Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: October 16, 2025

Purpose:

Content: Decision   RESOLVED that Cabinet: 1.     Approved the sale of the land identified in Appendix A for residential development, for the price and terms set out in 2.1-2.3, to the purchaser identified in 3.1, and subject to the purchaser securing an appropriate planning consent. 2.     Authorised the Head of Asset Management & Engineering Services and Chief Finance Officer in consultation with the Portfolio Holders for Asset Management, Finance & Budget and Housing & Housing Development to agree detailed sale terms. 3.     Authorised the Council’s Legal Services to prepare and complete all necessary documentation to give effect to the sale including settling the detailed terms of the overage agreement and associated legal documents.   Reasons for decision The proposed sale of the former Directors Arms site secured: 1.     Best Consideration: The offer of £2.35m capital receipt was consistent with independent valuation advice and represented best consideration reasonably obtainable under the Local Government Act 1972, s123. 2.     Private Housing Delivery: The scheme would deliver 24 private units 3.     Affordable Housing Delivery: The scheme would deliver 13 Affordable units of which 4 will be social rent. 4.     Financial Prudence: Disposal through open market sale avoided the financial risk of Council-led development, securing a guaranteed return without exposure to build cost inflation, planning risk or sales risk. 5.     Corporate Objectives: The transaction supported the Council’s Corporate Plan by making effective use of assets, generating capital receipts to support the capital programme, and contributing towards meeting local housing needs. 6.     Deliverability: it was a proven developer with experience of delivering similar schemes locally, giving confidence in scheme delivery and receipt realisation.   Alternative Options Considered   1.     Retain the site for Council-led development: This option would have required the Council to assume all development risk, including securing planning, funding and delivering the scheme. Independent advice had indicated that this would have exposed the Council to significant financial and market risks. 2.     Market disposal to alternative bidders: The Council had tested the market and the offer was considered to represent best overall value. 3.     Other offers were received for alternative uses which did not aligned with the Council’s Housing Strategy and were discounted.