Agenda item

(a)       That the Committee support the development of 30 new Council homes on The Walks, Flint House for a total cost of £3.95M; and

(b)       That the Committee supports the development of joint Marketing and Estate Management Strategies (including Local Lettings Policy) with NEW Homes for The Walks.

The Service Manager - Housing Programmes presented a report to seek support to develop 30 new council homes on The Walks in Flint as part of the Council’s Strategic Housing & Regeneration Programme (SHARP).  The development of 62 affordable properties for the site, to be managed by NEW Homes, would be dealt with separately due to the different funding streams.  Whilst the NEW Homes Board had agreed the principles of the scheme, the final proposals would require Cabinet approval.

Members were reminded of the background to the scheme, linked to the aims of the Flint 2012 Master Plan, to demolish the former maisonettes on the site and replace with a new improved housing and regeneration scheme with reinforced links between the town and castle.  Information was shared on the proposed property mix for the scheme and some delay due to archaeological excavations.

The Finance Manager advised that the projected total cost of the scheme for the Council was £3.95M, which averaged £131K per property.  She provided explanation on the calculations used to ensure the viability of the scheme through a return after 50 years.  Based on the revised Rent Policy set by Welsh Government, the total gross annual rent was set at £144K with an allowance set aside to manage the properties, based on a range of intelligence.  She agreed to respond separately to a request from Councillor Gareth Roberts for clarity on the estimated monthly and annual rent figures appended to the report.

In welcoming the report, the Chairman praised the work carried out by officers to re-house tenants from the former maisonettes.

In response to a question from Councillor George Hardcastle, it was explained that the housing scheme was due for completion in March 2018.  When asked about prioritising allocations for the scheme, officers explained the intention to develop a Local Lettings Policy to give flexibility on the allocation of properties on which the Committee and local Members would be consulted nearer the time.

The Chief Officer explained that residents with a local connection were already given priority under the Single Access Route to Housing (SARTH) policy and that the proposal for a Local Lettings Policy for Flint would enable the Council to give due consideration to those former displaced tenants of the maisonettes who wished to live at the new scheme.

Whilst Councillor Peter Curtis agreed that higher priority should be given to displaced tenants, he questioned whether this should apply to all Flint residents as this could appear unfair to people in other areas of the county where there was no capacity for new housing developments.  He also made the point that after giving priority to displaced tenants, the new homes should benefit those in need who had not already been allocated housing.

Councillor David Cox described the proposals as a marvellous opportunity for Flint and hoped that this unique approach would be recognised.  Responding to queries, officers advised that building work on extra care provision in Flint was likely to start around 20 June lasting approximately 18 months.  Building work on the medical centre was expected to last for a year and would start as soon after negotiations on the sale of land had concluded.

In response to a question from Councillor Paul Cunningham on the nearby archaeological excavations, it was explained that this was due to commence later in the month.

Councillor Rosetta Dolphin agreed it was fair to prioritise displaced tenants of Flint ahead of those on the waiting list across the county.  When asked about cost calculations, the Finance Manager explained that the interest rate was based on a consolidated rate for the Council as a whole and was currently 4.79% for this scheme.  An allowance for major repairs had been set at 0.7% per annum of the build costs based on a benchmarking exercise of new build schemes and a schedule of future work.

The mix of properties was welcomed by Councillor Ian Dunbar who asked about fluctuations in rent levels.  The Finance Manager explained that rent was set according to the Rent Policy where, for example, the target rent for a 3-bedroom property in Flint was the same elsewhere in the county.  It had been agreed to set a target rent of 105% due to the economic benefits offered by the new properties and to ensure payback of the scheme.  In response to further comments, the Chief Officer could not foresee any impact on another scheme planned in Connah’s Quay and spoke about the different elements involved in determining housing schemes such as housing demand, site capacity and consultation with local Members.  This prompted discussion on the allocation of housing where 2-bedroom properties were in high demand.

RESOLVED:

(a)       That the Committee support the development of 30 new Council homes on The Walks, Flint House for a total cost of £3.95M; and

(b)       That the Committee supports the development of joint Marketing and Estate Management Strategies (including Local Lettings Policy) with NEW Homes for The Walks.