Democracy Spraffa

Millcroft Road, Cumbernauld - Compulsory Purchase Order

North Lanarkshire Council · 31 August 2022
Back to Housing Committee — 31 August 2022 and its agenda

Text extracted from the council's PDF. Layout and reading order may differ from the original.

Original council PDF · Download plain text

Page 1

North Lanarkshire Council
Report
Housing Committee 
Does this report require to be approved? ☒ Yes   ☐ No
Ref TM/PH Date 31/08/22 
Millcroft Road, Cumbernauld, Compulsory Purchase Order 
From  Pamela Humphries, Head of Planning & Regeneration  
E-mail mallaghant@northlan.gov.uk Telephone Tony Mallaghan, tel 07970
016 251 
Executive Summary
The purpose of this report is to seek Committee approval to write off debts due to the
Council by owners of the properties at Millcroft Road, Cumbernauld (“the Properties”) which
are currently secured to the Council by way of Repayment Charge and Notice of Payment
of Grant (together “the Debts”) in order to further strengthen the case for the  Compulsory
Purchase Order (CPO)  at Millcroft Road being confirmed by the Scottish Government.
This is necessary to successfully implement the regeneration proposals at Millcroft Road. 
This report also seeks approval to voluntarily acquire properties at Millcroft Road should
the Compulsory Purchase Order be confirmed by the Scottish Government, and to agree
that residents who require re-housing will be entitled to additional ‘demolition points’ on
their Common Housing Register application, following confirmation of the CPO. 
Recommendations
It is recommended that Committee: 
1. Approve the write off of debts as outlined in section 2 of this report to support the
CPO at Millcroft Road; and 
2. Approve the voluntary acquisition of further properties at Millcroft Road should the
CPO be confirmed by the Scottish Government. 
3. Approve the allocation of priority points under category of demolition to Millcroft
Road residents to assist with rehousing following confirmation of the CPO 
The Plan for North Lanarkshire
Priority  Improve economic opportunities and outcomes
Ambition statement (1) Ensure a housing mix that supports social inclusion and
economic growth

Page 2

1. Background 
1.1 The Housing and Regeneration Committee in November 2021 approved the strategy
for the Council to progress the Compulsory Purchase Order for acquisition of 168 flats,
with subsequent demolition and provision of new build housing at Millcroft Road. 
1.2 A number of properties currently have Debts secured over them (38 in total). The Debts
require to be addressed by the Council prior to submission of the CPO because the
Council need to carefully consider the impact of the CPO on affected parties and how
that impact can be mitigated. 
1.3 In November 2021 Committee agreed to the voluntary acquisition of properties for those
owner occupiers at Millcroft Road who were interested in moving to the nearby
development at Burns Road (which is being delivered by Sanctuary (Scotland) Housing
Association). Rehousing efforts are currently underway for these owner occupiers.
1.4 As part of its case for the CPO, as set out in its Statement of Reasons, the council must
demonstrate it is doing everything possible to support the re-housing of residents
affected by the CPO and help address the negative financial impact the CPO may have
on owners and residents.  This report therefore seeks approval for measures which will
further support the CPO, and will assist with re-housing should the CPO be confirmed. 
2. Report 
2.1 In order to build the strongest possible case to support the CPO it is proposed that the
council write off outstanding debt owed to the council for previous maintenance works
to reduce the financial impact on these owners, who may already be in a negative equity
position.  The council is doing what it can to reduce the financial impact on owners
affected by the CPO, as well as supporting the re-housing of owner occupiers and
residents.
2.2 Following urgent maintenance work carried out to the Properties by the Council, various
charges were registered in 2014. The charges registered can be categorised as noted
below. 
2.3 Maintenance Order
The Repayment Charges were registered against the Properties to recover expenses
incurred by the Council for the maintenance work. The sum due by each property owner
concerned is detailed in the repayment charge and registered against the title. The total
sum outstanding under the repayment charges is currently £124,796.86.
2.4 Notice of Payment of Grant (“NOPG”) 
The Council also offered grants of £500 to applicable owners and NOPGs were
registered against the title as a result. The NOPG are live for 10 years and automatically
cease to become enforceable after that period and, as such, the NOPGs will cease to
become enforceable in 2024. The NOPGs are not repayable provided the property is
used as a dwelling-house, used as a principal residence and maintained in good order.
The sale of the property is not a payment trigger under the terms of the NOPGs and,
as such, the sums due under the NOPGs do not strictly fall due to the Council as a

