To approve the acquisition of properties at Barton Park to the Council, including property current held by Oxford City Housing (Investment) Limited, to be held in the Housing Revenue Account (HRA); and recommending to Council an in-year budget change to the HRA Capital Budget and associated changes to the HRA Business Plan to fund and operationalise this.

Recommendation(s): That the Cabinet Member resolves to:

1. Approve the acquisition of 10 new affordable homes at Barton Park (Phase 3) direct into the Housing Revenue Account (HRA). These units (listed in Appendix 1) will be retained in the HRA, removing OCH(I)L from any involvement with these properties.

2. Approve that the charging of these purchases (at the value shown in Appendix 2) is to the allocated HRA Captial budget for ‘Purchases of Properties from OX Place’, until such time as Council may allocate a special budget for the purpose of acquiring the Social Rent homes at Barton Park into the HRA.

3. Delegate authority to the Executive Director - Development, in consultation with the Cabinet Member for Housing and Communities; the Head of Financial Services/Section 151 Officer; and the Council’s Monitoring Officer, to:

i. Agree the terms of the acquisition of the freehold interest relating to the ten properties and any associated land subject to it meeting Existing Use Value for Social Rent (or an equivalent valuation methodology);

ii. Agree to the purchase of the ten Social Rented properties and any associated land from Barton Park in accordance with the agreement with Barton Oxford LLP and Oxford City Council dated December 2014;

iii. Enter into all agreements necessary, for which powers are not already delegated under the scheme of delegation, to facilitate the transfer of the properties at i and ii above, including but not limited to, any documentation necessary to transfer the benefit of any continuing warranties and guarantees relating to the properties to the Council.

1.       In 2013 the Council took a decision to enter a legal agreement with Barton (Oxford) LLP to purchase all the Social Rent homes developed on Barton Park (40% of the development up to 354 homes). This agreement was signed in December 2014.

2.       The City Executive Board and the OCHL Shareholder subsequently approved the purchase from the Council by OCH(I)L of the social rented homes being developed at Barton Park. This programme of acquisition was expected to comprise 354 homes (all at Social Rent) across all phases of the scheme.

3.       A report is being prepared for October Cabinet and November Council in relation to this site, to propose that the properties held by OCH(I)L are transferred back to the Council, and that future homes completed by the developer are retained by the Council in the HRA, rather than to continue to be sold to the housing company.

4.       This report seeks to secure Council-side approvals, budget and delegations to enable the acquisition of 10 properties on Barton Phase 3 (Redrow) development.

5.       The ten properties referred to in this report are Phase 3 (Redrow) units scheduled for handover between September and November 2024. They have not yet been acquired by OCH(I)L. The timing of these completions is ahead of November Council, so a Single Member Decision is proposed to allocate existing HRA capital budget for this purpose to facilitate retaining them in the HRA, rather than sell and then purchase back later. This will ensure that the Council avoids duplicative costs as there would then be two additional transfers and associated legal costs if they are transferred to from the developer to OCC, from OCC to OCH(i)L and later back to OCC.

6.       It is proposed that the Council should acquire these 10 units directly into the HRA. Details of properties to be acquired are listed in Appendix 1. These properties will be retained in the HRA and not be sold on to OCH(I)L removing OCH(I)L involvement in these units.

7.       Acquiring the properties directly into the HRA means the properties can be let quickly to Council tenants as well as saving money in Stamp Duty Land Tax, that would have been payable by OCH(I)L.

8.       Future tenants will be offered standard Council Secure Tenancy agreements (or Introductory Tenancies as appropriate) for these new homes let at Social Rent.

9.       The Council will need to allocate sufficient future capital budget in the HRA for this purpose in future years, amending the HRA business plan and revenue budgets accordingly.