Agenda item - New Homes for Neighbourhoods - Housing Co-op Pilot

Report of the Executive Director, Economy, Environment & Culture (copy attached).

That Housing & New Homes Committee recommend to Policy, Resources and Growth Committee that:

(1)            The land at Plumpton Road, Brighton BN2 9YL be made available for leasing.

(2)            There be delegated authority to the Executive Directors for Economy, Environment & Culture, Finance and Resources and Neighbourhoods, Communities & Housing (in consultation with each other) to enter into the necessary contracts with Bunker Housing Co-operative Limited to lease the former council housing garage site at Plumpton Road, Brighton BN2 9YL, to secure the building of two new homes for rental by the co-op. The granting of the lease is subject to Bunker obtaining planning consent, funding and entering into a nominations agreement with the council. 

58.1   The Committee considered a report of the Executive Director, Economy, Environment and Culture which reminded members that in 2014 the Housing Committee agreed to a pilot to develop a small site by a housing co-operative represented by Co-operative Housing in Brighton & Hove (CHIBAH). On 23 September 2016 the Housing & New Homes Committee noted progress with the co-operative pilot and that members of a self build co-operative nominated by CHIBAH were preparing a feasibility study for development of two family houses on the Plumpton Road former garage site. The Estate Regeneration Member Board had also had regular updates on progress with this proposal.  The report now sought approval to lease the Plumpton Road former garage site to Bunker Housing Co-operative in order to self-build two family homes for rent, which would be let within affordable rent levels to applicants from the Homemove register and to which the council would be able to nominate future tenants. The report was presented by the Estate Regeneration Project Manager, who stressed that the proposal would deliver two rented homes at no cost to the HRA and was in line with the Housing Strategy commitment to support community housing developments in the city. 

58.2   Councillor Moonan thought that the proposal was a very innovative plan.  She asked if there were guarantees if the Bunker Housing Co-operative did not develop the site for any reason.  She asked if there was a break clause. The Estate Regeneration Project Manager explained that the lease was subject to the co-op obtaining planning consent for the homes; the co-op having the funding available, and the co-op entering into a nomination agreement with the council.  The lease would not be granted until everything was in place and the lease itself would also include a long stop date.   

58.3    Councillor Druitt thanked officers for the report and paid tribute to Bill Randall for carrying out the initial work.  One of the main advantages of the scheme was that the site had nil value but the proposal was a very creative solution from a housing co-operative who could make best use of the land.  He asked if there were other sites in the city that could be similarly used. 

58.4    The Estate Regeneration Project Manager stated that it would be up to Housing Services to decide if there were any similar sites.  She agreed that there was an opportunity to learn from this site. The scheme did not set a precedent as each site should be considered on its merits.  The council needed to achieve best consideration for each site.

58.5    Councillor Mears thanked and congratulated the Estate Regeneration Project Manager and her team for their work on this awkward and difficult site.  It was important to recognise the detailed work that had been carried out.  The Conservative Group would support the scheme as it would be providing homes.

58.6    Councillor Gibson referred to paragraph 3.12 on page 112 in relation to the rent levels being discounted.  He stressed that rents should reflect the nature of the scheme.  The nature of this scheme was that people were putting labour into the proposal. Councillor Gibson thought the scheme was a good and interesting model.  It was right to have carried out a pilot but wrong to think it could only be carried out on difficult sites.  Advantages to the proposal were that the scheme would provide housing needs. It was self build and would enable a lower rent level and there would be no loss of properties from Right To Buy. 

58.7    The Executive Director, Economy, Environment & Culture stated that officers tried to present the proposed rent as a percentage of market rent and local housing allowances to give members of the committee a clear benchmark from which to judge the proposals. For any piece of land the council would always look at what the best delivery mechanism and housing model was for that piece of land.

58.8    RESOLVED:-

That Housing & New Homes Committee recommend to Policy, Resources and Growth Committee that:

(1)            The land at Plumpton Road, Brighton BN2 9YL be made available for leasing.

(2)            There be delegated authority to the Executive Directors for Economy, Environment & Culture, Finance and Resources and Neighbourhoods, Communities & Housing (in consultation with each other) to enter into the necessary contracts with Bunker Housing Co-operative Limited to lease the former council housing garage site at Plumpton Road, Brighton BN2 9YL, to secure the building of two new homes for rental by the co-op. The granting of the lease is subject to Bunker obtaining planning consent, funding and entering into a nominations agreement with the council.