Issue details

Introduction
The Council has an opportunity to purchase a development of 12x 2 bedroom ‘dormer bungalow’ style properties from a developer (GandK developments).
The properties are located on the site of the former Trumpeter pub on Harehill Road, Grangewood.
The cost of the properties will be £2,120,000 or £176,600 on average. The properties, whilst all two bedrooms, are of different sizes and values.
The development is cost effective when priced within the acquisition’s calculator charging a 105% social rent under the Government social rent policy.
The development will be ready approximately March - April 22
The total cost of acquiring the properties is £2,120,000 plus 5% Stamp Duty for an estimated total of £2,226,000.
The purchase is financed through utilising the unallocated resources from the 2021.22 acquisitions budget (currently estimated at £890,000) and the proposed budget for 2022/23 of £1m. This gives a budget of £1,890,000 therefore a shortfall of £336,000. The remaining £336,000 has been added to the 2022/23 housing capital programme.
The development would be secured through paying a 10% deposit (£212,000) and the remaining 90% on each property as it completes. The progression on site means that some properties could come into stock during 2021/22 – up to the value of the £890,000 available in 2021.22.