Part 1
REPORT OF THE STRATEGIC DIRECTOR FOR SUSTAINABLE
REGENERATION
TO THE JOINT LEAD MEMBERS FOR HOUSING AND PLANNING
FOR BRIEFING ON 5th May 2009
FOR DECISION ON 19th May 2009
TITLE: PREFERRED OPTION FOR THE ISLINGTON ESTATE
RECOMMENDATIONS:
That Lead Member for Housing is recommended to:
1. Approve the preferred option for the Islington estate as outlined within
this report.
That Lead Member for Planning is recommended to:
1. Note the report for information.
EXECUTIVE SUMMARY:
In September 2008 consultants GVA Grimley were commissioned by Salix
Homes to undertake an options study in order to develop a preferred option
for the Islington estate. The resulting preferred option is intended to increase
the sustainability of the Council’s housing stock as well as complement the
proposed regeneration of the surrounding Chapel Street area. 5 options for
the estate ranging from minimal intervention to full demolition and
redevelopment were developed by the end of 2008.
In February 2009, detailed consultation was undertaken on these 5 options,
with over 60% of the estate providing a structured response. The views of
residents were then combined with additional stakeholder consultation, a
financial appraisal and a review of the strategic regeneration criteria of the
partner organisations Salford City Council, Central Salford Urban
Regeneration Company (URC) and Salix Homes to develop a preferred option
for the estate.
The details of the preferred option for the estate are contained within the
report and in summary include the retention and improvement of 261 of the
307 properties on the estate including the two high rise blocks of flats. It also
1
involves building 123 new properties, a proportion of which would be made
available for private sale, resulting in a net increase of 77 properties on the
estate.
Once approved the preferred option will be used to form the basis for further
financial modelling to help secure funding to pay for the delivery of the
preferred option.
BACKGROUND DOCUMENTS: Islington Estate Neighbourhood Planning
Options Consultation Report – GVA Grimley March 2009
ASSESSMENT OF RISK: MEDIUM
The preferred option for the Islington estate includes providing a greater
choice of housing tenure, including homes for sale. A mixed tenure is
proposed that will help secure the long term sustainability of the estate. The
preferred option will meet the long term objectives of the estate and its
communities, to ensure that the estate remains popular and complements the
redevelopment of Chapel Street into the future.
There are risks associated with the funding of the proposal. Unsuccessful
expression of interest for PFI round 6, inability of Salix to obtain 2 stars at
inspection and hence, drawdown ALMO funding and continued weaknesses
in the housing market fettering the assumed sales revenues.
The current housing market means that developer interest in the site, as with
other sites across Salford and the country, may be difficult to attract at
present. Although this is a potential risk to the success of the proposal, this
will be managed through the anticipated timescales for the implementation of
the preferred option. At the point when all funding is secured and contract
arrangements finalised to deliver the preferred option, it is expected that the
market will have started to make a recovery and there will be demand for
private sector development. This will be supported by the comprehensive
regeneration plans for the Chapel Street corridor currently being developed by
the Central Salford URC, which sits alongside the Islington estate.
SOURCE OF FUNDING: The preferred option to redevelop the Islington
estate is forecast to cost £32.7m. This is to be funded £14.4m PFI credit, £7m
decent homes funding and £11.3m sales revenue.
The Islington estate has been included in an initial PFI round 6 Bid for
Islington and Greengate. The results of this bid will be known in summer
2009.
If the bid is successful, this will give funding of £14.4m towards the project.
However further work on the detail will need to be carried out during the
detailed PFI process.
Salix Homes through the Decent Homes funding programme has identified
approximately £7 million to carry out improvements to homes on the estate,
2
subject to achieving a 2 star rating or better with the Audit Commission in
early 2010.
LEGAL IMPLICATIONS:
Contact Officer:Ian Sheard, Assistant Director of Legal Services.
Extension No: 3084
Date Consulted: 17th April 2009
Comments: Legal Services have no concerns regarding the content of the
report
FINANCIAL IMPLICATIONS:
Contact Officer and Extension No: Nigel Dickens
Date Consulted:22nd April 2009
Comments: The funding identified above for the PFI and Decent Homes are
consistent with these proposed programmes and do not give any financial
concerns. However, if any of the risks identified above materialised there will
be a need to immediately review the scope and delivery mechanism with
alternative sources of funding for the redevelopment project.
