Decision details

RESOLVED:

1.    That Cabinet approves proceeding with the tender to secure development agreements for four identified council-owned sites to deliver housing, including units allocated to Adult Social Care for people with mental health needs, on a basis that fully funds the council’s capital expenditure.

2.    That Cabinet notes the four sites are as follows: 

a)    Chalkmead, Deans Road, Merstham RH1 3HE

b)    Keswick, Eastwick Park Avenue, Great Bookham KT23 3ND

c)    Longfield, Killicks, Cranleigh GU6 7BB   

d)    Meadowside, Knowle Park Avenue, Staines TW18 1AN

3.    That Cabinet approves delegated responsibility to agree the terms of the land transaction(s) (freehold or leasehold disposals), corresponding development agreement and associated legal documentation to the Executive Director for Environment, Property & Growth in consultation with Cabinet Members for Adult Social Care and Property, Infrastructure and Waste. The final agreements must ensure there is an appropriate return for the use of the council’s land taking into account the delivery of units allocated to ASC for people with mental health needs, plus that the council’s capital expenditure in enabling development of the sites is fully reimbursed.

4.    Confirms that work on developing the four sites should be paused with a report brought back to Cabinet for decision on next steps if the outcome of bids received means that the council’s capital expenditure in enabling development of the sites is not fully funded or if it is considered that the development agreements do not provide an appropriate return in line with the value of the land.

5.    Notes that a separate procurement process will be conducted to identify onsite support and care provision (for the units allocated to ASC) to avoid long-term support and care provision being tied into the development of the sites.

Reasons for Decisions:

·         Housing plays a fundamental part in people’s wellbeing, their employment, health and relationships. Housing conditions, accessibility and mix are key determinants of a thriving and sustainable workforce and economy. Housing also links strongly to poverty, including fuel poverty, the cost of living as well as climate change and net zero ambitions. There are strong economic, health and community drivers for seeking to improve housing, accommodation and homes in Surrey.

·         In March 2023 Cabinet adopted the ‘Housing, Homes and Accommodation Strategy for Surrey’ (Housing Strategy) and encouraged others to do likewise in a spirit of collective endeavour to address the evidenced housing crisis in Surrey.

·         Housing with care and support (also known as specialist housing) enables people with mental health needs to access the right health and social care at the right time, in the right place, with appropriate housing for residents that helps them to remain independent and ensures ‘no one is left behind’.

·         A report was presented to Cabinet in November 2021 setting out ASC’s ‘Right Homes, Right Support Strategy for people with mental health needs’. A second paper setting out the council’s delivery strategy for modernising and transforming accommodation with support for people with mental health needs was approved by Cabinet in April 2023. This included Corporate Feasibility funding allocation of £2.1m to undertake feasibility on five council-owned sites.

·         Feasibility studies were completed in November 2023, confirming the sites were suitable for development against defined criteria, however it was anticipated that unfunded borrowing would be required for the council to directly deliver the developments. Therefore, this option is not recommended.

·         As the council is unable to allocate unfunded capital borrowing to enable the proposed development to proceed, officers have engaged the housing market including registered providers of social housing, developers and funders to ascertain the appetite for market-led development. The findings are outlined in this report.

·         In February 2022, Cabinet agreed to close the council's in-house homes for Older People and “explore opportunities for developing the sites for alternative adult social care services”. This included the former Keswick, Chalkmead, Meadowside and Heathside care homes. It was also agreed that “the alternative use of any site will be prioritised in the context of Adult Social Care’s Accommodation with Care & Support Strategy”. The recommendations in this report support this.

(The decisions on this item can be call-in by the Adults and Health Select Committee)