Purpose

Authority to appropriate land for planning purposes at the following development sites:

- Orwell & Welshpool (NHP1.1), Suffolk Estate, Haggerston Ward, and Welshpool Street, London Fields Ward.
- Regents Court (NHP1.2), Regents Estate, Haggerston Ward.
- Selman and Wellday (NHP7), Gascoyne Estate, Hackney Wick Ward.

Decision

RESOLVED:

1. To agree to the appropriation for planning purposes under Section 122(2A) and 123(2A) of the Local Government Act 1972 of the land at three NHP sites described in Section 6 and shown outlined in red on the plans at Appendix 1, to facilitate the carrying out of the development proposals in accordance with section 226 of the Town and Country Planning Act 1990 and section 122(1) of the Local Government Act 1972. 
2. To agree that following completion of the NHP developments noted at Section 6, the land shown edged red on the plans at Appendix 1 will no longer be required for planning purposes, and to approve the appropriation of the land from the General Fund back to the Housing Revenue Account for housing purposes, where it will then be administered from. The appropriation will be in accordance with Section 122(1) of the Local Government Act 1972.
3. To authorise the Executive Director - Housing, Climate and Economy, and Executive Director - Finance & Corporate Resources, to effect the appropriations set out in Sections 3.1 and 3.2.
4. To authorise the Director of Legal, Democratic and Electoral Services to prepare, agree, settle and sign the necessary legal documentation to effect the proposals contained in this report and to enter into any other ancillary legal documentation as required.

Reasons for decision

On 12 December 2022 Cabinet approved a report (Key Decision No CHE S142) to progress the Council’s future house building programme, thereafter known as the New Homes Programme (NHP). On 26 January 2026, Cabinet approved Key Decision No HCE S644, which approved the overall funding arrangements and financial plan for the NHP, and approved the appropriation of land for planning purposes at the first three NHP schemes which had at that point received resolutions from the Council's Planning Sub- Committee to grant planning approval. The report also requested that further reports come forwards in due course seeking approval to appropriate land for planning purposes at the remaining NHP sites, subject to planning approvals.

Appropriation of land for planning purposes under section 122 of the Local Government Act 1972 (‘the 1972 Act’) provides the Council with a mechanism for helping minimise the delay or uncertainty associated with regeneration and development projects by ensuring that the proposed developments cannot be held up by injunctions in support of third party rights.

In order to de-risk the development of the NHP schemes, the appropriation of land shown within the red lines at Appendix 1 is required.

The land in question (see Appendix 1 with the report), is currently housing land administered under the Housing Revenue Account (HRA). Following appropriation for planning purposes, the land will be transferred to, and administered from, the General Fund. Once the developments have been completed, the land will be appropriated as housing land and transferred back to the HRA.

Subsequent to the transfer back to the HRA, the Council will lose the benefits of the appropriation. The Council will not, however, lose the protection over whatever was built while the land was appropriated, and as such the newly built development would not be subject to an injunction (i.e. third parties whose rights have been injured as a result of the development will not be able to halt the development). The affected parties may, however, be able to seek compensation. The rationale and implications of appropriation were provided at Exempt Appendix 3.