Purpose

Purchase of 45 Affordable Units at Springwood Grove, Epping, CM16 4BZ for £19,650,000. The site, neighbouring Council offices, is due to handover in Q1 2027/28. The purchase seeks to use equal contributions of Homes England and Right to Buy receipt funding to deliver the units as Affordable Rent - £7,936,740 subsidy in total (40.39% of purchase price). This represents a comparable subsidy to our Council House Building Programme units where we appraise for 40% subsidy. This results in a negligible NPV of £33. All units are 'additionality' affordable housing due to the cost of the build meaning the site was calculated as and remains unviable for S106 Affordable Housing. The bulk purchase assists with affordable housing quotas for the year with the increase in Right to Buy sales, and de-risks the site for the developer by being bulk purchased. The purchase of the site will provide homes for 45 families on the waiting list, reducing some strain on temporary accommodation in the district.

Decision

That the Cabinet approved the report recommendations.