The Deputy Leader (Housing & Regeneration) will consider a report on the proposed acquisition of 53 homes for affordable rent at the Fellowship Square development in Walthamstow. The meeting will not be publicly accessible, as it will involve the likely disclosure of exempt information.

Proposed Acquisition of Newbuild Homes for Affordable Rent

The report submitted to Councillors recommends that Waltham Forest Council proceed with the acquisition of 53 newbuild homes in Block C at the Fellowship Square development in Walthamstow, from the Council's development partner, Countryside Properties (UK) Limited.

The report relates to an Executive Decision made in December 2024 to acquire the homes using Right to Buy receipts, which the Council is entitled to keep and spend under Section 11(6) of the Local Government Act 2003. The report notes that new guidance published in July 2024 permits the Council to use these receipts to fund 100% of the acquisition costs of new homes.

The flexibility to utilise RtB receipts to fund 100% of acquisition costs provides the council with an opportunity to bring additional affordable homes into its portfolio.

The report states that these homes will be let at social rent levels.

These will provide high quality permanent homes for households on the borough’s Housing Register as well as for homeless households currently living in temporary accommodation.

The report recommends that the acquisition should be approved on the basis that it represents best value for the council. The report states that a Red Book valuation¹ of the properties was lower than the proposed purchase price, because it was based on the income the council would receive from the properties if they were let at social rent levels. The valuation also reportedly indicated that the open market value of the properties was significantly higher than the proposed purchase price.

The report also states that the acquisition will improve the viability of the wider Fellowship Square development, because Countryside Properties (UK) Limited are reportedly experiencing difficulty selling the properties to a Registered Provider².

For the above reasons it is likely that delivery of Fellowship Square could stall and no new affordable [housing] would be delivered if Countryside relied on identifying an alternate Registered Provider.

The report goes on to claim that the acquisition will:

• Increase the council’s overall supply of social rented housing.
• Increase the council’s ownership of homes at the Fellowship Square scheme.
• Be financially viable for the council.
• Allow for a reduction in temporary accommodation reliance and costs.

The report also notes that the homes are expected to be completed by November 2025.

The report is accompanied by several appendices:

• A plan of the site.
• An exempt financial appendix.
• A preliminary equality and diversity template, which was originally prepared for the redevelopment of the Town Hall campus.
• A climate change impact matrix, which was originally prepared for the redevelopment of the Town Hall campus.
• A copy of the Savills Red Book valuation (exempt).
• A copy of the Executive Decision report from December 2024.