Agenda item

The purpose of this report is to provide members with an overview of the proposed new build housing schemes which are in a position to bring forward to planning and procurement of a build contractor with a view to enter into contract to deliver the new sustainable homes. The report also seeks Member approval to the recommendations made for each project as set out in the business cases within Exempt Annexes 1(a) & (b) and associated appendices using the financial strategy approved by Full Council on 13 December 2022.

Recommendation to Overview and Scrutiny Committee (Resources)

It is recommended that the Overview and Scrutiny Committee;

-        Considers the report and information within the annexes and appendices, as well as the recommendations to Executive as set out in the business cases in Exempt Annexe 1 (a) & (b) of this report and 2.2 and 2.3 in the cover report; and

-        resolves whether to make any recommendations to the Executive.

54.1     The Housing Development Manager introduced the item. Cllr Atkins requested the build costs by square-foot or square-metre for each project. Louisa Blundell stated that these are £5212 per square-metre for Springfield and £5434 per square-metre for Elstead.

54.2     Non-voting member Cllr Hyman asked if it was necessary to enter exempt session, which no member of the Committee intimated they would like to do. The Chair noted that any matters that concerned Cllr Hyman could be taken forward outside of this meeting.

54.3     Cllr Hyman and Cllr Atkins voiced concerns around asset valuation and fears this could have potential negative impacts. The Senior Accountant stated that they would work with Cllrs Hyman and Atkins on this and the Gross Domestic Value to clarify procedures.

54.4     The Executive Head of Regeneration and Planning Policy reminded the Committee that the external review by Haverly Consulting LTD evaluated the MPV and value for money attainment of the scheme.

54.5     Cllr Davidson voiced caution about advancing the schemes before reconsidering this project’s financial contingency in case there is an overspend due to rising costs. Cllr Merryweather clarified his support of the project due to the need for greater social housing provision.

54.6     The Chair summarised the comments of the committee as expressing concern about the market valuation process, cost overruns and the potential  need for a greater contingency, while Cllr Atkins noted Cllr Hyman’s comment that current land values and buildings presently on-site are excluded from valuation.

54.7     Cllr Liz Townsend clarified that the Senior Accountant has stated that there is a calculation that values down affordable housing in the proper way. The Chair was happy to note this but still reflected the statements of the committee.

The Committee resolved to note the recommendations in the report.

The Committee also resolved to:

-        express concern about the market valuation process;

-        the potential for cost overruns; and

-        to request that the option of a greater contingency be investigated to mitigate any impacts of inflated build costs.

The vote was carried with:

Votes For: 6   Votes Against: 1      Abstentions: 2