Decision details

To purchase property in Exeter, at a value with negotiation to a maximum of amount based upon recommendation of ECC valuer) Stamp Duty should also be taken into consideration,in a region cost and increasing to a set cost.

To make best use of the  council’s housing assets, increase stock provision and rental income. 

This property is a two bedroomed flat and is the only leasehold property within a scheme of Older Persons Accommodation.

The council was made aware of the property as a result of estate agent advertising. It has also received a communication by the family of the previous leaseholder to establish whether the council was interested in purchasing the property. It has been valued by the Authority’s valuer at around £180,000.

ECC wishes to make an initial offer of £175,000 (plus stamp duty) with a view to negotiating to a maximum value of £180,000 (plus stamp duty) and purchase the property for the following reasons:

• Our current Asset Management Strategy states that we will dispose of one off properties away from our concentration of stock and reinvest in properties that are located within our current portfolio. This will be more cost effective as these properties will be less costly to maintain operationally. 2 Flowerpot Lane fulfils the latter part of this strategy.

• ECC will benefit from the reduced leaseholder obligations
• Acquiring the property will increase the HRA portfolio and meet rising demand for two bedroomed properties
• Our staff and contractors are familiar with the archetype for the purposes of effecting repairs and planning programmed works.

This is the best option and will seek to streamline the HRA portfolio, reducing operational costs for repairs and planned works.