as its preferred development
partner. With this change in approach, a legal structure more
aligned to the aims and objectives of all parties has now been
agreed, which includes a freehold transfer to LNT at practical
completion of the scheme and a simultaneous 125-year occupational
lease and management agreement to Abri.
The principal structure is set out below:
•BCC grants a 999 year lease to LNT at peppercorn
•LNT simultaneously grants a building lease (containing rights
to develop the land and obligations) to Abri. The Council to be
party to the building lease, but only as a direct beneficiary of
the construction obligations.
•The building lease is subject to a 12 month contractor
condition. This will enable Abri to enter a financially viable
build contract.
•At practical completion of the development both leases are
surrendered, and the freehold is transferred to LNT subject to
appropriate restrictions on title to ensure the Property is used as
affordable housing along with the constraints within the 106
agreement).
•LNT simultaneously grant a 125 year occupational lease and
management agreement to Abri including ground rent
provisions).
The consented site has been independently revalued on an open
market basis to reflect current construction costs and significant
abnormal costs relating to site clearance, remediation,
groundworks, service diversions and retaining features already
identified. The disposal at undervalue is authorised under the
general property services scheme of delegations.
The overall delivery of the 19 affordable units falls within the
auspices of Homes for Bristol: Interim Affordable Housing Delivery
Plan 2025-27 which was approved by Cabinet on 14th February 2025.
This delegates the Executive Director Growth and Regeneration, in
consultation with the Cabinet Member for Housing Delivery and Homes
to “take all necessary steps” to implement the various
workstreams of ‘Homes for Bristol’ plan as detailed in
the Interim AHDP.
The option agreement is to be entered in advance of the land
contract and will enable LNT to secure an immediate legal interest
in the land and sign the S106 and make a commencement of
development to prevent the extant planning consent from lapsing
which will ultimately benefit the overall programme delivery. The
option will run for an initial period of 12 months or the date the
parties enter the land contract (whichever is the later). The
subsequent land contract will ensure all key contractual terms and
safeguards for the Council with the value demonstrating best
consideration.

Content

Approval to enter into the legal agreements
for the disposal of land at Constable Road in accordance with the
terms of the revised legal structure.

Alternative options considered

The alternative is to progress negotiations on
the contract of sale without the Option. This would result in the
existing planning permission lapsing and would need to be
resubmitted; this would have a detrimental impact on the cost and
the overall delivery of the scheme.