Decision details

To purchase 11b Thornberry Avenue, Exeter, EX1 3HR

Decision Maker: Director - Bindu Arjoon

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To purchase property in line with the Senior Estates Valuer valuation and taking into account that the value of the property was determined at the time it was accepted under the Right of First Refusal, which was prior to the current ‘lockdown’ situation. Stamp Duty will also apply to this purchase.

Reasons for the decision:

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

 

This property is a one bedroom second floor flat within a council owned block of 8 flats amongst a larger, predominantly council owned, estate, and was purchased by the sitting tenant under the Right to Buy on 31 May 2015.

 

ECC has received an offer notice under the housing (Right of First Refusal) (England) Regulations 2005 from the current owner of the property and must now make a decision whether to:

 

  1. Accept the offer, or
  2. Nominate another party to accept the offer, or
  3. Serve a rejection notice

 

ECC wishes to accept the offer 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. 11b Thornberry Avenue 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 one bedroomed properties
  • Our staff and contractors are familiar with the archetype for the purposes of effecting repairs and planning programmed works.

 

Alternative options considered:

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

 

 

Publication date: 27/07/2020

Date of decision: 27/07/2020