Purpose

This report recommends Cabinet approval for
the acquisition by the Council of a scheme consisting of 9 flats
within a new purpose-built residential development in Newham, at
Ginger Bread Court (“the Property”). 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 Ginger Bread Court, 2a Michigan
Avenue, London, E12 5JD (“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 Ginger Bread
Court, 2a Michigan Avenue, London, E12 5JD (“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) 
To agree 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.