Venue: Hackney Town Hall - Town Hall
Contact: Jackie Dally
FREEHOLD ACQUISITION OF 47 LEA BRIDGE ROAD E5 9QB
1.1.1 To approve the Council’s purchase of the freehold interest in 47 Lea Bridge Road at the price and on other terms set out in Appendix 1of the report and outlined in red on the plan at Appendix 2 of the report
1.1.2 To authorise the Corporate Director of Legal HR and Regulatory Services to agree the terms for the acquisition of the freehold interest at 47 Lea Bridge Road Hackney and to sign and complete all other relevant and ancillary legal documentation arising thereto on behalf of the Council.
1.1.3 To delegate to the Corporate Director of Finance and Resources authority to determine the most cost effective option in terms of financing the acquisition provided that it represents best value on the part of the Council.
REASONS FOR DECISION
1.2.1 Changes in the housing market and social welfare reforms have created a rise inhomeless applications and acceptances. The number of homeless applications for the 1st quarter of 2014/15 was 374 of which 56% were accepted as homeless by the Council. This has necessitated the use of expensive Annex accommodation to house applicants whilst being assessed and those that the Council has a statutory duty to house.
1.2.2 There are a number of projects being undertaken to bring additional properties in to use for temporary accommodation such as the Move on project, regeneration voids, the social lettings agency and incentives to landlords. However, the level of need continues to outstrip the availability of suitable temporary accommodation and it continues to be necessary to procure additional expensive nightly paid annex accommodation; mainly out of borough as there is no supply in Hackney. The Council continues to work to secure additional temporary accommodation within Hackney and has, for example, recently entered into a lease for an additional 53 units at the Metropolitan Hotel, which were occupied in 2 weeks.
1.2.3 In this context there is a clear case for the acquisition of 47 Lea Bridge Road which will accommodate up to 144 people within the 56 rooms. The added advantage of the Lea Bridge Road Hostel is the potential for future development in the event that demand for stage 1 accommodation reduces and the property becomes surplus to requirements.
1.2.4 As well as meeting the need for additional temporary accommodation the acquisition of this property will support the Council in achieving its financial objectives. The property is expected to produce a net income of £528,000 per annum which constitutes a net initial yield on capital invested of 8% per annum (see appendix 4 of the report).
. DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED
No alternative options have been considered as this is a stand-alone opportunity supported on its own merits.
RECORD OF CONFLICTS OF INTERESTS AND DISPENSATIONS GRANTED None