Decision details

Councillor Morris introduced the report seeking Cabinet approval to procure a multidisciplinary design team to undertake a detailed site appraisal, scheme design, planning assessment and viability testing. The proposed scheme would comprise approximately 16 one-bedroom social rent apartments, specifically designed to enable older residents to live independently for longer while addressing an identified local housing need at the Elms in Whitefield.  The Elms is a vacant Council owned brownfield site on Elms Close, Whitefield.

Cabinet have previously approved the disposal of the site to a strategic delivery partner/member of the Council’s Registered Provider PartnershipFramework for the development of an independent living scheme for people aged 55 and over, as direct delivery by the Council was not considered financially viable at that time. Since then, updated feasibility work and cost assessments have identified a potential opportunity for the Council to deliver the scheme directly. This change is primarily due to increased Homes England grant funding and the availability of retained Right to Buy receipts and affordable housing commuted sums.

Councillor Rydeheard queried the housing stock, will this count towards the number of properties the Council can allocate to?

Councillor Morris advised that this is a development of 16 properties which will be removed from the target but as it is a small site it won’t make a huge difference to the number of properties required.

The Leader confirmed that this won’t be a game changer in terms of the sites required for Places for Everyone but shows our commitment to using brownfield sites first.

Councillor Rydeheard highlighted the cost range of the contract that has been set and queried what procurement process has been followed and whether the contact is for a start to finish service. 

Councillor Morris confirmed that the contract hasn’t been awarded this report is to seek approval for a budget in that range to prepare for a contract.  There will be a procurement process likely to be using a framework for this.

Councillor Birchmore confirmed her support for this item, citing the use of brownfield sites and building our own properties. 

Decision(s):

Cabinet:

-       Approved the principle of progressing proposals for the redevelopment of The Elms through a direct delivery approach, as set out within this report. 

-       Authorised the procurement of a multidisciplinary design team, via a compliant public sector framework to undertake the detailed appraisal, design development, planning and viability work required to assess the feasibility and deliverability of the proposed scheme. 

-       Delegated authority to the Executive Director of Place and Executive Director of Finance to oversee delivery of this stage of the project, in consultation with the Cabinet Member for Regeneration and Growth.

-       Noted that if the proposed scheme proves to be viable, deliverable and capable of securing planning consent, a further report and funding strategy will be presented to Cabinet seeking approval to progress to the next phase of development. 

-       Agreed that, should direct delivery prove to be unviable, the site may be disposed of to a strategic delivery partner/member of the Council’s Registered Provider Partnership Framework, in accordance with Cabinet's previous decision of 13 March 2024. Any such disposal will be subject to compliance with the requirements of Section 123 of the Local Government Act 1972.

Reasons for decision(s)

The decisions will:

-       Act as a trailblazer project for further social housing delivery and signal Bury’s commitment to the GM target of 50,000 new homes by 2039.

-       Support delivery of the Council’s Housing Strategy, wider regeneration priorities and Government objectives to increase the supply of social rented accommodation.

-       Facilitate the Councils brownfield first approach to housing delivery by bringing a long-term vacant site back into use.

-       Deliver much needed affordable housing for older residents (including those with long-term conditions), helping them maintain their independence and reduce the need for more costly interventions.

-       Address identified demographic pressures, promote independent living, support health and wellbeing, and provide housing options better suited to the needs of an ageing population. • Increase the supply of accessible and adaptable homes to meet the changing needs of an ageing population.

-       Reduce ongoing costs associated with securing and maintaining a vacant site.

-       Deliver wider social, environmental and economic benefits, including  additional Council Tax revenue.

-       Enable the Council to retain ownership of the completed development, increase its housing stock and create a long-term income stream for the HRA (Housing Revenue Account) to help sustain housing services.

-       The procurement of a multidisciplinary design team gives the Council the opportunity to undertake robust due diligence before committing to construction expenditure, and will provide greater certainty regarding deliverability, planning considerations, costs and funding requirements. It should be noted that no commitment to construction or project delivery beyond the feasibility and planning stage is being sought through this report.

Alternative options considered and rejected:

Alternative Option Rejected – Disposal to a Registered Provider/Strategic Delivery Partner:

-       Dispose of the site to a strategic delivery partner/member of the Council’s Registered Provider Partnership Framework, consistent with the original approach. 

-       Whilst this option would facilitate redevelopment of the site, it would forgo the opportunity for the Council to expand its housing stock, generate a long-term rental income stream and retain control over the design, quality and management of the scheme. Additionally, the anticipated capital receipt from disposal for affordable housing purposes is expected to be minimal. 

Other Options Considered and Rejected: Do Nothing/Retain the Site: 

-       This option has been rejected due to increasing demand for housing for older people in the borough. Demographic projections indicate that demand for this type of accommodation will continue to rise over the coming years. Leaving the site undeveloped would fail to address identified housing needs. The proposed scheme will create additional housing capacity and help address gaps in provision. 

-       This is a brownfield site located in an area of high demand for social housing. A feasibility assessment identified an independent living scheme for older people as the most appropriate use of the site, reflecting both identified local housing need and the Council’s strategic priorities. The site is particularly well suited to this form of development due to its proximity to existing older persons’ accommodation and its location within a well-established and supportive community. 

-       Retaining the site would provide no strategic, social or financial benefit to the Council. The site would continue to incur maintenance and security costs whilst remaining a dormant asset.

Disposal to a Private Developer: 

-       This option has been discounted as the proposed social rented independent living scheme is unlikely to be delivered through the private development market. In addition, the Council would lose the opportunity to increase its social housing stock and secure long-term rental income.

Sell the Site Without a Defined End Use 

-       This option has been rejected because it would remove Council influence over the future use of the site and could result in development that does not align with local housing priorities. The site presents a strong opportunity to provide specialist accommodation for older people and contribute to wider strategic objectives.