URL: https://westnorthants.moderngov.co.uk/ieDecisionDetails.aspx?ID=1474

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: RESOLVED: That Cabinet; a)    Noted the status and the implications of the financial challenges on the three large housing projects. b)    Approved the new delivery strategy for Avenue Campus, that will require up to a further 2 land disposals and up to 2 infrastructure contracts, with the approvals for the former and one of the latter to be brought back to Cabinet for subsequent approval. c)    Noted that the Section 151 Officer has accepted circa £1m of Brownfield Land Release Fund grant for Avenue Campus under his delegated authority. d)    Authorised the Director of Communities and Opportunities to procure and award a contract(s) to supply utilities to Bassett-Lowke Hall, necessary for the already approved land disposal, and undertake the infrastructure works required on the Avenue Campus site in line with the Brownfield Land Release Fund grant funding agreement. e)    Noted the use of up to £4.8m to provide utilities to Bassett-Lowke Hall, undertake the above infrastructure works and prepare and submit a revised planning application for Avenue Campus. The costs for this will in part be met from the Brownfield Land Release Fund grant, with remaining costs funded within the existing HRA budget. Subject to the land sale being completed, the majority of this cost will be offset by the proceeds from the sale of Bassett-Lowke Hall. f)     Noted the use of £1m from the existing Roof Gardens budget to carry out design work to enable the new delivery strategy for the Roof Gardens project including submission of a new planning application for a scheme of at least 58 Council homes, which will be delivered as affordable homes. g)    Noted that Belgrave House is now being taken forward as part of the wider plans for the Greyfriars English Cities Fund development project and will no longer deliver the 122 key worker homes previously proposed by NPH. h)    Noted the changes to the above three projects including the delivery of substantially fewer affordable homes will reduce the capacity of the HRA to deliver further Council homes, approvals for which will follow in a further Cabinet report. i)     Noted the use of funds from the HRA to undertake the above recommendations where applicable.   REASONS RESOLVED:   1.    The recommended course of action is the most cost-effective, giving the greatest chance of recovering the incurred costs to date while seeking to deliver affordable housing and minimising the site holding costs currently being incurred. 2.    The Council will receive the maximum benefit from the option proposed through recovering as much of the investment to date and delivering as many affordable homes as possible. 3.    The recommended approach for Avenue Campus has the potential to better deliver the Council’s Housing Strategy by creating a more balanced, thriving and sustainable community whilst still seeking to maximise the amount of affordable housing that is viable on the site. This will result in the delivery of between 113 and 170 homes, all or the majority of which will be for market tenures, with affordable homes only delivered once it is clear the Council can recoup the £13.7m expenditure to date in full or where the financial performance of delivering affordable housing matches that for market homes. This compares with the 170 affordable homes proposed in the original. 4.    The revised scheme for Roof Gardens will contribute to the delivery of the Council’s Housing Strategy and also its new Affordable Homes Delivery Plan launched in November 2024. Along with Castle Street this will result in the delivery of 82 affordable homes, replacing the same number that were demolished on the site, a reduction from the 126 affordable homes originally proposed by NPH. Approvals for the subsequent building contract and financial approvals will be brought back to Cabinet in due course. 5.    In due course the redevelopment of the Belgrave House site will deliver various regeneration and economic benefits (e.g. jobs). 6.    The eventual delivery of all of these schemes will cease the holding costs for the 3 sites that the Council is currently incurring and generate construction jobs and associated spend locally.   ALTERNATIVE OPTIONS: As the original 100% affordable housing projects are no longer financially viable, the Council needs to bring these sites forward using different strategies, which will involve using market sale and other uses to seek to minimise any financial losses.   Different approaches for the three sites are required than was set out by NPH. Further Cabinet reports will set out further detail in due course. Given the changes required, the Council will only be able to deliver 82 affordable homes including the 24 recently completed affordable homes at Castle Street (possibly more if the viability of Avenue Campus improves). This compares with the 418 affordable homes proposed by NPH.   Given that the three large housing projects have not been delivered and the need to return the Homes England grant allocation, there is also a need to rebuild the relationship with Homes England so that the Council can access AHP grant in future rounds. Having secured circa £1 million of Brownfield Land Release Fund grant on the Avenue Campus site the Council would need to start on site with infrastructure works by 31st July 25. This grant funding would clearly improve the financial viability of the scheme and could be used in conjunction with other grants which will be explored.

Date of Decision: June 24, 2025