Issue - meetings

To seek Cabinet’s approval, in principle, to agree revised terms for the freehold purchase of two 2 x bedroom bungalows in Clacton-on-Sea from a developer.

RESOLVED that Cabinet approves, in principle, the revised terms for the freehold purchase of the two properties in question for inclusion into the Council’s housing stock.

Cabinet had before it a joint report of the Corporate Finance & Governance Portfolio Holder and the Housing Portfolio Holder (A.8) which sought its approval, in principle, for the freehold purchase, on revised terms, of two x 2 bedroom bungalows in Clacton from a developer. 

Cabinet recalled that the properties in question were being delivered to the Council through a Section 106 agreement that had been entered into for affordable housing on the development site in question. The developer had initially approached another registered provider, Chelmer Housing Partnership (CHP) to purchase the properties but CHP had withdrawn as their development ‘pipeline’ was fully committed. The properties were located in Clacton-on-Sea which was a priority area for acquisitions, as set out in the Housing Acquisitions and Development Strategy adopted by Cabinet in October 2020. There were currently 105 households on the Housing Register in need of a two bedroom bungalow in Clacton-on-Sea.

Members were reminded that the Council’s original offer of £188,000 per bungalow (£376,000 in total) had been accepted by the developer in October 2020.  As completion of the freehold purchase had not taken place within a year of the original offer being accepted, the bungalows had been re-valued and following a significant increase in house prices, the purchase price had now been agreed at £210,000 per bungalow (£420,000 in total). The statutory agreements required to complete the transfer had now been received.

Having considered all of the information, advice and proposals contained in the Portfolio Holders’ joint report and to enable this matter to progress to a satisfactory conclusion:-

It was moved by Councillor G V Guglielmi, seconded by Councillor P B Honeywood and:-

RESOLVED that Cabinet approves, in principle, the revised terms for the freehold purchase of the two properties in question for inclusion into the Council’s housing stock.