Agenda item

To receive a report on delivering new Council homes and tackling derelict properties and seeking approval for two sites to be developed by the Authority through the Housing Revenue Account.  

Cabinet received a report on delivering new Council homes and tackling derelict properties, which sought approval for two sites to be developed by the Authority through the Housing Revenue Account (HRA).

The Affordable Homes Programme was approved by Cabinet on the 14 May 2013 and has delivered 1,934 affordable homes to date, including 573 new Council homes. This performance represents a 145% improvement on the ten years prior to the programme starting. The Authority’s work to support private landlords and tackle empty and derelict properties continues to improve communities and since 2019 the number of empty homes in the borough has reduced by 39%.

The Our North Tyneside Plan was approved at full Council on 23 September 2021 and included a priority to deliver 5,000 affordable homes and confirmed a commitment to reduce the number of derelict properties across the borough.

This new, ambitious target increased the previous delivery target by 1,000 affordable homes whilst remaining within the Authority’s objectively assessed housing need and in line with the North Tyneside Local Plan that was adopted in July 2017. To meet this challenge, the target of 5,000 homes would be delivered in two phases.

Phase One would see the delivery of a further 2,000 affordable homes bringing the Phase One total to 4,000 by 2032. This would include the delivery of a ten-year Housing Revenue Account (HRA) plan that would aim to deliver at least 350 new Council homes, utilising new technology to reduce carbon emissions, supporting the Authority’s work in response to the climate emergency declaration.

Phase Two of the programme would include work to identify new opportunities to deliver affordable homes. This would include assessing brownfield sites in the borough and actively seeking ‘windfall’ opportunities that may include new sites or opportunities that were not currently within the Local Plan. for homes that were currently not within the plan. The two sites that were the subject of this report were both ‘windfall’ opportunities that would contribute to delivering the 1,000 homes in Phase Two of the programme.

This former West House Pub Site, CamperdownWard, was overgrown and causing blight in the community and was put up for sale by the owner and following consultation with the Cabinet Member for Housing and the Strategic Property Group, it was recommended that the site be purchased to provide new Council homes. An offer for the land was accepted at £0.210m and the sale was completed on the 27 May 2022.

Preliminary design work and consultation with the Planning Authority had led to an outline design of 22 new affordable homes. The mix of homes aligned to housing need in the area and will include 10, two-bed houses, 2, three-bed house, 2 one-bed apartments and 8, two-bed apartments. Three of the properties would be built for wheelchair accessibility and the scheme would incorporate a full suite of green technology that exceeded the current Building Regulations.  The scheme would be delivered through the HRA with the expected cost to be circa £4.1m.  Subject to Cabinet approval, a Planning Application was due to be submitted in December 2022 with work potentially beginning on site in August 2023 with a projected completion of Autumn2024.

The site at 2 Seymour Street and 9 & 11 WatervilleRoad, as shown in Appendix B included one property that consisted of 2 Seymour Street and 9 and 11 Waterville Road, North Shields. The site was located on one of the main gateways to North Shields Town Centre. These properties had been unoccupied and unused for over 20 years and had fallen into a state of considerable disrepair.

Over the years both properties had been the subject of complaints to the Authority’s Planning Enforcement, Environmental Health and Building Control sections with the landlord completing only minimal repairs, necessary to comply with the requirements of the various improvement notices issued. Several unsuccessful attempts were made to develop a long-term solution with the owner to secure the reoccupation and improvement of the properties. During these attempts it came to light that the properties were included in a historic bankruptcy order. Consequently, the Authority had been able to work directly with the official receiver as the trustee in bankruptcy.

Following consultation with the Strategic Property Group and the Cabinet Member for Housing, authorisation was received in January 2020 for officers to investigate the legal position, negotiate directly with the receiver and make an appropriate offer or offers to secure the derelict properties.  Following extensive negotiations with the receiver and an independent valuation of the properties, an offer of £0.022m was accepted by the receiver with the sale completing on 4 January 2021.

With the properties in the Authority’s ownership, work had been carried out to secure the buildings and to undertake an options appraisal of their future use.  Due to the condition of the building, it was proposed that a planning application was submitted to demolish and clear the current buildings and use the site to provide a new 2-bed affordable home and provide a landscaped area to enhance thearea.

This scheme would be delivered through the HRA with the expected cost to be circa £0.244m.  Subject to Cabinet approval, a Planning Application had been submitted in October 2022 with a decision expected in December 2022. Subject to planning approval, work was currently forecasted to begin on site in April 2023 with a projected completion of Winter 2023.

Cabinet considered the following decision options: to approve the recommendations set out in paragraph 1.2 of the report; or alternatively, to not accept the recommendations.

Resolved that (1) the development of new Council homes at the former West House Public House Site at Swindale Drive, Killingworth, through the Housing Revenue Account, be approved;

(2) the demolition of the derelict property at 2 Seymour Street and 9 and 11 Waterville Road and re-provide a new Council home on the cleared site through the Housing Revenue Account, be approved; and

(3) the Director of Housing and Property Services, in consultation with the Cabinet Memberfor Housing,the Directorof Resourcesand theAssistant ChiefExecutive, be authorised to undertake all necessary work to carry out and complete the two new affordable housing schemes.

(Reason for decision: It will support the delivery of the Elected Mayor and Cabinet’s commitments within the Our North Tyneside Plan to deliver more quality affordable homes, reduce the number of derelict properties and support the ambition for North Tyneside to be carbon neutral by 2030.)