Purpose

This proposal recommends the acquisition by the Council of 17 houses within a freehold residential development in Barking & Dagenham, Beam Park (“the Property”). The property will deliver much-needed affordable and accessible housing to be let at Local Housing Allowance (LHA) rent, for a purchase price as described in the exempt Appendices 2 and 3

The property will deliver much-needed affordable and accessible housing to be let at London Housing Allowance (LHA) rent, for a purchase price as described in the exempt Appendices 2 and 3. The proposal assists the reduction in the Council’s reliance on costly, insecure, nightly-let accommodation plus, as studies have shown, will have a positive impact on the life outcomes of families generally and, in particular, children. It also allows the Council a rare opportunity to acquire houses which can be adapted for residents with accessibility needs. 

Decisions required include:

1.  For the Council to acquire the freehold interest of the 17 houses at Beam Park (“the Property”).

2.  To delegate authority to the Corporate Director of Resources in consultation with the Lead Member for Housing Management and Modernisation and the Lead Member for Finance and Corporate Services to negotiate and finalise the terms and legal documentation for the acquisition in line with the terms set out at exempt appendices 1, 2 and 3 and to complete the acquisition subject to completion of the necessary due diligence; and

3.  That the Property should be leased to a suitable third party housing organisation. 

4.  To delegate authority to the Corporate Director of Resources in consultation with the Lead Members for Housing Management and Modernisation and Finance & Resources to determine the arrangements for the Council’s letting of the Property in line with paragraphs 5.3-5.9 below and to enter into the necessary associated legal and contractual documentation.

Decision

Decision:

For the reasons set out in the report and its appendices Cabinet RESOLVED to Agree:

i)  For the Council to acquire the freehold interest of 17 units at Beam Park, Rainham, Dagenham, RM13 8DH (“the Property”).

ii)  To delegate authority to the Corporate Director of Resources in consultation with the Lead Member for Housing Management and Modernisation and the Lead Member for Finance and Corporate Services to negotiate and finalise the terms and legal documentation for the acquisition in line with the terms set out at exempt appendices 1, 2 and 3 and to complete the acquisition subject to completion of the necessary due diligence; and

iii)  That the Property should be leased to a suitable third party housing organisation.

iv)  To delegate authority to the Corporate Director of Resources in consultation with the Lead Members for Housing Management and Modernisation and Finance & Resources to determine the arrangements for the Council’s letting of the Property in line with paragraphs 5.3-5.9 below and to enter into the necessary associated legal and contractual documentation.

Alternatives Considered

a)  The Council could choose not to proceed with the transaction and maintain the current level of expenditure, with a provisional overspend in 2023/24 as set out in the October 2023 financial review. This option has been rejected as it would not reduce the current level of costs.

b)  In the absence of an agreement between Local Space or Future NewHome for the lease arrangements, the Council will look to appoint an alternative housing organisation to lease the units, ensuring value for money for the Council.