Purpose

Following approval at Council of the accelerated affordable housing development programme, this report seeks the approval to purchase 5 Section 106 units.

Decision

Cabinet agreed to:

1. The purchase of 5 new affordable homes, using the additional capital budget, approved by council at its meeting on 12th October 2023;
2. The letting of these homes in accordance with the council’s Allocations Policy, at an affordable rent as set out in the council’s Tenancy Strategy.

Reasons for the decision

Officers were contacted by Millwood Homes, who are required to deliver 5 new affordable homes, as part of their development at Reading Street, Broadstairs. This requirement is set out in the section 106 obligations for the development. They have been unable to secure an affordable housing provider to deliver the homes.

As the homes have been designated as affordable homes in the planning consent and section 106 agreement, they have been designed specifically for that purpose and accordingly are considered appropriate for the HRA, in line with the needs of households on the council register or those living in temporary accommodation. There is a significant level of need for 1 bedroom homes, as well as for larger family homes.

A provisional offer of £800k has been made to the developer and subject to contract, legal due diligence, formal valuation and full approval this offer has been accepted.

Alternative options considered

Do not purchase the Section 106 units, which would mean that the developer would negotiate a commuted sum, losing the affordable housing units.