Purpose

The report sought approval to
purchase land from Southern Housing at Eaton Place, on Eaton Road
in Margate. This land is currently owned by Southern Housing and
the Council has entered into negotiations with the registered
provider to acquire the land in order to keep the homes that are
delivered on that site as affordable housing.

Decision

Cabinet agreed the following:
 
1. 
That the Council progresses with the acquisition of the land at
Eaton Road, Margate from Southern Housing for £600,000;
 
2. 
That the Council agrees to pay 50% of the demolition costs to
Southern Housing, up to a maximum of £300,000. This will
ensure joint management of the demolition process;
 
3. 
That the Council appoints a project design team to RIBA Stage 3/4
(planning Permission/detailed design), in order to provide a fully
designed and costed scheme to allow the tendering of a main
contractor to deliver the works. A follow-up report will be
submitted to Cabinet for approval once full scheme costs and
funding are known to officers and the appointment of the main
contractor to deliver the works is required.

Reasons for the decision

The land at Eaton Road would enable the
Council to deliver circa 60 properties (subject to planning
permission) on the land on which Weymouth House and Stafford House
(buildings owned by Southern Housing) currently sit. This could
increase the number of dwellings in the council’s housing
revenue account (HRA) and, through a local lettings plan, enable
the council to allocate half of the properties to those housed in
temporary accommodation, reducing its spend on nightly-paid
accommodation providers and the financial burden to the taxpayer
and the council’s general fund.

Alternative options considered

The Council could choose not to enter into
this agreement. However, this would represent a missed opportunity
not only to buy land in a really prime location in Margate that
would clearly benefit residents on the housing register and in
temporary accommodation, but to work alongside an RP who is also
invested in the delivery of affordable housing in the district.
 
The Council could also seek to not engage with
the demolition process. As outlined above, that would see some
parts of the process needlessly repeated and add to the costs for
both sides on the demolition and the re-provision of homes on the
footprint. Council could decide to not purchase the identified
units as part of the Local Authority.