COMMUNICATION IMPLICATIONS: Residents on the Islington estate were
consulted over a two week period in February 2009 via a total of 8 separate
events across a number of venues within the estate. Residents were asked to
complete a detailed questionnaire on the options for the estate providing their
views on which elements of the proposals they most favoured. In total 63% of
households on the estate responded at these events and further views were
sought from stakeholders at a number of other events in the area.
The decision made by Lead Member for Housing will be communicated to
residents on the estate at events during June 2009. A follow up newsletter will
also sent to residents on the estate at the same time. All residents who are
affected by demolition will be contacted by Salix Homes. They will be advised
and supported on an individual basis regarding their options for their future
home.
Stakeholders will also be advised of the preferred option.
A press release will be made available to local papers to follow up on recent
coverage in the Salford Advertiser.
VALUE FOR MONEY IMPLICATIONS:
The development of the options included a financial assessment. Value for
money and financial viability have been considered in the development of the
preferred option.
3
CLIENT IMPLICATIONS: Salix Homes are the commissioning organisation in
this case, but are working in close partnership with the City Council and the
Central Salford Urban Regeneration Company (URC) to complete this project.
PROPERTY: There are land and property implications at a later stage in this
process, once funding sources have been identified. The precise details of
these implications will only become evident once more detailed design work
on the preferred option has been carried out. The preferred option however is
likely to involve some transfer of Council land and property to private
ownership in order to achieve a mixed tenure solution for the estate. Where
land and property is already in private ownership, compulsory purchase
powers may be required to achieve this transfer if agreement cannot
ultimately be reached with owners.
HUMAN RESOURCES: The Islington Project Team is currently meeting on a
regular bi-weekly basis. Officers from the Council, Central Salford URC,
resident representatives and Salix Homes will remain involved in this Team
though the frequency and regularity of the meeting will be reviewed once the
preferred option is decided. Support for this Team is managed through
existing resources at the Council, Salix Homes and Central Salford URC.
CONTACT OFFICERS:
Sarah Clayton, Head of Strategy and Enabling, Sustainable Regeneration
Extension No: 2366
WARD(S) TO WHICH REPORT RELATE(S): Ordsall
KEY COUNCIL POLICIES:
Central Salford Urban Regeneration Company: Vision and Regeneration
Framework
Salford City Council: Planning Guidance for Salford
DETAILS:
1.0
Background
1.1
The Islington estate is situated in the Chapel Street area of Central
Salford and is less than 1 mile from the regional centre. The estate
occupies 3.5 hectares and is visible from the Chapel Street
corridor. The estate was built by Salford City Council in the 1960s,
and is still mainly owned by the Council, with the exception of 8
4
Right to Buy properties. All properties on the estate which remain
within Council ownership are managed by Salix Homes, the
Council’s Arms Length Management Organisation (ALMO) in
Central Salford.
1.2
The estate comprises 307 units of housing; 231 are one and two
bedroomed flats within the high rise blocks Arthur Millwood Court
and Canon Hussey Court. There are also 36 low rise flats, 32
houses and 8 bungalows located around the high rise blocks.
1.3
In September 2008 consultants GVA Grimley were commissioned
by Salix Homes to develop an options study for the Islington
estate, which is intended to provide a comprehensive and
sustainable plan for its future development and regeneration. A
Project Team responsible for managing the process is coordinated by Salix Homes’ officers and includes senior level
representation from Salford City Council Sustainable Regeneration
and Community, Health and Social Care Directorates, Central
Salford Urban Regeneration Company (URC), resident
representatives from the estate’s resident regeneration forum, and
the appointed independent tenant advisor
1.4
At the end of 2008, 5 options for the Islington Estate were
developed by GVA Grimley and urban designers Planit. These
options proposed different levels of intervention on the estate. All
options included, to differing degrees, the following core elements:
 Creation of better quality homes
 Improvement to how the estate looks
 Improvement to the layout of the estate
 Creation of a central ‘heart’ in the estate
 Addition of new housing to the estate (with the exception of
option 1)
1.5
The main features of the 5 options are listed below:



Option 1- Improve all homes to ‘Decent Homes Standard’ and
some environmental improvements, including a neighbourhood
green and a multi-use games area (MUGA).
