Issue - meetings

(1)    To update Cabinet on the current situation regarding the Council’s recently built discounted homes for sale in Jaywick Sands and to recommend an alternative option for the future of the dwellings; and

(2)    To seek delegations for applications to be made to Homes England for the waiver of Designated Protected Areas.

RESOLVED that Cabinet - 

(a)    notes the contents of the Portfolio Holder’s report;

(b)    agrees to the retention of the five unsold properties within the Council’s housing stock for letting in accordance with the local lettings and sales plan;

(c)    authorises the Corporate Director (Operations & Delivery), in consultation with the Portfolio Holder for Housing, to sign any amended grant agreement proposed by Homes England in respect of the Starter Homes funding received in 2015; and

(d)    authorises the Assistant Director (Housing & Environment), in consultation with the Portfolio Holder for Housing, to make applications, where appropriate, to Homes England for the waiver of Designated Protected Areas made under the Leasehold Reform Act 1967 and The Housing (Right to Enfranchise) (Designated Protected Areas) (England) Order 2009.

Cabinet considered a report of the Housing Portfolio Holder (A.5) which updated it on the current situation regarding the Council’s recently built discounted homes for sale in Jaywick Sands and which recommended an alternative option for the future of the dwellings. The report also sought the appropriate delegations for applications to Homes England for the waiver of Designated Protected Areas.

In November 2017, Cabinet had endorsed the development of 10 new homes in Jaywick Sands, with five to be retained in the Council’s housing stock and the other five to be offered for discounted sale to Key Workers in line with the Government’s Starter Homes policy. Cabinet had also endorsed the adoption of a Local Lettings and Sales Policy for the site in March 2021.

It was reported that, whilst the five homes for rent had now been let in accordance with the Council’s lettings policy, the five homes for discounted sale remained vacant and had been marketed for sale since March 2021.  So far, none had been sold for the reasons set out within the Portfolio Holder’s report. Cabinet considered an alternative option to retain the homes as part of the Council’s housing stock and held in the Housing Revenue Account and let in accordance with the Council’s lettings policy.

Members were informed that Homes England had agreed that, under certain conditions, it would waive particular conditions of its grant relating to Designated Protected Area (DPA) status.  This would enable Registered Providers to develop grant funded shared ownership stock on those sites (not within the Council’s ownership) and allow buyers to staircase to 100% without an obligation on the provider to buy back the property if the leaseholder wished to sell.

In order to consider waiving the DPA lease requirements Homes England required an application to be made by the relevant Local Authority.  If the Authority considered that a particular site to be developed did not meet the criteria set out in the original classification of why an area should be protected, or indeed had other reasons why they thought that grant funded shared ownership stock did not need to be protected in perpetuity, they could approach Homes England to request that the conditions of grant pertaining to Designated Protected Area status be removed. This relaxation specifically related to Homes England’s conditions of grant for shared ownership homes developed in DPAs. It was not related to rural exception sites or other Section 106 agreements.

Cabinet was advised that a number of alternative options had been considered including altering the sale price, altering the sales policy and creating a rent to buy option. In summary, the options considered were:-