The Corporate Director of Resources has decided to approve the acquisition of an Ex-Right to Buy property to address housing challenges in Upper Norwood.

URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2508

Decision Maker: Corporate Director of Resources (Section 151)

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: This report seeks the Corporate Director of Resources & S151 Officer’s approval to acquire an Ex-Right to Buy property, 55 Gatestone Court, Gatestone Road, Upper Norwood, London, SE19 1BL   The property is a second floor 2-bedroom flat. It meets the requirements of the Property Purchase Project, to acquire ex-Right to Buy and Private Street properties in the London Borough of Croydon. The project’s objective is to acquire a minimum of 300 (2, 3, and 4+ bedroom) properties over a 3-year period 2024-2027.   This will enable the Council to meet the corporate priority to increase the supply of Temporary Accommodation, provide decant properties for Regina Road tenants and replacement properties for tenants occupying the Croylease (PRS) scheme.  

Content: This report seeks the Corporate Director of Resources & S151 Officer’s approval to acquire an Ex-Right to Buy property, 55 Gatestone Court, Gatestone Road, Upper Norwood, London, SE19 1BL   The property is a second floor 2-bedroom flat. It meets the requirements of the Property Purchase Project, to acquire ex-Right to Buy and Private Street properties in the London Borough of Croydon. The project’s objective is to acquire a minimum of 300 (2, 3, and 4+ bedroom) properties over a 3-year period 2024-2027.   This will enable the Council to meet the corporate priority to increase the supply of Temporary Accommodation, provide decant properties for Regina Road tenants and replacement properties for tenants occupying the Croylease (PRS) scheme.   For the reasons set out in the report and its appendices, the Corporate Director of Resources & S151 Officer AGREED to:   Purchase of 55 Gatestone, Gatestone Road, Upper Norwood, SE19 1BL on the terms detailed in the Part B report.   The property was acquired by the seller under the Right to Buy scheme on 21st October 2019 and has been offered back to the Council for consideration under the 10 year Right of First Refusal covenant.   The Council has a significant Housing supply challenge, we currently have 3,600 families in Temporary Accommodation (TA) and 3,100 agreed on the housing register.   The Council has previously relied on the housing association sector to increase supply but the rate of new supply of affordable homes within the borough has declined significantly and there are significant constraints in accessing suitable accommodation in the private sector.   Financial savings achievable by reducing the demand on temporary and emergency housing, the current average cost to the Council for every TA placement is circa £8,000 per year.   The Council has already considered and entered a number of different housing solutions to address the need for temporary and emergency accommodation and continues to review options.   These have included taking long leases, typically for 40 years with rents below Local Housing Allowance levels but subject to RPI increases. At the end of the 40 years the Council can acquire the properties for £1. These schemes have a future place in providing this type of accommodation but do not offer the overall flexibility that straight purchase of homes has to offer.  

Date of Decision: July 3, 2025