Decision details

The acquisition of 49 Monks Croft (the flat is within a block where the Freehold is owned by Cheltenham Borough Council), with exchange and completion due prior to the end of September 2018.

The sellers preferred completion date is prior to the 30^th September 2018which is achievable for the Council; exchange can happen at any time prior to completion although it is acceptable if exchange and completion happen on the same day.

This uses funding available from Right to Buy receipts to deliver affordable housing. This is best value for money as the low sale prices allow a higher number of purchases to take place using the budget available, dwelling for which there is a high demand in a block where the majority of properties are already owned by the Council and the Council own the freehold.

This acquisition will deliver an affordable housing unit in line with the recommendations set out in the Council Report and the Leader Allocation Paper, which also precedes two Cabinet papers on the same matter. In taking this action there will be immediate (on completion) additional affordable homes available for occupation.  This will also ensure that repayments of receipts to the government can be avoided.

Options considered are the acquisition of freehold properties and leasehold properties in a block of flats that the Council do not own. This is more expensive where freehold properties are considered and legally riskier where the Council do not own the Freehold.

Another consideration was building additional units but this takes time, buying properties allows for a much swifter assurance of readily available to occupy homes.  Using the receipts more swiftly to buy properties on the open market delivers housing and prevents the Council from having to pass the money to Central Government.

There have been a number of papers outling this approach over the last few years which included a cabinet report 2015 Page 5, para 6 and Cabinet report September 2016, Page 5 and 6 para 6. The Council Report ensures the majority of members are informed and the Leader allocation demonstrates the Leader is also in support.

The proposed alternative use of Right to Buy Receipts has been discussed with and has the support of the Operational Working Group (OWG) made up of officers. Also the cabinet member Peter Jeffries (Cabinet Member Housing) who is in support.

All parties consulted are in support.