Decision

1)    
that delegated authority be given to the Director of Regeneration,
in consultation with the Cabinet Member for Housing and Finance and
the Director of Finance, to acquire the Land identified in Exempt
Appendix 1 and to enter into a linked Design and Build Joint
Contracts Tribunal (JCT) build contract with the developer, all as
set out in Exempt Appendix 2 (subject to satisfactory completion of
all necessary due diligence, an acceptable amount of Homes England
grant funding, and of an acceptable Planning Permission);

 

2)    that an Overall Project
Budget of £4.913m (including build cost, land cost and all
internal/on-costs), to be funded by an allocation of prudential
borrowing of up to £2.098m from the £20.000m of capital
headroom approved by Council in May 2025, combined with an
allocation of other internal/external affordable housing
subsid(ies), and subject to grant funding from Homes
England’s Affordable Homes Programme, be approved;

 

3)    that delegated authority
be given to the Director of Finance, in consultation within the
Cabinet Member for Housing and Finance and the Director of
Regeneration to increase the Overall Project Budget by maximum of
£100,000 (if necessary), to fund any amendments required to
the scheme to secure an acceptable Planning Permission.  Such increase in budget to be funded by an
increase to the Homes England Grant and/or other internal/external
subsidies only (subject to approval of an updated Full Business
case and independent Value for Money review); and

 

4)    that delegated authority
be given to the Head of Strategic Housing and Delivery to finalise
all terms to acquire and develop the site, and to work with Homes
England to secure the maximum possible allocation of grant funding
to support the project’s delivery.

Reasons for the decision

In May 2025, Torbay
Council’s Cabinet agreed to the establishment of an
Accommodation Repurposing Programme, with an initial funding
package of £20.000m of prudential borrowing, to enable
schemes to be progressed for approval by Cabinet. 
 
This scheme fully
meets the objectives of the Accommodation Repurposing Programme and
would conform with the funding mechanisms, management proposals and
lettings policies of the programme. 

Alternative options considered

The preferred option
was to proceed with the acquisition and development to deliver up
to 25 new homes for social rent, to be let through Devon Home
Choice to eligible households with a local connection to the local
area.
 
The alternative option
was to not proceed, effectively stepping away from the opportunity
to bring forward a brownfield site to support the local housing
market.  This option was discounted.
 Whilst this option would avoid capital
risk; it would not improve the housing situation and would be less
likely to secure delivery of the site to meet Local Plan targets in
the short-medium term.  It would also be
reputationally damaging for the authority in respect of a project
that had wide political support and was supported for this use by
the vendor.  It would also mean Torbay
missed an opportunity to increase its social housing stock.