Option 2- Improve homes to ‘Decent Homes Standard’
including external improvements to the 2 high rise blocks.
Environmental improvements, including a neighbourhood
green. Demolition of 2 homes to create a route to Islington
Park. Small amount of infill development (for social rent) which
would increase the number of homes by 47.
Option 3- Improve homes to ‘Decent Homes Standard’
including external improvements to the 2 high rise blocks.
Environmental improvements, including a neighbourhood
green. Demolition of 26 properties to create a link across the
estate and allow new development (for sale and social rent)
which would increase the number of homes by 114.
5


1.6
1.7
1.8
Option 4- Improve 2 high rise blocks to ‘Decent Homes
Standard’ including external improvements. Environmental
improvements, including a neighbourhood green. Demolition of
all properties except the 2 tower blocks to create a link across
the estate and allow new development (for sale and social rent)
which would increase the number of homes by 121.
Option 5- Demolition of all property on the estate and
redevelopment of the whole site; environmental improvements
including a neighbourhood green and sports facility for the
school, new development (for sale and social rent) which would
decrease the number of homes by a minimum of 57.
Full details of these 5 options with accompanying plans can be
found in section 6 of the Final Report completed by GVA Grimley
attached in annex 1.
The 5 options were consulted upon between 14/2/09 – 28/2/09
amongst residents and stakeholders with 63% of households on
the estate responding. Each option then underwent a financial
appraisal and was scored against a range of strategic regeneration
criteria developed in co-operation with partners from the Project
Team.
This report presents the recommendations of the Project Team,
based upon the combination of the findings of the resident
consultation exercise, stakeholder consultation, the assessment of
the strategic regeneration criteria and the financial appraisal.
2.0
Details
2.1
The Project Team is in agreement that the level of intervention
contained in Option 3 is appropriate and should be used as a
starting point to develop the preferred option for the Islington
Estate. The main rationale for selecting Option 3 is outlined below:




Resident support- residents expressed a preference for
the less radical options, but still recognised that some
redevelopment was needed to alter the layout of the estate.
They also strongly backed proposals involving better quality
homes.
Scale of demolition- a significant proportion of the estate is
retained, including both tower blocks, which is in line with
resident opinion on the estate as established by the
consultation process.
Strategic
demolition
providing
development
opportunities- though limited in scope, the level of
demolition provides coherent development sites with
significant potential to develop new properties and thereby
achieve a more mixed tenure housing offer on the estate.
Strategic Objectives- scores well against the majority of
6
the strategic regeneration criteria, and although it does not
score as well as the more radical options 4 and 5 in design
terms, it balances the aspirations of the community and the
requirements of the strategic partners.
2.2
The other options were rejected for a number of reasons as
follows:
2.3
Community Views
The options consultation process indicated that residents across
the estate were, on the whole, largely opposed to the level of
intervention proposed under Option 5.
2.4
Although a significant minority of residents surveyed stated their
first preference would be for the whole estate to be demolished,
few residents chose option 5 as their second or third choices.
Once this had been taken into account there was a strong
consensus for the less radical options 2 and 3.
2.5
Option 4, though less radical than Option 5 was also considered to
be ‘a step too far’. It would also result in the demolition of a larger
number of popular existing houses and bungalows, which would
be difficult to justify.
2.6
However, there was also strong support for the regeneration
proposals under Options 2 and 3, and especially the proposals to
radically improve the external appearance of the estate’s two tower
blocks.
2.7
Salix Homes
The emerging preferred option has been considered by Salix
Homes Services Committee on 9th April 2009. Salix Homes’
Services Committee agreed in principle support for the preferred
option on the assumption that that Salix Homes would continue to
manage the retained stock at Islington regardless of the resource
procurement route used to fund the scheme.
