Agenda item

(a)       That the development of 12 new Council homes on the Custom House School site, Connah’s Quay be supported; and

(b)       That the standard scheme development assumptions as identified in section 1.20 of the report be supported.

The Chief Officer introduced a report to seek support to progress the next stages of the Council’s Strategic Housing and Regeneration Project (SHARP) and to set out the proposed design of the first development located at the former Custom House School site in Connah’s Quay.  The introduction of self-financing for the Housing Revenue Account (HRA) had enabled the Council to commence its plans to develop new Council homes on a range of sites.

Detailed proposals were shared on the scheme in Connah’s Quay on which work was due to commence in February 2016.  Preparation of the plans had taken into consideration the need for sufficient parking on the site together with the design fitting with the local environment. The Flintshire Housing Standard, which had been adopted for use on all the Council’s new housing schemes, had been developed by a working group of Members, officers and tenants using industry standards.  This demonstrated the Council’s commitment to provide high quality living environments with adequate storage space and quality fixtures/fittings.  An update was also given on progress made towards future SHARP schemes and the delivery of various community benefits including the creation of an apprenticeship academy.

The report highlighted the approach to funding, utilising prudential borrowing for the Connah’s Quay scheme, with future projects to be reviewed case by case.  The Chief Officer circulated a financial analysis of build costs for the Connah’s Quay scheme which was subject to ongoing verification and challenge.  This included a breakdown of additional costs for drainage, parking etc, that was affordable within the HRA.  Members were assured that the total cost of the scheme (including borrowing, repairs, allowance for bad debt and empty properties etc) would be recovered through rental income over a 50 year period.

Councillor Aaron Shotton described this as a watershed moment for the Council, which addressed one of the priorities set out in the Improvement Plan as well as meeting the needs of residents and filling the void in the housing market.  He referred to the challenges encountered in reaching this stage which gave the opportunity to meet general housing needs and provide a high quality standard of living.

In thanking officers for the report, Councillor Ian Dunbar welcomed this first new build development under the SHARP programme and in particular the location of the scheme and parking provision.

As a point of accuracy on paragraph 3.02, Councillor Alison Halford pointed out that planning permission had been granted in December 2015 and took the opportunity to praise all those involved in making the right decision at that time.  She commented that the plans for the scheme demonstrated a good quality build and design.  On the costings provided, she queried the amount of £4,246 for car parking spaces.  The Chief Officer pointed out that this equated to £353 for a second car park space per property.  Consideration had been given to adequate parking provision, given the nearby school and traffic implications, and would be a key consideration for future developments to address the increase in car ownership.

Whilst welcoming the proposals for the Connah’s Quay scheme, Councillor Paul Shotton was particularly pleased that some of the features of the former Custom House School had been incorporated in the development.  In response to questions, the Chief Officer explained that the £140K opening market value was an estimate of the properties’ value at the time of building.  The 7% financial institution yield was an assumed starting interest rate on the advice of financial colleagues.

Councillor Aaron Shotton thanked Councillor Bernie Attridge for helping to retain some of the original features of the former school for the new development, and said that the plans demonstrated the Council’s approach to ensure that each scheme was designed to fit in with the surrounding area.

Following queries from Councillor Rosetta Dolphin, it was confirmed that £91.67 and £100.83 weekly rent had been set for the two and three bedroom properties respectively on the Connah’s Quay scheme.  This compared favourably to the Local Housing Allowance weekly rent as indicated in the document circulated.  On another question, it was explained that at least two social enterprises would be used during the programmes; one to employ apprentices who could be guaranteed a four year programme to complete their training through SHARP and improvements to the Welsh Housing Quality Standard.

In supporting the plans, Councillor Gareth Roberts spoke about the need to abolish Right to Buy to protect new Council properties.  Councillor David Cox felt there was an opportunity to publicise and highlight the Council’s housing initiative to show progression to meet the needs of residents.

Councillor Aaron Shotton said it was important that the Welsh Government promptly approve the Council’s application to suspend Right to Buy.  He added that although some progress had been made, more work was needed to lobby for an increase in the borrowing cap as this restricted the Council’s ability to continue the momentum on addressing future housing needs.

Councillor Derek Butler commented that the programmes would provide opportunities to maximise skills and demonstrated that schemes were being targeted in communities where there was demand.

Concerning apprenticeships, Councillor Jim Falshaw spoke about the skills shortage in the construction industry and asked whether the training programme included Construction Industry Training Board (CITB) accreditation which was highly valued in the industry.  The Chief Officer agreed to check whether this was already part of the plan.

In response to a question from Councillor Paul Cunningham on the recruitment of apprenticeships, the Chief Officer said that local schools and colleges had been made aware of the opportunities.  Although preference would be given to local applicants, those from outside the area could not be excluded.

RESOLVED:

(a)       That the development of 12 new Council homes on the Custom House School site, Connah’s Quay be supported; and

(b)       That the standard scheme development assumptions as identified in section 1.20 of the report be supported.