Land and Property Transfers to the Housing Revenue Account CAH 17 01 23
Renfrewshire Council · 17 January 2023
Back to Communities and Housing Policy Board — 17 January 2023 and its agenda
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___________________________________________________________________ To: Communities and Housing Policy Board On: 17 January 2023 ___________________________________________________________________ Report by: Director of Communities and Housing Services ___________________________________________________________________ Heading: Land and Property Transfers to the Housing Revenue Account ___________________________________________________________________ 1. Summary 1.1 This report seeks authority to transfer land and properties from the Council’s General Services Account to its Housing Revenue Account. ___________________________________________________________________ 2 Recommendations 2.1 It is recommended that the Policy Board: (i) agree to the transfer of the four sites listed from the General Services Account to the Housing Revenue Account at the net values listed in table 1 of this report; and (ii) note that the six properties detailed in table 2 are due to be declared surplus to operational requirements by the Environment Land and Infrastructure Board on the 25 January 2023, and agree that subsequent to the decision of that board these properties should be transferred to the Housing Revenue Account at the value noted in the report. ___________________________________________________________________ 3 Summary 3.1 The Renfrewshire Strategic Housing Investment Plan 2023-2028 sets out how Scottish Government funding for affordable housing will be targeted to achieve the objectives set out in Renfrewshire’s Local Housing Strategy. 3.2 A key element of this is the use of existing land in the Council’s ownership to develop new affordable homes across Renfrewshire. This can involve transfers of land from the General Services Account to the Housing Revenue Account as well as disposal of Council land to housing association partners.
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3.3 This report seeks to facilitate the transfer of land to enable the delivery of new social rented housing on four sites. 3.4 Table 1 below lists four sites contained within the Renfrewshire Strategic Housing Investment Plan 2023–2028. Authority from the Board is sought to transfer land at these four sites from the General Services Account to the Housing Revenue Account at the net values shown in order to facilitate the delivery of social rented housing , provided by registered valuers in the Council’s Estates Team, with assistance on abnormal costs provided by Property Services. 3.5 Sales from the general fund must represent best value and usually this is demonstrated by marketing the site. In this case the value of the sites has been assessed using market evidence and considering the use of the site following the transfer. Officers have therefore considered the density of a new housing scheme appropriate to a local authority standard rather than what might be expected in the wider market. 3.6 Any land transaction for development will involve negotiation on abnormals (additional or unusual costs required to facilitate the development) due to site conditions. It would be usual that the value of any agreed abnormals would be deducted from the price. In this case the Council has not undertaken new site investigations but has estimated site specific costs based on data already on file and values assessed on other sites historically, with adjustments made for site size and anticipated numbers of housing units. The exception to this is the site at Carbrook Street which had been fully investigated for a previous transaction that did not proceed and agreement reached on abnormal costs. The figures for this site have been updated in line with current costs and a percentage contingency added so that they reflect market value. 3.7 Detailed descriptions of the four sites are as follows: 3.7.1 Blackstoun Road, Paisley The site, extending to 0.49 hectares, is located in the west of Paisley, in the Ferguslie area, opposite St Fergus and Glencoats Primary Schools. It was formerly occupied by a community and sports centre and was declared surplus on 29 May 2008 by the Education Policy Board. The site has been cleared for some time. The most recent layout showed 22 units in a combination of cottage flats and houses. 3.7.2 Carbrook Street, Paisley The site, extending to 0.33 hectares, is located to the west of Paisley town centre, adjacent to Woodside Cemetery. It was formerly occupied by a child guidance centre and was declared surplus on 31 May 2005 by the Community and Family Care Policy Board. The site has been cleared for some time. The site is now part of the Ferguslie/Broomlands Housing Regeneration Area, one of eight such Areas which make up the first phase of the Council’s Housing- Led Regeneration and Renewal Programme, and the currently proposed housing layout comprises a variety of houses and flats, 18 units in all. The site was advertised for sale in November 2006 and a developer was identified but withdrew at around the time of the subsequent market crash.
