Issue - meetings

To seek approval from Cabinet for the leasehold purchase of a two bedroom residential property in Walton on the Naze to meet local housing needs.  In addition,  to receive the Monitoring Officer’s report regarding the omission in respect of a recent purchase and give consideration to confirming authorisation for a buy back of a three bed house in Dovercourt for house purposes.

RESOLVED that Cabinet –

(a)    authorises, in principle, the terms of the freehold purchase of the property in Walton-on-the-Naze for inclusion into the Council’s housing stock;

(b)    subject to its later decision on terms as set out in the related private and confidential report to be considered later in the meeting, authorises the Corporate Director (Operations and Delivery) to enter into a contract and transfer deed, in consultation with the Deputy Chief Executive, in order to complete the purchase of the Walton-on-the-Naze property;

(c)    notes the contents of the Monitoring Officer’s report and, in response thereto, hereby formally approves the purchase of the residential property in Dovercourt for housing purposes; and

(d)    acknowledges that internal control arrangements have been increased in order to ensure that such a transaction is not completed without the necessary approvals in place.

The Cabinet gave consideration to a joint report of the Corporate Finance & Governance Portfolio Holder, the Housing Portfolio Holder and the Monitoring Officer (A.9) which sought its approval for the leasehold purchase of a two bedroom residential property in Walton-on-the-Naze to meet local housing needs.  In addition, the Cabinet received the Monitoring Officer’s report regarding an omission in respect of a recent purchase and gave consideration to confirming authorisation for a ‘buy back’ of a three bed house in Dovercourt.

Members were aware that the Council had a target to bring 200 additional homes into the council’s housing stock in order to meet rising demands for high quality, affordable housing in the District. Those homes would be acquired, or built, via a range of approaches.

It was reported that one of the matters in this report before Cabinet was a proposal to purchase a vacant two bedroom ex-Council flat that was currently for sale on the open market in Walton-on-the-Naze.  The second decision being sought was Cabinet’s confirmation of the purchase of a three bedroom house on Laurel Avenue in Dovercourt through a right of first refusal.

Members were reminded that, for a number of years the Council had had a strong demand for two bedroom flats.  There were currently 11 families on the Housing Register seeking a two bedroom flat in the Walton-on-the-Naze area.

In respect of the Walton-on-the-Naze property, it met the criteria set out in the Housing Acquisitions and Development Strategy and therefore, in May 2021, Portfolio Holder approval had been obtained to initiate the Council’s Property Dealing Procedure, in order to obtain an independent valuation of the property and to negotiate a price with the owners.

It was reported that an independent market valuation had now been obtained and negotiations with the owner had been completed satisfactorily, which would enable the purchase to be progressed to a conclusion. Purchasing this property would add an additional property to the Councils housing stock in the Housing Revenue Account in an area of high demand.

In respect of the Laurel Avenue property in Dovercourt, Portfolio Holder approval had been granted in October 2019 to initiate the Council’s Property Dealing Procedure.  A notice of a forthcoming decision by the Portfolio Holder to purchase the property had then been published on 11th December 2019.  An independent valuation had also been obtained and the Portfolio Holder’s decision report written by Officers and approved by the Council’s Management Team.

However, Cabinet was advised that the Portfolio Holder’s decision from October 2019 to initiate the Property Dealing Procedure for the property on Laurel Avenue in Dovercourt had incorrectly been relied upon to provide the authority for the purchase of the property, although both the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder had confirmed that they had been aware of the proposed transaction and had supported it.  The Council’s Monitoring Officer was under a duty to report this omission to Cabinet in order for them  ...  view the full minutes text for item 45