2.8
Strategic Regeneration Objectives
Neither Option 2 nor especially Option 1 were felt to adequately
meet the wider regeneration objectives for the areas. The minimal
work was thought to be potentially harmful to the wider
regeneration of the area, by highlighting the contrast between the
poor condition of the Council owned stock and the new
development proposed for the Chapel Street corridor.
2.9
Neither Option 1 nor 2 would be likely to result in any significant
tenure change on the estate, and the limited development
opportunities created through option 2 would be of limited interest
to the private sector. This would be likely to result in further
development of social housing on the estate, missing a key
7
objective of the strategic stakeholders to introduce a more diverse,
mixed tenure and mixed income community to the area.
2.10
Deliverability and Financial Feasibility
Option 5 represents the most interventionist approach, and also
involves the highest cost per unit to undertake. It is also the most
disruptive to residents and presents considerable difficulties for
Salix Homes in managing the process of relocation and reprovision for those affected by demolition, given the substantial
reduction in the number units on the estate that Option 5 creates.
2.11
Developing the Preferred Option
The Project Team also considered that whilst Option 3 was a
starting point to develop a final preferred option for the estate, a
number of potential design amendments would further enhance
the proposal. These are summarised as follows:





An emphasis on providing more houses and fewer
apartments, based on market testing and demand
information.
An amendment to the detailed plan in the Rodney Street
area in order to resolve the resulting small areas of open
space.
A proposal to create a stronger frontage to development
blocks on North Star Drive.
Amendments to the proposed development /redevelopment
of Cornwall House to create a larger, more deliverable
development block.
A proposal to the allow inclusion of a MUGA pitch within the
boundary of the estate if required- subject to ongoing
discussions with the Children’s Services Directorate and St
Phillips School. This would also have the impact of
reducing the number of apartments further.
2.12
These considerations resulted in the development of 5 variations
on Option 3, allowing the combination of the amendments
summarised above to be re-assessed and financially appraised.
2.13
Recent discussions of the Project Team have provided further
guidance towards developing a final preferred option for the estate
as follows:




Retain part or all of Cornwall House, given that it is
relatively popular and stable.
Create a coherent development block at Firefly Close,
including the demolition of Edinburgh House and its
replacement with new development.
Retain the 8 bungalows on Rodney Street if possible.
Consider demolition of houses on Rodney Street to
reprovide homes aligned with Islington Park.
8

2.14
Further reduction in the number of apartments.
In terms of the practical implications of the delivery of the preferred
option some matters, such as the need to decant residents during
improvement works, will need to be explored in more detail. As a
result there will be a need to work closely with the residents to
consider how disruption can be minimised.
2.15
Subject to Lead Member for Housing decision, the preferred option
will be communicated to the residents on the estate via a
newsletter and a number of events to be held on the estate in
June/July 09. All residents who are affected by demolition will be
contacted by Salix Homes. They will be advised and supported on
an individual basis regarding their options for their future home,
and it should be possible to retain all residents who wish to remain
on the estate in either new or existing housing.
2.16
Economically active tenants will also be given first option to
consider purchasing one of the new properties for sale on the
estate.
2.17
Stakeholders will also be advised of the preferred option.
2.18
The preferred option will be used to form the basis for further
financial modelling to help secure funding to pay for the delivery of
the preferred option. The PFI Expression of Interest will be
strengthened by this planning process to develop the preferred
option. Partner organisations Salford City Council, Central Salford
URC and Salix Homes will work together to secure funding to
deliver the preferred option.
3.0
Conclusion
3.1
The options study process has led to the development of a
preferred option which sets out a framework for development and
investment on the Islington Estate. The process has involved
detailed consultation with almost two thirds of the residents living
in the existing housing and has combined the views of these
residents with stakeholder consultation, a financial appraisal and a
review of the strategic regeneration criteria of the partner
organisations Salford City Council, Central Salford Urban
Regeneration Company and Salix Homes.
3.2
The preferred option will help ensure the Islington estate will meet
the needs and aspirations of current and future residents. The
redesign and remodelling of the estate will provide a choice of
quality housing, both in housing type and tenure in an improved
environment, adjacent to the Chapel Street corridor.
9
Paul Walker
Strategic Director for Sustainable Regeneration
Consultants report
10