Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: October 24, 2024

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.

Content: 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.