Purpose

This report
seeks approval to purchase and refurbish an existing 21-bed
supported accommodation provision: Cecil House, for care
experienced young people in the London Borough of Camden (LBC). The
freeholder of Cecil House, Central and Cecil Housing Trust, has
advised the LBC that it shall be disposing of
it.  It is
imperative that the LBC secure Cecil House as it does not have
sufficient in borough capacity to house 21 care experienced young
people who would be at risk of homelessness. Owing to the lack of
appropriate accommodation these young people would be placed in
more expensive and geographically distant accommodation. The LBC
currently has 236 units of commissioned supported housing
accommodation, for care experienced young people with an age range
of 16 to 24 years old.
 
On 26 February
2025, the Cabinet approved a £11.1 million capital budget to
support the acquisition and refurbishment of new children’s
homes and supported accommodation to address the shortage of
adequate housing. Delegated authority was given to the Executive
Director of Corporate Services to take all relevant steps to
implement the purchase of properties for this purpose. £6m
has been allocated from this budget to facilitate the purchase and
refurbishment of Cecil House.
 
The targeted
completion date agreed with Central and Cecil Housing Trust for the
acquisition of Cecil House is 31 March 2026. The refurbishment cost
is estimated at £2.2m and works is estimated to start in
August 2027 after a mobilization and stabilization period by the
new service provider whose contract starts in June 2026.
 
Although it is
envisaged that the proposed internal and external works shall
increase the value of Cecil House, such value cannot be given at
this time considering the issue of market volatility and the
attributed user of Cecil House means that it could only be sold in
a niche market. However, the proposed works will add 15 – 20
years of additional life to the building before any further
significant works will be required.
 

Content

THAT, following
consultation with the Cabinet Member for Best Start for Children
and Families, the Cabinet Member for Finance and Cost of Living,
and the Borough Solicitor:
 

(i)                
The acquisition of Cecil House 102-104 Albert Street NW1 7NE
at the purchase price of £3,850,000 plus stamp duty land tax
at the sum of approximately £192,500 and transaction fees of
£77,000 be approved;
 

(ii)               
The capital costs arising from the refurbishment Cecil House
to meet building regulation, DFE standard including, professional
fees, contractor fees and contingency at a proposed cost of
£2,202,308.73 be approved;
 

(iii)             
One-off revenue funding up to £1,087,100 in 2027/28 to
cover the temporary accommodation cost of decanting young people
and staff and loss of rent and council tax for 12 months to enable
completion of the refurbishment works be approved;
 

(iv)            
A permanent revenue budget of £30,000 per annum from
2026/27 to meet the London Borough of Camden’s maintenance
responsibilities be approved, and
 

(v)              
Authority to execute the transaction documents be delegated
to the Director of Development or Executive Director Investment,
Place and Opportunity.