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Council changes Section 106 and stock transfer rules at former sheltered housing block
A London council has agreed to remove Section 106 and stock transfer rules on a housing association-owned block that ensured it remained as over-50s accommodation only.
Brent Council’s cabinet decided on Monday to tweak restrictions on the John Barker Court development to allow Network Homes to let or sell homes at the site to people of all ages.
A report to the cabinet claimed that the restrictions “are preventing the council from being able to nominate people on the waiting list who are in need of housing, regardless of their age”.
And it said 20,000-home landlord Network was finding it “extremely difficult” to sell shared ownership homes at the block because of a lack of interest from over-50s, who would mostly be unable to secure a mortgage because of their age.
John Barker Court was originally sheltered housing owned by Brent Council but was transferred to Willow Housing, a subsidiary of Network, in 2000.
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According to the report, a covenant was placed on the title of the block at the time “to ensure that even if the building itself was demolished or sold that the land would always be used for the purpose of social housing for the over-50s for a period of 40 years”.
The title also gave the council freedom to “consent to some other form of social housing use should it so wish”.
Network gained planning permission in February 2017 to demolish the sheltered accommodation block and rebuild it as 33 new homes – 16 for affordable rent and 17 for shared ownership.
The planning application specified that the new homes would be for over-50s and this was included in the Section 106 agreement with the council, the report said, but this restriction “did not form part of the planning justification”.
John Barker Court was redeveloped in December 2018.
Network “has formally requested” the rule change, the report added.
A spokesperson for Network said: “We’re really pleased that these new homes at John Barker Court will be available to the people who need them, including families and younger people looking to buy their own home.”
At the time of the transfer, agreed in the interest of “improvement refurbishment and new build”, social housing definitions did not include more recent “affordable” products so “it was envisaged that the land would be used solely for social housing (not affordable housing) for the over-50s”, the report said.
But the Housing and Regeneration Act 2008 expanded the definition of social housing to include below-market affordable products including shared ownership.
Council officers are able to change the Section 106 restrictions under delegated authority, but cabinet approval was required for the land transfer agreement change.
The report said that officers considered purchasing the scheme but its one-bedroom homes “would not address current need for three and four-bedroom homes within the borough”.
It added that removing the restrictions “could also provide the council with the opportunity to work with Network Homes to introduce key worker housing as part of our wider approach”.
Brent has a target to deliver 5,000 new affordable homes by the end of 2023/24, including 1,000 directly delivered by the council.
