Decision details

To seek the agreement of the Portfolio Holder to exercise the delegated authority set out in the minutes of the Executive Meeting held on the 4 July 2006 and to sell the property and reinvest the proceeds into purchasing another property in accordance with the terms of the Asset Management Strategy.  

To seek the agreement of the Portfolio Holder to exercise the delegated authority set out in the minutes of the Executive Meeting held on the 4 July 2006 and to sell the property and reinvest the proceeds into purchasing another property in accordance with the terms of the Asset Management Strategy. 

The minutes of Executive held on 4 July 2006 resolved that the Council would pursue a programme for making use of the HRA land to increase the provision of affordable housing and that a strategic partnering approach to this be introduced as soon as practicable.

The minutes included, subject to the conditions, delegated authority to:

·         Dispose of HRA land or property at market value, subject to any receipt being reinvested in providing affordable housing; or

·         Dispose of HRA land or property for affordable housing at less than best value on a 125 year lease in exchange for nomination rights that will be granted in perpetuity

An Options Appraisal paper, dated 11 June 2007, recommended the trickle transfer of four properties to a housing association. As each property falls empty, the housing association should be given an opportunity to purchase it, presumably on the basis of the strategic partnering approach being in place when each occurs.

2 properties were sold freehold.

This arrangement is now outdated and a number of changes have occurred in the intervening period which potentially invalidates the original decision:

·         The housing association have merged with another association and the original agreement is no longer in place, with no new agreement having been made

·         The abolition of social housing grant has forced housing associations to charge affordable rent instead of social rent which resulted in the cessation of other similar trickle transfer agreements within the city

·         The current Asset Management Strategy sites that we will actively dispose of properties which do not form part of our larger estates, and use the funds to reinvest in properties which arise on the open market and are more appropriate located

The property has been subject to the provisional valuation of around £150,000. It has been difficult to accurately gauge what value it may achieve on the open market due to the unusual nature of the property.

NA