The Committee considered an item under a Housing Revenue Account development in the borough that would require full Council approval of a £5m supplementary estimate to be spread over the next two years to proceed from Royal Institute of British Architects (RIBA) stage 1 to 3. 

It was also seeking full Council approval to delegate to Housing Committee to proceed with
RIBA Stage 1, noting that the project can be halted by Housing Committee if the project is not proven to be viable at the end of RIBA Stage 1.

The Housing Service’s HRA Business Plan and the Housing Development Strategy had committed the Council to creating an additional 125 social housing units, and officers had been exploring the possibility of regenerating the Parkside area of New Haw as part of that target.

The units on the estate are poorly performing in terms of energy efficiency, are not mortgageable, they are of a prefabricated design and not been designed to last for so long. 

It was therefore proposed to deliver 450+ new units on the site, utilising private sales to cross-subsidise the delivery of affordable housing.

The site boundary had been identified and constraints and a delivery brief established.

Subject to Housing Committee and full Council approval, communication to residents would begin almost immediately, with letters to residents planned for 21 October 2022, and public events earmarked for 31 October and 1 November.  Regular newsletters would follow to those impacted by the development, and there would be a webpage dedicated to the development.

Residents had been informed in 2019 that some initial feasibility testing was in the pipeline.

The Corporate Head of Housing added that doing nothing on the site was not an option, as it would result in the units being re-built at a significant cost to the HRA and one that is likely to exceed the cost to the HRA of the proposed redevelopment.

The Committee Chair added that further Special Housing Committees were likely to be required to cover off key milestones, however this would be judged on a case-by-case basis.  Furthermore, the properties were on large plots of land, and part of the regeneration would see an increase on the density of housing.

Whilst acknowledging it would be long-term, the timescales of the project were currently unknown, and much would depend on the feasibility and viability studies.

The Corporate Head of Housing advised that Planning officers had been involved in the initial stages of the project, however advice was being sought about their continued involvement to prevent any pre-determination.  The Corporate Head of Law and Governance added that guidance would suggest an external Planning Consultant would be required who was extremely familiar with the policies of the Council.

A Member asked about flood alleviation, and was advised that a number of technical solutions would be available to mitigate the impact.  The feasibility study would establish the most appropriate method.  However any form of flooding in the area was extremely rare, and it was acknowledged that the nearby waterway was a canal rather than river.

Queries were expected from freehold property owners about Compulsory Purchase Orders.  The Committee Chair confirmed that they would be fairly recompensed and supported in any way possible, including the consideration of the option of moving into one of the new properties.

The Committee Chair advised that the Council did not intend to make a profit from the development, with the primary aim to deliver an affordable development.  Furthermore, a number of options would be delivered to Committee in terms of mixture of social and affordable rent.

The Corporate Head of Housing added that the spending profile would have to be closely monitored.  Avoiding carrying significant borrowing would mean that the option would remain to carry out simultaneous developments across the borough.

The Corporate Head of Housing advised the Runnymede Council Residents’ Association rep that the Council would be unable to block any right-to-buy requests on the development unless there was evidence that a property would be demolished within 24 months.  However, the likely risks would be made very clear in the event that any requests were made.

Recommended to full Council on 20 October that –

1)    Committee approved the recommendation to full Council of a supplementary revenue estimate to be spread over the next two years to proceed from RIBA Stage 1 to 3.

2)    Committee approved the recommendation to full Council to delegate authority to Housing Committee to proceed with RIBA Stage 1 following the resolution of recommendation (2) by full Council, noting that the project can be halted by Housing Committee if the project is not proven to be viable at the end of RIBA Stage 1.