Decision Maker: Assistant Director - Housing
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Report presented to Finance and Performance
Board to purchase a development of 5 properties at Houldsworth
Drive as the acquisition was above the value thresholds in the
Acquisitions Policy
Finance and Performance Board approved for the Housing Service to
purchase a development of five new build two bedroom properties at
Houldsworth Drive, Hady. The purchase will be split into the
purchase of a pair of semi-detached properties for £240,000
in the financial year 2019/20 and an option to take up the purchase
of a further 3 properties for £345,000 during financial year
2020/21.
3.0Background
3.1An offer has been made to for the development of five two
bedroom houses at Houldsworth Drive, Hady to Frank Innes the estate
agent acting on behalf of the developer. The bungalow to the side
of the development is intended to be occupied by the
developer.
3.2The developer was seeking £130,000 for the first two
properties (the pair of semi-detached properties at the front) and
either £120,000 or £125,000 for three properties at the
rear.
3.3The site is currently under construction with the first two
properties due to be completed in late October or early November
2019. The three town houses to the rear are not yet under
construction. Their construction will begin once the two
semi-detached properties are sold. The developer is anticipating
their completion by August 2020.
3.4An offer of £585,000 for the five houses was made to and
accepted by the developer. The offer was made up of £120,000
for the two semi-detached properties and £115,000 for each of
the row of three town houses to the rear. Kier are instructed to
draw up and negotiate the Heads of Terms documents for the purchase
once Finance and Performance Board approve the purchase.
3.5The price agreed is over the limits within the current Strategic
Acquisitions Policy as set out below:
•The owner has a large service charge/ major works debt they
are unable to afford (Leasehold property only)
•The maximum price payable for a property will not exceed
£90,000 (to increase by inflation (now approximately
£96,000))
•That the value of property purchase and works required to
bring the property up to a lettable standard does not exceed
£95,000.
•If the property being considered does not meet one of these
criteria, a report to Cabinet will be required to secure approval
for the spend
3.6Finance and Performance Board therefore gave permission for the
acquisition under the delegation:
Finance and Performance Board and Land Disposal Group
OFFICER DELEGATIONS: To the Chief Executive, an Executive Director
or the Director of Finance and Resources:
G275D Notwithstanding any other delegations in Part 3, after
consultation with members of the Finance and Performance Board to
approve the acquisition and disposal of land of a value of up to or
exceeding £250,000.
Alongside this report a new Acquisition Policy was considered. The
purchase of the three properties to the rear will be considered
under this revised policy and a further officer decision
submitted.
Recommendation to show that the purchase of 2
properties is £240k (within delegation) and the option to
purchase the other 3 will be after the new policy and will require
Cabinet member approval
Option 1 - To purchase the 2 properties at
Houldsworth Drive for £240,000 and take an option for the
other three properties
Option 2 - To not purchase the two properties
Reason Key: Decision to dispose or acquire any interest in land or buildings with a value of £50,000 or more;
Contact: Liz Cook, Service Director - Housing Email: liz.cook@chesterfield.gov.uk Email: liz.cook@chesterfield.gov.uk.
Publication date: 22/10/2020
Date of decision: 30/09/2019