Page 3

result of the CPO. However, in order to support the case for the CPO which will be
carefully considered by Scottish Government, through writing these debts off it will
make it clear that the Council is doing what it can to support owners that are affected
by the CPO.   The total value of the NOPGs awarded is £20,500.
2.5 It is recommended that the Debts be written off to assist the owners of the Properties
who will be impacted by the CPO. The Council has the ability to mitigate the impact of
the CPO on affected parties by writing off the Debt which will allow the council to assist,
as far as possible, with rehousing by reducing any negative financial implications. The
current total value of the debts is £145,296.86
2.6 Mechanism for writing off debts
The Council’s Financial Regulations require Committee approval to write-off individual
debts of greater than £500 that are deemed to be irrecoverable. Due to the CPO
process affecting these properties and related debts it is deemed that these debts are
no longer collectible. In this instance, the justification for writing-off the outstanding
debts is to support the successful delivery of a key regeneration programme. It is worth
noting that the decision to write-off these debts does not create a new financial
implication for the Enterprise and Communities service because in closing the Council’s
annual accounts for 2021/22, a provision for expected credit losses (historically called
a bad debt provision) was created to support the cost of this write-off process. 
2.7 Voluntary Acquisitions
If the CPO is confirmed, then it is proposed that the Council will consider further
voluntary acquisitions ahead of the Vesting Date.  This will primarily be in order to assist
with re-housing owner occupiers.  Consideration will also be given to voluntary
acquisitions from other remaining owners.  Committee is asked to approve further
voluntary acquisitions following Confirmation of the CPO. 
2.8 Owners and tenants of private landlords will be given full housing options advice
regarding re-housing options including through the Common Housing Register.  It is
proposed to award residents priority points under the category of demolition, following
confirmation of the CPO, as well as other assessed housing need in line with Council’s
Housing Allocation Policy, to assist with the re-housing process.   
3. Measures of success 
3.1  Successful delivery of the Compulsory Purchase Order and rehousing of residents at
Millcroft Road   
4. Supporting documentation 
No Supporting documentation

Page 4

Pamela Humphries
Head of Planning & Regeneration

Page 5

5. Impacts 
5.1 Public Sector Equality Duty and Fairer Scotland Duty
Does the report contain information that has an impact as a result of the Public
Sector Equality Duty and/or Fairer Scotland Duty?
Yes ☒ No ☐
If Yes, please provide a brief summary of the impact? 
An Equality Impact Assessment has been conducted for the CPO and rehousing
element of the project. The council will provide support, such as translation services
and housing advice to property owners and tenants as required. 
If Yes, has an assessment been carried out and published on the council’s website?
https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-
scotland-duty-impact-assessments
Yes ☒ No ☐
5.2 Financial impact
Does the report contain any financial impacts?
Yes ☒ No ☐
If Yes, have all relevant financial impacts have been discussed and agreed with
Financial Solutions?
Yes ☒ No ☐
If Yes, please provide a brief summary of the impact? 
The total outstanding debt of £145,296.86 equates to 0.8% of the estimated total
project costs. 
There are no additional financial implications linked to this report for the current
financial year because a corresponding provision for expected credit losses has been
included in the previous year’s annual accounts.  
5.3 HR policy impact 
Does the report contain any HR policy or procedure impacts?
Yes ☐ No ☒
If Yes, have all relevant HR impacts have been discussed and agreed with People
and Organisational Development?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.4 Legal impact
Does the report contain any legal impacts (such as general legal matters, statutory
considerations (including employment law considerations), or new legislation)?
Yes ☒ No ☐
If Yes, have all relevant legal impacts have been discussed and agreed with Legal
and Democratic Solutions?
Yes ☒ No ☐
If Yes, please provide a brief summary of the impact? 
The proposals reflect the legal advice received.
5.5 Data protection impact 
Does the report / project / practice contain or involve the processing of personal
data?  
Yes ☒ No ☐

Page 6

If Yes, is the processing of this personal data likely to result in a high risk to the data
subject?
Yes ☐ No ☒
If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-
mailed to dataprotection@northlan.gov.uk 
Yes ☒ No ☐
5.6 Technology / Digital impact
Does the report contain information that has an impact on either technology, digital
transformation, service redesign / business change processes, data management, or
connectivity / broadband / Wi-Fi?
Yes ☐ No ☒ 
Where the impact identifies a requirement for technology, has an assessment been
carried out (or scheduled) by the Enterprise Architecture Governance Group
(EAGG)? 
Yes ☐ No ☐
5.7 Environmental / Carbon impact
Does the report / project / practice contain information that has an impact on any
environmental or carbon matters?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.8 Communications impact
Does the report contain any information that has an impact on the council’s
communications activities?
Yes ☒ No ☒
If Yes, please provide a brief summary of the impact? 
Owners, residents and elected members are kept up to date regarding the Millcroft
Road project and a dedicated project team has been established to help ensure
effective communication with all those affected by the proposed CPO and to assist
owners and residents with re-housing. 
It is recognised that the proposal to write off outstanding debts and the rationale for
this will need to be clearly communicated to interested parties. 
5.9 Risk impact
Is there a risk impact?
Yes ☒ No ☐
A risk register has been developed to capture and help mitigate potential risks in
accordance with Project Management Guidelines. There are a number of risks to the
Council, including those associated with the confirmation, or otherwise, of the CPO;
financial risks in terms of project costs, and the re-housing of owner occupiers and
tenants. 
The proposals outlined in this report are considered necessary in order to reduce the
risk of the CPO not being confirmed and to demonstrate that the council is doing what
it can to mitigate the financial impact on affected owners, and supporting the re-
housing of residents.  It is recognised that there may be a negative reaction from
owners who have already paid the debt, but on balance it is considered that the risk
of the CPO failing if these debts are not written off is significant and therefore is a
necessary step to take.  This therefore does not create a precedent for writing off debts
owed to the council in the future.