Agenda item

The Committee was reminded that, at its meeting on 21st September, it had approved the disposal of the former traveller lands at the Glen Road (adjoining Glen Road Heights) to the Oaklee/Fold Housing Associations for the development of social housing at a premium of £1,575,000 and subject to the terms being agreed with the Council’s Legal Services and the Estates Manager.  The transfer was to be progressed by Oaklee as an Advance Land Purchase under the Department for Social Development’s Social Housing Development Programme.

            The Director of Property and Projects reported that, following subsequent discussions with representatives of Oaklee, the leading housing association, they had advised that the proposed acquisition of the Glen Road land had been conditioned by the Oaklee Homes Group Board which had indicated that it now preferred to have full planning permission for the proposed social housing scheme as a condition of completing an agreement to purchase.  Given that condition, Oaklee would seek Northern Ireland Housing Executive Full Project Approval for the scheme rather than progress it as an Advance Land Purchase as previously indicted.  That, in effect, meant that Oaklee would now be required to have its scheme fully approved by the Housing Executive by achieving key milestone events prior to concluding the land transfer from the Council.

            The Director explained that, whilst the provision of social housing in areas of high need was generally politically supportive, the negotiation for disposal of those sites could be protracted and difficult, particularly given the current property market where there was limited demand, which housing associations often sought to exploit in terms of their proposals for acquisition through their conditions of sale, representing site development costs as abnormals.  Oaklee had indicated that a conditional contract to purchase could be entered into immediately which would be completed at the previously agreed purchase premium which would become payable to the Council upon the grant of satisfactory planning consent.

            The Director indicated that, given the nature of the social housing scheme and the draft Belfast Metropolitan Area Plan Key Site Requirements for the land, Oaklee representatives had indicated that their Board would seek to progress the required land transfer from the Council following receipt of full planning permission and full Northern Ireland Housing Executive Project Approval rather than completing the purchase by way of an Advance Land Purchase.  The Association had indicated also that it would need to allow up to 18 months to secure full planning permission for the development.  Within that 18 month period, Oaklee should have sufficient time to complete the milestone requirements for full Northern Ireland Housing Executive Project Approval of the scheme proposals.

            In addition, Oaklee representatives had advised that the Board had approved a proposed social housing scheme and a full planning application for 92 social residential units had been prepared by its design team, which was ready for submission to the Planning Service.  The planning application would be made as soon as a contract to purchase had been agreed and community consultations commenced.  The Association had indicated further that it would execute a contract to purchase the site within 2 months of the Council’s decision to proceed.  The purchase would not be completed until it had secured satisfactory planning permission for its social housing development.  The receipt of a satisfactory planning consent would trigger the payment of the agreed purchase premium.

            The Director pointed out that, should the Council accept the conditional contract to purchase, Oaklee would be in a position to progress planning and commence community consultations within the shortest possible timeframe.  Accordingly, he recommended that the Committee approve the disposal of the lands to Oaklee Homes Group for £1,575,000, subject to detailed terms and a conditional contract to purchase being agreed with the Estates Management Unit and Legal Services.

            The Committee adopted the recommendation.