Agenda item

To approve of the compulsory purchase order strategy for the Ledbury Estate Regeneration.

RESOLVED:

1.  That the current position in relation to the delivery of new homes at Phase 2 of the Ledbury Estate Renewal Scheme be noted as follows:

(i)  A constructioncontract with Higgins Partnerships Ltd to deliver bothPhase 1 and Phase 2of the Estate Redevelopment, along with the required budgets todeliver the Ledbury Estate Renewal scheme was agreedby cabinet in December2021 and March 2023 respectively.

(ii)  A planning application (22/AP/0554)for the redevelopment of both phases of the site, providing 80 homes on the first phase and 260 homes on the second phase was approved in December 2022.

(iii)  The council has already acquired 19 leasehold interests across the 4 Ledburytowers. 6 of these were in Bromyard House which facilitated successful vacant possession for Phase 1.

(iv)  On Phase 1, vacant possession was achieved on 25 July 2022 with a formal start on site date of 4 December 2023.

(v)  On Phase 2, there are currently 15 leasehold interests across the three remaining towers of Peterchurch House, Skenfrith House and Sarnesfield House (hereafter “the three towers”).

(vi)  The council is pursuinga negotiated settlement with all leaseholders situatedwithin the three remaining towers, with the intention to acquire these remaininginterests byagreement without the needfor the council to apply to use its compulsory purchase powers.

(vii)  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 interests.

(viii)  The councilis offering to rehouseall residentleaseholders who want to stay onthe rebuilt Ledbury Estate, ina new leaseholdhome on either an outright purchase or shared equityloan basis (subject to financialassessment), in compliance with thepolicies outlined in the Ledbury resident offer document.

(ix)  Phase 1 is currently anticipated to complete in June of 2026.

2.  That a further report be prepared and submitted to cabinet at a later date (if required) seeking cabinet’s formal resolution to make a compulsory purchase order (CPO).

3.  That the ongoing efforts to rehome residentsfrom the three towers, based on a critical health and safety risks, as detailed in the July 2024 Rehoming Notice section below. The following be agreed in principle:

(i)  To use its compulsorypurchase powers under Section 226(1)(a) of theTown and Country Planning Act 1990 (“the 1990 Act”) and section13 of the Local Government (Miscellaneous Provisions) Act1976 for theacquisition of all land and interests(which arenot alreadyowned bythe council) withinthe areaof landshown foridentification purposesedged blackand boldon theplan inAppendix 1 of the report,for thepurposes offacilitating theredevelopment, developmentand improvementof theland andsecuring thedelivery of 340new homeson thesite inline withthe planningapplication forPhase 2(“the Scheme”)thereby securingthe continuedredevelopment ofthe LedburyEstate, inline withthe original planningconsent (22/AP/0554)and associatedminor materialamendments application(24/AP/2136), subjectto aformal resolutionto makea CompulsoryPurchase Order(CPO) ata laterdate.

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:

(i)  Take all necessarysteps to secure themaking, confirmation, and implementation of theCPO, including thepublication andservice of all notices andthe presentation of the council’s case atpublic inquiry shouldone becalled.

(ii)  Acquire for planningpurposes allinterests inland andnew rightswithin theCPO areaas maybe necessaryto facilitate Phase2 ofthe Scheme,either byagreement orcompulsorily, includingentering intonegotiations with anythird partiesfor theacquisition of theland interestsand/or fornew rightsover their land(as appropriate),the paymentof compensation anddealing withany blightnotices servedin connectionwith theCPO.

(iii)  Approve agreementswith landowners setting out the termsfor the withdrawal of objections to the CPO, includingwhere appropriate seekingthe exclusionof land or newrights from the CPO or givingundertakings as to the enforcementof the terms of the CPO.

(iv)  Make any minor additions, deletions,or amendments tothe extent of the land to be included inthe CPO asshown in Appendix 1 of the report shouldthe needarise, to include all interestsin land and rights required to facilitate the construction, maintenance, anduse of the scheme.

(v)  Take all necessaryactions in relationto anylegal proceedingsrelating tothe CPO,including defendingor settling(as appropriate)any compensationclaims referredto theLands Chamberof theUpper Tribunaldue tothe makingor implementationof theCPO, andto takeall necessarysteps inrespect of anyother legalproceedings thatrelate tothe making,confirmation, orimplementation ofthe CPO and

(vi)  Appoint and/or retain such externalprofessional advisors and consultants as are necessaryto assist the council in facilitating thedevelopment of Phase 2 of the Scheme, including in the promotion of theCPO andthe settlementof any compensation claims.

(vii)  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).

(viii)  The use of the overall works contingency budget to deliver the CPO as set out in paragraphs 98 to 105 of the report.

5.  That for thepurpose of making and confirming the CPO, it’sacknowledgement of theavailable budget of £212,000,000 for the entire Ledbury Estate renewal scheme budget(with details outlined inthe financial implications of the report) be confirmed.