Report of the Executive Director, Neighbourhoods and Community Care to Cabinet on 10th September, 2008
1 Outcome and Sustainability
This proposal will bring 32 currently vacant properties in Page Hall back into use to help meet the need for low cost, improved housing for sale in the Fir Vale area. Five of the properties will be used to showcase refurbishment to innovative design standards for a property type, which is prevalent throughout Sheffield. The standards will offer elements which can be replicated throughout the Page Hall area, and will contribute to the sustainability of the area.
Initially, sale of the properties will be targeted at residents from the Skinnerthorpe Road area where the Council is working with the community to regenerate the neighbourhoods and its centre. By providing better quality housing this proposal will provide the conditions to support improved health and educational attainment outcomes for the families concerned. It will also demonstrate ways in which householders can tackle environmental and fuel poverty issues.
2 Summary
This report seeks approval for Sheffield City Council to acquire, improve and sell 32 empty properties currently owned by South Yorkshire Housing Association (SYHA) and to refurbish and sell a council sundry property. 5 of the properties will be refurbished to become 4 show homes
There will then be open days and exhibitions for a wide range of people including builders, architects and the public to see the changes that can be made to this type of house, which is found across the city.
The remaining properties will be refurbished to Decent Homes standard and all the properties will be sold. Initially the sale of the properties will be to residents at Skinnerthorpe and Bagley Rd affected by the demolition proposals.
3 Background
During the development of the Burngreave and Fir Vale Master Plan in 2004, the early options proposed by the Masterplan Consultants suggested various levels of intervention for Page Hall including an option for demolition.
The Burngreave and Fir Vale Masterplan was approved by Cabinet at its meeting on 25 May 2005. However, it was resolved that there be further consultation around the future of Page Hall with the Page Hall residents to develop a solution to the long-term problems of poor environment, child safety and a weak housing market.
The result of this extended consultation was the Page Hall Design Study, approved by Cabinet at its meeting on 28 November 2007. The report detailed the background to the scheme and the interventions proposed. These included:
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Providing new and upgrading existing green spaces in the area
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Environmental improvements along roads to encourage green links in the area
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The refurbishment of properties purchased with Housing Market Renewal funds
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Home zone areas to make the streets safer for walking and children's play.
During 2005, 32 Houses within the Page Hall area were purchased by SYHA using Housing Market Renewal Funding. Although the properties were originally acquired for demolition and site assembly, following extensive further consultation with the community, the masterplan for the area approved by the Council in 2007 sets out a strategy for bringing properties back into use through renovation and sale.
There is an opportunity to increase the pool of properties available in the lower quartile price range in the city and help contribute to the wider regeneration of the area.
4 Environmental and sustainability issues: The Showcase Refurbishment Project
The City Council organised a competition for members of the HMR Designer Panel for the showcase refurbishment of 5 of the empty properties in Page Hall currently owned by SYHA. This project forms a key element of the plans to transform the image of Page Hall as a residential neighbourhood, attracting new residents into the area whilst improving the environment for the existing community.
The key objectives for the Page Hall Showcase Housing Refurbishment project are:
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To demonstrate innovative but affordable refurbishment options for the housing type found in Page Hall.
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To kick-start the regeneration of the housing in the area by bringing 5 empty properties back into use.
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To set a high standard of design for future housing regeneration projects both locally and nationally, linking in with the Building Research Establishments 'Rethinking Housing Refurbishment' to bring about a step change in the way existing properties are refurbished.
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To provide high-quality affordable housing to owner occupiers choosing to invest in Page Hall.
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To create high-quality homes that will raise the local price ceiling, bringing it closer to similar housing areas in other parts of the city.
The competition required that Architects submit suggestions for improving identified properties under the following themes:
21st Century Terrace:
The ECO Terrace:
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Reduce carbon footprint compared to existing home for example by using solar panels to provide hot water to the property and increasing and improving insulation
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Upgrade to beyond existing sustainability standards
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Minimal internal alterations
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Decorative makeover using sustainable products and materials
Twice the Terrace:
The Healthy Terrace:
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A non-radical refurbishment that will improve the health of the occupants. We may also explore fitting SMART technology within the home to help regulate appliances.
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Alterations to improve safety
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Alterations to meet some lifetime homes aspirations.
The vacant properties present a unique opportunity to show what can be achieved with small pre1919 terraced houses in order to make them a more viable and attractive housing option for modern living.
The winners of the architectural ideas competition were announced in November 2007.
The Council are now working to ensure that the winning designs are deliverable and are compliant with all statutory design and planning regulations.
Once the showcase homes are refurbished open days and exhibitions will be held to enable residents to see the changes that can be made. The properties will then be sold as set out in paragraph 6.
Decency Refurbishment Scheme
Options Appraisal
In February 2008, an options appraisal was carried out to help inform future action for the remaining empty properties owned by South Yorkshire
A summary of the options follows:
Do nothing
This would mean releasing all the properties in their current unimproved condition, onto the open market. This option was discounted as it would not have any positive impact on either the housing market or the overall sustainability of the area.
Do limited works
This would include carrying out works to decency standards and releasing all the properties.
Do substantial improvement works:
This would mean all of the properties would be improved in line with the design standards agreed as part of the Showcase refurbishment project properties and released in the first instance to Skinnerthorpe and Bagley Road residents affected by the acquisition and demolition of their homes.
This option was discounted as it was very expensive and the available HMR funding would not cover the total costs.
Mixed approach
This would involve releasing some properties unimproved, and refurbishing other properties in line with decent homes standards. This option was discounted because it would have less impact on the market and sustainability and would therefore not represent best value in terms of its regeneration output.
