Purpose

This report recommends Cabinet approval for
the acquisition by the Council of 6 homes within a new
purpose-built development, Head Street (“the
Property”), delivering much-needed affordable housing to be
let at London Housing Allowance (LHA) rent

Decision

For the reason set out in
the report and its appendices Cabinet RESOLVED to AGREE:
 

i) 
For the Council to acquire the freehold interest of 1-5 Head Street
E1 0QN (“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;

 

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

 

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 5.4-5.10 of the report and to enter into the
necessary associated legal and contractual documentation.
 
Alternatives
Considered
 
i) 
Not to proceed with the transaction and maintain the current level
of expenditure, with a provisional outturn overspend against budget
of £7.39m, on the provision of over 5,883 homeless households
within temporary accommodation. This option has been rejected as it
would not reduce the current level of costs.
 
ii) 
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.