This report recommends allocating resources and awarding a contract to undertake works needed to address the structural integrity at Brewster House and Malting House, two Large Panel System blocks.

The Government advised further checks of the structural integrity of these buildings in 2018. As a result, consulting structural engineers Wilde Carter Clack conducted a comprehensive structural investigation and concluded that the blocks required intrusive structural strengthening. Therefore, the Mayor is recommended to:

1. Agree to the allocation of capital resources to fund the works and the services associated with delivering the works.

2. Agree to the award of the works contract via the Council’s Better Neighbourhoods Framework.

3. Agree to formally consult leaseholders and to recharge them for their portion of the cost of the works.

4. Agree options for recharging leaseholders for the cost of any temporary rehousing of dwelling occupants, their furniture and belongings, and for the reinstatement of the same upon the completion of the works.

5. Agree to officers exploring the possible voluntary buy back of leasehold properties in the two blocks.

6. Agree to the introduction of two additional borough wide payment options for leaseholders.

This matter was considered by the Mayor in Cabinet on 26 June 2019, where some aspects of the decision were deferred as explained in the decision notice http://democracy.towerhamlets.gov.uk/ieDecisionDetails.aspx?AIId=102046.

The Recommendations were amended and agreed.

DECISION

1.    To note that officers will explore the voluntary buy-back of leasehold properties in the two blocks, under the existing budgeted borough-wide buy-back programme, with potential costs estimated at c.£9.6m.

2.    To agree to the introduction of two additional borough-wide leasehold service charge payment options as set out in sections 9.5 - 9.7 of the report.

3.    To defer agreement of the following three recommendations subject to further discussion – with final decisions to be taken by Individual Mayoral Decision if required:

a.    To agree that capital resources of £8,083,081 are made available within the five year HRA Capital Programme to fund the works (Option 1) and the services associated with delivering the works, and agree to adjust the five year programme accordingly.

b.    Agree to the award of the works contract to Wates in the sum of £6,276,605.50. Wates has been procured via the Council’s Better Neighbourhoods Works Framework.

c.    Agree to formally consult leaseholders and to recharge them for their portion of the cost of the works.

Action by:

CORPORATE DIRECTOR, PLACE (A. SUTCLIFFE)

(Interim Divisional Director, Housing and Regeneration (M. Baigent)