Retention by SYHA for Social Rent
SYHA would improve the properties to decency standard and rent them out as family homes. This option was discounted as SYHA indicated that they may not be able to secure funding to refurbish all the empty properties. In addition, Page Hall is an area with a high proportion of rented homes.
A way forward was proposed that included the following actions:
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Sheffield City Council acquires 32 properties from South Yorkshire Housing Association with a view to using HMR funding to.
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Improve five of the empty properties under the Showcase refurbishment scheme.
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Bring the remaining 27 of the transferred properties plus 1 sundry Council property previously declared as surplus, to the equivalent of the Decent Homes standard.
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The refurbished properties will be sold and sales will be targeted initially to residents affected by acquisition and demolition in Skinnerthorpe and Bagley Roads, then to the wider market.
It was felt that the above actions would best meet the strategic aims of the Housing Market Renewal Programme
6 Disposal
It is proposed to sell the refurbished dwellings initially to a restricted market, targeting Skinnerthorpe and Bagley Road residents whose homes are affected by demolition proposals to facilitate the repurchase and redevelopment of those roads.
The properties would be offered at a fixed price, based on their Market Value, and the tender documents and contract for sale will have a restriction placed on the sale that the property can only be sold to people who intend to use as their principal home.
The full details of this disposal method would be decided by the Acting Head of Corporate Property Division in consultation with the Director of Housing. Any remaining properties would be released via an open market sale.
This option offers the best opportunity to improve the quality of housing available locally and would help increase the sustainability of the area. The option would also offer an opportunity to market improved homes, at a lower price range to residents who wish to remain in the neighbourhood.
7 Delivery Plan
The City Council will acquire the properties from South Yorkshire Housing Association for a nominal cost of £1 per property.
The work will be carried out by Kier Sheffield LLP under the CBS contract framework subject to a satisfactory outcome to a negotiation on price for the work on both the Showcase Refurbishment and the Decency Refurbishment schemes.
This scheme allows the City Council, through delegated powers to the Head of Service of Design and Project Management, to negotiate contracts with Kier Sheffield LLP in return for the establishment and delivery of an Education, Training and Employment plan for the most disadvantaged individuals across the City.
Once the refurbishment has taken place, the properties will be sold in accordance with the criteria agreed between the Acting Head of Corporate Property Division and the Director of Housing.
Properties will be refurbished and released for sale via a phased approach, to ensure that the housing market is not flooded and deflating prices within the Page Hall area. Prospective owners from the Skinnerthorpe and Bagley Road area may be able to take advantage of a Relocation Appreciation Loan to help meet any gap between the market value of their existing home and the cost of purchasing one of the refurbished properties in Page Hall.
8 Financial Implications
The Council has secured Housing Market Renewal funding until March 2011. This will pay for the costs of:
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Acquiring the properties from South Yorkshire Housing Association
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Legal fees associated with the acquisition of the properties
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Professional fees associated with advertising and selling the properties via informal tender
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Refurbishing and remodelling 5 properties in line with the showcase refurbishment project
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Refurbishing the remaining empty properties in Council ownership up to a decent homes standard
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Securing empty properties prior to refurbishment and sale
The negotiated price for both the Showcase and Decency refurbishment work will be established by the City Council's Design and Project Management through benchmarking with other comparable schemes to arrive at appropriate market rates.
The funding agreement between government and the Council requires that where HMR funding is used for the acquisition of land or property any subsequent receipt following a sail must be recycled within the HMR programme.
A Table of associated costs is available in part B of this report.
9 Human Rights Implications
There are no Human Rights Implications linked with the disposal of these long-term vacant properties, some of which are in need of significant repair.
10 Equality of Opportunities
The regeneration of Fir Vale is aimed at improving the quality of life for existing and future residents by improving housing quality and choice.
A full equalities impact assessment has been completed for the proposals set out in this report and is available on request.
11 Legal implications
The City Council has power to acquire land and housing with a view to its subsequent sale. The Council also has power to sell Council houses. However, the Secretary of States consent is necessary before housing can be sold. A number of general consents have been given. It is not yet clear whether any of them will apply to the proposed disposals but if necessary, specific consent will be sought.
12 Recommendations
12.1 For the City Council to acquire the 32 empty properties listed in Appendix A and currently owned by SYHA and that the Acting Head of Corporate Property Division be authorised to (i) negotiate and agree terms for the acquisition of dwellings listed not owned by the City Council and (ii) instruct the Assistant Chief Executive, Legal and Governance to complete the necessary legal documentation.
12.2 To refurbish 5 of these properties into 4 showcase properties, using Housing Market Renewal Funds as proposed in the Urban Design Study approved by Cabinet on 28 November 2007.
12.3 To refurbish a Council sundry property (address listed at Appendix A) previously declared surplus, and dispose of this property in line with the aims stated in Paragraph 6 of this report.
12.4 To refurbish the remaining 27 properties to decent homes standard using Housing Market Renewal funds.
12.5 To use the capital receipts raised from the sale of the properties and reinvest in capital projects within the Page Hall Urban Design Study boundary
12.6 That the refurbishment work is carried out by Kier Sheffield LLP under the Jobs Compact Scheme subject to the satisfactory outcome of negotiation on price.
12.7 That the improved properties will be disposed subject to the following restriction: The properties are to be sold for use as an only or principal home
12.8 The Head of Corporate Property Division in consultation with the Director of Housing develop arrangements for the disposal of the refurbished properties in accordance with the proposals in paragraph 6 of the report.