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3.7.3 Former Garthland House The site, extending to 0.78 hectares, is located close to Paisley town centre, close to St Mirin’s Cathedral and Abercorn Bowling Club. It was formerly occupied by a care home and was declared surplus on 8 November 2005 by the Community and Family Care Policy Board. The site has been cleared for some time. The most recent layout showed 32 units. The site was advertised for sale in July 2007 and a developer was identified but withdrew at around the time of the subsequent market crash. It was re-advertised and two further possible developers were identified in 2017 and 2020 but neither concluded missives. 3.7.4 Former Cochrane Castle Primary School The site, extending to 1.69 hectares, is located south-west of Johnstone town centre, between Johnstone High and Cochrane Castle Primary. It is one of two sites which were previously occupied by primary schools and which were declared surplus by the Council on 17 December 2004. The sites have been cleared for some time. Development of the site to the north-east is restricted by drainage and the line of culverted watercourses and will not be developed for housing. As such the current scheme only requires the south-western site which is a key element of the Howwood Road Area Housing Regeneration Area with a potential capacity for some 55 units. The site was advertised for sale in September 2008 and a developer was identified but withdrew at around the time of the subsequent market crash. It was re-advertised in 2018 but the Council was unable to agree a price with the first- and second-placed possible purchasers identified. Table 1: Council-owned SHIP sites Plan Site Area (ha) No of houses Gross value (£) Estimated abnormal cost (£) Net value (£) A Blackstoun Road, Paisley 0.49 22 220,000 158,870 61,130 B Carbrook Street, Paisley 0.33 18 252,000 95,150 156,850 C Former Garthland House, Paisley 0.78 32 480,000 252,830 227,170 D Former Cochrane Castle Primary School, Johnstone 1.69 55 715,000 474,730 240,270 4. In addition to the land transfers detailed above, 6 properties which were previously operational residential properties in the school estate are due to be deemed surplus to requirements at the Infrastructure, Land and Environment and Policy Board on 25 January 2023. The properties have been assessed are suitable for transfer to the Housing Revenue Account and subsequently to be rented as part of the housing portfolio.
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The Head of Economy and Development, in consultation with the Director of Finance and Resources, has advised that it is appropriate that the General Services fund be compensated for the transfer of these 6 properties. Officers have considered the appropriate valuation for the properties taking account of market values for social housing and the level investment required to bring them up to appropriate standards for social housing and have agreed a total settlement figure of £252,550 for all six properties. Table 2 – Surplus Residential Properties to be transferred to HRA Brediland School House, Achray Drive, Paisley, PA2 9AF, Wallace Primary School House, Greenhill Crescent, Elderslie, PA5 9AW Our Lady of Peace School House, Erskinefauld Road, Linwood, PA3 3PR St Anthony’s School house, Hallhill Road, Johnstone, PA5 0SD Bridge of Weir Primary School House, Warlock Road, Bridge of Weir, PA11 3QB St Paul’s Primary School House, Orchy Crescent, Paisley, PA2 0NN ___________________________________________________________________ Implications of the Report 1. Financial – provision has been made within the HRA Budget in relation to the projects where the Council is the developing organisation. Provision has been made in the Renfrewshire Strategic Housing Investment Plan for all acquisitions. A sum of £252,550 will be transferred from the HRA to the General Fund in respect of the residential properties. 2. HR & Organisational Development – none. 3. Community/Council Planning – Building strong, safe and resilient communities – increasing the supply of affordable housing and regenerating communities. 4. Legal – Consideration has been given to the terms of the Housing (Scotland) Act 1987 and the Disposal of Land by Local Authorities (Scotland) Regulations 2010 and the transfers referenced in the report meet the statutory requirements. 5. Property/Assets – none. 6. Information Technology – none.
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7. Equality & Human Rights The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – none. 9. Procurement – none. 10. Risk – risks will be identified and managed for individual projects. 11. Privacy Impact – none. 12. COSLA Policy Position – none. 13. Climate Risk – the Strategic Housing Investment Plan 2023-2028 aims to deliver high quality, energy efficient homes in sustainable locations across Renfrewshire. ___________________________________________________________________ List of Background Papers None. ___________________________________________________________________ Author: Ray Walkinshaw, Housing Regeneration and Development Manager. Tel: 07483 146814, email: ray.walkinshaw@renfrewshire.gov.uk.
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Plan A: Site at Blackstoun Road, Paisley
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Plan B: Site at Carbrook Street, Paisley
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Plan C: Site at Former Garthland House, Paisley
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Plan D: Site at Howwood Road, Johnstone