Councillor Rania Khan declared a personal interest in Agenda item 6.3 “Options for the disposal of two long-term void properties and Council properties previously in shortlife use” (CAB 057/101). The declaration of interest was made on the basis that the report contained recommendations relating to properties located in Bromley-by-Bow Ward, and Councillor Rania Khan was one of the Ward Councillors for Bromley-by-Bow Ward.

Resolved:

1.         That the five properties in Swaton Road E3 (numbers 148, 156, 162, 170 and 195) be disposed of on the open market; and also that the Corporate Director Development and Renewal, after consultation with the Mayor, be authorised to make decisions on the details of the disposal;

2.         That it be noted that a further report will be brought to Cabinet on the disposal options for the properties in Bruce Road, as outlined in section 6 of the report (CAB 057/101);

3.         Tha the properties at 19 Parfett Street and 102 Tredegar Road be declared surplus to the Council’s operational requirements;

4.         That 19 Parfett Street and 102 Tredegar Road be disposed of on the open market; and also that the Corporate Director Development and Renewal, after consultation with the Mayor, be authorised to make decisions on the details of the disposal;

5.         That the resources generated from the open market sales, referred to in resolutions 1 and 4. above, be used for further affordable housing or regeneration schemes within the borough; and that it also be noted that the details [of the usage of such funding for such schemes] will be considered as part of the Authority’s budget process; and

6.         That the execution of the necessary documents to implement resolutions 1 to 5. above be authorised.

Action by:

CORPORATE DIRECTOR DEVELOPMENT AND RENEWAL (A. DALVI)

Service Head - Strategy, Innovation and Sustainability, Development and Renewal (J. Odunoye)

Housing Partnerships Manager, Strategy, Innovation and Sustainability, Development and Renewal (J. Kiwanuka)

Development Officer, Housing Strategy and Development, Development and Renewal (J. Dowle)

Councillor Rania Khan declared a personal interest in Agenda item 6.3 “Options for the disposal of two long-term void properties and Council properties previously in shortlife use” (CAB 057/101). The declaration of interest was made on the basis that the report contained recommendations relating to properties located in Bromley-by-Bow Ward, and Councillor Rania Khan was one of the Ward Councillors for Bromley-by-Bow Ward.

Ms Odunoye, Service Head Strategy, Innovation and Sustainability Development and Renewal, at the request of the Mayor, in introducing the report:

·                    Summarised the key points contained therein, highlighting in particular:-

o                    That there was currently Cabinet authority to dispose of 5 shortlife properties in Swaton Road E3 to Registered Social Landlords in exchange for nomination rights, however this was not possible at the current time due in part to the high cost of refurbishment but more particularly to the current lack of available grant funding from the Homes and Communities Agency to support the works. The Corporate Director Development and Renewal was therefore requesting authority to dispose of the properties on the open market after consultation with the Mayor.

o                    A similar authority was being sought in relation to two properties in Tredegar Road and Parfett Road E3, that had been empty for a long period, given the cost to the Council of refurbishment together with loss of rental income and potential costs arising to ensure their security.

o                    It was currently estimated that sale of the 7 properties could generate £1.9 million in capital receipts which was wholly recyclable for the purposes of re-investment in affordable social housing.

o                    There was a risk that sale of the properties would not be possible in the current economic climate.

·                    Addressed the matters raised by the Overview and Scrutiny Committee, held on 30^th November 2010, in relation to the report; as set out in the tabled sheet of questions and comments presented by the Chair of the Overview and Scrutiny Committee earlier in the proceedings:

A discussion followed, during which the proposals in the report were broadly welcomed, and which focused on the following points:-

·                    Clarification/ assurance was sought and given regarding the future of a property and its tenants in Bruce Road, which had recently had a fire. A report regarding the future of 10 shortlife properties in Bruce Road E3 would be submitted for Cabinet consideration at a future meeting. Ms Odunoye, Service Head Strategy Innovation and Sustainability, undertook to provide clarification in writing regarding the burned property.

·                    Clarification/ assurance was sought and given regarding the inclusion of the Arrow Road E3 scheme amongst the smaller schemes within the Local Investment Plan, which set out priorities for investment in social housing, given that the RSL was Poplar HARCA. Also whether the capital receipts, anticipated in respect of the open market disposals proposed in the report, could be used in other ways. The Arrow Road scheme was just 1 example of how the capital receipts could be used.

·                    Clarification/ assurance was sought and given regarding a court hearing to secure vacant possession in relation to properties in Swaton Road. This was not to be progressed until the Authority was in a full position to take the works forward.

·                    Clarification/ assurance was sought and given as to whether the estimated capital receipt of approximately £1.9 million in relation to the property disposals proposed in the report was thought to be the maximum that could be achieved.

The Mayor in Moving the recommendations as set out in the report:-

·               Commented that he and his Cabinet were keen to see empty properties brought back into use for housing and capital receipts from the sale of such properties reinvested in affordable social housing.

·               Noted the caveat in recommendations 2.1 and 2.4 that he would be consulted on detail prior to disposal of the properties referred to therein, by the Corporate Director Development and Renewal.

 And it was:-

Resolved:

1.         That the five properties in Swaton Road E3 (numbers 148, 156, 162, 170 and 195) be disposed of on the open market; and also that the Corporate Director Development and Renewal, after consultation with the Mayor, be authorised to make decisions on the details of the disposal;

2.         That it be noted that a further report will be brought to Cabinet on the disposal options for the properties in Bruce Road, as outlined in section 6 of the report (CAB 057/101);

3.         That the properties at 19 Parfett Street and 102 Tredegar Road be declared surplus to the Council’s operational requirements;

4.         That 19 Parfett Street and 102 Tredegar Road be disposed of on the open market; and also that the Corporate Director Development and Renewal, after consultation with the Mayor, be authorised to make decisions on the details of the disposal;

5.         That the resources generated from the open market sales, referred to in resolutions 1 and 4. above, be used for further affordable housing or regeneration schemes within the borough; and that it also be noted that the details [of the usage of such funding for such schemes] will be considered as part of the Authority’s budget process; and

6.         That the execution of the necessary documents to implement resolutions 1 to 5. above be authorised.

Reasons for Decisions

These are detailed in paragraphs 3.1 to 3.4 of the report (CAB 057/101)

Alternative Options Considered

These are detailed in paragraphs 4.1 to 4.4 of the report (CAB 057/101)