Decision details

Approval of the Compulsory Purchase Order strategy for Tustin Estate Phase 2 Regeneration

RESOLVED:

1.  That the following be noted:

a)  (i) that initial demolition notices (pursuant to Schedule 5A Housing Act 1985) were served (as authorised by the 13 July 2021 cabinet meeting) on qualifying tenants suspending the council’s duty to complete any associated right to buy (RTB) applications and (ii) that such initial demolition notices will currently cease to be in force on 30 April 2025.

b)  the current position in relation to the delivery of 295 new homes at phase 2 of the Tustin Estate redevelopment:

·  A development partnership with BY Development Ltd (trading as Linkcity) to deliver the estate redevelopment, along with the financial plan to deliver the scheme, was agreed by cabinet in October 2022

·  The council appointed BY Development Ltd (trading as Linkcity) to bring forward the phased rebuilding of the Tustin Estate under a development agreement dated 8 November 2022

·  A planning application for phase 2 has been submitted in August 2024, with an expected target date for planning permission in January 2025

·  The council has successfully acquired 13 leaseholder interests in Heversham House

·  Only 15 leaseholder interests remain outstanding in Heversham House;

·  The council is pursuing a negotiated settlement with all remaining leaseholders situated within Heversham House with the intention to acquire these remaining interests by agreement without the need for the council to use its compulsory purchase powers. Cabinet notes that the council may need to use its compulsory purchase powers to acquire outstanding land and interests in the absence of a negotiated settlement to acquire such and 

·  The council is offering to rehouse all resident leaseholders who want to stay on the rebuilt Tustin Estate, a new leasehold home on a shared ownership or shared equity loan basis in phase 1 or 2. Phase 1 is anticipated to complete in April 2025.

2.  That it be agreed in principle, to use compulsory purchase powers under Section 226(1)(a) of the Town and Country Planning Act 1990 (“the 1990 Act”) and section 13 of the Local Government (Miscellaneous Provisions) Act 1976 for the acquisition of all land and interests (which are not already owned by the council) within the area of land shown for identification purposes edged black and bold on the plan at Appendix 2 of the report, for the purposes of facilitating the redevelopment, development and improvement of the land and securing the delivery of 295 new homes on the site in line with the planning application for phase 2 (“the Scheme”) thereby securing the continued redevelopment of the Tustin Estate subject to a formal resolution to make a compulsory purchase order (CPO) at a later date.

3.  That it be noted that a further report will be prepared and submitted to cabinet at a later date (if required) seeking cabinet’s formal resolution to make a CPO.

4.  That the director of planning and growth, in consultation with the managing director of Southwark Construction, be authorised on behalf of the council to:

·  Acquire for planning purposes all land and interests (which are not already owned by the council) within the area of land shown for identification purposes edged black and bold on the plan at Appendix 2 of the report and wider masterplan area as may be necessary to facilitate the scheme by agreement, including entering into negotiations with any third parties for the acquisition of the land interests and/or for new rights over their land (as appropriate), and the payment of compensation

·  Make any minor additions, deletions, or amendments to the extent of the land as shown on the plan at Appendix 2 of the report should the need arise, to include all land and interests required to facilitate the construction, maintenance, and use of the scheme; and

·  Appoint and/or retain such external professional advisors and consultants as are necessary to assist the council in facilitating the scheme, including in the promotion of any potential CPO and the settlement of any compensation claims.

5.  That the following be approved:

·  To apply to the Secretary of State for consent to (i) extend the initial demolition notices issued by the council dated 28 October 2021 in respect of the Tustin Estate and (ii) issue further initial demolition notices (under Schedule 5A of the Housing Act 1985) in respect the Tustin Estate

·  The service of further initial demolition notices under Schedule 5A Housing Act 1985 (subject to receipt of the Secretary of State’s consent) in order to suspend the council’s duty to complete right to buy applications in relation to qualifying tenants from exercising their right to buy their homes for a period of up to 7 years.

6.  That the following be approved:

·  To apply to the Secretary of State for redevelopment status in order to rely on Ground 10A of the Housing Act 1985 (in respect of any secure tenants).