Report of the Corporate Director of Housing & Environment to
the
Portfolio Holder for Tenancy Services and Housing Needs
For a DELEGATED DECISION
On
4 February 2015
Disposal of Unoccupied dwelling house
1.
SUMMARY
1.1
This report seeks approval to declare surplus to requirements a three
bedroom property held within the Housing Revenue Account portfolio
and for the property to be disposed of by Property Services, thus
generating a Housing Revenue Account capital receipt, which is to be
used to help facilitate the Council’s new build programme.
1.2
This is not a key decision.
2.
RECOMMENDATIONS
To be resolved by Portfolio Holder for Tenancy Services and
Housing Needs
(i)
That the disposal of the unoccupied dwelling house, 28 Warsop
Road, Mansfield Woodhouse be approved.
(ii)
That Property Services be instructed to dispose of the property
and that the method of disposal be determined by the Council’s
Corporate Asset Manager.
3.
BACKGROUND
3.1
The Council’s Asset Management Plan contains a section on Asset
Disposal Policy and sets out how land and property is identified as
being surplus to requirements.
3.2
As part of the day to day management of Council owned housing a
property has become available at 28 Warsop Road, Mansfield
Woodhouse. The property is a three bedroom detached property which
is not in line with traditional social housing in terms of its construction
and is built in what can be described as a cottage style with small
rooms, spread across a wide floor area.
3.3
It is estimated that between £7,000 - £10,000 will need to be spent on
the property in order to bring it up to a lettable standard.
3.4
This spend would not however address the issue of the layout of the
property which requires some structural work to be undertaken, to
increase the size of the downstairs rooms and make it more attractive
for family accommodation.
3.5
The Council does not own any other properties on Warsop Road and
there are no others in close proximity.
3.6
The Council is committed to delivering a programme of building new
homes for Council tenants across the district and in September 2012
signed up to the Governments Right to Buy (RTB) replacement
programme which enabled the Council to retain the receipts from RTB
sales for re-investment in the construction of more affordable homes.
The sale of this property would raise a capital receipt and would
complement the proceeds from RTB sales and thereby contribute
towards helping fund the Council’s new build programme.
3.7
This approach is strategically significant as it will enable the council to
not only increase its stock, but it will improve the quality of that stock,
create much needed employment opportunities and maximise the
assets to their full potential.
3.8
Alternatively, if the property was made available for Council tenants to
rent, then it would be lettable, even with the problem of room sizes,
however this approach would not maximise the full potential of the
asset.
4.
OPTIONS AVAILABLE
4.1
There are 2 options available: -
4.2
Option 1 – Do Nothing.
The property could be repaired through the normal voids process and
advertised for rent. It is likely the property would be lettable and the
Council would receive an ongoing rental income from the property. The
Council would however retain costs associated with ongoing repair and
maintenance.
4.3
Option 2 – Property disposed by Tender/Private Treaty/Auction Recommended
4.4
Disposal of the property will generate a capital receipt for the Council
which can be used to help fund the Council’s new build programme. It
is felt the sale of the property will generate a capital receipt that will
enable more new Council owned property to be built to replace those
that have been sold, thus increasing the Council’s overall level of stock
in the longer term. The Corporate Asset Manager will determine the
method of disposal in order to maximise the capital receipt generated.
5.
RISK ASSESSMENT OF RECOMMENDATIONS AND OPTIONS
Risk
Risk Assessment
Risk
Level
Risk Management
Retention of the
property would
require ongoing
repair and
maintenance costs
or the property
would fall into
disrepair
Low
The property could be
repaired through normal day
to day repair processes
supported by ongoing capital
programmes of work.
Financial risk
The sale may not
proceed in a timely
manner or achieve
sale price.
Low /
Medium
Property Services will carry
out a pre-sale investigation
prior to disposal. The property
will be actively marketed to
ensure best consideration is
achieved in a timely manner
and a realistic reserve price
will be set.
Reputational risk
Sale of Council
housing could be
viewed in a
negative light by
the public given
the current
demand for local
authority housing.
Low /
Medium
This risk can be mitigated by
ensuring that information is
made available to the public
about funding new build
properties, from sale
proceeds, through the media /
newsletters etc
Option 1 Do
Nothing
Financial Risk
Option 2
(Preferred Option)
Dispose of the
property
6.
ALIGNMENT TO COUNCIL PRIORITIES
6.1
In accordance with the Asset Management Plan, the council has to
ensure its land and property assets are used effectively for the delivery
of services either directly in the case of operational properties or
indirectly with non-operational properties (e.g. investment properties).
In the case of the above property, receipts generated will be used
towards building new properties, thus increasing the Council’s overall
stock in the longer term.
6.2
Ensuring there is an adequate supply of good quality, well managed
housing which is accessible and affordable to those who need it is one
of the Council’s corporate priorities and links directly with the contents
of this report.
7.
IMPLICATIONS
7.1
Relevant Legislation
a) The General Housing Consents 2013 allows the Council to dispose of
land for a consideration equal to its market value. The Consent also
allows the Council to dispose of an unoccupied dwelling house to a
person who intends to use it as their only or principal home so long as
the price is not less than the amount equal to the purchase price as
defined in the Housing Act 1985 s(126) (Right to Buy purchase price)
to which the minimum discount, as provided by s129 has been applied.
The Council also has a duty under Section 123 of the Local
Government Act 1972 to obtain best consideration in the disposals of
its assets.
b) Human Rights
It is not considered individual rights will be infringed.
c) Equality and Diversity
There are no equality and diversity issues
d) Climate change and environmental sustainability
It is not considered that the decision will have an effect on climate
change.
e) Crime and Disorder
It is not considered the decision will have any effect on crime and
disorder.
f) Budget/Resource
There will be some sales costs associated with disposal of the
properties but these will be met from existing Housing Revenue
Account (HRA) budgets.
Under the HRA pooling system local authorities are able to retain all of
their non-Right To Buy receipts provided they are used for affordable
housing, regeneration schemes or the repayment of housing debt.
8.
COMMENT OF STATUTORY OFFICERS
Head of Paid Service – No specific comments
Section 151 Officer – Budget implications are as stated in the report
Monitoring Officer – No specific comments
9.
CONSULTATION
9.1
Internal consultation has taken place between various officers within
Housing and Property Services to discuss the opportunity for sale.
10.
BACKGROUND PAPERS
None
Report Author
Designation
Telephone
E-mail
-
Neil Turton
Tenancy Services Manager
01623 463741
nturton@mansfield.gov.uk