Decision details

1.1 To consider the acquisition of Medway Court from LiveWest which is now surplus to their requirements and is currently vacant. The property consists of six no 1 bed self-contained flats with a single office to the ground floor and a storage area to the first floor, parking to the front and hard landscaping area to the rear.

1.2 LiveWest presented the opportunity to the Councils Strategic Housing Enabling team who support this acquisition as it provides much needed 1 bedroom accommodation where there is strong demand for this type of accommodation.

1.3 The Housing and Empty Homes Team are in support in acquiring this one bedroom self-contained accommodation as there is currently 375 one bed applicants registered who have given Whaddon as an area of preference. There are 1431 one bedroom applicants registered for accommodation in the Borough of Cheltenham. The property is also located within an area whereby we already own and manage homes and communities.

1.4 The property at Medway Court would have been building regulation compliant at the time it was constructed. Any works required to bring the accommodation to EPC C has been built into an 80-year capital expenditure profile and will be included within the financial appraisal.

1.5 The technical and investment team within the Council have undertaken an initial survey of the property and have included a works allowance  for fire door replacement they also consider the property to be in good condition and would be beneficial addition to the housing stock.

1.6 Cheltenham Borough Council have pre-emption rights of first refusal should this property be disposed of, and so the Council has been approached to gauge our interest in acquiring the property. If the Council do not pursue this opportunity there is the risk of this affordable housing being lost to the open market if another housing provider does not consider this opportunity.

1.7 The budget allocation is available for the Council to pursue a range of new supply opportunities via a range of different mechanisms, including Section 106 opportunities, with the aim of enhancing the provision of Affordable homes in the Borough.

1.    To proceed with due diligence and negotiate the purchase of Medway Court, Whaddon Road, Cheltenham including appointment of a residential RICS condition survey report, RICS independent valuation open market report and legal review of the title documents and conducting necessary legal searches and report on title.

2.    To approve the budget to carry out a residential condition survey, legal disbursements and RICS open market valuation report.

3.    To recommend to Delegate Authority to Director of Finance and Assets and Cabinet Member for Housing and Director of One Legal the purchase of Medway Court, Whaddon Road, Cheltenham.

CBC is at risk of significant housing pressures. This opportunity enables existing affordable housing stock to be retained and not lost on the open market.

One of the 3 key priorities in CBC’s approved 40-year HRA business plan is to provide new Affordable homes in the Cheltenham area. Increasing the supply of housing is also a key priority within the Council’s Corporate Strategy, and this is also reflected in CBC’s Housing and Homelessness Strategy.

The benefits of proceeding with this scheme include:

·         Helping to support the current housing need within areas whereby we already manage existing stock and communities.

A full appraisal will be undertaken to ensure that the acquisition is viable and is in accordance with the Council’s financial parameters. Should CBC not proceed with the acquisition the property could be secured by another Registered Provider or sold on the open market.